Investment in Energy Efficient Design is on the Rebound
Posted on 09. Jun, 2010 by keith in Sustainable Building
From a financial perspective, the most valuable aspect of energy efficient design is its ability to significantly reduce annual energy costs. However, even the prospect of long-term energy savings wasn’t enough to keep energy efficiency companies from feeling the pinch of the recent recession. Instead of biting on energy efficient design’s incredible ROI, companies chose play it safe and spend as little as possible. But today, that trend is changing. According to Johnson Controls, a new survey of 1,400 U.S. executives and decision making energy managers of commercial buildings shows that energy efficiency investments will increase in 2010.
A rebound in energy efficiency investment is also predicted by the Energy Efficiency Indicator (EEI), which assesses energy management priorities, energy practices and energy efficiency investment plans among energy decision makers for commercial buildings. According to the EEI, 97 percent of respondents view energy cost savings as a significant motivator for implementing energy efficient design; 63 percent view enhanced public image as a significant motivator; 62 percent view government and utility company incentives as a significant motivator; and 62 percent view reducing greenhouse emissions as a significant motivator. Additionally, 75 percent of respondents believe that legislation calling for carbon reduction and/or mandating energy efficiency is likely within the next two years.
The amount of money that companies save by implementing energy efficient design depends on two main factors: the amount of energy they use and the scope of their efficiency projects. In the case of large companies whose power usage is high, performing a top to bottom energy efficiency retrofit that includes changes to an HVAC system, interior and exterior lighting system, and implements renewable power sources wherever possible can easily result in a seven-figure annual energy cost reduction, whereas small companies routinely realize a significant five-figure reduction in annual energy costs.
For more information: Energy Efficient Design
