What Is a Non-Domestic Energy Assessment? A Complete Guide

What Is a Non-Domestic Energy Assessment? A Complete Guide

What Is a Non-Domestic Energy Assessment? A Complete Guide

what is a non-domestic energy assessment

For businesses and property owners looking to improve energy efficiency and comply with legal regulations, a non-domestic energy assessment is a crucial step. It evaluates how efficiently a commercial building uses energy and provides an Energy Performance Certificate (EPC), which rates its overall performance. This assessment helps identify areas where energy savings can be made, reducing operational costs and environmental impact.

Whether a building is being sold, leased, or simply improved for sustainability, a non-domestic energy assessment ensures compliance with commercial energy efficiency standards while supporting businesses in making informed, cost-effective upgrades.

Key Takeaways

 

  • A non-domestic energy assessment evaluates the energy efficiency of commercial buildings and provides an Energy Performance Certificate (EPC), which is legally required when selling, leasing, or constructing a commercial property. The assessment rates the building’s energy use and identifies cost-saving improvements.
  • Conducted by a qualified non-domestic energy assessor, the evaluation includes factors like insulation, HVAC systems, lighting, and building materials. The data is used to calculate the EPC rating, which ranges from A+ (most efficient) to G (least efficient), helping businesses comply with energy efficiency standards.
  • Improving an EPC rating can reduce operational costs, increase a property’s value, and support sustainability goals. Upgrades such as LED lighting, better insulation, and renewable energy solutions can improve efficiency and lower carbon emissions.
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    What Is a Non-Domestic Energy Assessment?

    A non-domestic energy assessment is a comprehensive evaluation of a commercial property's energy performance, required for compliance with energy efficiency regulations.

    Conducted by a qualified Non-Domestic Energy Assessor (NDEA), this assessment examines factors such as heating, ventilation, air conditioning (HVAC), insulation, lighting, and building characteristics like age and size. The findings are used to generate a Non-Domestic Energy Performance Certificate (EPC), which assigns a rating from A+ (net zero) to G (least efficient), based on the building's estimated carbon emissions.

    This assessment is mandatory when selling, leasing, or constructing a commercial building. The complexity of the assessment varies from Level 3 for simple buildings to Level 5 for the most complex, depending on factors like the size of HVAC systems and the presence of specialised fixed services.

    Beyond regulatory compliance, the survey provides valuable insights for reducing energy costs and improving overall building efficiency. They are essential tools for property owners, prospective buyers, and tenants to understand and compare the energy performance of commercial buildings.

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    Why Is a Non-Domestic Energy Performance Certificate (EPC) Required?

    A Non-Domestic EPC is required for several important reasons:

    Legal Requirement: UK law mandates an EPC when a commercial building is sold, rented, or newly constructed. Non-compliance can result in substantial fines.

    Energy Efficiency Insights: The EPC provides essential information on a property's energy use and highlights areas for improvement, helping businesses lower energy costs and enhance efficiency.

    Improved Marketability: Properties with better EPC ratings are more attractive to potential buyers and tenants, especially as businesses become more environmentally conscious.

    Supports Sustainability Goals: EPCs encourage energy-saving upgrades, contributing to the reduction of carbon emissions and overall environmental impact.

    Compliance with Building Regulations: EPCs help ensure that buildings meet current energy efficiency standards set by building regulations.

    Facilitates Comparison: EPCs allow prospective buyers and tenants to quickly and easily compare the energy efficiency of different commercial properties.

    By providing a standardised assessment of a building's energy performance, Non-Domestic EPCs play a crucial role in promoting energy efficiency and sustainability in the commercial property sector.

    A Non-domestic energy assessor

    How Is a Non-Domestic Energy Assessment Conducted?

    A non domestic energy assessment is conducted through an evaluation of the energy performance of a commercial property to determine its EPC rating. The process involves a detailed inspection of the building's energy usage and efficiency:

    Site Inspection: A qualified Non-Domestic Energy Assessor (NDEA) visits the property to examine key features like heating, ventilation, air conditioning (HVAC), insulation, lighting, building age, number of floors, and size of rooms.

    Data Collection: The assessor gathers information on energy use, building materials, and operational systems. This is a non-invasive process, requiring no drilling into walls.

    Energy Performance Calculation: Using specialised software and the Standard Assessment Method (SAM), the assessor calculates the EPC rating based on the collected data. This considers factors such as build quality, size, shape, usage, heating systems, glazing, and insulation.

    Report Generation: Two documents are produced: an Energy Performance Certificate (EPC) outlining the property's energy efficiency, and a separate Recommendation Report suggesting improvements. Both are required for the assessment to be valid.

    The level of assessment (Level 3, 4, or 5) is determined by the complexity of the building and its systems.

    What Are the Benefits of a Non-Domestic Energy Performance Certificate?

    A Non-Domestic Energy Performance Certificate offers several advantages for businesses, landlords, and property owners. Here's why it's important:

    Legal Compliance – Ensures the building meets UK energy efficiency regulations and Minimum Energy Efficiency Standards (MEES), avoiding fines and penalties.

    Energy-Saving Improvements – Identifies areas where energy efficiency can be enhanced, leading to cost-effective upgrades.

