BOULDER, Colo. — While most energy efficiency retrofits take place because the building owner is looking to reduce energy costs, government policy and incentives are a growing influence. According to a report from Pike Research, a part of Navigant’s Energy Practice, the combination of government policies and financial incentives will drive rapid growth in retrofits over the remainder of the decade. The firm forecasts that the global market for energy efficiency retrofits in the commercial building sector will expand from $80.3 billion in 2011 to $151.8 billion by 2020.

Federal, state, and city governments are providing incentives to those who may not previously have considered retrofitting their commercial properties for increased energy efficiency.

“While some players in the commercial housing market have found their way to energy efficient buildings through benevolent motivations and the promise of global benefits, many more require policy and regulatory requirements or incentives to inspire them to enter the energy efficient retrofit market,” said senior research analyst Eric Bloom. “Sometimes these retrofits are encouraged through incentives or ratings programs that reward the most efficient buildings. More often, government agencies encourage higher efficiency buildings by educating the companies buying and selling buildings about the effect that the buildings will have on the environment and, more importantly, on their utility costs.”