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<p>Under the <em>Energy Efficiency (Private Rented Property)(England and Wales) Regulations
2015</em>, landlords of privately rented non-domestic property will need to ensure
that, from 1 April 2018, their properties reach at least an energy performance rating
of E before granting a tenancy to new or existing tenants. Non-domestic landlords
cannot rely on subsidy to pay for any energy efficiency improvements which may be
necessary, and no targeted financial assistance is planned. However, the Regulations
incorporate a cost effectiveness test, and landlords may be eligible for an exemption
where the recommended measure(s) do not meet a seven year simple payback. The method
of calculating the payback period is set out in the regulations.</p><p> </p><p>Government
is currently working with industry stakeholders to finalise a comprehensive guidance
document for non-domestic landlords on meeting the requirements of the Regulations,
including further details on calculating payback. This guidance document will be published
in due course.</p>
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