Energy Service Agreements for Deep Efficiency and Electrification Retrofits of Affordable Multifamily Housing in California

This report examines how Energy Service Agreements (ESAs) and federal incentives, specifically from the 2022 Inflation Reduction Act, can be used to scale deep energy efficiency and electrification retrofits for affordable multifamily housing (AMFH) in California.

• More than 50% of California's 3.2 million multifamily units were built before energy efficiency standards were established, leading to high greenhouse gas emissions and poor building performance.
• Owners of affordable multifamily housing (AMFH) encounter three primary obstacles to building performance improvements: the split incentive between owners and tenants regarding utility savings, rent and utility allowance restrictions for subsidized housing, and financing constraints between low-income housing tax credit recapitalization events that make upfront costs difficult to manage.
• Energy service companies (ESCOs) can provide project financing, solar PV, electrification, and energy efficiency solutions under Energy Service Agreements (ESAs). These agreements can mitigate the split incentive problem, provide financing for mid-cycle retrofits, and help owners cover upfront costs for comprehensive improvements.

APA

RMI (2023). Energy Service Agreements for Deep Efficiency and Electrification Retrofits of Affordable Multifamily Housing in California. https://rmi.org/resources/energy-service-agreements-for-efficiency-and-electrification-retrofits-of-affordable-multifamily-housing-in-california/

Chicago

RMI. Energy Service Agreements for Deep Efficiency and Electrification Retrofits of Affordable Multifamily Housing in California. 2023. https://rmi.org/resources/energy-service-agreements-for-efficiency-and-electrification-retrofits-of-affordable-multifamily-housing-in-california/.

Wikipedia

{{cite report |author=RMI |title=Energy Service Agreements for Deep Efficiency and Electrification Retrofits of Affordable Multifamily Housing in California |date=14 July 2023 |url=https://rmi.org/resources/energy-service-agreements-for-efficiency-and-electrification-retrofits-of-affordable-multifamily-housing-in-california/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023energy, author = {{RMI}}, title = {{Energy Service Agreements for Deep Efficiency and Electrification Retrofits of Affordable Multifamily Housing in California}}, institution = {RMI}, year = {2023}, month = jul, url = {https://rmi.org/resources/energy-service-agreements-for-efficiency-and-electrification-retrofits-of-affordable-multifamily-housing-in-california/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }