Energy Efficiency – Policy and Implementation

There are several government programs already in place that have the effect of promoting energy efficiency. One such program would be the plethora of state-based Renewable Portfolio Standards (RPS), which typically include a carve-out for a certain percentage of the goal to be met through energy efficiency measures. This means that rather than investing in renewable energy technologies to meet 100% of the RPS goal, utilities may also reduce the total amount of energy consumed in their service area as part of the effort to reduce total greenhouse gas emissions. Many utility companies promote that option by offering rebates or incentives to businesses and homeowners for upgrading their appliances or lighting to more efficient models. The US government also mandated that manufacturers and importers may no longer produce or supply 40 or 60 watt incandescent lightbulbs as of January 1, 2014, however there are numerous loopholes to that law such as slightly modifying the wattage of the bulb (http://www.theverge.com/2014/1/1/5263826/the-incandescent-light-bulb-isnt-dead). The idea here was to force individuals and businesses to switch from highly inefficient incandescent bulbs to more efficient halogen, CFL, or LED lightbulbs.

I think that if the Federal Government was really serious about promoting energy efficiency, they would institute a nation-wide “buy back program” where the government would provide a rebate incentive to individuals and businesses to trade in their older and more inefficient technologies for more efficient, but also more expensive ones. There could also be tax credit incentives offered to homeowners who upgrade their insulation and windows, improving the envelope of their homes and substantially reducing the energy required for heating and cooling. Tax credits such as these have been offered in the past but expired for any improvements not implemented before January 1, 2012 (http://www.irs.gov/uac/Tax-Credits-Available-for-Certain-Energy-Efficient-Home-Improvements).

As a business opportunity, a company could assist individuals and businesses in claiming these buy-back incentives while also providing the equipment and installation of the new upgrades. A large company can leverage their purchasing power to obtain better prices on this equipment than a typical homeowner could find on their own. The company could also manage the paperwork and rebate process for the customer to make it an easy “one stop shop”. Then the company would take possession of the old equipment and could recover scrap value or revenue from parts, enhancing their bottom line. A truly comprehensive business offering would also include the installation of insulation and window upgrades and the related tax credit forms. A homeowner could receive one quote for all of their energy efficiency needs and receive professional assistance with obtaining the appropriate tax credits and rebates.

2 thoughts on “Energy Efficiency – Policy and Implementation

  1. Hello Abby,
    Since you wrote about the RPS standards, I think it would be beneficial for the federal government to implement a national Renewable Portfolio Standard. Do you think this would be beneficial as well? I think a “buy back program” would help people become more efficient. I also believe you are right that the government should reinstate the tax credits that have already existed but expired. I really enjoyed reading your post. Here is the link to my post if you are interested: http://engr312.dutton.psu.edu/2014/09/17/what-i-have-learned-bethany-steiner/

  2. Hi Abby,

    I really loved your post. You obviously put a great deal of thought into some solutions for the light bulb (along with other efficiency measures) and you came up with some fabulous ideas! I liked the idea of the buy-backs. In this way, the change to more energy efficient methods would feel a lot less like a government “hand-out” (I use that term loosely since all funding from the government comes from our pockets anyway) and more or a true incentive. Perhaps it would get more attention and people would take advantage of the opportunity. I also thought the idea of a business that could leverage purchasing power as well as provide conversion assistance, would be an advantage to the average consumer or business. I had a similar idea and then found out that there are businesses scattered around the country that have been implementing that very idea. Obviously, that means there is a demand for that type of service.

    On a side note, I am still waiting for someone to figure out how many of our CFLs are ending up in landfills rather than recycled properly. I know first hand that people often do not read the warning on those bulbs that state they contain mercury and must be disposed of in a proper recycling facility.

    Thanks again for your post and great ideas!

    Jennifer

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