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

The report examines the use of energy service agreements (ESAs) to overcome financial and structural barriers to decarbonizing affordable multifamily housing in California, specifically addressing split incentives and upfront costs.

• More than 50% of California's 3.2 million multifamily units were built before energy efficiency standards were implemented, leading to high greenhouse gas emissions and poor building performance.
• Owners of affordable multifamily housing face three primary obstacles to retrofitting: the split incentive between owners and tenants regarding utility savings, rent and utility allowance restrictions for subsidized housing, and financing gaps between low-income housing tax credit recapitalization events.
• Energy service agreements (ESAs) provided by energy service companies (ESCOs) can resolve split incentive issues and cover upfront costs for solar PV, electrification, and energy efficiency measures, particularly when combined with 2022 Inflation Reduction Act incentives.

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} }