CUED

Market Analysis for a Community Energy Retrofit Business
with Organization of the Northeast

The study was developed by the Center for Urban Economic Development (CUED) of the University of Illinois at Chicago for the Organization of the Northeast (O.N.E.) and its subsidiary, Community Ventures, Inc. (CVI). It is part of the on-going effort by the latter to face problems created by rising utility costs in these communities.

Analyses and conclusions are based on the following information: census data, a survey of property owners of these communities, interviews with knowledgeable individuals in the field, a survey of providers of energy-related services and products and general literature on the subject. Findings were discussed with representatives from O.N.E. as well as with selected individuals before final conclusions were reached.

Our study concludes that a community oriented and operated energy conservation program is badly needed for these communities. At this point, however, an energy retrofit and conservation program fully operated on a for-profit basis is not advisable. Instead, we recommend a threefold operation consisting of direct conservation actions, assistance to homeowners and community organizing for more equitable energy policies.

Conservation actions: We recommend starting with management of the People's Gas and City of Chicago Energy Conservation Loan Program, thus moving in the direction of providing energy retrofit services. As experience is accumulated and as the market expands, we strongly suggest exploring a partnership with an established retrofit business. Initial efforts should focus on owners of buildings with less than ten units as well as on weatherization. More innovative energy conservation measures should be gradually introduced and explored through the educational component of the program. A strong marketing drive should accompany these activities on a steady basis.

Assistance to homeowners: A large need for a systematic assistance service to homeowners on energy conservation improvements was identified. This assistance should include, but not be restricted to, information about alternatives, exposure to techniques, training for do-it-yourself, financing and identifying service companies. Much of this effort may be paid for by the industry.

Organizing: Owners in our study were skeptical of the utility companies and saw utility rate hikes as the main reason their bills had increased. Passing on costs to tenants, according to our data, has its drawbacks but is being increasingly selected by homeowners as a practical solution to the problem. Policy changes, then, are crucial for any long-term solution. We believe that the lobbying efforts of O.N.E. should continue, that policy changes should be explored and urged, alternatives for energy conservation and affordability should be searched and implemented and tenants should benefit along with homeowners.

This website is maintained by Cedric Williams, Manager System Services,
UIC-Center for Urban Economic Development