by Shane Henson — April 12, 2013—The American Council for an Energy-Efficient Economy (ACEEE) and CNT Energy recently released a report geared toward utilities that shows how the multifamily housing sector represents a sizeable opportunity to achieve energy savings through targeted energy efficiency programs.
The report, Engaging as Partners: Introducing Utilities to the Energy Efficiency Needs of Multifamily Buildings and Their Owners, examines the factors that contribute to effective energy efficiency programs design for multifamily buildings and recommends strategies that can help utilities design and implement energy efficiency programs to attract multifamily building owners and achieve significant energy savings.
According to ACEEE, the United States has more than 18 million occupied apartments and condominiums in buildings with five units or more, and 16 million of these units are occupied by renters. Collectively, these building owners and tenants spent nearly $22 billion on energy in 2009, an average of $1,141 per household. If the best current multifamily energy efficiency programs were expanded nationwide, they could save up to $3.4 billion per year. Improvements to current program models could result in even greater savings.
The strategies outlined in the report offer utilities information to help them capitalize on the enormous opportunity for energy savings that exists in the multifamily housing sector, says ACEEE. The report highlights key industry players who make natural partners, including building owners and managers, financial institutions, and affordable housing intermediaries. It also lays out a practical approach to designing programs that will achieve deep energy savings and lasting benefits for all stakeholders, building owners in particular.
Key recommendations for utilities include designing programs that address the diverse needs of different segments of the multifamily housing markets, making rebates easy to understand and access, and coordinating programs offered by natural gas and electric utilities. In addition, the report stresses the importance of developing programs that overcome the split incentive that occurs in rental housing where building owners are responsible for the costs of efficiency upgrades while tenants pay their own utility bills and reap the benefits of those upgrades.
