Several substantial, durable drivers are expanding the potential market for energy efficiency retrofits in commercial buildings, which can provide energy savings from 10% to more than 50%. In addition to cost savings, energy retrofits are attractive for purposes of greenhouse gas (GHG) reductions, energy independence, green branding, property valuation, and productivity. However, the actual market is small compared to its potential, due to an assortment of barriers within various industry segments.
The best-funded opportunities for energy retrofits today are major upgrades in institutional buildings, especially in federal buildings. This market, already strong because of federal policy mandates and creditworthiness, received a boost from the American Recovery and Reinvestment Act (ARRA). However, federal non-industrial buildings comprise less than 3% of existing commercial space, and the largest untapped potential is for energy retrofits in private commercial buildings. Pike Research anticipates that the private retrofit sector will experience strong growth through 2014 and beyond, especially as several key market barriers are successfully overcome.
This Pike Research report analyzes the market opportunity for energy efficiency retrofits of commercial and public buildings in the United States. It provides a detailed examination of the market drivers, barriers, and industry dynamics in today’s market, along with several scenarios for future growth. The report includes an in-depth assessment of policy and regulatory factors, financing structures, demand drivers by segment, retrofit business cases, key industry players, and market forecasts.
Key questions addressed:
- Where are the biggest opportunities to save energy cost (which building activities, regions, and owners)?
- How could federal and state legislation affect the energy efficiency retrofit market?
- Which retrofit practices are most cost-effective and value-enhancing?
- What are the primary challenges and opportunities for energy efficiency retrofits, for each market segment?
- What present and future best practices will address these challenges and opportunities?
- What technologies, programs and policies will expand very rapidly in the next 5 years?
Who needs this report?
- Energy Service Companies (ESCOs)
- Green building technology and materials providers
- Construction professionals
- Building owners and property managers
- Policy makers and policy analysts
- Academic institutions
- Government agencies
- Industry associations
- Nonprofit and advocacy groups
- Investor community
Table of Contents
1. Executive Summary
1.1 Introduction
1.2 Energy Savings Potential
1.3 Retrofits in Public Buildings
1.4 Retrofits in Private Buildings
1.4.1 Building Retrofit Benefits
1.4.2 Cost-Effective GHG Reduction
1.4.3 Financial Barriers
1.4.4 Market Fragmentation
1.4.5 Economic Downturn and Oversupply of Commercial Space
1.5 Policy Recommendations
1.5.1 Overview
1.5.2 Federal Buildings
1.5.3 State Buildings
1.6 Definition of Commercial Buildings
2. Market Issues
2.1 Introduction
2.2 Demand Drivers
2.2.1 Energy Cost Reduction
2.2.1.1 ENERGY STAR
2.2.2 Non-Energy Benefits to Owners and Tenants
2.2.2.1 Green Branding
2.2.2.1.1 LEED
2.2.2.1.2 Corporate Sustainability Reporting
2.2.2.2 Occupancy
2.2.2.3 Productivity
2.2.3 Awareness
2.2.3.1 2030 Challenge
2.2.4 Policy
2.2.4.1 Public Benefits
2.2.4.1.1 GHG Emissions, Carbon Footprint, Carbon Trading
2.2.4.1.2 Energy Independence
2.2.4.2 Public Energy Efficiency Promotion
2.2.4.2.1 Least Cost Procurement
2.2.4.3 Mandatory Energy Performance Disclosure
2.2.4.4 Building Codes
2.2.4.5 Utility Profits and Decoupling
2.2.4.5.1 Decoupling
2.2.4.6 U.S. Department of Energy
2.2.4.6.1 American Recovery and Reinvestment Act
2.2.4.6.2 Energy Efficiency & Renewable Energy Commercial Building Energy Alliances
