MULTIFAMILY RENOVATION BREAKING THROUGH THE BARRIERS
“How to manage quality so that it becomes a source of profits”
“How to manage quality so that it becomes a source of profits” Why can’t this be done with efficiency?
Aging Multifamily A Sinkhole of Energy and Environmental
We Talk As If These Are The Barriers to Multifamily Renovation • Split Incentive • Uncertain Outcomes • Access to Capital • Return on Investment • Others
Asking the Wrong Question
The Right Question How do we ensure that the owners of aging multifamily assets make a profit off of energy efficiency upgrades?
When an Owner wants to “re - position” a property – there is an opportunity for an efficiency upgrade: Best Investor Great SPEER Practices Confidence Contractors Members Standardize High Superior Quality Calculate = + + + Inputs and Quality Reporting Savings Outcome Presentation Retrofit of Outcome
When an Owner wants to “re - position” a property – there is an opportunity for an efficiency upgrade: Best Investor Great SPEER Practices Confidence Contractors Members Standardize High Superior Quality Calculate = + + + Inputs and Quality Reporting Savings Outcome Presentation Retrofit of Outcome = + Quality + Quality Quality +
GOOD NEWS: The Energy Efficient Apartment Uses Less Energy Energy Efficient Apartment Non Energy Efficient Apartment The PROBLEM - We cannot quantify how much less energy use!
Purpose of Quantification Enable third-party funders to incorporate the amount of utility cost reduction into financial underwriting and repayment model.. • lowers risks and costs of large scale energy retrofits • frees up investment capital to fund improvements on large scale
More Energy Used Sophisticated Energy Use Analysis Energy Model Development Less Energy Used
• Capitalize on SPEER membership expertise • Many have pieces to the puzzle • Data • Engineering • Testing • Modeling • Results Analysis • Reduce the variance on “Best Practices” calculating efficiency across multiple units
ENERGY EFFICIENCY CAN BE CAPTURED AND USED TO FUND ITSELF By SPEER The South Central Partnership for Energy Efficiency as a Resource Published 2014
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