29 August 2024
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Stacey Lucas, President of the Building Controls Industry Association
As we enter the final stretch before the Minimum Energy Efficiency Standards (MEES) regulations likely come into effect in 2030, Stacey Lucas, president of the Building Controls Industry Association (BCIA) explains why it is clear that this piece of legislation is going to have a significant impact on both landlords and tenants across the UK.
While the goal of MEES – to improve the energy efficiency of the nation’s building stock and drive down emissions towards our net zero goals – is an important one, the reality is that many landlords are feeling the pressure to get their properties up to the required standard in a relatively short timeframe.
Previously set for 2027, domestic landlords now have until 2030 to upgrade their buildings to meet Energy Performance Certificates (EPC) of C or above. Previously set for 2027, it is expected that the new government will announce that owners of commercial properties will need to achieve a rating of B or above by 2030. It’s also important to note that landlords who are currently renting commercial buildings that have an EPC of D or below are already in breach of MEES duties.
For those landlords who own older, less energy-efficient commercial buildings, the cost of necessary upgrades can be a real concern. New boilers, insulation, double glazing – the list of potential improvements goes on, and the price tags can quickly add up. Data from EG predicts that 24.1m sq ft of commercial space could fail to meet regulations, costing around £1.4bn of annual rent.
Intelligent control solutions
By installing a modern, intelligent building management system, landlords can optimise the energy efficiency of their properties without the need for major, disruptive renovations.
A BMS allows you to precisely monitor and control things like heating, cooling, lighting and ventilation, ensuring that the energy is only being used when and where it is needed. Through features like occupancy scheduling and predictive maintenance, a BMS can deliver significant energy savings without compromising on comfort or functionality for tenants.
The data collected by a BMS can also provide invaluable insights that allow landlords to identify further opportunities for improvement down the line. By understanding exactly how a building is performing, landlords can make informed decisions about where to focus efforts and investments.
Of course, the upfront cost of installing a BMS is something that many landlords will be understandably cautious about. However, the long-term energy savings and the ability to future-proof buildings against ever-tightening efficiency standards make it a sound investment.
The relatively low up-front cost and short payback time make BEMS an ideal way for landlords to achieve compliance with MEES. There is currently a ‘seven-year payback’ exemption to MEES, meaning landlords are exempt from the standard, if they can show the cost of installing a recommended improvement doesn’t meet a seven-year payback test. This means many higher cost energy efficiency measures, such as solid wall insulation, will likely be ruled out due to their long payback time.
Conversely, with an average payback time of 5.8 years and the ability to deliver up to 30% energy and carbon savings, BEMS are a quick win for landlords looking to achieve compliance with MEES.
As a result, BEMS are an affordable, high-impact measure that will be instrumental in helping commercial landlords comply with more ambitious MEES regulations.
Embracing technology
The reality is that MEES is only going to become more stringent over time, so taking action now to improve the efficiency of your buildings is essential. By embracing building controls technology, landlords can not only meet their MEES obligations but also provide their tenants with more comfortable, sustainable spaces to live and work in.
The BCIA stands ready to support landlords in navigating this transition. Through our education and training programmes, we can help property owners understand the full capabilities of modern building automation systems and how to integrate them effectively. We are also working closely with the government to ensure that the needs of the building controls sector are represented in the development of MEES policy.
Indeed, as an organisation, we’re keen to work closely with policy leaders and decision makers to shape and implement a NABERS style performance-based scheme that the government previously consulted on in 2021. In addition to MEES, this scheme would see owners of commercial and industrial buildings above 1,000m2 required to report their energy use and drive annual improvements in energy intensity with a target of a 30% reduction in 2030 compared to 2015 levels. Of course, building controls and building energy management systems would play a vital role in helping landlords and property owners improve their energy efficiency.
So, if you’re a landlord feeling the pressure of MEES, I would urge you to consider the role that building controls can play. It is a solution that is good for the environment, good for your tenants, and good for your bottom line in the long run.
