The National PRS EPC Exemptions Register

If a landlord of a commercial property believes that an EPC F or G rated property that they let, qualifies for an exemption from the minimum energy efficiency standard, that exemption must be registered on the PRS Exemptions Register – a self-certification database.

Where a recommended measure is not a “relevant energy efficiency improvement” because the cost of purchasing and installing it does not meet the 7 Year Payback test (Regulation 28(3)).

The prohibition on letting non-domestic property with an EPC rating of below an E rating, does not apply if a landlord can show that the cost of purchasing and installing a recommended improvement, or improvements does not meet a simple 7 year payback test.

A measure, or a package of measures, will fail the 7 year payback test where the expected value of savings on energy bills that the measure (or package of measures) is expected to achieve over a period of 7 years, starting with the date the installation is completed, are less than the cost of repaying it. The formula for the 7 year payback test is set out in regulation 28(3) – (8) and are described in chapter 2 of the non-domestic guidance.

Information required: if registering an exemption of this type, the landlord should upload copies of 3 quotes for the cost of purchasing and installing the measure from qualified installers, and confirmation that the landlord (or where the landlord is not a company under S1 of the Companies Act 2006, confirmation that a director)(or in any other case, confirmation that a person exercising management control in relation to the landlord) is satisfied that it does not meet the 7 year payback rule. The landlord should also upload a copy of the cost calculations made to demonstrate this.

How long will the EPC exemption certificate last?

The exemption will last 5 years; after this time it will expire and the landlord must try again to improve the property’s EPC rating to meet the minimum level of energy efficiency. If this cannot be achieved then a further exemption may be registered.

The full guidance on this can be found on the below link:

Guidance on PRS exemptions and Exemptions Register evidence requirements