Three ways to stimulate demand for energy efficiency retrofits
Financing energy efficiency building retrofits continues to be challenging for owners. Experts offer three private sector strategies that could boost the retrofit market in this article. One would have energy-service companies (ESCOs) purchase the equipment and pay for retrofit activities while setting up programs to get a return on their investment. This strategy is similar to solar lease programs on PV installations.
The creation of a securitized market similar to the market for commercial mortgage-backed securities is another possible option, where an investor would be able to sell these instruments on the secondary market. A third way would be the creation of underwriting tools that can evaluate the energy profile of a building to help owners determine the best retrofit plan. Complete overhauls may not be necessary for some buildings, and by examining where sustainable processes can be enhanced and weaknesses fixed, owners can increase efficiencies that can save them the most money.