Sustainable transformations: how retrofits fuel ROI in existing properties
For decades, buildings were designed without energy savings in mind; electricity was abundant and inexpensive. Also, conservation wasn’t very high on the list either. Today, we don’t have the luxury of electricity (in abundance) and conservation is non-negotiable.
Unfortunately, retrofits are often dismissed as costly or complicated. Many organisations still believe that retrofitting older buildings is unrealistic or prohibitively expensive. And while this perception is being consistently debunked, it remains a hurdle.
The reality is that retrofits deliver significant return on investment: reducing operating costs, improving sustainability performance, and enhancing comfort for tenants.
In fact, according to the World Economic Forum (WEF), retrofitting older buildings will be key to unlocking the full energy-saving potential of the buildings sector. As the report states, “75% of the buildings that will be standing in 2050 already exist”.
As a practical example, Schneider Electric’s English-speaking Africa headquarters, situated in Midrand, Gauteng feature important sustainability gains such as:
- 37% lower energy consumption per month.
- 34% less water usage per month.
- 32 tonnes of CO₂ emissions reduced monthly.
Further boosting our environmental performance, our building also features a 200 kWp rooftop solar installation, contributing to 15 tonnes of CO₂ reduction, monthly.
Efficiency first
Retrofitting is not only about lowering electricity bills. It also introduces Building Management Systems (BMS), advanced metering, and smart controls—giving facility managers real-time visibility of consumption and enabling proactive decisions.
It addresses efficiency first, buildings can therefore reduce energy from the get-go before integrating renewables, thus saving on a smaller, more cost-efficient system.
That said, a lot of businesses still equate sustainability with installing solar panels alone. The reality is that without first optimising efficiency, renewable systems are often oversized and more expensive than necessary. By shifting the mindset towards “efficiency first”, companies can achieve considerable sustainability outcomes at a fraction of the cost.
Leaders in retail and commercial property are already leading by example. Some major retail groups have worked closely with technology partners to improve operational efficiency.
In one instance, retrofits initially solved everyday energy management challenges but later also revealed opportunities to introduce additional smart controls, ensuring lights and systems are switched off after overnight stock-taking, further mitigating unnecessary usage. These incremental improvements highlight the evolving, long-term value of retrofitting.
The good news is that by reimagining existing buildings through efficiency-first retrofits, South Africa can preserve its architectural landmarks, reduce environmental impact, and create modern spaces that meet the demands of the future.