Mark Caskey, Managing Director, Projects, Mitie
For too long, refitting commercial buildings with technologies such as solar panels, battery storage and heat pumps has been treated primarily as a sustainability initiative. While cutting carbon emission is important, the greater opportunity for businesses lies in strengthening its long-term resilience. Organisations that invest in the upgrade and retrofit of their properties will be better placed to manage volatile energy costs and reduce exposure to market uncertainty.
With 80% of the buildings that will exist in 2050 already standing today, improving current real estate will be critical if businesses are to remain competitive and fit for the future. The question is no longer whether retrofit is needed, but how quickly it can be delivered. Achieving that will require greater policy certainty, stronger investment incentives and a workforce with the skills to meet growing demand.
The commercial case for retrofit
The business case for investing in the retrofit of commercial buildings has never been stronger. By improving the efficiency of building systems, lowering energy consumption and generating more energy on-site, organisations can build resilience into their operations and better manage long-term costs.
The results speak for themselves. Over the past three years, our energy optimisation programmes have helped customers save more than £60 million in operating costs while cutting carbon emissions by over 500,000 tonnes. For this reason, high-performing buildings are becoming increasingly attractive to occupiers and delivering more value for landlords. BREEAM-certified buildings achieve, on average, a 20.6% higher capital value, while a one-grade improvement in EPC rating is associated with a 3.7% increase in value.
As demand grows for buildings that can offer greater energy security and lower operating costs, commercial landlords who invest in energy-efficiency upgrades can command higher rents and strengthen asset values, while those who delay risk falling behind.
Removing barriers to investment
Commercial buildings account for almost a quarter (23%) of carbon emissions from the UK’s building stock, yet businesses do not have access to the same level of support as households when investing in low-carbon technologies.
While schemes such as the Warm Homes Plan have helped drive energy upgrades in homes, there is an opportunity to do more to encourage investment across commercial properties. Commercial landlords can claim a 100% tax deduction on certain plant and machinery, but some key technologies, including solar and water heating systems, continue to receive less favourable tax treatment. Many energy efficiency improvements also attract 20% VAT, while homeowners benefit from a temporary 0% rate on equivalent technologies.
Although organisations increasingly recognise the role of retrofit in strengthening business resilience, the cost and complexity of large-scale projects can still slow progress. Third-party funding can help bridge the gap, but for organisations to invest with confidence, regulation is still required.
Solving the green skills challenge
Policy alone will not unlock retrofit at scale. The industry also needs the people with the technical skills to deliver it. Whether upgrading building fabric, installing low-carbon technologies or using smarter energy management systems, success depends on a workforce with the expertise to design, install and maintain this technology.
According to Essential Green Skills, without investment in green skills training, one in five retrofit and energy efficiency jobs could go unfilled by 2030. Encouragingly, the scale of the challenge is being recognised with £5 million recently being committed to help 5,000 young people develop the skills needed for the energy transition. While this is a step in the right direction, addressing a skills gap of this size will require investment at a much larger scale.
Industry, education providers and government must work together to identify skills gaps, attract new talent and ensure apprenticeship reforms are targeted where they can have the greatest impact. We offer more than 90 apprenticeship programmes, including pathways in heat pump engineering, solar technology and EV infrastructure. However, organisations can’t solve this challenge alone. Building the workforce needed for the transition will require a coordinated effort.
From ambition to action
The organisations in the best position to navigate an increasingly uncertain energy landscape will be those that view retrofitting their buildings as an investment in their future. While commercial retrofit is effective in reducing emissions and supporting the UK’s sustainability ambitions, its primary value lies in strengthening business resilience and energy security.
The challenge now is turning ambition into action. That means creating the right conditions for investment in energy upgrades while ensuring the workforce is in place to meet demand.
This article appeared in the September 2026 issue of Energy Manager magazine. Subscribe here.