    Reduced Operational Costs – Lower energy consumption translates to significant savings on utility bills over time.

    Increased Property Attractiveness – Energy efficient buildings are more appealing to potential buyers and tenants.

    Better Environmental Impact – Reducing carbon emissions helps businesses meet sustainability goals and contribute to net-zero targets.

    Access to Government Schemes – EPCs can help qualify properties for government energy efficiency initiatives.

    Improved Comfort – Implementing energy efficiency measures can enhance occupant comfort in the building.

    energy efficient commercial building

    How Can Businesses Improve Their EPC Rating and Energy Efficiency?

    Businesses can improve their EPC rating and overall energy efficiency by making targeted upgrades. The article "Energy Efficiency in Commercial Buildings: Challenges, Opportunities, and Solutions (Re view)" explores the role of energy-efficient upgrades in reducing energy consumption and operational costs in commercial buildings. It highlights that commercial properties account for 40% of global energy use and 10% of greenhouse gas emissions. Key findings show that implementing building automation systems, high-efficiency HVAC systems, LED lighting, and renewable energy solutions can achieve substantial energy savings. The study emphasises the importance of energy audits, occupant awareness, and policy support to maximize efficiency gains, providing a roadmap for businesses to optimise energy performance while reducing environmental impact (1).

    Here are some practical steps:

    Upgrade to LED Lighting – Replacing traditional bulbs with energy-efficient LEDs can reduce electricity use by up to 90% and improve lighting quality.

    Improve Insulation – Enhancing wall, roof, and floor insulation helps retain heat, lowering heating costs.

    Upgrade Heating and Cooling Systems – Installing energy-efficient boilers, heat pumps, or smart thermostats can cut energy waste. 

    Enhance Ventilation and Ductwork – Sealing and insulating ducts can improve heating and cooling system efficiency by up to 20%.

    Install Renewable Energy Solutions – Solar panels or other renewable sources can offset energy consumption, which is particularly effective for businesses as peak usage often coincides with peak generation. The article "Analysis of PV Self-Consumption in Educational and Office Buildings in Spain" examines the effectiveness of solar PV integration in commercial buildings and its impact on energy self-sufficiency. The study, based on a full-year monitoring of a university PV installation, finds that self-consumption optimally ranges between 34% and 58%, with self-sufficiency between 30% and 40%. The economic analysis shows a return on investment of 8–9 years, with levelised costs below grid electricity prices. The findings highlight PV self-consumption as a cost-effective strategy, reinforcing the Spanish regulatory framework’s role in encouraging sustainable energy use in commercial buildings (2).

    Use Smart Energy Management Systems – Building Energy Management Systems (BEMS) can provide real-time monitoring and optimise energy usage based on occupancy and usage patterns.

    Upgrade HVAC Components – Implementing EC fans in HVAC systems can potentially reduce energy usage by up to 70%.

    Implement Lighting Controls – Using occupancy sensors or daylight harvesting lights can further reduce unnecessary electricity use.

    Document Improvements – Providing proper documentation of upgrades is crucial for assessors to include them in the EPC.

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    What Happens After a Non-Domestic EPC Is Issued?

    After a non-domestic Energy Performance Certificate is issued, businesses can use the results to identify energy-saving opportunities and improve their building's efficiency.

    The EPC remains valid for 10 years, during which it must be made available to prospective buyers or tenants, particularly for buildings with a total useful floor area over 500 square metres that are frequently visited by the public.

    The certificate is lodged on a central register and outlines the current energy performance, providing recommendations for upgrades such as better insulation, efficient heating systems, or renewable energy solutions.

    The EPC includes administrative information like the assessor's details and software used, and acting on its recommendations can lower energy costs, enhance sustainability, and improve the property's marketability.

    While currently valid for a decade, the government is considering reducing this period to ensure the data remains current and relevant.

    Non-Domestic Energy Assessment FAQ's

    A non-domestic EPC typically has a turnaround time of 2-3 working days. The actual on-site assessment duration may vary depending on the building's size and complexity.

    If your building receives a low EPC rating (F or G), you need to make improvements to comply with Minimum Energy Efficiency Standards (MEES). From April 1, 2023, it became unlawful to continue letting commercial premises with an EPC rating of F or G without a valid exemption. 

    EPCs are valid for 10 years. While not immediately required, obtaining a new EPC after significant improvements (e.g., HVAC upgrades or insulation enhancements) is recommended to reflect the changes and potentially improve marketability.

    Reference List

    (1) Sneha Vyas, Anupama Sharma (2023) Energy Efficiency in Commercial Buildings: Challenges, Opportunities, and Solutions (Review). Journal of Energy Conservation - 1(4):7-10. https://doi.org/10.14302/issn.2642-3146.jec-23-4568

    Research licensed under CC BY 4.0 DEED.

    No changes were made to the material.


    (2) Ordóñez Mendieta, Á.J.; Hernández, E.S. Analysis of PV Self-Consumption in Educational and Office Buildings in Spain. Sustainability 202113, 1662. https://doi.org/10.3390/su13041662

    Research licensed under CC BY 4.0 DEED.

    No changes were made to the material.