What does Retrofit Ramp-up Mean for Businesses?

This is the first part of my two-part Q&A with VFA’s CEO Jerry Kokos. VFA provides integrated software and services for facilities asset management and capital planning.

1. What do you think will be the most significant outcome of the Federal Government's Retrofit Ramp-up program?

The most significant outcome of the government's Retrofit Ramp-up program will be cost savings for consumers and businesses due to increased energy efficiency.

Existing buildings are enormous users of energy due to their inefficient systems, and as these systems get replaced, organizations will realize increased energy savings, and can allocate resources to key initiatives and/or pass savings on to their customers.

Energy is one of the most significant components of a building's operating costs, and basic changes can sometimes have a significant impact on energy consumption.

For example, upgrading lighting systems to electronic rather than magnetic ballasts reduces the energy required from 40 watts to 34 watts per lamp, providing an immediate savings in energy consumption of almost 20 percent. Such lighting upgrades can also improve the quality of the work environment and reduce the amount of mercury toxins that enter the waste stream.

2. How eager do you think Americans and American businesses are to participate in such a program?

Participation of Americans and American businesses in such a program is dependent on the money they have to spend for the upgrades and the payback period involved.

Tax credits and other subsidies make the payback period more attractive and increase participation. The fact that this program will generate new jobs in the short-term is also appealing to Americans, many of whom continue to struggle with the effects of the recession.