Energy efficiency implementation

The Energy efficiency implementation industry branch comprises firms which retrofit or replace inefficient equipment with more efficient parts or equipment, with the goal of reducing energy consumption. Retrofitting enhances existing equipment by making it expend less energy, complete replacement of equipment may be more costly, but can reduce the implementation complexity. The common goal is to save kilowatts (kW) and kilowatt hours (kWh). The difference between these two measurements is that one is a power rating (kW) and the other is a measurement of energy actually consumed (kWh).

Public Utility Commissions in many states mandate that their utilities design and implement energy efficiency programs. The funding for these can be reflected in their rates or are collected through a surcharge in monthly customer bills. Some utilities design their own programs and implement them using a rebate form or other application, and administer the programs using their own staff. Most major utilities hire implementation contractors who are responsible for the design and implementation, and some implement programs already designed and approved by their PUC. Some programs require a co-pay by the customer, some are installed at no-cost.

Utilities invest in energy efficiency for the following reasons:

The end result is that utility companies have more energy to sell, or in other words, they are able to sell their excess capacity to more customers in the area without increasing their production capacity.

The results of energy efficiency implementation are all beneficial for the energy consumer. It reduces operational costs, reduces carbon footprint, and it can even improve quality of life. Energy efficiency implementation can also play a role in increased revenue when consumers choose a “greener” product over another that is not. Energy efficiency implementation can be extremely beneficial to large market segments like small businesses, schools, cement processing plants; basically any area that uses large amounts of energy. Small changes here add up to large savings.

Implementing energy efficiency measures in a home or business can also lead to behavioral changes. When an energy efficiency change has been made and the energy consumer sees the benefits, more changes are often wanted to further their savings. These small changes create awareness and can be as simple as turning of lights when a room is not in use, or as complex as adding window glazing or installing demand-control ventilation.

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