When you retrofit something, you replace old parts with new ones. You might retrofit an antique car with updated brakes and seat belts, for example.
You can use retrofit as a verb, or it can be a noun meaning the new part itself, or something that's added on later. The solar panels on your two hundred year old house are a retrofit, and so is the fancy new stereo in your beat up old car. Retrofit has been around since the mid-1950s, when retroactive and refit were combined into a new word.