2.2.4.6.3 National Action Plan for Energy Efficiency
2.2.4.6.4 Commercial Building Partnerships
2.2.4.7 Regional Policies and Programs
2.2.4.7.1 New York City, PlaNYC 2030, Greener Greater Buildings
2.2.5 Appraisal and Valuation
2.3 Market Segmentation and Barriers
2.3.1 Centralized vs. Local Control in Each Segment
2.3.2 Market Segments, Building Activity, and Ownership
2.3.2.1 Introduction
2.3.2.2 Office
2.3.2.3 Education
2.3.2.3.1 K-12
2.3.2.3.2 LEED for Schools
2.3.2.3.3 Colleges and Universities
2.3.2.3.4 Challenges
2.3.2.3.5 Opportunities
2.3.2.4 Retail
2.3.2.4.1 Vacancies
2.3.2.5 Lodging
2.3.2.6 Healthcare
2.3.2.7 Food Sales and Services
2.3.2.8 Warehouse and Storage
2.3.2.9 Data Centers
2.3.3 Market Segments, Ownership
2.3.3.1 Credit Availability
2.3.3.2 Private Owner Occupied
2.3.3.3 Private Lease
2.3.3.4 Public
2.3.3.5 Federal Government
2.3.3.6 State and Local Government-Owned Facilities
2.3.4 Market Segments, Building Size
2.3.5 Market Segments, Building Age
2.3.6 Market Segments, Regional
2.3.7 Market Segments by Energy Use
2.3.8 Training
2.3.9 Summary
3. Energy Efficiency Products and Services
3.1 Introduction
3.2 Financial
3.2.1 Performance Contracting
3.2.1.1 ESCO
3.2.2 Purchase-Upgrade-Leaseback
3.2.3 PACE and On-Bill Finance
3.2.4 Energy Services Agreements
3.3 Cultural
3.3.1 Changing Habits
3.3.2 Popularity: Energy Efficiency vs. Renewable Energy
3.4 Software
3.5 Demand Response
3.6 Hardware
3.6.1 Shell and Lighting
3.6.1.1 Greenroof
3.6.2 HVAC
3.6.3 Indoor Environmental Quality
3.6.4 Submeters and Real-Time Monitoring & Control
3.6.5 Durability
3.7 Design Targets
3.7.1 Introduction
3.7.2 Retro-Commissioning: 10% to 20% Savings
3.7.3 Conventional ESCO: 20% to 40% Savings
3.7.4 Integrated Design: 30% to 60% Savings
3.7.4.1 Daylighting
3.7.5 Net Zero Energy or Zero Energy Buildings: 40% to 90% Savings
4. Selected Industry Players
4.1 Introduction
4.2 CB Richard Ellis
4.3 Johnson Controls
4.4 Lime Energy
4.5 Aqua Products Company
4.6 Sunoptics Prismatic Skylights
4.7 Sonoma County Energy Independence Program
4.8 California Sustainability Alliance
5. Market Forecasts
5.1 ESCO Market
5.2 Building Certification
5.3 Potential Energy Efficiency Retrofit Market
5.3.1 Retro-Commissioning
5.3.2 Conventional Energy Retrofit
5.3.3 Policy Examples
5.3.3.1 Submeter College and University Campuses
5.3.3.2 Retrofit K-12 Schools for NZE
5.3.4 Training
5.4 Scenarios
5.4.1 Retro-commissioning and Existing Building Certification
5.4.2 Conventional Energy Retrofits
5.4.3 Legislation Scenario
6. Company Directory
7. Acronym and Abbreviation List
8. Table of Contents
9. Table of Charts and Figures
11. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- Significance in Your Organization’s Energy Efficiency Decisions (Survey Results)
- Longest Payback Period Allowed for a Significant Energy Efficiency Investment
- Total Space by Sector: ENERGY STAR Rated vs. Not Rated
- ENERGY STAR Space by Sector: Labeled (Official Certification) vs. Not Labeled
- Survey Respondents Who Consider Energy Efficiency a Priority
- Undergoing or Planning New Construction or Retrofits in the Next 12 Months
- Respondents Planning Energy Efficiency Investments in the Next 12 Months
- Buildings & Appliances Provide the Best Payoff for GHG Emission Reductions
- Energy Efficiency Resource Standards, 19 States
- States with Decoupling Legislation
- Commercial Space by Building Activity
- Energy Use by Commercial Buildings Built Before 2000, by Building Activity
- Energy Efficiency Capital Expenditures Planned in the Next 12 Months, by Sector
- Energy Use in Office Buildings with Various ENERGY STAR Ratings
- K-12 Enrollment
- Post-Secondary Enrollment
- Government Space by Building Activity
- Total Area of Commercial Buildings by Size Category
