Deep Energy Retrofits

A deep energy retrofit leverages whole building approaches and integrative design to maximize energy efficiency and emissions reductions.

The first step in a deep energy retrofit usually involves reducing heating and cooling loads through building envelope upgrades. Among other measures, this may include upgrading roof insulation, adding internal and/or external wall insulation, installing efficient windows, and minimizing outdoor air infiltration by sealing the building envelope. Lowering heating and cooling demands allows for the downsizing of heating, ventilation, and air conditioning (HVAC) equipment, which not only reduces equipment costs but also decreases the overall electrical load.

Further energy savings are achieved through efficient lighting and other electrical demand management measures, such as management of plug loads. As electrical loads decrease, it becomes more feasible and economical to meet a larger portion of the building's energy needs with renewable sources such as on-site solar photovoltaic (PV) systems.

Deep retrofits also provide a platform for building decarbonization, as reduced electrical loads allow fossil fuel burning equipment to be replaced with electrical equipment such as heat pumps and heat pump water heaters, with no required upgrade to building electrical service.

Energy savings performance contracts (ESPCs, including ESPC ENABLE) and utility energy service contracts (UESCs) are effective vehicles for implementing deep energy retrofits in federal buildings. Additional funding such as utility incentives, AFFECT grants, investment tax credits, and 179D tax credits for project designers are also available to improve project economics.

A series of retrofit projects that start after FY 2019 and are implemented over several years may qualify as a deep energy retrofit if together, they result in at least a 40 percent reduction in EUI from a FY 2019 baseline. An agency may count a deep energy retrofit project toward the 30% goal when it has completed the design phase, or, for performance contracts, at the close of the Investment Grade Audit phase.

FEMP’s Federal Project Facilitators (FPEs) are the first point of contact for federal agencies wishing to learn more about implementing deep energy retrofits in their facilities. The FPEs can review available contracting vehicles and funding options and provide access to the wide array of FEMP resources available to assist agencies in meeting federal energy and water management goals.