How to Attain the "G-Factor"

First, Understand What the Goal of the “G-Factor” Is

Before you can determine what steps you need to take to attain the “G-Factor,” it is important to realize that there is no one size fits all “G-Factor” solution or end result.  Every building and every situation is different and ultimately anything you can do to make your multifamily building more green is a positive change.  There is opportunity throughout your multifamily building, big and small, to make improvements to: (1) better the economic performance of your building, (2) create a healthier living environment or (3) create a more attractive community where renters will want to live, all while promoting sustainable practices to help the environment.  Ultimately, the “G-Factor” is: implementing environmentally-friendly practices into your multifamily building to help you improve the economic value (whether in a reduced cost or increased revenue) of your building.  How much you choose to improve is entirely up to you.

Second, Define Your Goals

Next, you must determine your “G-Factor” goals” and to what extent you are willing to go green in your multifamily building.  Consider why you want to achieve the “G-Factor.”  Is it to lower your building’s operating expenses or to attract new tenants?  Is it simply for the good of the environment?  Or is it all of the above?  Are you looking to make large improvements or a series of small improvements throughout your multifamily building? One helpful way to determine what your energy efficient goals could be is to research other multifamily buildings that have implemented green technologies.  Learn from their lessons, and find new solutions to common multifamily unit obstacles.  One key place to begin would your state energy department, such as the California Energy Commission and the New York State Energy Research and Development Authority, to see if there is a state-sponsored energy efficiency initiative that collects data on energy efficiency or has published energy efficiency studies for multifamily buildings. Once you know your objectives, this will help drive your decision on how far you are willing to invest in energy efficient/green technologies.

Third, Assess Your Building and Your Situation

As stated above, no two multifamily buildings or situations are the same.   Once you realize your “G-Factor” goal, it is critical that you assess your individual situation and multifamily building.  Some key questions for you to consider are:

  • Where am I using the most energy in my multifamily building and where could potentially see the most savings (for retrofits);
  • Do I have any energy efficiency measures in place in any of these critical areas (for retrofits);
  • What is my vacancy rate and is there a demand for energy efficient/green technologies in my community (for retrofits and new construction);
  • How much additional money am I willing to spend/budget to implement energy efficient/green technologies (for retrofits and new construction); and
  • How long am I willing to wait to recoup any potential additional investment in energy efficient/green technologies in my multifamily building (for retrofits and new construction).

This list is by no means exhaustive but includes some of the basic questions that you are going to have to answer in order to determine what kinds of investments you are willing to make in order to achieve the “G-Factor” in your multifamily building.  Again, only you know what your “G-Factor” goals are so in order to achieve them, it is critical that you understand what economic and market forces are at play with respect to your multifamily building.

Fourth, Take Action

Once you have established your goals and assessed your building, it is time to take action.   First, how are you going to implement the energy efficient/green technologies in your multifamily building?  You have two options: (1) self-implementation or (2) hiring a professional (i.e. an energy service company).  If you want to implement the changes on your own, please check out our section on “G-Factors” which contains an itemized list of different solutions that you can select to implement in your multifamily building.  This is probably the best choice if you have a smaller budget or just want to make certain targeted improvements to your multifamily building.  If you want to hire a professional, consider looking at an energy service company which provides comprehensive energy usage consultation services ranging from energy audits and design services to installation.  An energy service company may be the best choice when you are either contemplating constructing a new multifamily building or plan on performing a substantial energy efficient retrofit to your existing building.  Please note, however, that energy service companies are typically most interested in much larger contracts such as universities or hospitals.*

Another issue when implementing energy efficient measures is funding.  The federal government has the Weatherization Assistance Program (WAP) and the Low Income Home Energy Assistance Program (LIHEAP) which are primarily geared towards low-income and affordable multifamily construction.  State-wise, there are currently 23 states that have funds to support energy efficiency particularly for affordable and multifamily housing.**  In some states, the government actually administers the program while in others it is the applicable utility. In 2006 federal and state funding for state-administered residential energy efficiency programs totaled almost $1.4 billion of which $825 million was for low-income residential energy efficiency and $534 million was for non-income targeted residential energy efficiency programs.  Of the $825 million provided in low-income residential efficiency, $551 million was from the WAP and funds from LIHEAP.*

Interesting to note is how these state-administered programs provide funding to people looking for energy efficient solutions.  In some states, the state will pay the building owner a set amount based on a specifically prescribed list whereas others will provide financial assistance based on the recommendations of an energy audit and typically only a fraction of the total cost.  The goal is to provide enough incentive for building owners and developers to install energy efficient measures but not effectively pay for measures that an owner or developer would install on the their own.  It is also a protection against over-paying for energy efficient improvements.  Ultimately, there does not appear to be a standard approach with respect to state funding so before you decide on any energy efficient project, make sure you check with your applicable state energy department or local utility to see if your energy efficient retrofit or new construction qualifies for state funding.

Other Information Sources on the “G-Factor”

For other great ideas on how to improve the profitability of your multifamily community, visit MultifamilyPro or attend the Multifamily Brainstorming Sessions which is one of the leading seminars in country for all things multifamily.


Article written by Clean Energy Experts and copy edited by Jayme Elliott

*Source: “Energy Efficiency in Multi-Family Housing A Profile and Analysis,” by Matthew Brown and Mark Wolfe, Energy Programs Consortium, June 2007.

** The states are Arizona, California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Vermont and Wisconsin…source: “Energy Efficiency in Multi-Family Housing A Profile and Analysis,” by Matthew Brown and Mark Wolfe, Energy Programs Consortium, June 2007.