Why Energy Efficiency Is Worth the Investment

Considering an efficiency upgrade for your building? The financial benefits are bigger than ever, according to a new report by the Rhodium Group.

The study, Unlocking American Efficiency, examines the impact of a 30% improvement in U.S. building efficiency by 2030, which its authors say is possible with existing technology and design principles. Such a sizable boost would save $65 billion between commercial, residential, and governmental entities, they found.

“In corporate finance terms, investing in a 30% improvement ... would have an internal rate of return (IRR) of 28.6% over a 10-year period,” the authors note. “An IRR of 28.6% is four times better than average corporate bond yields or average equity performance and more than double the returns even high-performing venture capital firms enjoy.”