Boosted in part by strengthening public opinion in San Diego, commercial building energy retrofit activity is already  jumping  sharply during the first quarter of 2010, according to a report from Airco Energy Solutions LLC. Increased activity will be largely due to “green” activity, spurred by political and environmental pressure and backed up by significant scientific study.  It is now becoming particularly appropriate to be sustainable and this trend is likely to carry forward into building retrofit activity.  A local San Diego County power provider  is now offering energy efficient incentive monies of 14 cents for each kWh saved or up to 50% of the entire HVAC retrofit cost ( $350,000 limit) and offering on-bill financing.  The 2010  energy efficiency incentives basically allow commercial buildings to install retrofits, save money, and “go green” with nothing out-of-pocket.

Looking even further ahead on a national scale, within a decade or so it is estimated that half of all retrofit and renovations will be in large part motivated by sustainable concepts and it is further noted that of those who are already engaged in green commercial building retrofit projects, 70% plan to conduct additional initiatives.

The American Recovery and Reinvestment Act provided significant funding for renovations, particularly to federal buildings. By some estimates the potential for environmentally-based commercial building retrofit renovations is as large as $400 billion and is set to increase markedly.

It is interesting to note that fully two thirds of those engaged in current commercial building retrofit projects and who responded to the surveys cite customer pressure and the threat of reputational harm as the giant motivator, with government pressure or the threat of perceived action as another.

With major political activity on the horizon, commercial building retrofit projects must be the source of some concern among building owners and leaseholders. Unfettered carbon emissions and unrestricted energy usage has been blamed for increasing levels of carbons in the atmosphere, global warming and climate change. We’re likely to see legislation forcing companies to take responsibility for their carbon emissions, with stakeholder and consumer action likely against those who do not.

Congress is currently considering far-reaching legislation, but part of the package includes a raft of incentives to encourage commercial building retrofit projects. Should this pass its estimated that up to 50% of a retrofit project may be covered and that organizations may apply for grants and incentives accordingly.

Heating, ventilation and air conditioning units are prime candidates for commercial building retrofit. These are historically some of the least efficient assets that the company may possess and their use represents a good portion of a monthly utility bill.  HVAC retrofit will likely see a good return on investment in a relatively short period of time and in some cases financing is available to help companies fund the project even as they achieve significant returns.

In the carbon economy of the near future, every organization will be ultimately responsible for the efficient operation of each of its assets. Ultimately this will require that the assets are well-maintained, replaced or retrofitted to ensure that they represent a good return on investment and exhibit no waste. Carbon emissions must be significantly reduced over the years ahead and financial pressures will surely help to achieve this.