Improving a building’s energy performance not only has benefits for its property owners and residents—it also has a positive impact on our environment and public health, considering that in 2022, emissions from homes and businesses accounted for 31% of total U.S. greenhouse gas emissions.
When you use energy more efficiently, you reduce utility costs. If your property owners pay the energy bill, this will reduce their monthly costs substantially. If residents pay for their energy use, it’ll make living there more attractive to them. It can also mean that you’ll have to replace appliances less often, which saves your owners even more money.
Monitoring your building’s energy usage should be a critical part of your strategy for saving money and enhancing the properties you manage. The good news is that you don’t have to tear down each building and start over. Instead, you can retrofit the one that you have, making changes that are as subtle or as extensive as your owners want.
So, is retrofitting buildings to improve energy efficiency effective? The need is certainly urgent; one report projects that to reach the goal of net-zero emissions by 2050, 2.5% of existing residential buildings must be retrofitted each year.
Start with an Energy Audit to Guide Your Retrofitting Strategy
What Is an Energy Audit?
An energy audit is a comprehensive inspection that identifies where your building wastes energy and money. It’s a professional assessment that pinpoints air leaks, inefficient systems, and insulation problems. The audit report ranks improvements by cost and potential savings, giving you a clear action plan.
Professional vs. DIY Energy Assessments
You have two options for energy audits:
- DIY approach: Visual inspection to spot drafts around windows, old appliances, and obvious air leaks
- Professional audit: Uses blower doors and infrared cameras to find hidden problems in larger or older buildings
How Energy Audits Inform Retrofitting Decisions
An audit doesn’t just tell you what’s wrong; it helps you prioritize. The report you get will rank recommendations based on cost and potential savings. This helps you and your property owners make informed decisions, putting money toward the upgrades that will deliver the best return. Instead of guessing, you have a data-backed plan to guide your retrofitting projects.
#1: Stop Air from Escaping
In many buildings, substantial amounts of air (which you’ve already spent energy heating or cooling) escapes into the outdoors. It sneaks out of small cracks and openings, increasing your heating and cooling costs.
By conducting an energy audit, you can determine where air might be leaking out of your building. You can conduct a simple visual inspection or a more in-depth examination, such as a blower door test.
Once you identify air leaks, you can seal them in these common problem areas:
- Attics and basements
- Windows and doors
- Vents and ductwork
- Window treatments with heat-shrink plastic wrap
These fixes are relatively inexpensive and will likely pay for themselves over time through energy savings. Sealing leaks also provides other benefits, such as improved humidity control and fewer opportunities for insects and allergens (like pollen) to make their way inside.
#2: Save with Upgraded Appliances
Another relatively simple way to retrofit your property for energy savings is by upgrading appliances and fixtures to more energy-efficient models. When you’re ready to replace your refrigerator, washer and dryer, water heater, or other appliance, look for the ENERGY STAR label—a surefire sign that a product is energy-efficient.
You can also replace smaller fixtures, such as light bulbs, for savings that will add up over time. An ENERGY STAR-certified bulb uses 90 percent less energy than other bulbs and can last up to 30 times longer than an incandescent bulb, reducing energy costs and the frequency with which you have to buy lightbulbs.
Next time that a bulb burns out, consider replacing it with an LED one with an ENERGY STAR label. You could also install dimmers and smart sensors that turn lighting on and off at certain times of the day, or switch them on if they detect motion.
#3: Redesign with Energy in Mind
If your owners decide to make a larger-scale investment in energy performance upgrades, they’ll be rewarded with more extensive benefits. While no- and low-cost energy measures can lead to savings of up to 15 percent, deep retrofitting can cut a home’s energy use by 58% to 79%, depending on factors like age and climate.
Major energy retrofitting upgrades include:
- Insulated windows and doors: Replace old units with triple-pane options that prevent air leaks
- Exterior insulation: Add materials like expanded polystyrene to the outside of buildings without wall thickness constraints
- Green roofs: Improve insulation while reducing energy costs
#4:Â Incorporate Green Building Design Principles
You can retrofit existing buildings using green building principles. Three popular approaches are passive houses, LEED certification, and zero energy buildings.
Passive House
The concept of a super-insulated house originated in the U.S. in the 1970s. German engineers built upon this idea and created the Passivhaus.
A passive house has continuous insulation, no thermal bridging, and extreme resistance to air penetration; as well as a heat- and moisture-recovery air exchange system. The house is also positioned and designed to use natural means, such as sunlight, to heat and cool itself.
LEED
The Leadership in Energy and Environmental Design (LEED) certification and rating system from the U.S. Green Building Council (USGBC) provides verification that your building is eco-friendly and energy-efficient. Having this certification will increase a building’s worth and appeal, and following these principles will reduce energy bills significantly.
The LEED system consists of four rating levels: Certified, silver, gold, and platinum. USGBC evaluates buildings in nine categories:
- Integrative process
- Location and transportation
- Sustainable sites
- Water efficiency
- Energy and atmosphere
- Materials and resources
- Indoor environmental quality
- Innovation
- Regional priority
Zero Energy Buildings
A Zero Energy Building produces as much energy as it consumes; and uses renewable energy such as solar, wind, or geothermal power rather than fossil fuels or nuclear power. The Living Future Institute administers the Zero Energy Building Certification as well as other certification programs.
Making Energy Efficiency Improvements Work for Your Properties
Improving a property’s energy performance is a practical way to lower operating costs for your owners and make units more attractive to residents. By starting with an energy audit, you can create a smart, cost-effective retrofitting plan that addresses the most important issues first. Whether you’re sealing air leaks or taking on a larger redesign, every step you take helps your properties run more efficiently.
To keep track of these improvements and all your other maintenance tasks, a solid property management platform is a helpful tool. Buildium’s maintenance management features makes it easier to log energy audit findings, schedule retrofitting work orders, and track completion, all with one platform. You can attach audit reports and photos directly to work orders, set up preventive maintenance schedules for new ENERGY STAR appliances, and communicate with contractors about upgrades. Plus, you can track the costs of each improvement and share customizable reports with property owners to demonstrate ROI.
Key Takeaways
- Start with an energy audit to identify the most cost-effective retrofitting opportunities for your properties.
- Seal air leaks and upgrade to ENERGY STAR appliances for quick wins and immediate savings.
- Consider deep retrofits like insulated windows and green roofs to cut energy use by up to 79%.
- Use property management software to track energy improvements and demonstrate ROI to property owners.
If you’re ready to see how Buildium can streamline your energy efficiency projects, you can try the software out with a 14-day free trial or guided demo.
Frequently Asked Questions About Energy Audits for Building Retrofits
What is meant by energy audit?
An energy audit is a detailed inspection to figure out how a building uses energy and where it’s being wasted. An auditor will look at things like insulation, HVAC systems, and past utility bills to create a report with recommendations for improvements.
How much does it cost to do an energy audit?
The national average cost for a professional home energy audit is around $367 for residential properties, with larger buildings costing more. Get quotes from local professionals for accurate pricing.
Should I get an energy audit before retrofitting my building?
Yes, an energy audit identifies the biggest problems first so you can prioritize retrofitting projects with the best return on investment.
How long does a professional energy audit take?
Professional home energy audits for single-family homes typically take a few hours; audits of larger or more complex multifamily buildings can take a full day or longer.
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