What is a “retrofit”?

A retrofit project consists of implementing energy efficiency measures to reduce a facility’s energy consumption. Investment in energy efficiency measures generates returns through energy bill savings. These measures typically focus on:

  • Installation and optimization of existing cooling equipment (e.g. thermostats, pumps, variable frequency drivers)
  • Building envelope (e.g. window shading, wall insulation, window double glazing)
  • Installation of energy efficient lighting (e.g. CFL, LED, metal-halide) and optimization of lighting management systems
  • Building management systems (BMS)

Before retrofit

Energy efficiency measures
in retrofit project

After retrofit

Investing in retrofit projects generates revenues through savings on electricity bills

Contracting model

There are two kinds of contract models, a guaranteed savings model and a shared savings approach:

  • The guaranteed savings contract is when the ESCO promises the end-user that a certain amount of savings will occur. The ESCO only receives payment if that promise is upheld.
  • In a shared savings scenario, the ESCO and the end-user split the savings between each other. The ESCO’s portion goes toward paying down the costs associated with the retrofit.

Tarshid follows a shared savings model

Before retrofit

During retrofit

After retrofit