According to latest government statistics, buildings account for around 20% of the UK’s total greenhouse gas emissions, so a significant shift in the way buildings use energy is needed if net zero commitments are to be met.
The government says reforming the 18-year-old framework with a new scheme that is fit for purpose in today’s policy landscape, will improve consumer trust and hopefully build demand and supply chains in energy efficiency.
Responses are now being invited to the proposals, particularly from the energy sector, including installers, engineers, specifiers, assessors and energy efficiency service providers.
It is anticipated that any changes will be introduced in the second half of 2026, with a consultation on a Home Energy Model methodology for producing EPCs to come in 2025.
The current EPC regime
EPCs display various metrics about a building’s energy performance, with the headline metric – the Energy Efficient Rating (EER) – serving as the main indicator of overall energy efficiency. This A-G rating is calculated using modelled energy costs per square metre based on standardised heating patterns, temperatures and fixed price fuel assumptions.
However, the EER is based on assumptions about fuel costs which can quickly become outdated as prices fluctuate – leading to unintended outcomes. For example, this could result in the installation of a heat pump actually reducing the EER, based on the price of electricity compared to gas, despite it being a lower carbon heating solution.
The government wants the metrics to be clearer and more useful for determining a building’s true energy efficiency.
Multiple new metrics are therefore proposed.
The proposed new headline EPC metrics
Here’s a summary of the proposals outlined on the government website.
Energy cost
The EER metric has been used as the basis of several government policies, including Minimum Energy Efficiency Standards for the private rental sector and the fuel poverty target.
It presents challenges in that fuel price assumptions can become out of date – they are currently based on 2014 prices – yet updating the assumptions could cause buildings to move EPC bands despite no actual changes in energy performance of the building itself. Cost-based metrics alone may not incentivise a switch away from fossil fuels.
Despite the challenges, the government says it recognises the benefits of a cost-based metric in helping people predict their energy costs. Therefore it is asking whether this measure should still be displayed on EPCs.
Fabric performance
A new measure on fabric performance is proposed, looking at a building’s thermal properties. This would provide a ‘clear basis for identifying and prioritising improvements’ such as insulation and windows and encourage homeowners to make those changes.
The consultation also asks how this might be measured, for example by using the Fabric Energy Efficiency Standard or the Heat Loss Parameter.
Heating system
Including a metric which ranks different heating systems based on environmental impact and efficiency could encourage more people to adopt low carbon technologies, the government says.
A well-designed metric would ‘place efficient low carbon systems at the top, energy intensive but potentially lower carbon electric systems in the middle (such as direct electric heating) and fossil fuel systems at the bottom’.
In addition to carbon emissions, it could bring in factors like fuel availability, overall efficiency and sustainability.
Smart readiness
Ultimately there is a vision for homes to optimise their energy usage through an integrated system using solar PV, battery storage, heat pumps and EV chargers, which can be programmed to store cheaper electricity and reduce peak demand on the grid.
Including a smart readiness metric could help people understand the potential of their home and how it could become a microgenerator of power.
The consultation asks how that metric might be defined and what it could focus on.
Energy use
EPCs currently provide information based on predicted energy needs for space heating, hot water, lighting, pumps and fans, plus an estimate of a building’s energy use.
The government believes energy use metrics should continue to be shown on the EPC, but says the combination of energy demand, heating efficiency and electricity generation provided by all the proposed headline metrics will be able to convey the information in a more relevant way.
Carbon
Although providing information about carbon emissions is important, it’s not felt this should be the primary indicator of building performance, because in its current form it might not ‘effectively incentivise the actions necessary to achieve net zero emissions in an energy efficient manner’.
It is asking whether people agree it should no longer be used as the main headline metric.
Other key proposals include:
- Possibly reducing the validity period of new EPCs (currently 10 years)
- Requiring a new EPC when the existing one expires in privately rented properties (rather than being triggered by changes in tenancy)
- Requiring a building to have a valid EPC before being marketed for sale or rent (currently it has to be commissioned before marketing but a further 28 days are allowed after marketing for the certificate to be produced).
- Extending the scope so that a valid EPC is required for a house in multiple occupation (HMO) when a single room within it is rented out (currently it only applies when the whole house is rented out)
- Updating regulations to provide a specific requirement for short-term rentals to have a valid EPC at the point of being let
- Reviewing regulations relating to heritage buildings
Consultation deadline
Responses are now invited to the Reforms to the Energy Performance of Buildings Regime consultation until February 26.
Responses from industry
Daniel Särefjord, Aira UK CEO
“The current Energy Performance Certificate (EPC) regime was introduced almost two decades ago and has not kept pace with advancements in technology and changing energy priorities.
“EPCs must evolve to better account for a home’s impact on the environment. For example, heat pumps, a cornerstone of decarbonising residential heating, do not earn EPC scores that reflect their significant contribution to reducing CO2 emissions, even when powered by green electricity. A modern heat pump can reduce heating-related CO2 emissions by up to 75%, or even 100% when powered by green electricity. Yet, the current EPC system fails to reflect these significant environmental benefits, meaning that even net-zero homes may not achieve an A rating.
“Future reforms should create a transparent, consumer-friendly system that reflects both the financial and environmental costs of a home. Such reforms could play a pivotal role in driving adoption of energy-efficient upgrades, aligning homeowner incentives with the UK’s broader climate strategy.”
Simon McWhirter, deputy CEO of the UK Green Building Council
“UKGBC welcomes the renewed commitment from government to ensure that EPCs are fit for purpose. We’re particularly pleased to see recognition that domestic EPCs need to focus more on reducing carbon emissions and supporting people in reducing their energy costs. It is encouraging that the government has left the door open for future metrics and it must prioritise including information on actual energy use, health and climate resilience.
“EPCs are vital for understanding the impact our buildings have on our bills, our health, and our environment – this consultation is an important step towards updating a tool which will be crucial for meeting our net zero commitments, upgrading the quality of our built environment, and empowering individuals to transform their energy usage.”
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