There’s a tremendous sense of frustration with investors that our federal and municipal incentives are focused on alternative energy production rather than demand reduction strategies. While it is important that there are subsidies for supply side solutions, many of these technologies have challenging ROIs without the added incentive provided by only a handful of states. However, building consumption reductions of 10%, 20%, or even 30% can be easily achieved by demand modifications such as lighting upgrades, HVAC control modifications and other operational changes.
The difficulty for many owners is around financing. If the government developed innovative loan programs for building retrofitting strategies that improve existing buildings energy demand, we could see a dramatic increase in this type of work being completed This type of government program, focused on short term ROI payback, could finally make energy efficiency projects more accessible to building owners than ever before.