Unlocking Energy Efficiency for Multifamily Buildings: The Power of Utility Data
The Untapped Potential of Multifamily Buildings
Did you know that multifamily buildings make up over 30% of U.S. housing, yet many of these buildings are left out of energy efficiency programs? It’s a surprising gap, especially considering that a large number of the residents in these buildings are low- to moderate-income (LMI) families who would benefit the most from reduced energy costs. Unfortunately, multifamily buildings face unique hurdles when it comes to energy upgrades. These include split incentives between landlords and tenants, high project costs, and, most importantly, difficulty accessing building-level energy data.
But why does energy data matter so much? In single-family homes, energy data is simple—one home, one bill. For multifamily buildings, it’s a different story. Each tenant has their own bill, making it hard to get a clear picture of the building’s overall energy use. This missing data often prevents multifamily properties from accessing the same energy-saving programs that single-family homes enjoy.
Why Data Matters for Equitable Energy Efficiency
Here’s where things get tricky. In multifamily buildings, data collection isn’t as straightforward as for a single-family home. Each tenant pays their own bill, so aggregating that data is like solving a puzzle with missing pieces. This creates barriers to implementing energy efficiency programs in these buildings, particularly in affordable housing, where upgrades can make the biggest difference.
But reliable building-level data can change that. With the right information, program designers can better target multifamily buildings for energy efficiency initiatives. States are beginning to recognize the importance of this data, especially as new policies like building performance standards (BPS) and benchmarking require it to track and reduce energy consumption. Better access to utility data means better opportunities for multifamily building owners and tenants to save on energy costs and participate in programs that promote sustainability.
The Equity Imperative: Why We Must Prioritize Multifamily Buildings
The need for energy efficiency in affordable multifamily housing is more urgent than ever. A staggering 85% of multifamily households are considered LMI, and these families often live in older, less efficient buildings. The result? Higher energy bills and an even greater financial burden. Without intervention, these households are left behind in the transition to cleaner, more efficient energy use.
Affordable multifamily buildings face unique challenges that single-family homes don’t. For one, financing is a major obstacle—large buildings require bigger investments, and existing programs often don’t have the capacity to support these larger-scale projects. On top of that, landlords are often hesitant to invest in energy upgrades because tenants, not landlords, usually pay the utility bills, creating a “split incentive” problem.
How Data Can Unlock Opportunities for Multifamily Energy Efficiency
So, how can we overcome these barriers? It starts with building-level utility data. When program implementers have access to accurate data, they can better understand a building’s energy usage, identify inefficiencies, and tailor programs to make a real impact. The data allows utilities to plan for long-term needs, such as demand response and grid management, while also giving multifamily property owners the tools they need to track energy performance, detect issues, and prioritize improvements.
Some states are already leading the way by requiring utilities to share aggregated energy data with building owners. This streamlines the process and makes it easier for multifamily buildings to participate in energy efficiency programs. States that have implemented benchmarking and BEPS policies are setting the stage for more consistent access to building-level data, and that’s a win for both building owners and tenants.
Seizing the Opportunity: The Time for Change is Now
The stakes are high, but the opportunity is greater than ever. As new programs like the IRA Home Energy Rebate direct funding toward affordable multifamily housing, there’s never been a better time to rethink how we collect and use utility data. States have a golden opportunity to build better systems that make it easier for multifamily buildings to join energy efficiency efforts. By investing in utility infrastructure and mandating better data practices, we can unlock the full potential of multifamily buildings and make energy savings more accessible to everyone.
Conclusion: Paving the Way to an Equitable Energy Future
Access to building-level utility data is more than a technical challenge—it’s a key to making energy efficiency programs fair and accessible for multifamily buildings. By overcoming the data barriers, especially in affordable housing, we can ensure that low-income residents benefit from energy savings and contribute to a cleaner, more sustainable energy future. The path forward is clear: better data, better programs, and a more equitable energy system for all.
Want to read more about this?
Read our full Summer Study paper, authored alongside Northeast Energy Efficiency Partnership (NEEP), Using Building Level Utility Data to Deliver Equitable Energy Efficiency Programs in Multifamily Buildings
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