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NC State Extension

Retrofit – Defined

A retrofit involves the installation of new, usually more efficient equipment into an existing building or process prior to the existing equipment’s failure or end of its economic life. In buildings, retrofits may involve either structural enhancements to increase strength, or replacing major equipment central to the building’s functions, such as HVAC or water heating systems. In industrial applications, retrofits involve the replacement of functioning equipment with new equipment.

Retrofit Measure – Replacing currently functioning equipment with a more energy-efficient technology before its end of life. Cost basis is the full cost of the new technology, including labor.