Chicago group sells landlords on benefits of energy efficiencyMidwest Energy News, November 4, 2014
Making the case for energy efficiency investments seems relatively straightforward for homeowners who will reap the benefits directly in lower utility bills. But for rental, multi-unit buildings where landlords pay for infrastructure and appliance upgrades while tenants pay all or most of the utility bills, it’s much more complicated.
This situation is referred to as a “split incentive,” where the party making the investment won’t directly reap all or any of the financial benefits.
Landlords who don’t live in a given building also don’t have the personal incentive of seeking a more comfortable dwelling free of drafts and temperature swings.
But energy efficiency measures like insulation, new furnaces, smart appliances and efficient lighting do pay off for building owners, a message the Chicago-based group Elevate Energy is working to convey statewide. Elevate Energy has a program specifically to educate multi-unit building owners about energy efficiency and assist them with free energy audits and advice on contractors and upgrades.