How to talk to your landlord about energy upgrades for leased spaces.
Renting your business space doesn’t mean you’re powerless when it comes to saving energy. In fact, tenants often have more influence than they realize — especially when the conversation focuses on shared benefits, such as cost savings, comfort and long-term value. Whether you’re looking to lower monthly bills, improve working conditions or enhance reliability, energy upgrades can be a win-win for both you and your landlord. Here’s how to approach the conversation with confidence.
Why energy upgrades for leased spaces matter for tenants.
If you’re dealing with rising energy bills, inconsistent temperatures or outdated lighting, you’re not alone. Many tenants in leased commercial spaces face these issues—and feel stuck because they don’t own the building. But energy upgrades can dramatically improve your day-to-day experience. Efficient lighting, smart thermostats, HVAC tune-ups and insulation improvements can all make your space more comfortable and productive, while lowering operating costs at the same time.
And the benefits go beyond the utility bill. Strategic upgrades can reduce maintenance issues, improve system reliability and even enhance employee or customer satisfaction. The key is making sure your landlord sees the value, too. Here are some steps you can take to start the conversation.
1. Understand potential roadblocks.
Tenant-landlord dynamics may impact decisions about building improvements. You may not have full authority to make changes to systems like lighting or HVAC, and your landlord may not feel motivated to invest in upgrades that primarily lower your bills — a common issue known as a split-incentive problem. You reap the savings, and they pay the upfront cost.
Short-term leases can be another barrier. Landlords might worry they won’t see a return on investment if tenants relocate before the payback period ends. But these objections aren’t deal-breakers. They’re just part of the conversation. Being prepared can help you address them head-on.
2. Identify your opportunities.
Before starting the conversation, take the time to identify specific upgrades or improvements that could make a significant impact in your space. Start with areas that offer high energy savings and fast paybacks, like:
- LED lighting uses up to 75% less energy compared to incandescent lighting.
- Smart thermostats to automate temperature control based on occupancy.
- HVAC tune-ups to improve indoor air quality, efficiency and extend system life.
- Weatherization and insulation to help stabilize indoor temperatures.
Even better: gather quick data on potential cost savings using tools like TVA EnergyRight’s incentive calculator. You can also note any performance issues like hot or cold spots, flickering lights, or equipment noise that support your case for improvements.
Sources: Energy.gov, EnergyRight.com; nrel.gov
3. Turn talk into savings.
The best time to talk about energy upgrades is before there’s a problem—not after the HVAC system fails on a 90-degree day. Bring up the topic during a lease renewal, a property walkthrough or even a casual check-in. Come prepared with:
- A short list of potential upgrades.
- Examples from similar properties or business case studies.
- Information on available TVA EnergyRight® incentives.
Sharing success stories or information on incentives from TVA EnergyRight can make your pitch more concrete and less abstract.
Sources: ApartmentTherapy.com; EnergyRight.com; Score.org
4. Frame the conversation as a win-win.
Once you’ve identified your priorities, focus on how these upgrades can benefit both you and your landlord. The goal is to reframe the request as a shared investment in the property’s long-term value.
For you as a tenant, the value is clear: lower energy bills, increased comfort and more reliable operations. For your landlord, the upgrades can translate into higher building value, lower vacancy rates and a more marketable property. In today’s competitive rental market, energy-efficient buildings are becoming increasingly attractive to prospective tenants—especially those seeking modern, sustainable spaces.
Source: EnergyStar.gov
5. Offer to partner in the process.
You don’t have to make the request and hope for the best — you can offer to be part of the solution. If you’re proposing larger upgrades, suggest starting small with a pilot project like retrofitting just one area with LED lighting. You can also propose a cost-sharing model or help by researching contractors, gathering quotes or completing incentive paperwork. This kind of proactive partnership can go a long way in showing your landlord that you’re serious and solution-oriented.
Another way to strengthen the landlord-tenant partnership around upgrades is through an energy-aligned lease. Instead of leaving energy use and costs to chance, these agreements build energy efficiency language directly into the lease itself. For example, clauses can allow landlords to recover a portion of capital expenses for upgrades through operating costs while ensuring tenants share in the savings.
According to the Institute for Market Transformation, energy-aligned leases can reduce utility bills by up to $0.51 per square foot and cut office building energy use by as much as 22%. In practice, this turns the split-incentive problem into a shared-investment model — landlords benefit from higher property value and improved net operating income. At the same time, tenants gain lower bills, better comfort, and more reliable systems.
Take the next step.
If your landlord is open to the idea, recommend setting up a walkthrough with your local power company or another energy expert. TVA EnergyRight can provide tools, resources and support to help identify energy upgrades for leased spaces and the available incentives.
Remember, you don’t have to navigate this alone. Even a single conversation can lead to improvements that benefit everyone who uses the space.
A win-win worth talking about.
Energy upgrades don’t just save money — they create better places to do business. And while you may not own the building, you can help shape its future. So, go ahead. Start the conversation with your landlord, focus on the mutual benefits, and come prepared with information and ideas.
Need help? Connect with a TVA Energy Expert to explore your options and get expert support.
