Finance mechanisms upgrade energy efficiency in multi-tenant buildings

A new report from the American Council for an Energy Efficient Economy Redirecting to a non-government site explores barriers and potential solutions for some notoriously hard-to-reach markets. Financing for Multi-Tenant Building Efficiency: Why This Market is Underserved and What Can Be Done to Reach It looks at opportunities to use financing measures for energy efficiency in multi-tenant, commercial office spaces.

Commercial buildings currently consume about 18 percent of the total primary energy in the United States, largely because of aging building equipment and systems. Unfortunately, many of the buildings that could most benefit from an energy-efficiency upgrade face the steepest barriers. Older buildings with fewer amenities, especially those without professional management, can have a harder time accessing the necessary capital for a retrofit. So this market offers a great deal of potential to install energy-efficient, cost-effective systems that would reduce monthly utility bills.

The study examines various energy efficiency-specific financing mechanisms that have been created to help these property owners gain access to funding. On-bill financing, energy services companies and energy service agreements have shown promise for simplifying the retrofit process for building owners and payment for building tenants.

While many of these mechanisms still lack substantial market experience, they increase access to funding for improvements and are a great base for building financing mechanisms of the future. Read more, or download the report from ACEEE. Source: American Council for an Energy Efficient Economy, 8/1/13