Energy Efficiency Retrofits for Commercial Buildings Could Save $41.1 Billion per Year in Energy Costs

July 22, 2010

Commercial building space in the United States covers a total of 79 billion square feet, and buildings are one of the leading sources of energy consumption and carbon emissions.  With more than 80% of commercial buildings being more than 10 years old, they also represent a significant opportunity for energy savings if today’s best practices are applied for efficiency retrofits.  According to a new report from Pike Research, if all commercial space built as of 2010 were included in a 10-year retrofit program, the savings in energy expenses would have the potential to reach more than $41.1 billion each year.  The cleantech market intelligence firm estimates that such programs would require an annual retrofit investment of $22.5 billion over the 10-year period.

However, despite these promising numbers, Pike Research’s analysis finds that the actual market for energy efficiency retrofits is only a small fraction of the potential.  “The building retrofit industry faces a number of key challenges,” says managing director Clint Wheelock.  “The current financial crisis has had a significant dampening effect on property owners’ investments in their properties.  Financing for such projects is scarce, and the limited investment in building efficiency is not keeping pace with the growing national demand for energy.”

Wheelock adds that the best-funded opportunities for 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 several key market barriers will be successfully overcome during the next few years, and the firm expects that the private retrofit sector will experience strong growth through 2014 and beyond.

Pike Research’s study, “Energy Efficiency Retrofits for Commercial and Public Buildings”, analyzes the market opportunity for building retrofits 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.  An Executive Summary of the report is available for free download on the firm’s website.  

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets.  The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Clean Transportation, Clean Industry, Corporate Sustainability, and Building Efficiency sectors.  For more information, visit www.navigantresearch.com or call +1.303.953.9765. 

Register to Receive Updates

Sign up or login to receive free newsletters, research updates, access to webinars, and other analyst content from Navigant Research.

Research News

Rss
Utilities and Grid Operators Will Invest More than $42 Billion in Flexible Alternating Current Transmission Systems from 2014 to 2022
July 29, 2014The growth in distributed renewable energy resources is driving demand for large-scale FACTS deployments, report concludes • The first flexible alternating current transmission systems (FACTS), which mitigated voltage drops on the…
Read More »
Shipments of Smart City Communications Nodes Will Reach Nearly 55 Million Annually by 2020
July 28, 2014Fragmentation across sectors and departments is a persistent problem, report finds • Ubiquitous and embedded communication services lie at the heart of the innovations in energy,…
Read More »
Commercial Building Owners and Managers Will Invest Nearly $960 Billion in Energy Efficiency Retrofits from 2014-2023
July 24, 2014 Payback periods remain a critical factor for decision-makers on retrofit projects, report finds • Because the existing building stock dwarfs the amount of building space that is added…
Read More »
Lithium Ion Batteries for Consumer Electric Vehicles Will Surpass $24 Billion in Annual Revenue by 2023
July 22, 2014Automakers have yet to agree on battery performance standards, report finds • Lithium ion (Li-ion) batteries have emerged as the leading battery technology for a wide…
Read More »
View All News

{"userID":"","pageName":"Energy Efficiency Retrofits for Commercial Buildings Could Save $41.1 Billion per Year in Energy Costs","path":"\/newsroom\/energy-efficiency-retrofits-for-commercial-buildings-could-save-41-1-billion-per-year-in-energy-costs","date":"7\/30\/2014"}