Deep energy retrofits: The next step in commercial energy efficiency

The commercial and residential buildings sector currently accounts for one-fifth of the total delivered energy consumption worldwide, and commercial building energy use continues to increase by 1% per year. By 2020, the commercial buildings sector will consume 20% of baseline end-use energy in the U.S. Reducing energy use not only reduces bottom line expenditures, it also increases rents and property values. According to a McKinsey & Co. study, buildings meeting an efficiency standard (such as LEED) show a 6% premium in effective rent and a 16% premium in valuation over similar non-energy efficient buildings. Energy efficiency improvements in new commercial buildings are being propelled by the adoption of the International Energy Conservation Code (IECC) by many states and municipal governments since its inception in 2000. This model code, created by the International Code Council, establishes minimum design and construction requirements for the construction industry. The IECC is currently in use or adopted in 46 states and the District of Columbia. Many of the energy efficiency measures that are required by the IECC seek to address basic principles of energy efficiency and building science, including: building envelope and HVAC sealing and testing, insulating pipes and ductwork, and installing high-efficacy lighting. As the energy efficiency and green building industries continue to evolve along with more stringent energy conservation codes, the bar is being set even higher with what has become known as "deep energy retrofits." The general understanding within the industry is that deep retrofits result in anywhere from 40% to 75% energy savings over a new construction, code-built building. The core concept behind deep retrofits is a holistic, whole-building analysis, combined with an integrative design and construction process that achieves much larger energy cost savings than basic energy retrofits. Deep retrofits require a long-term vision and commitment to the property, as initial capital investments tend to be appreciably higher than basic retrofits. Studies from reputable sources are indicating mounting evidence that deep retrofits can be highly profitable. A requisite feature of the holistic nature of deep retrofits is that they often include several interrelated measures. An example would include replacing single-pane windows with super-insulated triple-pane windows, followed by the replacement of heating and cooling systems with new efficient HVAC equipment that can be downsized due to lower heating and cooling loads. Each measure is beneficial to the building if performed independently, but once combined they can yield substantially more savings. Adin Meir is a senior energy project manager at CodeGreen Solutions, New York, N.Y.