Energy efficiency is one of the easiest, least-expensive, and cleanest ways to combat climate pollution. At NRDC, we work to strengthen state and federal efficiency standards for buildings and appliances; advocate for electric vehicle (EV) charging infrastructure investments; and support behaviour change initiatives.
Efficiency can also make the power grid more reliable and resistant to disruptions by prioritizing efficiency over supply, focusing downstream, and using passive technologies before active technologies in design.
Save Money
Energy efficiency is one of the easiest and cost-effective ways to reduce energy bills for both households and businesses, especially for low-income households that spend disproportionate amounts of their income on energy expenses. It may also help low-income families that spend an excessive amount on bills to lower bills overall.
Average households can save hundreds of dollars each year by upgrading insulation and air sealing techniques, purchasing energy-efficient appliances and upgrading ineffective HVAC systems to more energy efficient models. Energy efficient upgrades also add comfort while increasing value to both homes and businesses alike.
Energy efficiency helps minimize environmental impacts of energy use by lowering greenhouse gas emissions and air pollution levels, as well as decreasing the need for new power plants, conserving natural resources, and saving costs in infrastructure deployment.
Save the Environment
Energy efficiency measures reduce greenhouse gas emissions, enhance energy services and can often result in cost savings for consumers – they represent one of the lowest-cost strategies on McKinsey’s greenhouse gas reduction cost curve.
Energy efficiency improvements across buildings, cars, appliances and equipment have significantly decreased energy intensity since 2000. Unfortunately, however, progress in some sectors such as building and transport has stalled and needs to accelerate to reach net zero carbon emissions emissions levels.
Energy efficiency helps consumers save money through improved product design and performance, such as more energy-efficient heating, cooling, lighting, and appliances. Investments in energy efficiency also save money in terms of avoided electricity bills, reduced demand for power plants and related infrastructure and resilience to supply disruptions. Local governments can realize substantial energy cost savings for their facilities while showing leadership by adopting comprehensive energy efficiency measures such as building retrofits, public transport projects/infrastructure upgrades or support of electric vehicle projects/initiatives.
Reduce Stress on the Power Grid
Attaining energy efficiency gains has many advantages for an electricity grid. By lowering peak demand – the highest load on the network – energy efficiency reduces the need to build costly and polluting power plants to meet peak loads, as well as upgrade transmission lines.
Energy efficiency also reduces energy requirements for industrial processes, helping reduce air pollution – an issue linked to heart attacks and asthma attacks.
Energy efficiency gains have been most rapid among buildings and light duty vehicles (LDVs), yet still face market barriers which require policy intervention to overcome. For instance, energy efficient options typically cost more upfront than traditional products, making them less appealing to consumers. Utilities should provide financial incentives to offset this higher initial cost – time-of-use rates or demand response programs may provide this relief; plus these technologies may shift energy use away from evening hours to more reliable times of the day, further smoothing out duck curves and improving grid reliability.
Create Jobs
As opposed to fossil fuels, energy efficiency jobs tend not to be automated or outsourced; rather they are created through labor intensive manufacturing, construction, retailing, distribution, and transport activities that drive local economic development while producing more jobs per investment dollar than other forms of energy generation.
Energy efficiency investments may be more attractive to consumers due to reduced electricity prices and improved reliability, thus lowering risk and helping utilities stabilize revenue streams while mitigating energy price volatility.
Reduced energy consumption helps mitigate climate change, air and water pollution, and our overall ecological footprint. Furthermore, reduced demand has many other advantages – not least within healthcare; where energy efficiency could save six lives each day while cutting $20 billion off annual healthcare costs. Although energy investment was recently halted during Covid-19 pandemic episodes, progress is being made.