Energy efficiency maximizes the utility of energy consumed, resulting in significant cost savings and a reduced environmental footprint. Efforts like energy-efficient light bulbs, optimizing thermostat settings, and unplugging electronics all contribute to energy efficiency.
It’s also about upgrading to appliances with the ENERGY STAR label, and replacing older devices when they reach the end of their lifespan. But there are other hidden benefits to energy efficiency, too.
Reduced Utility Bills
Over time, energy efficiency measures can significantly reduce cost to residential and commercial energy consumers. These savings are typically reflected as avoided costs on utility bills.
Unlike renewables, which can be expensive to install and operate, energy efficiency measures cost less to purchase and operate, making them an economical resource for households and businesses. Additionally, when coupled with behavioral changes, these practices can significantly reduce electricity consumption and related costs.
Energy efficiency programs are the lowest-cost electric resource to utilities, saving one-half to one-third of the cost of building, fueling, and operating a new power plant. Combined with lower demand for energy, these savings can help reduce electricity price spikes and volatility and contribute to energy security. New research finds that a wide variety of benefits that go beyond energy savings are created by efficiency measures—these are known as multiple benefits. Recognizing these benefits is crucial for efficiency program administrators, as they often omit them from cost-effectiveness testing (see ACEEE’s new report, “Recognizing the Value of Energy Efficiency’s Multiple Benefits”). This information will help inform future policy and market interventions to bridge the gap between predicted and realized energy savings.
Reduced Carbon Footprint
Achieving the same level of performance or comfort with less energy helps lower the carbon footprint. By minimizing greenhouse gas emissions and reducing demand for fossil fuels, energy efficiency supports global sustainability.
Individuals can make small changes that reduce the impact on climate change, such as purchasing carbon offsets or driving a hybrid electric vehicle instead of an internal combustion engine car, and using energy-efficient appliances. They can also vote for politicians who support climate change initiatives and advocate for environmental policies, and participate in community climate marches to raise awareness.
Businesses can adopt green practices to reduce their carbon footprint, including optimizing the use of resources and implementing asset management systems. They can start by identifying immediate “quick wins” to gain momentum and secure leadership buy-in, then pursue broader reduction goals with the help of data-driven insights. This strategy improves operational excellence, lowers costs and enables sustainable growth while helping to avoid potential regulatory fines or market shifts that threaten future profitability.
Increased Comfort
The average household uses far less energy today than it did in 1980 thanks to efficiency standards, consumer education programs and efficient everyday appliances. This reduced energy usage reduces the need to build new electricity generation and transmission infrastructure, which lowers utility bills for consumers and helps stabilize energy prices.
In homes and buildings, energy efficiency measures improve occupant comfort. They provide a more stable indoor temperature and better air quality, which leads to improved productivity and overall well-being. In fact, research from the American Council for an Energy-Efficient Economy (ACEEE) suggests that energy-efficient heating, ventilation and air conditioning systems can also reduce exposure to outdoor pollution, molds, pests and extreme temperatures — all of which are linked to health issues like fatigue, hypertension and asthma.
These benefits are often referred to as “multiple benefits” and include non-energy impacts of energy efficiency, such as cost savings, environmental benefits, or social and economic gains. In addition, energy efficiency can strengthen energy security by reducing dependence on foreign sources of energy and decreasing vulnerability to energy price fluctuations.
Increased Value
Energy efficiency is a cost-effective way to reduce emissions and help combat climate change. In addition, it improves the comfort of buildings and homes and contributes to a healthy economy. These benefits can be boosted even further by using technologies such as LED lighting that require less energy to operate.
Boosted productivity, improved working conditions and staff retention, reduced operations and maintenance costs, higher asset value, decreased exposure to energy price volatility, and enhanced Corporate social responsibility are just some of the many benefits that businesses gain from investing in energy efficient upgrades. These upgrades are also relatively inexpensive and qualify for rebates and tax incentives.
For homeowners, simple steps like unplugging appliances and utilizing ENERGY STAR-rated appliances can significantly reduce electricity consumption. For buildings, energy efficiency measures can be combined with smart building systems that identify and optimize energy usage based on real-time demand. These systems can also help ensure that the energy consumed is being used wisely, reducing waste and ensuring cost savings.