Energy Efficiency Retrofits: Deep Energy Retrofits, ECMs, and the Construction Specialty for Existing Buildings

Energy efficiency retrofits upgrade existing buildings reducing energy use through Energy Conservation Measures (ECMs) including HVAC upgrades, lighting, controls, envelope, and renewables. Deep energy retrofits achieve substantial savings (30-50%+) through comprehensive multi-measure approach. Standard retrofits achieve modest savings (10-20%). ESCO (Energy Service Company) performance contracts guarantee savings. Incentive programs (utility rebates, IRA tax credits, ARPA funds) substantial market drivers. Understanding retrofits helps construction firms serve this growing specialty.

This post covers energy efficiency retrofits.

Common ECMs

Common Energy Conservation Measures:

Common Energy Conservation Measures (ECMs) in retrofits. LED lighting substantial savings 60-80% lighting energy reduction. HVAC equipment upgrade replacing aged equipment with high-efficiency. Building automation/controls modernizing for optimization. Variable Frequency Drives on substantial motors. Envelope improvements including insulation, windows, air sealing. Solar PV addition for renewable energy. Specific to building condition and goals.

Deep Energy Retrofits

Deep retrofits comprehensive:

Deep energy retrofits comprehensive approach. Multiple measures combined for substantial impact. 30-50%+ energy reduction targeted. Substantial investment ($50-$200+/sf typical). Substantial occupant impact sometimes during construction. Specific to building type. Net zero goal in some retrofits. Substantial planning required including energy modeling, ECM selection.

ESCO Performance Contracts

ESCO contracts guarantee:

ESCO (Energy Service Company) performance contracts unique structure. ESCO designs and constructs improvements. ESCO guarantees savings to owner. Owner pays from savings achieved (savings exceed payments). Self-funding typical structure — no upfront cost to owner. Specific federal use through ESPC (Energy Savings Performance Contract). Specific to ESCO firm including Honeywell, Siemens, Trane, Johnson Controls, others. Substantial market particularly federal and state government.

Incentive Programs

Incentives substantial:

Incentive programs substantial. Utility rebates from local utilities for specific measures. IRA tax credits substantial — ITC, PTC for renewables, 45L, others. 179D federal deduction expanded by IRA for energy-efficient buildings. PACE (Property Assessed Clean Energy) financing through property tax assessment. State/local programs varying. ARPA (American Rescue Plan Act) funds for some public projects. Specific to project location and type.

Measurement and Verification

M&V verifies savings:

M&V (Measurement and Verification) verifies savings achieved. IPMVP (International Performance Measurement and Verification Protocol) typical standard. Pre and post measurements documenting baseline and improved performance. Specific to ECM type — different M&V approaches per measure. Required for ESCO contracts to verify guaranteed savings. Required for some incentives demonstrating savings. Documentation substantial.

Building Types

Various building types:

Various building types served by retrofits. Federal government substantial market through ESPC. State/local government similar. K-12 and higher education substantial through energy as lifecycle savings. Healthcare with substantial energy use. Commercial office. Multifamily increasingly. Specific to ownership type — owner-occupied vs landlord different incentives.

Bottom Line

Energy efficiency retrofits upgrade existing buildings reducing energy through ECMs. Common ECMs include lighting, HVAC, controls, envelope, renewables. Deep retrofits comprehensive 30-50%+ savings. ESCO performance contracts guarantee savings with self-funding structure. Incentive programs substantial including utility rebates, IRA credits, 179D, PACE. M&V verifies savings. Various building types served. For construction firms, retrofits substantial growing specialty. Quality retrofit expertise and ECM capability support success. Substantial market opportunity from energy transition and incentive programs.