What Are The Benefits Of Electricity Efficiency?

Reduced Energy Costs

Shifting to more energy-efficient appliances, electronics, lighting, insulation, windows, and equipment in homes, offices, and factories can significantly lower monthly electricity bills by reducing power usage. One study by the National Resources Defense Council (NRDC) found that cutting nationwide energy consumption by 15% for one year through efficiency measures could save American households and businesses over $15 billion annually. [1]

The savings from energy efficiency improvements add up exponentially over time. For example, switching to an Energy Star certified refrigerator that is 15% more efficient could save a household $30-$80 per year in utility costs. Upgrading to an Energy Star clothes washer could save $135 annually. Multiply these savings by the lifetime of the appliance, and efficiency gains provide substantial cumulative cost reductions. [2]

[1] https://www.nrdc.org/stories/energy-efficiency-clean-facts

[2] https://paylesspower.com/blog/20-energy-saving-statistics/

Lower Carbon Footprint

Energy efficiency measures reduce the amount of electricity and fossil fuels consumed. As a result, we burn less fossil fuels for electricity generation in natural gas and coal power plants. According to a IEA report, energy efficiency delivered savings of 170 million tonnes of oil equivalent in 2018, avoiding nearly 1 gigatonne of CO2 emissions globally. The report highlights efficiency as one of the key ways to curb emissions in the path to net zero by 2050.

At an individual household level, energy efficient upgrades like LED lighting, efficient appliances, insulation and air sealing can significantly cut a home’s carbon footprint. An energy efficient home emits up to 50% less carbon than conventional, older homes. Multiply these reductions across millions of households and the impact is immense. Energy efficiency is one of the fastest and most cost effective ways for countries, communities and families to reduce their carbon emissions and combat climate change.

Improved Air Quality

Scaling up energy efficiency reduces electricity demand, which in turn reduces air pollution from power plants. According to a report by the International Energy Agency, “Scaling up the use of energy efficient appliances and lighting reduces the demand for electricity generation, and therefore reduces air pollution.” (https://www.iea.org/reports/multiple-benefits-of-energy-efficiency/air-quality)

Less air pollution from power plants provides significant public health benefits. The EPA notes that “Home energy audit and retrofit activities often present opportunities for achieving IAQ improvements.” (https://www.epa.gov/indoor-air-quality-iaq/energy-weatherization-and-indoor-air-quality) By improving home energy efficiency, indoor and outdoor air quality is enhanced, reducing health risks like asthma, especially for vulnerable populations.

Enhanced Grid Reliability

Improving energy efficiency helps enhance the reliability of the electric grid by reducing stress during periods of peak demand. Energy-efficient buildings and appliances reduce overall electricity consumption, lowering the load on power plants and transmission infrastructure (Energy.gov, 2022). This avoids overtaxing the system, reducing the likelihood of disruptive brownouts or blackouts. Studies show that cost-effective energy efficiency investments could meet over 50% of projected U.S. electricity demand growth through 2050, substantially increasing grid reliability (ACEEE, 2018). Energy efficiency is considered a low-cost, readily available grid resource for supporting reliability and resilience (Carvallo et al., 2022). By easing pressure on aging equipment, efficiency improvements can delay or avoid costly upgrades to power generation and delivery systems. Targeted efficiency policies also strengthen grid operations, as reductions in peak demand lessen congestion and improve the system’s ability to withstand shocks. Overall, enhancing efficiency is a proven strategy for bolstering the reliability of electric service across local and regional grids.

Increased Property Value

Homes that are energy efficient tend to sell for more money on the real estate market. According to Studies Show Better Resale Value for Energy-Efficient Homes, energy efficient homes can sell for 2-8% more than comparable, less efficient homes. Upgrading a home’s energy efficiency before selling can significantly increase the property value.

Energy efficient homes also appeal to environmentally-conscious buyers who are looking for sustainable living. Features like solar panels, ENERGY STAR appliances, efficient insulation, and smart thermostats not only lower energy bills but also attract buyers who value reducing their carbon footprint. Green building certifications like LEED can further validate a home’s energy efficiency and environmental credentials to prospective buyers.

