Energy efficiency can be defined as the artful combination, sequencing and timing of technologies to optimize whole systems rather than treating individual components separately. Energy efficiency is a downstream strategy that places efficiency before supply, passive before active components and simple before complex solutions.
Shut off lights and unplug equipment you aren’t using to minimize energy usage from “vampire loads.” Contact your power company about time-of-use rates so you can use appliances during off-peak hours and save money this way.
Reduced Utility Bills
Energy efficiency can help households reduce household expenses as food, housing and transportation expenses continue to skyrocket. Small, cost-effective changes such as installing programmable thermostats or efficient lighting fixtures can have a dramatic effect on your energy bill.
Energy efficiency can help manage peak demand and stabilize electricity prices and volatility, reduce the need for new power generation resources and offer protection from fluctuating fuel costs.
Though energy efficiency offers numerous benefits, its resource remains significantly underutilized due to market barriers such as lack of information, upfront costs and short time horizons for investments in efficiency. To help overcome such issues, NRDC works on key policy measures, like creating a uniform energy efficiency label; as well as working closely with electric utilities, regional alliances and other partners; such as leading state energy efficiency initiatives to set and enforce energy reduction targets and drive utility investments through Demand Side Management (DSM) programs.
Reduced Carbon Footprint
Energy efficiency is an integral component of reaching our climate goals, helping to reduce emissions from buildings, industries and transportation while simultaneously offering economic advantages to consumers.
As small changes can help reduce energy use, from replacing incandescent light bulbs with LEDs to adjusting your thermostat in winter and raising it during the summer, there are numerous opportunities available to you to lower energy use. Modern appliances consume power even while idle so unplugging or turning off appliances may save energy as well.
Larger energy engineering projects that involve research, collaboration and investment may produce even greater savings and carbon reductions; according to the McKinsey Cost Curve these initiatives may even often be cost-negative in comparison with traditional generation options.
Increased Home Value
Homes undergoing energy efficiency upgrades can increase in value significantly. Energy efficient upgrades make homes more appealing to green-minded buyers, and can even speed up the selling process.
Lenders and real estate agents are increasingly asking for information about the energy performance of homes to better understand their value, but long payback periods and regional variations make gathering comprehensive data about cost and performance of energy efficiency measures difficult.
There are many local utilities and state programs in New England offering free home energy assessments (also known as energy audits). These assessments can identify areas in your home where energy is being wasted, with incentives from some programs for making energy-efficient upgrades like insulation, new kitchen and bathroom appliances or building ENERGY STAR homes. By taking advantage of such programs you may reduce costs associated with such upgrades while simultaneously realizing a rapid return on investment; those savings could then be passed onto another homeowner in order to expand the market for energy-efficient housing.
Increased Job Opportunities
Energy efficiency is one of the main sources of clean energy jobs, yielding a solid return on investment (3-5 dollars for every $1 invested) while driving economic growth and creating jobs. Yet it often gets less attention and funding compared to renewables. At the World Bank we collaborate with clients and partners to facilitate scaling-up of pilot projects into national energy efficiency programs more rapidly.
Investment in energy efficiency creates jobs locally in construction, manufacturing, wholesale trade, distribution and transport industries – jobs that are less susceptible to automation or outsourcing and provide economic security and community stability.
Efficient transportation systems help improve job access by reducing vehicle pollution and car crashes, and can decrease health inequities in lower-income Black, Indigenous and People of Color communities who are overexposed to fossil fuel air pollution. They also support national climate action goals while contributing to economic development through reduced demand for natural gas and oil products – thus supporting national climate action efforts as well as national security objectives of countries.