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EPC Reforms Designed to Underpin Net Zero Journey
Scotland’s 2026 Overhaul of Energy Performance Certificates
In a bold and forward-looking move, the Scottish Government has announced significant reforms to the nation’s Energy Performance Certificate (EPC) system, with sweeping changes set to be implemented by 2026. At the heart of these proposals is the drive to better align energy efficiency measures with the country’s legally binding climate targets, including the overarching goal of achieving net zero greenhouse gas emissions by 2045.
These reforms are not merely cosmetic updates to a technical rating system. They represent a fundamental shift in how energy performance is assessed, communicated, and acted upon—both by property owners and policymakers. Introducing clearer, more granular metrics such as the Heat Retention Rating and Heating System Type Rating, and shortening the EPC validity period from ten years to five, are only part of a broader strategy to stimulate energy-efficient behaviours, investment in retrofits, and greener choices across Scotland’s housing market.
This article explores the rationale behind the reforms, how they’re expected to operate, their likely effects on different stakeholders, and what they reveal about the trajectory of environmental policy in Scotland and the UK more broadly.
A Background to EPCs and Their Importance
Introduced across the UK in 2007 as a requirement under the EU’s Energy Performance of Buildings Directive, EPCs serve as an essential energy rating system for homes and commercial buildings. Their purpose is to give prospective buyers, renters, and owners a clear idea of how energy-efficient a property is, using an A–G grading system, with A being the most efficient and G the least.
The certificate also includes estimates of energy costs, potential savings, and a list of recommended improvements to increase the building’s energy performance.
However, after nearly two decades of use, the limitations of the current system have become apparent. Critics have highlighted several flaws: outdated ratings due to the long validity period, a lack of transparency about how scores are calculated, and a narrow focus on theoretical energy usage rather than actual performance or carbon emissions.
In response, Scotland is taking the lead in overhauling its approach to EPCs, signalling a move toward a smarter, more accountable energy performance framework.
Scotland’s Net Zero Commitments
Scotland has one of the most ambitious climate frameworks in the world. Under the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019, the country is legally bound to achieve net zero greenhouse gas emissions by 2045—five years ahead of the UK-wide target.
To meet this ambitious goal, Scotland must radically decarbonise its housing stock, which accounts for a significant portion of the country’s emissions. Heating alone contributes to over 50% of energy use in homes, and a large proportion of properties still rely on fossil fuel systems like gas boilers.
In this context, a revised EPC framework is not only timely—it is essential.
The Proposed Reforms
The Scottish Government’s EPC reform plan, due to be implemented in full by 2026, includes several major changes. These changes are the result of extensive consultation with stakeholders including homeowners, landlords, energy assessors, and housing associations.
1. New Metrics: More Than Just an A–G Rating
The new system will move away from a single energy efficiency rating toward a set of multiple, clearer indicators that aim to provide a more holistic picture of a building’s energy performance.
Heat Retention Rating
This metric will measure how well a property retains heat, factoring in insulation levels, building materials, window types, and air tightness. This is a direct response to criticisms that the current EPC system does not properly account for building fabric efficiency.
Heating System Type Rating
The new EPC will distinguish between different types of heating systems, such as electric heat pumps, gas boilers, biomass systems, or district heating networks. Each system will be assessed for both its carbon impact and efficiency.
By clearly identifying heating system types and their impact, the government hopes to steer homeowners away from carbon-intensive systems and toward low-carbon technologies.
Real-World Performance Indicators
There is also a focus on shifting from modelled energy consumption to observed performance. Where possible, the use of smart meters, heat sensors, and other digital technologies will enable assessments based on actual usage, not just projections.
2. Shortened Validity Period
Currently, EPCs are valid for ten years. This duration has been widely criticised for failing to capture changes to the property or improvements undertaken during that time. Under the new reforms, EPCs will need to be updated every five years, ensuring that the data is more accurate and actionable.
This change is also expected to stimulate investment in energy efficiency upgrades, as property owners will be more frequently confronted with current performance data.
3. More Transparent Recommendations
Under the revised system, EPCs will provide more tailored, costed, and actionable recommendations for energy improvements. The new certificates will break down:
- Estimated installation cost
- Expected annual savings
- Carbon reduction impact
- Payback period
This shift aims to make EPCs a practical tool for planning retrofit works, rather than a bureaucratic obligation.