Lower Utility Bills

Improving energy efficiency can significantly reduce utility bills for businesses, government facilities, schools, hospitals and other organizations. With energy-efficient equipment, insulation, lighting, HVAC systems and building techniques, these entities can spend less on electricity, natural gas and other energy expenses.

For commercial and industrial customers, reducing peak demand through efficiency measures lowers costly demand charges imposed by utilities. According to research by the National Renewable Energy Laboratory, small businesses can achieve 10-30% savings on utility bills by improving energy performance (source). Schools, hospitals and local governments can redirect these utility savings to better serve their communities.

The 2022 International Energy Agency report found that global energy intensity improved by nearly 2% in 2021, saving organisations money by using less energy per unit of economic output. Ongoing efficiency gains are crucial for managing energy costs and maintaining competitive advantage (source). Targeted investments in efficiency provide lasting economic benefits.

Job Creation

Energy efficiency investments1 drive substantial growth in the energy efficiency sector and support local jobs in trades like manufacturing, construction, and installation. Because energy efficiency projects are labor intensive for auditing, upgrading, and installing improved equipment and materials, it’s estimated that $1 million spent on energy efficiency generates 6-15 direct jobs2. These jobs tend to be local and cannot be outsourced. In the US alone, over 2.25 million Americans work in the design, installation, and manufacture of Energy Efficiency products and services.2 Improving efficiency grows the job market, supports small businesses and drives local economic development.

Improved Comfort

Making homes more energy efficient greatly enhances comfort for occupants. Better insulation, such as blown-in wall insulation or spray foam ceiling insulation, helps keep indoor temperatures consistent and comfortable year-round. Improved insulation reduces heat loss in winter and heat gain in summer. This allows homeowners to maintain more comfortable temperatures without having to constantly adjust the thermostat.

Sealing air leaks around windows, doors, and other openings also enhances comfort. Drafts let hot or cold air in and can create uncomfortable sensations. According to the Department of Energy, sealing air leaks could reduce heating and cooling costs by up to 30% (https://www.energy.gov/energysaver/home-comfort). Properly insulating and sealing a home results in fewer drafts and more uniform temperatures.

New York State’s Comfort Home program provides rebates for air sealing and insulation to improve comfort while lowering energy bills (https://www.nyserda.ny.gov/All-Programs/Comfort-Home-Program). With better insulation and sealing, homeowners feel more comfortable without needing to keep turning up the heat or AC.

Enhanced Durability

Energy-efficient homes are more durable due to the use of higher quality materials and appliances. Efficient appliances like refrigerators, dishwashers, and water heaters tend to last longer because they require less energy to operate (1). This puts less strain on the components, resulting in a longer lifespan. Additionally, energy-efficient homes utilize techniques like proper insulation and air sealing that help to deter pests, moisture, and mold from entering the home (2). Water leaks and critter infestations can be very damaging, but energy efficient building practices protect against these risks.

(1) https://www.energy.gov/energysaver/efficient-home-design

(2) https://healthycommunitiesva.com/2024/01/why-buying-an-energy-efficient-home-matters-monthly-savings-more-durable-more-comfortable/

Increased Productivity

Implementing electricity efficiency measures can lead to substantial productivity gains in the workplace. Better lighting, cooling, and ventilation from energy efficient upgrades create a healthier and more comfortable work environment. Studies show that enhancing lighting with LED bulbs and daylighting improves visual acuity, reduces eye strain, and decreases fatigue. Proper HVAC systems with efficient air circulation boost thermal comfort, cognitive function, and overall wellbeing. Ventilation improvements also enhance air quality and reduce illness. According to research by the International Energy Agency, “Efficiency leads to productivity gains in particular by lowering maintenance costs and increasing production yields per unit of input.” Worker productivity can increase by up to 10-15% from energy efficiency measures. With a more pleasant and productive environment, businesses also benefit from lower absenteeism and turnover.