Retrofitting an older building is no longer just a nice-to-have. As modern energy codes evolve and utility costs climb, new policies are also changing the game.
Building Performance Standards (BPS) are regulations that set minimum energy or emissions performance targets for existing buildings. These requirements are becoming more prevalent across the country, with deadlines and penalties that are encouraging faster action.
Taking steps now to improve efficiency not only helps you stay ahead of compliance but also helps create opportunities to reduce costs, improve comfort, and build long-term value.
1. Take Advantage of Energy Efficient Tax Credits
Did you know city, state, and utility incentives could be available to help fund many upgrades? A range of financial tools such as energy tax credits and energy efficiency rebates may help reduce the upfront cost of capital improvements. You can check out rebates in your area by leveraging Trane's Equipment Rebate Finder.
Programs vary by location and funding availability, so acting sooner could help ensure you receive the maximum benefit. These resources can make your project more affordable and financially sustainable from day one.
2. Energy Efficient Upgrades Deliver Long-Term Savings
Modernizing your building with energy efficient upgrades delivers more than just new equipment. When paired with smart design and intelligent controls, these improvements can help significantly reduce energy use and operating costs.
Advanced systems can monitor and respond to peak energy demand, adjust HVAC and lighting based on occupancy, and proactively identify performance issues. This level of precision helps improve comfort, reduces waste, and helps savings continue over time. Many building owners are surprised at how quickly these improvements begin to pay for themselves.
3. Keep Operating Costs Down with HVAC System Upgrades
Are your HVAC systems costing more than they should? Older systems tend to require frequent service, deliver inconsistent performance, and are more likely to fail when demand is high. Planned upgrades help reduce these risks by improving reliability and operational efficiency. For example, a heat pump can reduce fuel consumption, enhance comfort, and integrate seamlessly with modern building controls.
While a control system upgrade allows for better scheduling, improved airflow management, and more responsive temperature control, which can lower energy use and improve occupant satisfaction. Upgrading your full HVAC system with variable-speed drives and properly sized equipment further enhances performance, helps prevent unplanned downtime, and reduces long-term maintenance costs.
4. Use Energy Savings to Fund Other Priorities
When your building operates more efficiently, the reduction in utility and maintenance costs can create meaningful financial flexibility. These savings can be redirected to support capital projects, staffing, technology investments, or other pressing needs without increasing your overall budget.
A strategic approach to energy upgrades allows you to reinvest in what matters most while strengthening the performance and resilience of your facility. This kind of long-term thinking can help you meet immediate goals and stay prepared for the future.
5. Stay Ahead of Green Building Regulations?
What steps are you taking to future-proof your facility? Energy regulations are tightening in many areas of the country. For example, New York City’s Local Law 97 (LL97) and Boston’s Building Emissions Reduction and Disclosure Ordinance (BERDO) establish strict emissions limits, with financial penalties for noncompliance.
These regional efforts are part of a broader movement. Nationwide more than a dozen jurisdictions have adopted Building Performance Standards (BPS), with coastal regions showing the most rapid momentum1. Upgrading now helps you stay ahead of compliance deadlines, avoid costly penalties, and safeguard your property’s long‑term value.
(1): https://www.usgbc.org/articles/states-explore-adopting-building-performance-standards-policies
DISCLAIMER: Trane does not provide tax, legal, or accounting advice. This material is for informational purposes only and it should not be relied on for tax, legal, or accounting advice. Tax law is subject to continual change. All decisions are your responsibility and you should consult your own tax, legal, and accounting advisors. Trane disclaims any responsibility for actions taken on the material presented.
