The Minimum Energy Efficiency Standards (MEES) are regulations that came into force in England and Wales on 1 April 2018. They apply to all commercial properties, including industrial and manufacturing facilities. MEES are intended to encourage landlords to improve their properties’ energy performance, which is particularly important for manufacturing premises where energy intensive operations are common. For landlords of factories, workshops, and industrial units, complying with these standards can reduce operational costs, improve sustainability credentials, and make properties more attractive to tenants.
Why EPCs Matter
An Energy Performance Certificate (EPC) rates a property’s energy efficiency from A (best) to G (worst). EPCs are important for manufacturing properties because they help landlords and tenants understand energy performance, operational costs, and potential improvements.
• Legal compliance: An EPC is required when selling, letting, or renewing leases for industrial or manufacturing facilities.
• Operational cost insights: Manufacturing operations can consume substantial energy. EPCs highlight where efficiency gains can reduce utility bills.
• Targeted improvements: EPCs identify cost effective upgrades, such as improved insulation, lighting, HVAC systems, or process machinery.
• Tenant appeal: Companies increasingly prioritise energy efficient premises to meet sustainability and ESG goals.
• Market value: Higher EPC ratings can enhance a property’s attractiveness and support stronger rental values.
The Northern Ireland Context
Unlike England and Wales, Northern Ireland does not currently have MEES equivalent regulations. However, government consultations, including the Fuel Poverty Strategy by the Department for Communities and the review of energy efficiency requirements in Building Regulations by the Department for Finance, suggest that stricter energy standards may be introduced in the future.
If Northern Ireland aligns with England and Wales, the commercial and industrial property sector could face significant financial and compliance challenges. In England and Wales, all commercial lettings must meet a minimum EPC rating of E, with proposals to increase this to C by 2028 and B by 2030. Manufacturing landlords who cannot meet these standards, unless exempt, may be restricted from granting or renewing leases and could face enforcement penalties. Properties with poor energy ratings may become harder to let, particularly to tenants with sustainability requirements.
There are already industrial facilities in Belfast with higher EPC ratings, reflecting energy efficient design and performance. Properties with strong energy performance are increasingly attractive to tenants with sustainability goals. As a result, energy efficient manufacturing premises are well positioned to command greater interest and potentially higher rental values in a competitive market.
Potential Implications for Manufacturing Landlords
The cost and scale of works to meet MEES could be substantial. A large proportion of industrial properties in Northern Ireland currently sit below the proposed minimum ratings, meaning older manufacturing facilities may require:
• Building fabric upgrades: Improved insulation, windows, roofs, and walls to reduce energy loss.
• Heating, ventilation, and cooling system upgrades: More efficient boilers, HVAC systems, or process related heating.
• Lighting and controls: Upgrading to LED lighting and smart energy controls for large production areas.
• Machinery and process improvements: Assessing and potentially upgrading energy intensive production equipment.
• Whole facility redevelopment: In some cases, older factories may need extensive refurbishment to comply with standards.
If Northern Ireland adopts MEES, manufacturing landlords should expect:
• EPC upgrades to meet compliance when letting, renewing leases, or by staged deadlines.
• Increased tenant demand for energy efficient premises, potentially leading to longer vacancies for inefficient buildings.
• Higher professional, compliance, and transaction costs related to energy improvements.
Manufacturing facilities are often energy intensive, meaning landlords who fail to address energy efficiency proactively may face both regulatory and commercial disadvantages. Early planning is essential to manage costs, minimise disruption, and protect the long term value of industrial property assets.
Preparing for the Uncertain Road Ahead
Landlords in the manufacturing sector should consider the following checklist as energy efficiency regulations continue to evolve:
Know Your Property
• Ensure every facility has a current valid EPC and identify high risk properties rated F or G.
• Map energy intensive areas such as production lines, warehouses, and workshops.
Plan
• Conduct energy audits to identify upgrade costs, prioritising low cost, high impact works, lighting, insulation, controls.
• Consider energy efficient upgrades to machinery and production processes.
• Explore renewable energy solutions, such as solar panels or combined heat and power (CHP) systems, to reduce running costs.
Funding
• Explore green finance, including green loans, ESG linked mortgages, or government backed schemes.
• Consider “green lease” provisions to share upgrade costs with tenants where possible.
Tenant Engagement
• Discuss planned upgrades with tenants to align on energy efficiency goals.
• Review lease clauses to ensure responsibilities for energy related improvements are clear.
Stay Informed
• Monitor consultations and proposed legislation regarding MEES and energy efficiency standards for industrial properties.
• Engage legal, engineering, and sustainability advisors to help ensure compliance and cost effective implementation.
The Bottom Line
MEES are not yet a legal requirement in Northern Ireland, but there is growing demand from tenants for manufacturing facilities that meet sustainability and energy efficiency goals. Landlords should start futureproofing their industrial property portfolios now. Early investment in building, process, and machinery efficiency can reduce energy consumption, improve tenant attraction, and protect long term asset value.
Key Takeaway
Start with EPCs and assess risk now. For manufacturing landlords, energy performance is not just a regulatory issue, it affects operational costs, tenant demand, and the value of your assets. Proactively upgrading facilities ensures compliance readiness and positions your properties competitively in a sustainability focused market.
Need Advice? Mills Selig are here to help:
Mills Selig are residential and commercial property experts and will guide you through all aspects of property management, compliance and future planning.
If you want to understand your risk exposure, prepare for potential MEES changes, or explore upgrade and funding options, our team is ready to support you.