Consumer Non-Energy Benefits as a Motivation for Making Energy-Efficiency Improvements

Few benefits are provided by electric power plants, coal mines, oil pipelines, or other energy supply systems aside from the energy they produce. Technologies to improve energy end-use efficiency, however, frequently offer nonenergy benefits beyond those provided by supply-side options. One class of such benefits accrues at the national level—improved competitiveness, energy security, net job creation, environmental protection—while another relates to consumers and their decisionmaking processes. From a consumer perspective, it is often the non-energy benefits that motivate (or can be used to promote) decisions to adopt energy-efficient technologies. Consumer benefits can be grouped into the following categories: (1) improved indoor environment, comfort, health, and safety (2) reduced noise, (3) labor and time savings, (4) improved process control, (5) increased amenity or convenience, (6) water savings and waste minimization, and (7) direct and indirect economic benefits from downsizing or elimination of equipment. Consumer awareness of non-energy benefits is also relevant to utilities, energy service companies, and others seeking to sell efficiency. While energy-efficient technologies help provide equivalent services at lower costs, non-energy benefits can actually add value or enhance the energy services delivered by efficient technologies. In addition, where certain market segments are not sensitive to economic arguments (e.g., in the proverbial “landlord-tenant” split-incentive situation) non-energy benefits can assume special importance. From the perspective of energy consumers, non-energy benefits can equal or even exceed the importance of the energy cost avoided, thus meriting greater consideration in private investment decisions, marketing strategies, design and evaluation of utility programs, and government policies designed to promote energy efficiency. Specific technical examples are provided for highly efficient windows, energy-efficient lighting, and space conditioning, ventilation, and indoor air quality.