4. Stricter Assessor Standards
To ensure consistency and reliability in assessments, the government plans to tighten regulation around the training, certification, and oversight of EPC assessors. This move is intended to address longstanding concerns about inconsistency in ratings between different assessors.
Who Will Be Affected?
Homeowners
Owner-occupiers will now need to obtain an updated EPC every five years, even if they are not planning to sell or rent the property. While this may be viewed as an additional cost, the information provided will enable better decisions about energy upgrades that could lower household bills.
Incentives, grants, or tax rebates may be introduced in parallel to ease the financial burden of retrofits.
Landlords
Private and social landlords will face increased scrutiny under the new system. They will not only have to update EPCs more frequently but may also be subject to more stringent Minimum Energy Efficiency Standards (MEES) in the future.
The reforms could serve as a catalyst for widespread upgrades across the private rented sector—traditionally among the least energy-efficient parts of the housing stock.
Tenants
Tenants stand to benefit from more accurate information about the energy efficiency and running costs of their homes. This could empower them to make greener, more cost-effective housing choices and exert pressure on landlords to improve substandard properties.
Housing Associations
Social housing providers, many of whom have already embarked on decarbonisation programmes, will likely welcome clearer metrics and consistent standards. However, the reforms will require careful planning to integrate with long-term investment strategies.
Implications for the Retrofit Market
The reforms are expected to provide a significant boost to Scotland’s retrofit market. As EPCs become more meaningful and mandatory for longer periods, homeowners and landlords will be more motivated to carry out insulation, ventilation, glazing, and heating system improvements.
By 2026, the retrofit economy could become a central pillar of Scotland’s green economy, driving growth in sectors such as:
- Renewable heating installation
- Building fabric improvement
- Smart energy monitoring and controls
- Energy consultancy and project management
However, capacity constraints must be addressed. The construction and retrofit workforce will need rapid upskilling and expansion if it is to meet demand driven by the EPC overhaul.
Challenges and Criticisms
Administrative Burden
Critics argue that the shortened validity period and increased complexity of EPCs could add significant administrative workload and costs for property owners, particularly landlords with multiple properties.
Cost of Upgrades
Some worry that the EPC reforms could indirectly penalise those who are unable to afford the recommended upgrades, particularly the elderly or low-income households. Without robust grant schemes or low-interest finance options, these reforms could widen existing inequalities.
Assessor Capacity
The requirement for more frequent and more detailed assessments may outpace the capacity of qualified assessors, especially in rural or remote areas.
Risk of Greenwashing
There is a concern that focusing too much on changing how ratings are displayed, rather than how buildings perform in reality, could allow superficial improvements to be mistaken for genuine decarbonisation.
Government Support Measures
The Scottish Government has indicated that these reforms will be accompanied by:
- An updated Home Energy Scotland advice service
- A new Green Building Passport to document upgrades and efficiency history
- Expanded funding for low-carbon heating systems and insulation
- Subsidised assessments for vulnerable groups
These measures will be critical in ensuring that the EPC reforms achieve their environmental goals without placing undue strain on households or distorting the housing market.
A Catalyst for Cultural Change?
Perhaps the most significant long-term effect of the EPC reform could be cultural. By making energy performance data more visible, timely, and meaningful, the government hopes to embed environmental thinking into the fabric of Scottish homeownership.
Just as EPCs have become a standard feature of property listings, so too could Heat Retention Ratings and Heating System Types become part of household conversations—alongside square footage, council tax bands, and broadband speed.
Conclusion
Scotland’s planned overhaul of its EPC framework represents one of the most ambitious efforts in the UK to align energy efficiency standards with net zero climate commitments. By introducing more transparent, relevant, and timely metrics—like the Heat Retention Rating and Heating System Type Rating—and requiring regular updates, the reforms aim to create a more dynamic and accountable system that drives real-world change.
But the journey will not be without challenges. From ensuring fair access to finance for retrofits to managing the capacity of assessors and the construction workforce, successful implementation will depend on coordinated effort, clear communication, and sustained political will.
Ultimately, these reforms signal a shift in how we value our homes—not just as places to live, but as instruments of climate action. In doing so, they bring Scotland one step closer to a greener, fairer, and more energy-efficient future.
Northants EPC offer Energy Performance Certificates throughout Northampton and the surrounding villages.
We also offer Energy Performance Consultations, with a full report on the energy performance of your property and a working plan to improve your rating.
To book and EPC or for further information contact us anytime.
Northants EPC
01604 807308