This document discusses opportunities for architects in the growing market for deep energy retrofits of existing buildings. Deep energy retrofits aim for energy savings of 45-50% through a holistic approach considering the building envelope, systems, and user behavior. While most current retrofits achieve around 20-25% savings through simple equipment replacements, deep retrofits provide more opportunities for architects' integrated design skills. The document outlines the technical skills and knowledge architects would need to lead deep retrofit projects and make the business case for their value in achieving greater energy savings through a whole-building approach.

1. Deep Energy Retrofits
Opportunity for Architects
Zachary Hart
Manager, State and Local Relations
Policy and Community Relations
The American Institute of Architects
zacharyhart@aia.org
202-626-7354

2. 2012 AIA Firm Survey
In response to the
recession, firms
are adding
services

3. Firms are adding design specialties to their practices.
Sustainability/green design grew 19% between 2005
and 2008.

5. • To stay competitive in the changing
design and construction industry
architects need to expand the skills and
services they offer.
• To reach full employment the
architecture profession needs to find
new sources of revenue.

6. The Energy Efficiency Retrofit
Market Could Be Huge
• Deutsche Bank report estimated $279 billion investment
opportunity in EE retrofits
• Clinton Climate Initiative - $83-113 billion in large
buildings alone (>100,000 ft2)
• EE is good for communities
•
•
•
•
Decrease emissions from building sector
Avoid cost of new power plants
Save building owners money
Put the design and construction industry back to work
• Opportunities for architects to profit

7. High Volume of Potential
Projects
• 72% of US building stock is over 20
years old1
• Many of these buildings were built
without much regard to energy
performance
1. US Energy Information Agency CBECS 2003, Table B9

8. Market Signals
• Regulations – light bulbs, stricter energy codes,
building labeling and energy disclosure mandates in
bigger cities
• Energy efficient buildings are correlated with higher
occupancy rates1
• LEED, Energy Star
• Banks are lining up
– Deutsche Bank report estimated $279 billion investment opportunity in EE
retrofits - $97 billion in commercial and institutional sectors
– Barclays Capital - $650 million line of credit to PACE Commercial Consortium
– FL Green Energy Works: Wells Fargo, RBC Capital Markets, PNC Bank,
Clean Fund
1. ENERGY STAR buildings have 3.5% higher occupancy rate

9. What does the EE market look
like now?
• Only 2.2% of commercial building stock
retrofitted per year1
• At this rate we’ll only reach 7.5% of 2030
goals in carbon savings1
• Most retrofits do not optimize savings
1. Olgyay and Seruto, Rocky Mountain Institute

10. Standard, small-scale
retrofit
Installing a limited number of
Energy Conservation
Mechanisms for which payback
is reliable even if savings are
only middling. The typical
ESCO model. Savings usually
about 20-25%.
ECMs:
•New HVAC (80% of ESCO
projects)
•New lights (80-90% of ESCO
projects)

11. Energy Service Companies
(ESCOs)
• Market is ESCO-led: $5.1 Billion revenues in
2011
• ESCOs work mostly on institutional projects
– 69% of revenues from MUSH projects
– 15% of revenues from federal projects
• Finance projects through performance
contracts
• Mostly replace and maintain equipment and
mechanical systems

12. How do we reach 2030 goals?
• Scale up Deep Energy Retrofits
– 2030 Challenge defines them as retrofits that
achieve 60% energy savings, working definition 4550%
– DERs are more than just replacing equipment
• Include programming, envelope
–
–
–
–
Require knowledge of systems interactions
Require integrative design
Require experienced project lead
Require more capital

13. Deep Energy Retrofit
Requires design team to look at all
energy inefficiencies and find the
optimal solution.
Design team must understand the
building as a whole: how its
systems work together and how the
space is used.
ECMs:
•Lights
•Electronics
•HVAC – replacement and design
•Solar Power
•Building Envelope
•High Performance Windows
•Building Programming

14. Empire State Building
•
•
Deep Energy Retrofit
Collaboration between: Rocky
Mountain Institute, Jones Lang
LaSalle, Clinton Climate
Initiative, Johnson Controls

15. ESB achieved payback
in 3 years
Timed energy upgrades with $500
million renovation project to allow
simultaneous implementation of
multiple ECMs to create synergies
in energy and cost savings.
Window upgrades, increased
daylighting, light fixture upgrades,
ventilation control upgrades, and
radiator insulation all reduced
ESB’s peak cooling load enough to
avoid replacing chiller with a bigger
one. Avoided capital cost of $17
million.

16. DERs = Opportunity for
Architects
• Architects already have an understanding of the
building as a system
– Applying integrated design principles to retrofits results in
greater savings
• Traditional role as owner – contractor liaison
• Integrated Design Team requires strong project
manager
• Already doing renovation work
• Facilities management planning
• Market is still immature – there is time to learn

17. Challenge for Architects
• Technical Knowledge, Role
– Perception that retrofits are only for
engineers and ESCOs
– How are project delivery teams structured?
– Energy modeling not widespread
• Financing

18. Architects’ Guide to Deep
Energy Retrofits
• Collaboration with Rocky Mountain
Institute
• Introduce architects to the DER
opportunity
• First attempt to define architect’s role in
retrofit process
• Provide resources archs will need to
learn more

20. Architect’s Value to DER
• Who is better trained to consider the building as a
whole working system?
• Project Management
– Knowledge management, selecting team members,
facilitating communication between owner and
design team, coordinating design and construction
activity
• Knowledge of building programming
– Building layout and user behavior have large effect
on energy consumption
• Broad knowledge of design and construction means
architect best positioned to lead design charette

21. Business Case
• Life Cycle Cost Analysis vs. SimplePayback
– What is the true cost of the BAU case vs.
DER?
– Avoided Capital Costs
• Value Beyond Cost Savings
– Productivity gains
– Property value premium