Energy Performance Certificates – How to Take Advantage of the Benefits
ENERGY PERFORMANCE CERTIFICATES
The EU Performance of Buildings Directive has resulted in the introduction of Energy Performance Certificates (EPCs) in England and Wales. From 1 October 2008 all properties - homes, commercial and public buildings - when bought, sold, built or rented have been required to provide an EPC.
The certificate gives each building a SAP rating, which equates to an energy rating from A to G, similar to the ratings given on fridges and washing machines
Certificates carry two current ratings. The environmental impact rating measures your home's impact on the environment in terms of carbon dioxide (CO2) emissions and the energy efficiency rating which measure your home's overall efficiency.
Each rating is based on the performance of the building itself and its services (such as heating and lighting), rather than the domestic appliances within it.
The ratings will vary according to the age, location, size and condition of the building. The potential rating on the certificate will take these factors into account, and the suggested measures will be tailored so that they are realistic for the particular building.
The certificate will make suggestions of cost effective measures to improve the energy performance of a property, which will result in lower fuel bills and less CO2 emissions which contribute to climate change. EPCs will allow prospective buyers and tenants to compare buildings on energy performance.
WHO NEEDS TO GET AN ENERGY PERFORMANCE CERTIFICATE
Homeowners - all sellers of homes need to ensure that they provide a Home Information Pack which includes an EPC for potential buyers
Homebuilders - an EPC needs to be provided to buyers of newly built properties
Landlords - need to provide an EPC to prospective tenants the first time you let or re-let your property
Commercial Buildings - owners of all commercial buildings will also have to provide an EPC when they buy, sell or let commercial premises
BENFITS OF ENERGY PERFORMANCE CERTIFICATES
The CO2 released from our homes accounts for a shocking 30% of the UK's carbon emissions. By making your home more energy efficient, you are not only saving money on your fuel bills but also cutting the amount of CO2 released into the environment.
For home owners, EPCs will provide clear guidance as to where you can make the most savings on your energy bills and CO2 emissions and for potential buyers, the results give clear indications of potential costs implications for running the property and for bringing it up to an energy efficient standard.
By finding out the energy efficiency of your home you could make improvements that will lessen your home's CO2 emissions and result in significant reductions to your energy bills. Our homes currently account for about 30% of the UK's carbon emissions, so it is vital that we take steps to improve their energy efficiency.
The most common, and effective, measures to install are loft and cavity wall insulation. In the loft, sheets are placed between and over joists, and for cavity walls, small holes are drilled into the walls of the property and the rock wool is pumped in to fill the cavity.
For properties without cavities there are a number of different internal and external insulation solutions.
TAKE ADVANTAGE OF EPC OPPORTUNITIES
Grants – Energy Companies
Energy companies are currently being required by the government to fund energy improvements in domestic homes. They are obliged under the Carbon Emissions Reduction Targets to provide grants for homeowners to install cavity wall and loft insulation. Landlords can claim these grants too for all or any of their properties.
These grants are constantly changing so for up to date advice on the latest offers call Your Energy Efficiency Advice Centre on 0800 512 012.
Fuel Poverty Grants - Warm Front
Eligibility for Warm Front grants is dependent upon the tenant being in receipt of certain benefits. For more information on the criteria and how to apply call the Solent Energy Efficiency Advice Centre on 0800 512 012. Warm Front is a government scheme set up to tackle the issue of fuel poverty by providing financial assistance for people on certain benefits to install insulation and heating systems. The grants are available to tenants of private sector housing as well as those who own their own home. If one of your tenants is on any of a range of benefits, they can apply direct to Warm Front for assistance (telephone 0800 316 2814). Warm Front will then contact the Landlord for authority to undertake the work at no cost to the landlord or the tenant. With the installation of a new heating system, and/or loft and cavity wall insulation there is sometimes a surplus to pay - it is best to agree with the tenant whether landlord or tenant will be responsible for this surcharge prior to the work being carried out. These works can include full gas central heating (up to £2700), oil central heating (up to £4000), the installation of storage heaters if the property is not on the gas network. If the property needs gas to be connected Warm Front will carry that out as well. The work will be covered by a free service agreement for 2 years, unless the tenant moves out, at which point the cover will end.
Landlords Energy Saving Allowance (LESA)
Alongside these grants the Government has also introduced some tax incentives to encourage private landlords to install energy efficiency measures in their properties:- these are the Landlords Energy Saving Allowance (LESA, aimed at small landlords) and the Enhances Capital Allowance (ECA, aimed at businesses and large private landlords).
This allowance can be claimed by all private landlords that pay income tax, usually individual and smaller landlords. The LESA means that landlords can claim a deduction for income tax purposes (up to a maximum of £1,500) against their rental profit when they install cavity wall, solid wall or loft insulation, draught proofing or insulation for hot water systems in any property they let. This is in addition to the deduction that the Inland Revenue allows for wear and tear of furniture, fixtures and fittings (currently 10%).
Enhanced Capital Allowance(ECA)
This allowance can be claimed by landlords that pay corporation tax, larger landlords and businesses. In practice this provides the landlord with the opportunity to claim 100% of the tax back on any energy saving technology that they buy e.g. if a boiler were bought at £100 and assuming a tax rate of 30% then £30 could be claimed back in the first year.
For a list of energy technologies that are eligible for this tax, see the: Enhanced Capital Allowance Site
The ECA scheme was set up to encourage UK businesses to reduce carbon emissions which contribute to climate change. The ECA provides upfront tax relief, allowing businesses to claim 100% first year capital allowances against their taxable profits. This can deliver a cash flow boost and shorten the payback period on investments.
HOW TO GET AN ENERGY PERFORMANCE CERTIFICATE
For residential properties you will need to find a qualified Domestic Energy Assessor (DEA), and for commercial properties you will need a Commercial Energy Assessor. You can do this by searching your local directory or internet for business listings.
You can find an accredited Domestic Energy Assessor on the national register at https://www.hcrregister.com/searchAssessor.html.
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This article sets out the requirement for energy performance certificates and how we can take advantage from the pottential benefits. The article provides practical resources for making the most of energy efficiency measures.
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