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All Energy Policy and Economics

Energy efficiency

Eaton, Gillian (2022 Nov 16). Why energy costs and benefits matter. Efficiency Vermont.

Setterberg, Diana (2025 Jan 21). Montana State plans $50.5 million worth of energy efficiency work. Montana State University.

For Efficiency Vermont, the programs and services they offer are evaluated on whether the long term societal benefits and energy savings outweigh the lifetime societal costs including installation labor and purchase cost. In the case of windows, while high-efficiency windows could improve energy efficiency, the cost of replacing them are greater than benefits produced; therefore Efficiency Vermont recommends lower-cost solutions like weatherization and storm windows. While some programs, such as those for low-income customers, might have lower returns, they are balanced by other programs in the organization’s portfolio that balance it out; historically those have been industrial process measures and lighting measures. For Montana State University, their $50.5 million investment in energy efficiency improvement projects is justified to be worthwhile in the long term citing savings in energy use, future maintenance costs, and performance improvements in lighting, air quality, and temperature control. Planned upgrades include lighting, mechanical systems, steam plant upgrades, and piping upgrades for geothermal well systems for efficient transfer/storage of energy between buildings.

Is energy efficiency a worthwhile investment?

Generally, energy efficiency can be a worthwhile investment if investments are made based on criteria including long term environmental/societal benefits and savings in energy and financial cost. There can be cases where investment in more efficient systems may not be justified in certain circumstances. For example, a renter or homeowner might not be interested in efficiency upgrades because they may not be able to see the benefits of it. In the case of upgrading old washers/dryers, sometimes it could make more sense to reduce energy usage/cost instead by hang-drying clothes outside. In Vermont, many utilities provide rebates to incentivize the adoption of energy-efficient behaviors and investments in both commercial and residential contexts.