How to Improve an EPC Rating Without Replacing Your HVAC System

One of the biggest misconceptions in commercial property is that improving an Energy Performance Certificate rating automatically requires a complete replacement of heating, ventilation and air conditioning systems.

For many landlords and asset managers, the assumption is simple: “If we need to improve our EPC, we need a new plant room.”

In reality, that is often not the case. As commercial property owners prepare for the Government’s proposed EPC B requirements for larger rented buildings from 2031, meaningful EPC improvements can often be achieved without major capital expenditure.

The key is understanding where the greatest opportunities exist before committing to expensive plant replacement.

Why HVAC replacement should not be your starting point

HVAC systems are often one of the largest energy consumers within commercial buildings, but that does not necessarily mean they need replacing.

Before committing to major plant investment, property owners should consider whether existing systems can be optimised through improved controls, operating schedules and system performance.

The most useful question is often: “How much improvement can we achieve before replacing the plant?” The answer may be more than expected.

1. Optimise existing building systems

Over time, occupancy patterns change, controls are adjusted and equipment performance declines. Common opportunities include:

• Recommissioning building systems
• Correcting operating schedules
• Reviewing temperature set points
• Balancing heating and cooling distribution
• Improving equipment sequencing

These measures can reduce energy waste and improve operational efficiency with relatively modest investment.

2. Upgrade building controls

Modern controls can significantly improve building performance without wholesale plant replacement. Potential improvements include:

• Smart scheduling
• Occupancy-based controls
• Zoning strategies
• Enhanced building management system functionality
• Improved monitoring and reporting

Controls optimisation can reduce energy consumption and, depending on the building and its existing specification, contribute towards EPC improvement.

3. Upgrade lighting

LED lighting remains one of the simplest and potentially most cost-effective improvements available. Benefits can include:

• Reduced electricity consumption
• Lower maintenance costs
• Improved occupant experience
• Immediate operational savings
• Potential EPC improvements

Across larger portfolios, these savings can quickly become significant.

4. Improve the building fabric

Smaller, targeted fabric improvements can also provide value without major refurbishment. Examples include:

• Draught-proofing
• Improving accessible insulation
• Addressing air leakage
• Upgrading doors and seals
• Improving roof insulation where practical

Reducing heating and cooling demand can allow existing systems to operate more efficiently.

The opportunity to move from EPC D to C

Depending on the building, moving from EPC D to C may be achievable through a combination of relatively straightforward measures such as:

• Lighting upgrades
• Controls improvements
• Building optimisation
• Air tightness measures
• Targeted fabric improvements

Every building is different, however, and the EPC impact of individual measures should be assessed before investment decisions are made. The bigger challenge may be progressing from EPC C towards EPC B, where more substantial interventions could become necessary. Our breakdown of the real cost of taking a commercial office from D to B sets out what that step typically involves.

It is also important to remember that the previously proposed 2027 EPC C milestone is not being taken forward by Government.

What this means for MEES 2031

The Government has confirmed its intention that, from 2031, privately rented non-domestic buildings over 1,000m² in England and Wales would need to reach EPC B, where cost-effective. However, this is proposed policy and is not yet law. Secondary legislation will be required before the new requirement takes effect. The existing MEES minimum standard for relevant privately rented non-domestic property remains EPC E, subject to the applicable regulations and exemptions.

Scotland and Northern Ireland sit outside this entirely. Neither has a minimum EPC band in force for commercial property, so if your portfolio crosses borders the picture is not the same everywhere.

For larger rented commercial buildings, EPC B by 2031 should therefore be treated as an important planning consideration, rather than something to leave until the last minute. A phased approach can allow landlords to:

• Improve EPC ratings
• Reduce energy costs
• Spread capital expenditure
• Identify cost-effective improvements
• Create a clearer pathway towards future compliance

Why smaller commercial buildings should not be overlooked

The proposed EPC B requirement focuses on privately rented non-domestic buildings over 1,000m². For buildings below that threshold, the Government’s current stated intention is for the existing EPC E minimum to continue.

But this does not mean smaller buildings can safely be ignored. The regulatory landscape is continuing to evolve, and landlords should not assume that the 1,000m² threshold will permanently protect smaller properties from tighter MEES requirements in the future.

The direction of travel is clear. Energy performance is becoming increasingly important across the commercial property sector, and poor energy performance can already affect:

• Tenant appeal
• Operating costs
• Refurbishment requirements
• Investment attractiveness
• Future regulatory risk

Forward-thinking property owners should therefore review their entire portfolio, not just the buildings currently affected by proposed regulation. The objective should not simply be compliance with today’s rules. It should be preparing assets for tomorrow’s requirements.

Do not default to high capital expenditure

Improving EPC performance does not automatically mean replacing major plant. Before committing to significant HVAC expenditure, landlords should understand what can be achieved through optimisation, controls, lighting and targeted fabric improvements. The most effective EPC strategies are rarely about spending more. They are about spending smarter.

How Vital Direct can help

At Vital Direct, we help commercial property owners, landlords and asset managers identify practical and cost-effective routes to improving EPC performance across individual buildings and entire portfolios.

Our EPC Plus advisory reports assess building performance, identify improvement opportunities and develop practical pathways towards EPC B, all-electric operation and Net Zero in Operation objectives.

For many buildings, the first step is not replacing plant. It is understanding how to get the best performance from the assets you already have.

You can contact the team at Vital on 0345 111 7700.