Let’s suppose I asked you to give me a buck, and in two years or less I would give you back your dollar, and I would pay you another dollar every year after that. Yes, I say, the investment is completely legit. Yes, I confirm, it’s an excellent return on investment. And yes, you can invest more than $1 if you want.
It turns out this isn’t a case of “let’s suppose”; this is the typical payback track record for investments in energy efficiency. About 20-30% of energy-saving upgrades that can be done at a typical facility will have a payback of 1-2 years. After the initial investment is paid back, the energy savings are money in the bank, year after year, for as long as you stay in the facility. What’s not to love?
According to research by McKinsey & Company titled Unlocking Energy Efficiency in the U.S. Economy, the American economy has the potential to reduce non-transportation energy consumption by roughly 23% by 2020 by investing in energy efficiency. Good for business, good for the economy.
Business leaders support benefits of energy efficiency
Leaders in industry apparently agree. In a Nov. 11th letter to President Obama, the nonpartisan Industrial Energy Consumers of America (IECA) asks the Environmental Protection Agency (EPA) to “prioritize low-cost and ‘cost-effective’ energy efficiency from every sector” as a means of achieving greenhouse gas emission reductions required under the Clean Air Act. The IECA, representing major sectors such as cement, paper, chemicals and steel, is an association of manufacturers with $700 in combined annual sales and more than 650,000 employees. The McKinsey research shows the industrial sector alone could cut energy consumption by 18%.
Energy Smart ready to assist your business with energy efficiency
Of course, since every facility and industry is different, it’s recommended that businesses seek advice from experts to determine which energy efficiency upgrades will most benefit the individual company. Here’s where Energy Smart can help: Our staff will arrange on-site energy consultations, calculate energy savings potential, research rebate programs and funding options, and advise you about an energy efficiency strategy that can work for your company. If you are a business in Minnesota, these services are available through Energy Smart at no cost. Please contact Energy Smart to learn more.