BOULDER, Colo. — Because of the substantial number of existing buildings, retrofits are a critical pathway to greening the world’s commercial buildings, notes Navigant Research. Regulations and policy measures, technological advances, and cost reductions are all driving increased investment in energy efficiency retrofits. According to a report from the research firm, cumulative investment in commercial building energy efficiency retrofits is forecast to total $959 billion from 2014 through 2023.
“Led by the Asia Pacific region, the global market for energy efficiency commercial building retrofits is expected to grow at more than 7 percent a year through 2023,” said Eric Bloom, principal research analyst with Navigant Research. “While government mandates play an important part in driving this growth, many retrofit projects are being undertaken on a voluntary basis, as corporate sustainability initiatives spread.”
The payback periods for energy efficiency retrofit projects are slowly decreasing, according to the report, but they remain a critical factor for most building owners and managers. Tolerance for longer payback periods varies both by region and by building owner category. Only 15 percent of all energy efficiency retrofits are initiated with increased energy efficiency as the primary motivator, the report concludes.
Publication date: 8/4/2014