Centreco (UK) Limited, the leading installer of commercial solar energy systems, has seen a marked increase in the take up of their services to address the impact of the UK government’s Minimum Energy Efficient Standards (MEES) on the leasing of commercial premises.
Originally introduced in 2018 by the government as part of a wider strategy to tackle climate change, the Minimum Energy Efficient Standards (MEES) make it unlawful to let residential or commercial buildings with an Energy Performance Certificate (EPC) rating of F or G – effectively the two lowest grades of efficiency. These restrictions are being extended from April 2023 to cover leases is already in place, thereby capturing all short and long term commercial lets.
The consequences for landlords of not meeting with these regulations are significant with penalties up to a maximum of £150,000 being enforced by Trading Standards.
Landlords can be exempt if they can demonstrate that qualifying energy efficiency improvements have been carried out to these properties. Many landlords are therefore turning to Centreco to provide an immediate improvement of the EPC rating for a property by installing a solar energy system, as it provides the strongest commercial case for landlords, whilst benefiting both sitting and future tenants.
A solar energy system will provide an immediate uplift in the EPC rating of a building and in virtually all instances will overcome the implications of MEES for a commercial landlord, whilst delivering the wider environmental benefits brought by self-generated renewable energy.
Landlords are also able to further benefit from a commercial solar energy system as they can use it to generate additional revenue.
Typically, a roof-top or ground mounted system will generate electricity at an equivalent cost rate of 2-4p per kWh, over a 25-year plus period. With commercial electricity rates from the grid currently averaging 30-40p per kWh, landlords could be selling electricity back to a tenant through a simple Power Purchase Agreement at a rate below that open market benchmark and generate substantial returns.
Centreco’s Business Development Director, Tom Knox. says “there is significant scope to earn additional revenue, improve returns on capital employed and increase the value of the property asset, whilst also benefiting the tenant with significantly cheaper energy costs than they could access in the wider market.
With the increasing restrictions of the MEES legislation and the ever-escalating price of electricity, so Centreco are seeing increased demand for solar energy systems from landlords to deliver environmental and financial benefits whilst delivering an upside for their tenants.
Solar energy offers a win-win for the landlord and tenant.”
If you’re a commercial landlord and you are interested in finding out more, why not give Centreco a call on 01257 208 943 today and see how a solar energy system can work for your commercial property portfolio.
10th June 2022
