Retrofit Industry Needs Assessment Study

The report identifies significant barriers to deep energy efficiency retrofits in the U.S. commercial sector, primarily centered on financing, a lack of performance data, and split incentives. While 71% of surveyed stakeholders express high interest in deep retrofits, the private sector remains risk-averse, often requiring short payback periods of 2-4 years. The study concludes that providing targeted informational resources, such as case studies and improved energy modeling tools, is essential to reduce perceived risks and stimulate industry-wide activity.

• The most significant barrier to deep retrofits is the scarcity of empirical data regarding energy savings and financial payback, which prevents financial institutions and building owners from accurately assessing investment risks.
• Project financing is identified as the most challenging phase of the retrofit process, exacerbated by the economic effects of the recession and a lack of data to support post-retrofit savings.
• Property Assessed Clean Energy (PACE) financing is viewed as a potential breakthrough for private commercial buildings, but its progress has been hindered by the Federal Housing Finance Agency's refusal to support the programs due to risk concerns.
• Split incentives create a barrier where building owners lack motivation to invest in efficiency because utility costs are passed to tenants; additionally, a split exists between capital and operational budgets within companies.
• There is a high level of interest in deep retrofits—defined as achieving at least 60% operating cost savings—with 71% of survey respondents expressing high interest, primarily motivated by reduced energy costs.
• Commercial building owners typically demand higher rates of return and shorter payback periods (often 2-4 years) compared to the public sector, which is more policy-driven and accepts longer horizons.
• Stakeholders identified specific informational resources and media that would facilitate deep retrofits, including case studies, efficiency measure inventories, and improved energy modeling tools delivered via websites and industry training.

APA

Bloom, E., & Wheelock, C. (2010). Retrofit Industry Needs Assessment Study. RMI. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_2010-22_RetrofitIndustryNeedsAssessment.pdf

Chicago

Bloom, Eric, and Clint Wheelock. Retrofit Industry Needs Assessment Study. RMI, 2010. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_2010-22_RetrofitIndustryNeedsAssessment.pdf.

Wikipedia

{{cite report |last1=Bloom |first1=Eric |last2=Wheelock |first2=Clint |title=Retrofit Industry Needs Assessment Study |publisher=RMI |date=2010 |url=https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_2010-22_RetrofitIndustryNeedsAssessment.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bloom2010retrofit, author = {Bloom, Eric and Wheelock, Clint}, title = {{Retrofit Industry Needs Assessment Study}}, institution = {RMI}, year = {2010}, url = {https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_2010-22_RetrofitIndustryNeedsAssessment.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }