What is a Predicted Energy Assessment?
When you’re buying a new build property that’s still under construction, it won’t have a traditional Energy Performance Certificate (EPC).
Instead, you’ll come across a Predicted Energy Assessment (PEA). This provisional rating gives you an early indication of how energy-efficient your future home will be, based on building plans rather than a physical inspection. For off-plan buyers and those purchasing new builds before completion, understanding what a PEA is and how it differs from a final EPC can help you make better decisions about your property purchase and future energy costs.
Understanding Predicted Energy Assessments
A Predicted Energy Assessment is a provisional energy efficiency rating for new build properties that aren’t yet complete.
Unlike a standard EPC which requires a physical inspection, a PEA uses building plans, specifications and construction details to estimate how energy-efficient the property will be once built.
PEAs were introduced to allow developers to market new homes with energy information before construction is finished. They give buyers an early look at expected energy performance, helping them compare properties and estimate running costs. However, they’re only temporary – once the building is complete, a full EPC must be produced within three months.
The rating uses the same A-G scale as an EPC, with A being the most efficient and G the least. This helps buyers understand roughly where their new property will sit on the energy efficiency spectrum.
How Predicted Energy Assessments Work
PEAs are created by qualified energy assessors who review the property’s design specifications, construction materials, heating systems, and insulation plans. Using the Standard Assessment Procedure (SAP) – the same methodology used for EPCs – they calculate an estimated energy rating.
The assessment looks at several factors:
- Planned insulation levels
- Proposed heating systems
- Window specifications
- Renewable energy features (if any)
- Ventilation systems
- Building orientation and layout
From these details, the assessor produces a report showing the projected energy efficiency rating, estimated energy costs, and carbon emissions. The rating appears as both a letter grade (A-G) and a number (1-100), with higher numbers indicating better efficiency.
A PEA is valid only during the construction phase and must be replaced by a proper EPC once the building is complete. This means the final energy rating might differ from the prediction if changes occur during construction.
PEAs vs Energy Performance Certificates
While PEAs and EPCs share similarities, they serve different purposes and have key differences:
PEAs are based on plans and specifications, while EPCs involve physical inspections of completed properties. PEAs are temporary and used mainly for marketing new builds, whereas EPCs are legal requirements that last for 10 years.
The accuracy levels differ too. Since PEAs rely on plans rather than the actual building, they provide estimates that might change. EPCs offer more reliable assessments based on the finished property and its installed features.
Both use the same SAP calculation method and A-G rating scale, making it easier to compare predicted ratings with final ones. However, only the EPC is a legal requirement for selling or renting a property.
Common Misconceptions About PEAs
Many people assume a PEA guarantees the final energy rating, but this isn’t the case. Construction changes, material substitutions, or workmanship issues can all affect the final EPC rating.
Another misunderstanding is that PEAs apply to all properties – they’re only used for new builds or major renovations where a full EPC can’t yet be produced.
Some buyers also believe that slight differences between PEA and EPC ratings indicate a problem, but small variations are normal. What matters is whether substantial differences appear, which might suggest building specification changes during construction.
Why PEAs Matter When Buying New Builds
For off-plan buyers, a PEA offers valuable insight into what you’re purchasing. A good energy rating suggests lower running costs and better environmental performance – increasingly important factors as energy prices rise.
When reviewing a PEA for a potential purchase:
- Compare the rating with other similar properties
- Ask the developer about what energy-saving features contribute to the rating
- Question how confident they are that the final EPC will match the prediction
- Check what happens if the completed property receives a lower rating than predicted
A property with a high predicted energy rating (A or B) should cost less to heat and power than one with a lower rating. This affects your monthly outgoings and may influence your budget calculations.
How PEAs Affect Your Mortgage Application
Mortgage lenders are paying more attention to energy ratings as part of their assessment process. Many lenders now consider energy efficiency when making lending decisions, with some offering better rates for energy-efficient homes.
When applying for a mortgage on a new build:
- Some lenders may ask to see the PEA as part of their property valuation
- Lenders might check if the developer has a good track record of matching predicted ratings
- A few lenders now have minimum energy rating requirements for new builds
If you’re concerned about how a property’s energy performance might affect your mortgage options, a mortgage broker can help identify lenders with suitable criteria for new builds with PEAs rather than completed EPCs.