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What higher EPC standards mean for healthcare providers
Rising EPC standards will reshape what it means to operate safely, sustainably and legally in healthcare buildings, many of which are decades old. This article, authored by Lee Reeves, UK Head of Healthcare, breaks down the risks, responsibilities and practical steps providers need to take now.
Read time: 5 mins Added: 11/03/26
Across the UK, many healthcare providers are delivering modern care from buildings designed and built in an era long before energy efficiency or Net Zero were ever considered. Many GP surgeries and care homes still operate from ageing, adapted buildings, which means the journey to higher EPC (Energy Performance Certificates) standards can be a challenge. The British Medical Association’s 2025 GP Premises Survey found that 71% of practices were more than 26 years old, for example, with many significantly older1.
But it is still a more environmentally responsible option to retrofit existing buildings with sustainable technologies, rather than tearing them down and starting again.
Why EPCs matter more than ever
Today, buildings account for around 25% of all greenhouse gas emissions and decarbonising is fundamental to achieving Net Zero, which the NHS is aiming to deliver by 2040. After all, tackling climate change isn’t just about protecting the environment, it’s a major public health issue too2.
EPCs are a cornerstone of the UK’s Net Zero strategy, providing a universal rating system for measuring a building's energy efficiency, with A being the most efficient and G being the least. EPCs are calculated based on a professional assessment of factors including insulation, boilers, radiators and glazing, and healthcare providers are currently legally required to have a minimum EPC standard of E.
But the Government is currently consulting on tightening Minimum Energy Efficiency Standards (MEES) for commercial properties, and while the details aren’t final, it appears that stricter EPC requirements may be on the horizon. Organisations can expect higher minimum standards, more frequent assessments and a stronger push to improve lower rated buildings.
That should be a concern for healthcare businesses operating from older premises. While MEES requirements only apply when a building is being rented out, and owner occupiers are not legally obliged to update their EPC, the responsibility for compliance still sits with the building owner. If your organisation owns and occupies its premises, improving your EPC should still be on your agenda, as a poorer rating can reduce asset value and drive higher energy costs.
Potential pitfalls
While the NHS can’t insist that upgrades are carried out, any business in the NHS supply chain with a contract worth £5 million or more must have a Carbon Reduction Plan in place that includes a strategy for tackling scope 1, 2 and 3 emissions. These businesses will likely want to improve their buildings anyway, as this will be one of the main sources of their emissions.
There are other potential pitfalls too. EPC compliance is compulsory whenever a commercial building is being sold or leased, for example, firms that own their premises and are looking to release equity through a sale and leaseback will have to ensure they are meeting EPC standards first.
Improving your EPC rating is entirely achievable through practical upgrades such as installing LED lighting, upgrading windows, improving insulation, replacing outdated boilers, and exploring renewable energy options like solar panels, ground‑source heat pumps, or even small‑scale wind power. However, achieving these improvements will require expertise and meaningful investment.
Support for healthcare providers
For Lloyds, it’s a familiar challenge; supporting British businesses to grow sustainably and transition to a low carbon economy is a core part of our mission. We have a nationwide team of healthcare specialists who work closely with the sector, from GP practices to dental surgeries, pharmacies, care homes, nurseries and more. And we hear that achieving EPC C and B is a particular challenge for the healthcare sector.
Care providers, for example, have clinical and care requirements that mean heating must be maintained at consistently high levels to protect vulnerable patients and residents, while 24/7 occupancy significantly increases baseline energy demand.
Across the sector, infection control and safeguarding standards limit options to reduce ventilation and hot water use. And older, adapted buildings make upgrades including insulation, heat pumps and solar panels more challenging to install. Works can also be highly disruptive, often requiring rooms to be closed, vulnerable residents to be relocated and interrupting essential services.
Despite these challenges, we know that sustainability is a priority; our 2025 Healthcare Confidence Index found 73% of GPs, dentists and pharmacists said sustainability was an important part of their future plans. They told us that the biggest benefit of achieving Net Zero would be protecting the natural environment (57%).
But operating more sustainably also comes with a range of business benefits, including long-term cost savings and greater resilience to energy price volatility. Delaying investment presents the risk of rising overheads and reduced asset value and viability. The issue for many businesses is less about willingness and more about practical readiness.
When we asked GPs, dentists and pharmacists about the implications of Net Zero, the biggest proportion (45%) said they were aware of the requirement, but didn’t yet know what it meant for their business.
Making EPC upgrades affordable
Realistically, most businesses aren’t going to be able to transform themselves into Net Zero operations overnight. That’s especially true for smaller independent operators, whose high upfront costs relative to turnover can be a barrier to their sustainable ambitions.
Upgrading buildings takes time, investment and careful planning, so we help businesses improve gradually and affordably. That means understanding the full impact of any investment, on both EPC ratings and costs. LED lighting, for example, has a Return On Investment of between one and three years, and can pay for itself five times over in its lifetime. And Lloyds sustainable finance can help lower the cost of transition, helping balance short-term affordability with long-term savings.
Our Buildings Transition Loan, for example, provides discounted lending to help refinance or buy premises rated EPC C to EPC G, which might otherwise be harder to finance due to energy efficiency concerns. The loan rests on a commitment to retrofit the property to at least EPC B, and can also be used to refinance or purchase a property that is already energy efficient, rated EPC A or EPC B.
We also have a free Green Buildings Tool to help you understand the current status of your buildings and identify and prioritise the most impactful energy-efficient investments. We’ve seen how this can result in lower energy costs for tenants and lower operating costs for landlords and boost the sale and rental value of properties.
Ultimately, it’s about enabling investment that supports both financial resilience, environmental impact and better outcomes for service users. And with more stringent EPC rules on their way, this is no time to delay.
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1 https://www.bma.org.uk/news-and-opinion/gp-premises-survey-results-2025
2 https://www.who.int/news-room/fact-sheets/detail/climate-change-and-health
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