Pushing Energy Efficiency

Governmental policies have proven to be effective in steering behavior either through incentives like grants and rebates, or penalties including taxes and fines. The Smart Grid Investment Grant as authorized by the Recovery Act is an example of how the government provided $4.5 billion toward merit based applications of smart grid technologies to promote technological improvement and investment. TVA has partnered with the Department of Energy through the Smart Wire Focused Initiative and has installed an array of retrofit devices across a span of transmission lines in Knoxville, Tennessee.  The Database of State Incentives for Renewables and Efficiency (DSIRE) provides an abundance of information and resources to fit residential, commercial, and industrial sectors, at both state and federal levels. On the restrictive side, cap and trade programs are in place and increasing worldwide, as well as green taxes. The spin-off is that the natural economic response to this demand would be increased production and technological advancement. This generates growth that spreads from STEM professions to construction and manufacturing, and across to supportive businesses and retailers. Although some restrictions penalize producers and consumers, the typical reaction is to improve technology to avoid costs since energy is an inelastic good.

 

Home energy audits is one niche that seems to have risen from energy efficiency trends, and it provides a win-win for all players. The home/business owner generally has short payback period on initial investment before reaping long term benefits of reduced utility costs from improved energy efficiency. The higher efficiency translates to a reduced load on utility providers as well as less stress on the environment. A certified technician armed with a toolbox and knowledge of government programs inspects the building envelope and it energy consumption to identify points of improvement and applicable resources for assistance. The auditor may advise the addition of insulation and/or updates to inefficient appliances, especially energy hogs like air-conditioning and water heating, and follow with calculations of both initial costs and payback periods, or course including available government incentives. Home energy auditing is a valuable service in any geographic region that requires relatively low training and overhead.

2 thoughts on “Pushing Energy Efficiency

  1. Hi Kelly, we seem to have found the same niche and its not unexpected. You’re correct that any industry affected by a government mandate will always cry ‘foul’. I was 8 in 1973 and remember suffering through the gas lines in the back seat of my parents ’69 Impala, which probably got 11 miles per gallon, if even. Government mandates for mileage improvements sparked research from the industry and has led to mileage improvements today. The auto industry screamed and cried in the ’80s, but they did it.

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