All homes have an Energy Performance (EPC) rating, ranging from A to G (A being the best to G being the least efficient). An EPC rating is like a report card for your home's energy efficiency that essentially tells you how sustainable your home is.
The government is setting out clear aspirations for EPC ratings across all residential buildings being grade of C or above by the year 2035.1 As a landlord, it’s your responsibility to ensure that any rental properties you own reach this goal. So not only will you be helping to make changes which are good for the environment and your wallet, you’ll be ensuring tenants are happy and cozy in a well insulated and efficient home.
What is an EPC C rating?
To determine any EPC rating the property must be seen by an independent accredited assessor who evaluates the properties efficiency components such as the insulation quality, the boiler system and windows on a points based assessment. This assessment is called the Standard Assessment Procedure (SAP), and to be awarded an EPC rating of ‘C’ you must have between 69 and 80 points.2
What’s the criteria for SAP points?
Before you take on the task of upgrading your properties EPC rating, it’s a good idea to get to grips with the SAP point system, what they actually mean and how to get them. SAP points start at 1 and go all the way to 100, here’s a breakdown of what number of points you need for each rating.3
EPC rating A = 92-100 SAP points.
EPC rating B = 81-91 SAP points.
EPC rating C = 69-80 SAP points.
EPC rating D = 55-68 SAP points.
EPC rating E = 39-54 SAP points.
EPC rating F = 21-38 SAP points.
EPC rating G = 1-20 SAP points.
What is the difference between ratings A, B,C and D?
Hopefully by now you should know that the higher the better when it comes to EPC ratings, but why? It may look like a few points, but there’s actually a big difference between ratings like A, B and C all the way down to D.
An EPC rating A represents a higher standard when it comes to energy efficiency and will typically have modern and efficient systems such as insulation or windows and most likely be optimising their energy through snazzy home technology such as heat pumps or solar panels.
An EPC rating C, although still considered satisfactory, definitely has areas of improvement. Such as upgrading the windows, installing LED lighting and providing more insulation.
On the lower end, an EPC rating D suggests that your property is certainly not at the optimal efficiency and several energy saving enhancements are needed. These include upgrading the boiler, adopting smart management systems and investing in insulation.
What is the impact of EPC ratings on a property’s value?
Lower EPC ratings can not only impact your properties efficiency rating but can significantly impact your properties marketability and can be behind many of the reasons the for rent sign is up for a little too long.
Higher EPC ratings can lead to lower utility costs, so tenants are more likely to pay more rent as they know the bills may be cheaper - especially considering the rising energy costs.
Properties that fail to meet certain EPC criteria and thresholds are more likely to face challenges or penalties which will diminish their attractiveness to tenants.
5 tips to upgrade to a higher EPC rating.
There are a number of ways in which landlords may improve the level of their Energy Performance Certificates. For example, you may be able to gain enough SAP points by:
Installing LED lighting: swapping out your old bulbs for energy efficient LEDs means that not only will they last longer but you’ll also use up to 80% less energy.4
Insulation: ensuring your property is well insulated can make the world of difference. For instance by adding loft insulation you could improve your EPC rating from an E to a D.5
Upgrading your heating system: by switching to a new A-rated boiler or air source heat pumps to heat your home, you’ll be choosing to use less energy whilst staying toasty. Plus, you might be eligible for different grants and schemes to help cover the cost.
Double glazing: If your windows are single-glazed, consider replacing them with double or triple glazed windows to improve insulation.
Renewable energy: consider installing renewable technology such as solar panels to generate your electricity.
What Government schemes and support are available?
Luckily if you want to upgrade the EPC rating of your property you aren’t alone, and there’s many grants and schemes out there to help you. There’s three grants that can make upgrading your EPC run smoothly:
The Great British Insulation Scheme or GBIS for short aims to help homeowners and private renters save money and become more energy efficient by installing free cavity wall insulation (CWI).
The Home Upgrade Grant or HUG for short helps those with lower incomes and EPC ratings that don’t use gas as the main way to heat their home to install energy-efficient improvements such as insulation, solar panels and air source heat pumps.
The Energy Company Obligation scheme (ECO4) is a government scheme to help Britain's most vulnerable households to keep warm and save money by improving your home’s energy rating by installing solar panels or improving the property's insulation.