Deep Energy Retrofits in Federal Buildings: The Value, Funding Models and Best Practices (LV-17-006)

Deep energy retrofits can supercharge our transition to a clean energy future without relying on radical technologies or untested methods. Buildings are the largest energy-consuming sector in the United States and 80% of existing buildings today will likely remain in operation by 2030, making existing building retrofits essential to national and global energy and carbon reduction strategies. There are three main funding mechanisms to deliver deep energy retrofits to federal facilities: congressionally appropriated funding, performance contracting, including commonly used energy savings performance contracts (ESPCs) and a combined funding model blending appropriations with ESPC. This paper focuses on ESPCs and the emerging combined funding model.