$1M Invested in Energy Efficiency Generated $3.87M
AN independent analysis has been released showing the economic performance of 16 US cities under the Southeast Energy Efficiency Alliance (SEEA).
The report, entitled 'The Economic Impact of Energy Efficiency Investments in the Southeast' from the US Department of Energy (DOE) funded energy efficiency retrofit consortium released the details from 2010 to 2013 and found that every million dollars invested in energy efficiency programs in the region generated $3.87M in economic output, together with 17.28 new jobs.
Over the course of three years, SEEA-administered programs in 16 participating cities achieved these economic results by completing more than 10,000 building energy audits and 6,000 home and commercial building retrofits. The SEEA program consortium, which was seeded by $20.2M of funding from the DOE’s Better Buildings Neighborhood Program (BBNP), was a stand-out performer, ranking sixth among 41 BBNP programs nationwide based on the number of retrofits completed.
“The remarkably positive economic impact that investments in energy efficiency have had on both economic growth and job creation in the Southeast are helping to create a fundamental change in perspective,” said SEEA President Mandy Mahoney. “While this region has traditionally lagged the rest of the country in energy innovations, the results of this ‘grand experiment’ in community-based energy efficiency programming have validated the powerhouse economic effect of energy efficiency, a vitally important tool to ensuring the prosperity of the Southeast.”
The regional economic output resulting from DOE’s investment, which totaled $78.3M, is made up of three types of economic effects: direct effects, which reflect direct new spending in the economy; indirect effects, which account for spending needed to support the energy efficiency programs; and induced effects, which account for the ways in which households and workers spend their newfound monies on general consumer goods and services.
While program investment levels varied by states, all states with participating programs saw strong positive results, with top-performing states benefiting at higher levels due to several factors including local program administration and spending; the availability of financing for retrofits; consumer education efforts; the presence of strong marketing support, utility partnerships, and workforce training and development; local market conditions; and in most cases, existing market momentum.
A detailed review of these factors can be found in SEEA’s first Energy Pro3 Report .
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Picture of Birmingham Alabahama by Curtis Palmer, reproduced under CCL.
Wednesday 5th March 2014