On May 9th, 2014 the White House announced new Executive Actions addressing energy efficiency. Many state and local governments have also announced intentions to promote energy efficiency as a way to cut carbon pollution, protect the environment, save money, and preserve resources. The President’s plan gives $2 billion in federal energy efficiency upgrades to Federal buildings, in addition to the $2 billion already allotted in 2011. The release also announced new DOE energy efficiency standards for electric motors and walk-in coolers and freezers. The Federal government also regulates energy efficiency standards for appliances, vehicles, and buildings. The city of Chicago’s sustainability initiative calls for strengthening commercial building codes and retrofitting residential apartment buildings.
Boston Consulting Group shared an example of how an energy efficiency business can create opportunity by providing companies with “end-to-end” services. Beginning with an energy audit, the efficiency business then can provide a company with necessary services such as upgraded lighting, new HVAC units, energy recovery ventilators, occupancy sensors in offices and restrooms, and smart thermostats. All of these upgrades will dramatically reduce the company’s energy consumption, saving a lot of money. The initial investment is covered by the energy efficiency business and paid back over a certain period, say 10 years, with interest. Thereby, the efficiency business gains a solid return on investment, while the company gains the immediate energy savings without having to front the huge initial investment. The energy savings in effect more than pay for the total cost of the project. I think this type of plan could work very well for large companies, that have a willingness and scale to afford large projects.
Sources:
http://www.cityofchicago.org/city/en/progs/env/retrofit_chicago.html
Hi Liston,
Thanks for sharing the information on Boston Consulting Group’s energy efficiency client. I like that they have helped the company set up a way to help small businesses improve energy efficiency while being respectful of the high price-tag that often prevents large changes such as those. It is definitely one creative solution to some of the problems around retro-fitting efficiency solutions. I’m sure we’ll see more in the near future.
Jennifer
Hi Liston, I enjoyed reading your post for the opportunities that you have for the renewable industry are rather simple, yet highly effective. People need easy methods to save energy for if it is inconvenient they are most likely not going to do it! The consulting group is great example how businesses and residential units can take small steps towards sustainability! It’s rather interesting to read about the energy consulting group because I did my Lesson 1 book report and business idea on a renewable consulting firm! I also see the need for more government policies regarding building new companies and renovations if you would like to check out my blog at the link below! Thank you for providing the current policies and your business idea, I enjoyed reading your post!
Katie Loyd
http://engr312.dutton.psu.edu/2014/09/10/03_what-have-we-learned/