"EPCs are a powerful tool for estimating energy bills, but we are asking them to do a job they weren’t designed for. However, with reform, they could deliver so much more"
- Stuart Fairlie - Elmhurst Energy
Energy performance certificates must change to help drive policies for cutting carbon emissions and slashing energy use, according to Elmhurst Energy.
The training and accreditation provider for energy efficiency professionals is urging the next government not to let July’s general election further delay vital progress in EPC reform. A government consultation on the issue was expected this summer.
The organisation says EPCs should be reformed to measure the ‘three Cs’ – energy consumption, energy cost, and carbon emissions – with renewals every three years, or when changes to a building are made that could impact its energy efficiency.
The government was expected to release its EPC consultation in the coming months, as part of the government EPC Action Plan, launched in 2020.
Elmhurst’s latest Almanac 2024, ‘Driving progress during political change’, delivers 10 vital policy and regulatory recommendations to the government for putting energy efficiency policy relating to UK homes and buildings back on track. These include key asks on EPCs, as well as other areas vital for improving the energy performance of UK buildings.
Use the ‘Golden Triangle’ of information in EPCs
EPCs should now show the ‘three Cs’: energy consumption, energy cost, and carbon emissions. They should also use a ‘Golden Triangle’ of information:
Asset rating: the predicted energy cost and consumption of the building, based upon average occupancy patterns.
Occupancy rating: the predicted energy consumption of the building, based on the people using it.
Energy consumption: what energy the building uses to run, ideally based on data from smart meters.
Launch the ‘New EPC’ alongside the Home Energy Model and Future Homes Standard
Consultation results are expected in the coming months on the new Future Homes and Buildings Standards, and the Home Energy Model (HEM). The latter will be used to demonstrate that a home complies with legal energy efficiency performance targets.
Elmhurst says the most sensible solution would be to deliver the new EPC so that it coincides closely with the HEM and FHS. It is urging the government to release its long-awaited EPC consultation, earmarked in the 2020 EPC Action plan, as close to summer 2024 as possible, as previously indicated.
Rebalance tax applied to fuel
Currently, any low-carbon heating solution running on electricity, such as a heat pump, is more expensive than running a traditional gas boiler. This means they won’t be recommended on the current EPC.
To change this, we must switch the ‘green levy’ in energy bills so it applies to gas rather than electricity supply. Price ceilings and floors should be applied to ensure that what is right for the environment is also right for the consumer.
This would also make heat pumps and other low-carbon heating solutions more attractive to consumers.
Put minimum energy efficiency targets back in place
The government must take a deep breath and reinstate energy efficiency targets for the private rented sector. All non-domestic tenancies should be required to meet EPC C by 1 April 2027. EPC B should apply to all privately rented non-domestic properties by 1 April 2030.
For domestic private rented sector properties, the government should adjust the timeline previously proposed for new and renewed tenancies to reach EPC C by 1 April 2028. This should be gradually extended to cover all existing tenancies at a later date.
Launch a retrofit advice hub
A retrofit guidance hub located on GOV.UK would deliver much-needed consumer information on retrofit and energy efficiency improvements – including the best order to complete them and how they might work alongside planned property refurbishments.
It should support decisions around green finance and appropriate renewable technologies, such as heat pumps and solar panels, plus options for insulation, ventilation and heat recovery. The hub should also signpost to registered professionals so homeowners can locate properly accredited and trained people.
Stuart Fairlie, (pictured) managing director of Elmhurst Energy, said: “EPCs are currently being used to drive policies for cutting carbon emissions and cut energy usage, but this is like using blunt scissors to cut grass. EPCs are a powerful tool for estimating energy bills, but we are asking them to do a job they weren’t designed for. However, with reform, they could deliver so much more.
“The current EPC was introduced as a cost metric to simply show how cheap or expensive a home is to heat. Improving them would unlock the potential they offer for improving the energy efficiency of our homes and buildings, making them carbon net zero-ready and able to support the decarbonisation of the grid.
“EPCs now need to include information on the energy cost, energy use and carbon emissions of a home or building. To make them easier to understand, the format should change to something similar to food labelling, and to increase their validity, they should be renewed every three years – or every time there is a change to a building that impacts its energy performance.”
