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.
July 31, 2012

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.

(http://www.globest.com/news/12_401/sanfrancisco/more_green/Financing-Options-Exist-For-Sustainable-Retrofits-323629.html)

About the Author

Drew Ballensky

Drew Ballensky is general manager of Duro-Last Roofing, Inc.’s central U.S. facility in Iowa and company spokesman for Duro-Last’s cool roofing, sustainability and architectural education programs. He is past-president of the Chemical Fabrics and Film Association and chairman of CFFA’s Vinyl Roofing Division. Drew earned his bachelor’s degree in industrial technology from the University of Northern Iowa and master’s degree in business administration from Florida State University. Drew has over 29 years experience in business and industry in various engineering and managerial capacities. He has worked in the U.S. and Canadian operations for a major international manufacturer of pre-engineered steel buildings, was a financial analyst with a major athletic apparel manufacturer and was an owner of a general contracting company.
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