- Number of Commercial Buildings by Size Category
- Planning Energy Efficiency Capital Expenditures in the Next 12 Months, by Building Size
- Existing Space Constructed before 2000
- Commercial Building Space by Age and Principal Building Activity
- Energy Intensity (Primary) in California Commercial Buildings
- Energy Intensity (Delivered) in Commercial Buildings of Different Vintages
- Energy Expenditures in Commercial Buildings by State: 2006
- Annual Energy Expenditure in Commercial Buildings by State, Waterfall Chart
- Annual Energy Expenditure in Commercial Buildings by Use
- Top Barrier to Capturing Energy Savings for your Organization (Survey Results)
- Frequency of Key Technologies in Buildings with Good vs. Low Performance
- Energy Efficiency Tools Implemented by Building Activity
- Percent of the Total Energy Cost in Commercial Buildings by Equipment Category
- ESCO Annual Revenue for Energy Efficiency Retrofits in Commercial Buildings
- Certified New Construction & Major Renovation, ENERGY STAR & LEED-EBOM
- Retro-Commissioning Cost and Payback, by Building Use
- Potential Cost and Cost Savings to Retro-Commission all Buildings, by Building Use
- Potential Cost and Cost Savings to Retrofit all Buildings, by Building Use
- Retro-Commissioning Revenue, 2009-2014
List of Tables
- Energy Savings and Payback from Energy Retrofits of Various Types
- Quantitative Overview of the Commercial Building Retrofit Market
- Quantitative Overview of the Commercial Building Retrofit Market, Part 2
- Principal Policies Supporting LEED-EB
- Focus of Energy Programs vs. Climate Programs
- Direct and Indirect Benefits of High Performance Buildings
- Anecdotal Benefits
- Sources for Tables 2.4 and 2.5
- Influences on Adoption of Sustainable Building Practices for Global Corportations
- Increase in Building Space & Commerical Energy Intensity, from 1980 to 2010
- Energy Efficiency Drivers in Fifteen Leading States
- Overview of Green Campuses
- Food Sales and Services Centralization
- Government Space by Building Activity
- Energy Efficiency Retrofit Challenges and Opportunities, by Market Niche
- Total Space by Sector: ENERGY STAR Rated vs. Not Rated
- ENERGY STAR Space by Sector: Labeled (Official Certification) vs. Not Labeled
- Commercial Space by Building Activity
- Energy Use by Commercial Buildings Built Before 2000, by Building Activity
- K-12 Enrollment, millions
- Post-Secondary Students Degree and Non-Degree
- Government Space by Building Activity
- Total Area of Commercial Buildings by Size Category
- Number of Commercial Buildings by Size Category
- Planning Energy Efficiency Capital Expenditures in the Next 12 Months, by Building Size
- Profiles of Main Building Activity, When Constructed, BSF
- Commercial Building Space by Age and Principal Building Activity
- Energy Intensity (Primary) in California Commercial Buildings
- Commercial Delivered Energy Consumption Intensities, by Vintage
- Annual Energy Expenditure in Commercial Buildings by State
- Annual Energy Expenditure in Commercial Buildings by Use
- Smart Building Components
- Common Energy Efficiency Tools and Technologies, Organized by Cost
- Energy Savings and Payback from Energy Retrofits of Various Types
- Primary Techniques Used by Energy Retrofits of Various Types
- Energy Efficiency Tools Implemented by Building Activity
- Percent of Total Energy Load in Commercial Buildings by Equipment Category
- Sonoma County, California PACE Applications as of 3/2010
- ESCO Annual Revenue for Energy Efficiency Retrofits in Commercial Buildings
- Retro-Commissioning Cost and Payback, by Building Use
- Potential Cost and Cost Savings to Retro-Commission all Buildings, by Building Use
- Potential Cost and Cost Savings to Retrofit all Buildings, by Building Use
- Retro-Commissioning Revenue, 2009-2014
