Medium-Size Commercial Retrofits

The report finds that electrification retrofits for mid-sized commercial office buildings are cost-effective when tailored to regional climate conditions and gas utility rates. By analyzing a prototypical 50,000 square foot building, the study demonstrates that combining heat pump replacements with complementary measures—such as ventilation efficiency, peak demand management, and rooftop solar—can result in positive net present value compared to replacing gas equipment in kind.

• Commercial buildings in the United States produce approximately 16 percent of energy-related CO2 emissions, with direct fossil fuel combustion for space and water heating accounting for 5 percent of the country's total energy-related CO2 emissions.
• Electrification retrofits for mid-sized commercial buildings using packaged rooftop units (RTUs) are economical in all four studied US cities, though the most cost-effective package varies by location.
• The specific cost-effective retrofit strategies differ by city: Seattle benefits most from direct heat pump replacement; Chicago requires a combination of electrification, ventilation efficiency, and peak demand management; and Las Vegas and Washington, DC require equipment changes, efficiency upgrades, peak demand management, and rooftop solar.
• The economics of decarbonization retrofits in the commercial sector are primarily driven by gas utility rates and regional climate conditions.
• Ventilation efficiency and demand management can be used to minimize peak winter demands on the electricity grid.

APA

RMI (2022). Medium-Size Commercial Retrofits. https://rmi.org/resources/economics-of-electrifying-buildings-medium-size-commercial-retrofits/

Chicago

RMI. Medium-Size Commercial Retrofits. 2022. https://rmi.org/resources/economics-of-electrifying-buildings-medium-size-commercial-retrofits/.

Wikipedia

{{cite report |author=RMI |title=Medium-Size Commercial Retrofits |date=3 October 2022 |url=https://rmi.org/resources/economics-of-electrifying-buildings-medium-size-commercial-retrofits/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2022mediumsize, author = {{RMI}}, title = {{Medium-Size Commercial Retrofits}}, institution = {RMI}, year = {2022}, month = oct, url = {https://rmi.org/resources/economics-of-electrifying-buildings-medium-size-commercial-retrofits/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }