Energy Retrofit Systems Market Trends

Growth Drivers

• Employment opportunities in clean energy: In 2023, jobs in clean energy expanded twice the rate of the overall U.S. labor market, owing to record-high federal investments in developing energy supply chains. Clean energy job CAGR was 4.9%, doubling down on the rest of the economic growth of 2.0%, thereby, creating 149,000 jobs. Energy sector employment surged to 8.35 million in 2023 from 8.10 million in 2022, representing a rise of 250,000 new opportunities. Globally, by 2030 8 million jobs in the clean energy sector are likely to be added, finds the IEA. Solar energy is being increasingly integrated into new constructions and upgrading older buildings. A 2024 USEER report suggests that electric power generation based on solar energy jobs was 364,544 in 2023.
  
  Electric power generation (EPG) sector is massive in size and the employment rate grew the fastest in 2023 than any other technology segment. EPG added 36,458 jobs, while lost 870 jobs, ascribing to a net addition of 35,588 jobs. Cumulatively, U.S. EPG had more than 900,000 jobs in 2023.

Concentration of Solar Electric Power Generation Employment by Technology and Industry

Source: USEER

In August 2022, as part of the IRA, investments worth USD 370 billion were made in clean energy and climate for the following decade. Besides a broad portfolio of tax credits that incentivize thousands of clean energy projects generation and deployment across the country, IRA funded USD 9.0 billion to states for rendering home retrofits and energy efficacy consumer rebates, USD 5.8 billion to limit industrial emissions, and USD 27 billion as GHG Reduction Fund, and USD 40 billion as loans to promote clean energy projects.

China is home to about 30% of the global energy workforce with clean energy employment rising by 2 million. Meanwhile, fossil fuel-related jobs fell by 600, 000 during 2019-2022, particularly in coal. Currently, China’s 60% of the energy labor force works in clean sectors, wherein clean energy manufacturing employs approximately 3 million people. China amounts to 80% of EV battery and solar PV and manufacturing jobs worldwide. As per the government’s 14th Five-Year Plan, 0.35 billion square meters of building area is projected to be retrofitted by the end of 2025.

• Initiatives promoting a strong economy and competitiveness: DOE works with organizations through the Better Buildings initiative, to improve building infrastructure and manufacturing plant upgradations. The cumulative result of this work is reported below and demonstrates the remarkable energy and water efficiency while minimizing GHG byproducts and waste. In its second year of reporting, Better Climate Challenge’s over 225 partners successfully implemented sustainable practices in the U.S.

Overall Results to Date as of 2024

Better Climate Challenge Results
 

Source: U.S. DOE

In 2024, the Better Buildings Initiative integrated building owners and designers to provide thermal heating design guidance and drive energy retrofit system development strategies. This has aided the installation of heat pumps and solar panels in new and retrofit constructions. The second part of the guideline is expected to be rolled out in 2025 by the Better Buildings Initiative to further decarbonize existing energy systems in close collaboration with ASHRAE and program allies.

Challenges

• Lack of infrastructure and Information: The current energy efficiency gap is a result of the irrational behavioral habits of residential consumers. Numerous studies have looked into how the energy efficiency gap between investment prospects and actual implementation slows the market growth for energy retrofit systems. Structure changes present further difficulties for the energy retrofit systems market. Energy retrofit systems could damage historical and archaeological resources because they use untested techniques, tools, or technologies.