Retrofit Industry Needs Assessment Study

The 2010 RMI study identifies a critical lack of empirical performance data and financing hurdles as the primary barriers to deep energy efficiency retrofits in the U.S. commercial building sector. While 71% of stakeholders express interest in deep retrofits to reduce costs, the industry is hindered by 'cream-skimming' of low-risk measures, split incentives between landlords and tenants, and regulatory uncertainty surrounding PACE financing. The report concludes that providing case studies, improved modeling tools, and verified performance data is essential to instill confidence in financial institutions and building owners.

• The most significant barrier to deep energy efficiency retrofits is a critical lack of empirical data on performance, specifically regarding energy savings and financial payback. Financial institutions are unwilling to base lending decisions on predictive energy savings and instead require evidence from actual utility bills to assess risk and determine if retrofits increase resale value, rents, or operating income.
• Project financing is identified as the most challenging phase of the retrofit process, with 31% of interested respondents citing it as the primary difficulty. This is driven by the lack of post-retrofit performance data, the low priority of energy issues in the commercial sector, and the negative impacts of the recession on capital resources available to Energy Service Companies (ESCOs).
• Property Assessed Clean Energy (PACE) financing is viewed as a potential breakthrough for private commercial buildings by shifting operational expenses from energy bills to property tax bills. However, its progress was halted by the Federal Housing Finance Agency, which argued the programs were too risky because PACE liens are intended to have senior status to mortgages, violating Freddie Mac regulations.
• There is a high level of general interest in deep retrofits, with 71% of survey respondents expressing high interest, primarily motivated by reduced energy costs (90%) and improvements to building operation and maintenance (64%). Conversely, those not interested cited a lack of financial resources (28%) and limited job authority (24%) as primary reasons.
• The retrofit industry suffers from "cream-skimming," where owners only select measures with the most attractive, short-term paybacks (such as lighting) rather than comprehensive measures. This is exacerbated by split incentives, where landlords have little motivation to invest in efficiency because utility costs are passed to tenants, and internal corporate splits between capital and operational budgets.
• Stakeholders identified specific informational resources and media that would facilitate deep retrofits. The most useful resources include case studies, inventories of common efficiency measures, improved energy modeling tools, and investment-grade audit checklists. The most effective delivery media are websites/online media, conferences/seminars, 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} }