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All-Electric EPC Upgrade: Marchwood Industrial Unit from D77 to B41
A large industrial unit at Marchwood, managed in partnership with Associated British Ports (ABP), moved from an Energy Performance Certificate (EPC) rating of D77 in May 2023 to B41 by March 2025. The route there was an all-electric one: a comprehensive EPC Plus assessment, an LED lighting upgrade, and modern Mitsubishi heating, ventilation and air conditioning (HVAC) systems replacing what was, at the outset, a single electric panel heater in one office. This case study sets out what was done, what it cost relative to the savings identified, and why the all-electric route matters for industrial landlords planning ahead of the proposed 2030 Minimum Energy Efficiency Standards (MEES) threshold.
The Starting Point: EPC D77 and Almost No Climate Control
When Vital Direct first assessed the building in May 2023, the unit achieved an EPC rating of D77. That headline number understated the practical problems:
- Virtually no HVAC provision across the unit, aside from a small electric panel heater in an office area
- Outdated, inefficient building systems
- Poor lighting performance across operational areas
- Limited environmental controls in occupied spaces
Left as it was, the building faced rising operational costs, weakening tenant appeal, and a tightening regulatory clock. Under current MEES rules a commercial property rated F or G cannot legally be let, and the proposed trajectory points to a minimum of EPC B by 2030. A D-rated industrial unit with no meaningful climate control sits squarely in the at-risk category.
The Brief from ABP
Working with the Project Manager at Associated British Ports, Vital Direct supported the refurbishment and energy optimisation of the unit with five clear goals:
- Improve the building’s EPC rating
- Reduce operational energy consumption
- Transition the property towards an all-electric future
- Enhance occupant comfort and usability
- Increase long-term asset value and compliance headroom
Step One: EPC Plus Assessment and Costed Roadmap
The starting point was a full commercial EPC assessment and site survey to establish baseline performance, followed by an EPC Plus Report identifying practical, costed improvement options.
The report modelled each measure individually and cumulatively, with indicative capital cost, carbon savings and payback period for every option. The tables below are taken from the original EPC Plus Report against the D77 baseline:
| Option | Recommended measure | Rating after improvement | EPC score improvement | CO2 saving (kg/yr) | Indicative capital cost | Operational cost | Saving | Payback |
|---|---|---|---|---|---|---|---|---|
| Baseline | Baseline rating | D77 | — | — | — | £18,197 | — | — |
| 1 | Replace existing heating system in office with split system | C70 | 7 | 1,164 | £5,000 | £16,443 | £1,754 | 2.9 years |
| 2 | Replace existing heating system in staffroom and kitchenette with split systems | C57 | 20 | 3,079 | £15,000 | £13,426 | £4,771 | 3.1 years |
| 3 | Investigate existing lighting and upgrade to LED luminaires where necessary | C67 | 10 | 1,488 | £50,000 | £15,553 | £2,644 | 18.9 years |
| 4 | Install PV arrays | C70 | 7 | 1,046 | £20,000 | £16,319 | £1,878 | 10.6 years |
| Options | Recommended measures | Rating after improvement | EPC score improvement | CO2 saving (kg/yr) | Indicative capital cost | Operational cost | Saving | Payback |
|---|---|---|---|---|---|---|---|---|
| Baseline | Baseline rating | D77 | — | — | — | £18,197 | — | — |
| 1 | Replace existing heating system in office with split system | C70 | 7 | 1,164 | £5,000 | £16,443 | £1,754 | 2.9 years |
| 1+2 | Above plus: replace existing heating system in staffroom and kitchenette with split systems | B49 | 28 | 4,242 | £20,000 | £11,672 | £6,525 | 3.1 years |
| 1+2+3 | Above plus: investigate existing lighting and upgrade to LED luminaires where necessary | B31 | 46 | 6,923 | £70,000 | £7,204 | £10,993 | 6.4 years |
| 1+2+3+4 | All of the above plus: install PV arrays | A24 | 53 | 7,969 | £90,000 | £5,325 | £12,872 | 7.0 years |
The cumulative modelling showed a credible path from D77 to B31, and to A24 with photovoltaic (PV) arrays added. The works actually carried out, described below, took the building to its reassessed rating of B41, with further headroom identified should the asset need to go further as standards tighten.
Step Two: LED Lighting Upgrade
Energy-efficient LED lighting was installed throughout the building, cutting electricity consumption while improving lighting quality across operational areas. The benefits were immediate:
- Lower energy usage
- Reduced maintenance requirements
- Improved workplace visibility
- Enhanced operational efficiency
Step Three: All-Electric Mitsubishi HVAC
The major intervention was the installation of modern Mitsubishi HVAC systems across three separate zones:
- 2 x Mitsubishi SRC20ZS-W/W2 units
- 1 x Mitsubishi SRC20ZS-W unit
These high-efficiency systems delivered effective heating and cooling throughout the property, replacing the previously inadequate arrangement and completing the building’s transition to an all-electric strategy. The result: improved thermal comfort, higher energy efficiency, reduced carbon emissions and lower operating costs.
The Result: D77 to B41 in Under Two Years
When Vital Direct returned to reassess the building in March 2025, the combination of the LED upgrade and the new HVAC infrastructure had lifted the unit from EPC D77 to EPC B41.
That puts the building comfortably ahead of the proposed 2027 EPC C milestone and within reach of the proposed 2030 EPC B threshold, transforming it from a potential stranded asset into a future-ready, lettable industrial unit.
What This Means for Industrial Landlords
This project shows that older industrial stock with minimal building services is not a lost cause. With a costed roadmap and a phased, all-electric approach, a D-rated unit can reach B-territory without speculative spending: every measure here was modelled with its capital cost, savings and payback period before a single unit was installed.
Vital Direct helps commercial property owners, landlords and facilities managers improve building performance through commercial EPC assessments, EPC improvement strategies, HVAC optimisation, LED lighting upgrades and net zero transition support. Call us today on 0345 111 7700 to discuss how your industrial assets measure up against the 2030 threshold.