In a follow-up to our previous article on EPC compliance, and in light of the fast-approaching compliance deadline, this article helpfully outlines when owners of mixed-use buildings that contain both residential and commercial components may be required to publicly display an energy performance certificate (‘EPC’).
Legal framework
Intended to enhance energy efficiency, South Africa’s Regulations for the Mandatory Display and Submission of Energy Performance Certificates for Buildings (‘the Regulations’) require both privately owned and state-occupied buildings to obtain and publicly display an EPC if all of the following conditions are met:
Occupancy classification
As per Regulation A20 of the National Building Regulations, the building’s dominant occupancy must fall under a specified occupancy class, namely:
- A1 – Entertainment and public assembly
- A2 – Theatrical and indoor sport
- A3 – Places of instruction
- G1 – Offices
Operational status
The building must have been operating for at least two years without major renovations during that time.
Size threshold
The total net floor area must exceed 2 000 m² (for privately owned buildings) or 1 000 m² (for those owned or occupied by an organ of state).
How do these requirements apply to mixed-use buildings?
For mixed-use buildings, such as offices above residential apartments or retail below flats, the Regulations require a more nuanced assessment. Each area of the building is classified separately according to its dominant function.
The Department of Mineral Resources and Energy and the South African National Energy Development Institute (‘SANEDI’) have clarified that, when assessing a mixed-use building, owners should ask three key questions:
- Does the portion of the building that falls under an EPC-relevant classification (A1, A2, A3, or G1) exceed 2 000 m²?
- Can this commercial component be clearly separated from the residential areas? In other words, is it possible to establish a clear boundary around these portions?
- Does the commercial component account for more than 10% of the building’s total energy consumption?
If all three answers are ‘yes’, that commercial portion must obtain an EPC — even if the rest of the building (for example, the residential component) does not.
Do hotels require an EPC?
It is crucial to note that owners of buildings classified as H1 – Hotel, namely buildings where individuals rent furnished units, as well as H5 – Hospitality, being those buildings where unrelated individuals transiently rent furnished rooms in domestic residence or dwelling house not exceeding 16 persons, are not mandated to obtain an EPC.
In instances where the building that includes hotel or hospitality has a mixed occupancy, each component must be separately classified and assessed in line with the questions above.
How can building owners apply for an EPC?
In South Africa, owners of commercial buildings and qualifying mixed-use buildings must acquire the services of an accredited inspection body to conduct an evaluation of the building and issue a certificate before the looming deadline of 7th December 2025.
For further information, visit SANEDI’s website.
For all commercial and residential property-related queries, contact our team of real estate attorneys at info@stbb.co.za.
This content is the property of STBB. We encourage the sharing of our content for informational purposes. However, if you wish to copy or reproduce our content on your own platform or website, please ensure that proper credit is given to STBB.
