The power of an EPC Plus/Decarbonisation report

When it comes to future-proofing commercial assets, Vital Direct are experts in helping clients identify the most cost-effective route to compliance with the proposed Minimum Energy Efficiency Standards (MEES) Phase 2 and full decarbonisation of a commercial rental property.

The current proposal suggests that by 2030, commercial properties must achieve a minimum EPC rating of Grade B to be legally let, with the certificate lodged on the government database. While this legislation is still at proposal stage and not yet confirmed, many forward-thinking clients are already acting — improving portfolios well beyond the current minimum requirement of Grade E.

Project Overview – Industrial Units in Caerphilly

In this example, our client owned two industrial units in Caerphilly and wanted to improve, decarbonise, and future-proof the assets — not only to increase capital value, but also to ensure strong rental appeal in line with proposed MEES Phase 2.

Both units:

• Had similar footprints
• Were constructed in the 1980s
• Used gas boilers (fossil fuels) for heating
• Had outdated tungsten lighting
• Had poor insulation to internal walls
• Comprised approximately:
  • 90% warehouse space
  • 10% offices, toilets, kitchen/breakout areas

Step 1: Establishing the Baseline

The client’s target was clear — achieve Grade B for both units.

They first commissioned draft “as-is” EPCs to establish the baseline. Both units returned a Grade E.

Step 2: Commissioning an EPC Plus Upgrade Report

Vital then carried out detailed EPC Plus upgrade reports to determine the most effective improvement pathway.

These reports include:

• Estimated capital expenditure
• Projected carbon emission savings
• Operational cost savings
• Payback periods
• Minimum technical specifications for each improvement measure
• Combined impact modelling of measures

The “Rollercoaster Effect” – Why Combining Measures Matters

Section 3.0 of the report presents the financial breakdown for each suggested improvement.

Section 4.0 is where the real value becomes evident.

This section demonstrates the cumulative impact of combining measures — showing how one upgrade influences the next. Rather than isolated improvements, the report models the building holistically, creating a clear pathway from:

Grade E → Grade A (fully electric, decarbonised asset)

This “rollercoaster effect” allows clients to:

• Understand interaction between measures
• Avoid over-specifying or under-specifying works
• Optimise capital investment
• Make informed strategic decisions

Step 3: Verifying Specifications Before Capital Spend

Before purchasing materials or commencing works, the client consulted their M&E and building contractors to scope and specify upgrades.

Crucially, they then commissioned a draft predicted EPC to confirm that the chosen specifications would achieve the desired rating.

Once Vital conducts a site survey and produces a draft EPC, a “digital twin” of the building is effectively created.

This allows:

• Scenario modelling
• Specification adjustments
• Outcome grade predictions
• Fine-tuning of performance targets

This process removes guesswork and significantly reduces risk before capital is deployed.

The Completed Works

Works undertaken included:

• Complete removal of gas infrastructure
• Installation of air conditioning split systems (Air Source Heat Pumps – ASHP) in office areas
• Infrared radiant heating in warehouse areas (comfort heating)
• Full LED lighting upgrade (150 lumens per kWh lamps)
• Additional insulation to office walls and ceilings

The Results

After works completion, Vital revisited the site to verify installations and prepare new draft EPCs prior to lodgement.

• Unit A achieved an excellent Grade A
• Unit B achieved the target Grade B

The client was delighted — not just with the ratings, but with the structured, data-driven process that ensured investment certainty and long-term asset resilience.

Why an EPC Plus Report Matters

An EPC Plus / Decarbonisation report provides:

✔ A clear compliance roadmap
✔ Financial clarity before capital spend
✔ Carbon reduction modelling
✔ Risk reduction through predictive grading
✔ Long-term portfolio strategy alignment

For landlords looking to stay ahead of MEES Phase 2 and protect asset value, this structured approach provides confidence and measurable results.

If you are considering similar projects, contact Vital today on 0345 111 7700 for a no-obligation quote.