• Energy Conservation Measures will be Monetized
In order to retrofit and upgrade existing buildings to high performance buildings, owners will need to borrow money to fund the upfront capital costs. For banks and financial institutions to provide such credit they need to clearly identify their risks. Specifically, they need to know with some certainty the energy savings and payback period for each Energy Conservation Measure (ECM) that the building owner will undertake; such as lighting retrofits, mechanical systems replacements, control system upgrades etc. The market will move to some form of actuarial science to assess risk by using statistical and mathematical methods and studies of implemented energy measures to provide ECM “actuarial” tables for different regions and different climates. The ECM actuarial tables for the finance industry will spur credit for the upgrades and accelerate the improvements in the existing building stock.

The other predictions are here.