BOULDER, Colo. — A study released by Pike Research reports that if all commercial space built as of 2010 were included in a 10-year retrofit program, the savings in energy expenses could potentially reach upwards of $41.1 billion per year.
Pike Research, which focuses on renewable power market data, estimates that such programs would require an annual investment of $22.5 billion over the 10-year period.
The study, “Energy Efficiency Retrofits for Commercial and Public Buildings,” analyzes market opportunities for building retrofits in the United States, and provides a detailed examination of drivers, barriers and industry dynamics in today’s market. The report includes an in-depth assessment of policy and regulatory factors, financing structures, retrofit business cases, key industry players and market forecasts.
The report identifies some of the biggest opportunities for energy savings in buildings, and examines how federal and state legislation mold the energy efficiency retrofit market, and looks at primary challenges to energy efficient retrofitting. The study looks into issues that will affect the green construction sector over the next five years.
“The building retrofit industry faces a number of key challenges,” says Clint Wheelock, managing director at Pike Research. “The current financial crisis has had a significant dampening effect on property owners’ investments in their properties. Financing for such projects is scarce, and the limited investment in building efficiency is not keeping pace with the growing national demand for energy.”
Wheelock adds that some of the best-funded opportunities for retrofits today are in institutional buildings, especially federal facilities. This market, already strong because of federal policy mandates and creditworthiness, received a boost from the American Recovery and Reinvestment Act of 2009.
However, federal office buildings comprise less than three percent of the existing 79 billion square feet of commercial space, meaning the largest untapped potential is for energy retrofits in private commercial structures. Pike Research expects the private sector retrofit market to experience strong growth through 2014 and beyond.
Read the entire study at www.pikeresearch.com