This report covers the role certain types of energy service agreements (ESAs), combined with federal incentives, can play in scaling AMFH retrofits, maximizing the impact of the 2022 Inflation Reduction Act in decarbonizing existing buildings.

Energy service companies (ESCOs) offer solutions for solar PV, energy efficiency, and electrification measures; often assume some amount of project performance risk; and provide project financing under an ESA. Certain types of ESAs present a viable solution for solving the split incentive issue, financing mid-cycle AMFH retrofits, and addressing the challenges owners may face covering the upfront costs of comprehensive improvements.

This report is based on interviews with ESCOs and techno-economic analysis that quantifies the potential of ESAs for financing building decarbonization packages.