How the 2022 Carbon Factor Change Impacts Your Commercial EPC Rating
Since June 2022, the UK's updated SBEM v6.1 software has slashed the carbon factor for electricity by over 50%. This means electrically heated buildings can often jump 1–2 EPC bands without any physical work, while gas-reliant properties may see their ratings drop.
Understanding the "Carbon Factor" Shift
In the UK, a Commercial Energy Performance Certificate (EPC) isn't a measure of energy used; it's a measure of forecast carbon emitted. To calculate this, the government uses "Carbon Factors", a multiplier that tells the software how much CO2 is produced for every kWh of energy consumed.
In June 2022, the government updated these factors to reflect the "greening" of the UK national grid. As we moved away from coal toward wind and solar, the electricity we use became cleaner.
The Numbers That Matter:
| Fuel Source | Pre-2022 Factor (kgCO₂/kWh) | Post-2022 Factor (kgCO₂/kWh) | Impact Change |
|---|---|---|---|
| Grid Electricity | ~0.519 | ~0.233 | -55% (Better) |
| Natural Gas | ~0.216 | ~0.210 | Negligible |
Winners and Losers: Does Your Property Benefit?
1. The Winners: All-Electric Buildings
If your property uses electric panel heaters, HVAC, or heat pumps, your building is a major "winner." Because the carbon factor for electricity was halved, your building’s calculated emissions dropped overnight.
Result: Many landlords have seen ratings jump from an E to a C or a D to a B simply by commissioning a new assessment under the latest software.
2. The Losers: Gas-Heated Assets
While the factor for gas didn't change much, the relative performance of gas against electricity did. In the eyes of the SBEM methodology, gas is no longer the "efficient" choice it was in 2013.
Result: Buildings relying on old gas boilers may see their ratings stagnate or even drop a band as the software now favours electrification.
Why This Matters for MEES 2030 Compliance
The Minimum Energy Efficiency Standards (MEES) are tightening. By 2030, all commercial let properties must achieve an EPC Band B.
If you haven't updated your EPC since June 2022, you might be making investment decisions based on "dead" data. You could be planning a £50,000 upgrade that you don't actually need—or you could be unaware that your "Safe E" rating is about to drop to an "Unlettable F" under the new rules.
Strategic Recommendations:
Audit Pre-2022 EPCs: If your certificate was issued before June 15, 2022, it was calculated using outdated, high-carbon data.
Prioritise Electrification: If you are replacing a heating system, the shift in carbon factors makes Heat Pumps the clear winner for long-term compliance.
Consult an Assessor: Ask specifically for a "draft SBEM v6.1 report" to see where you stand before lodging a formal certificate.
Frequently Asked Questions
What is the current carbon factor for electricity in UK EPCs?
As of the 2022 Building Regulation update (Part L), the carbon factor for electricity is approximately 0.233 kgCO2/kWh, down from the 2013 factor of 0.519.
Will my EPC rating improve automatically?
No. EPC ratings are not updated automatically. To benefit from the 2022 carbon factor changes, you must commission a new assessment from an accredited Non-Domestic Energy Assessor (NDEA).
Can I still install gas boilers in commercial properties?
While legal, installing new gas systems is increasingly "strategic suicide" for landlords. The current EPC methodology penalizes gas emissions, making it significantly harder to reach the mandatory EPC B rating required by 2030.