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Efficiency First, Renewables Second ... or Vice Versa?

By Jeremy Shere
October 19, 2010 | 6 Comments

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While working on my book on renewable energy over the past year, I've repeatedly come across the common argument that while renewables are all well and good, they make little sense without first doing everything we can to make homes, businesses, cars, etc. more energy efficient. Only then, the reasoning goes, will the average consumer get the most value for their rooftop PV solar panels, or home geothermal system, a small wind turbine.

I see the logic, and I'm sure in many ways the efficiency-before-renewables argument is simply true. But there's a flip side to that argument ...

I put this argument to my friend Alex Jarvis, a solar installer based in Bloomington, Indiana (my home town). And while he agreed that cutting back on energy usage and improving efficiency are important, he wasn't sold on the notion that efficiency should always come before investing in renewable technology. Sometimes, he said, based on his experience with clients who've ponied up for a rooftop solar system, taking the technology plunge spurs efficiency. in other words, pouring several thousands dollars into a solar array or geothermal system or whatever is great incentive to become more efficient in general energy use. In order to squeeze every last ounce of value out of the technology they've paid for, Alex said, his clients often become hyper aware of how much energy they use, how and when they use it, and what they can do to use less and consume energy more efficiently. And when they do, they see up close and personal how their solar panels on their roof are offsetting a larger percentage of their overall energy use.

Interesting point, no?

Now, Alex's experience is limited. He's just one guy. But I wonder if other solar installers and people who invest in renewables on small or large scales have found something similar. Is there in fact a case to be made for renewable energy technology spurring energy efficiency instead of the other way around?

I plan to look into this in greater depth. Meanwhile, I'm curious to know what you think.

Let me know ...

You can read more about my thoughts on renewable energy and about my book-in-progress at www.renewablebook.com.

Energy Efficiency

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

6 Reader Comments

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1 of 6

FreeAsTheWind

October 19, 2010

Jeremy, I've written about it before here on renewableenergyworld.com that I simply don't think that we can "conserve" our way out of this mess.

Why conservation is a good thing, I don't think that it can make that big a difference considering human nature. If gas prices go back down, people will go right back to buying hummers and escalades..

My opinion is that we don't really have an energy crises, we just haven't made the most of what the sun, wind and waves have to offer...

Bob "Free As The Wind" Mitchell

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2 of 6

william-fitch-22587

October 19, 2010

Hi Book writer:

I could answer in a very long, long response... but instead I will give one simple piece of advice. Differentiate your question. Do you want an answer based on Human Psychology or on correct Engineering logic. They are two very different tacts with two very different paths and outcomes...

.....Bill

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jnshere

October 20, 2010

Hmm ... how about both? First, human psychology. What do you think? And how would the answer be different from the perspective of engineering logic?

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dennis-houghton-41194

October 20, 2010

As an energy contractor in the large commercial and industrial markets most of my leads for efficiency and renewable energy systems are usually driven by energy costs. These customers will carefully assess the cost-benefit of any proposal. Although a request for a solar PV quotation may get my foot in the door I usually include a partial energy analysis and suggest energy efficiency improvements with a cost-benefit report. On buildings and facilities older than 15 years the efficiency improvements almost always give a far larger return on investment. The typical 2-year payback on energy improvements fits into business strategies without any outside subsidy. I work in a <$0.10/kWhr market.

Efficiency and conservation measures in the residential market are better served by requiring appliance manufacturers and home builders to meet increasingly stringent codes and standards. Do not rely upon the humans under the roof to consistently and correctly interact with their energy systems.

It is difficult to calculate but it is probably accurate to say that we would have dozens if not hundreds more coal-fired power plants to meet baseload requirements if these codes and laws had not been developed over the last two decades. DOE secretary, Dr. CHU said something to the effect that the electricity saved annually by energy-star refrigerators exceeds total annual production of all the solar PV in the USA.

It is necessary to "differentiate" the human solutions from technical solutions. There is also a difference between large and small efficiency and conservation projects just as there is a cost-benefit difference between large and small solar PV systems.

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william-fitch-22587

October 20, 2010

Hi:

I suppose one can make this as simple or complex as you want. Human Psychology is two phase, before and after. The before is sales, the after is a reaction to the "new" environment. People in this country are motivated by money, ROI etc. I will NOT start a debate on whether it is intrinsic to our culture or just a century sales job by the conventionals. I will simply say it is the current reality. To use an example at the lower end of the bell curve, powering an electric water heater with PV is a bad engineering choice. However, based on the way the incentives have coagulated in some areas, it is financially expedient to do so. So, to keep this somewhat short, people will motivate to action for ROI AND the social perception of being involved in what is the current "cool". "Cool" runs from cars, to clothes to house siding and just about everything else. You can talk to them about conservation. But be careful, the minute you tie saving money into it without the "cool", you now start to brush up against the concept of, "I am doing this because I NEED to save the money". So, I am saying I am not affluent or trending in an affluent direction? Social suicide. Its OK to save if its on something perceived as "cool" like wind or PV. Also, no debate on how to become "cool".

So, from pure energy logic, it is a no brainer to conserve first. In fact, it even goes further than that. Not only should it be conservation first, but load flattening should also be in the same equation. "The shape of the power usage", is just as important as the total usage itself... and neither can be made "cool", unfortunately.

I really can not answer this in a few paras... and in a totally coherent manner that comes full circle on all raised points.

Last, your friends comment about people getting "anal" about energy usage after system installation, is often correct. However, that will happen or not happen regardless of the systems engineering merits or installation reason.

.....Bill

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FreeAsTheWind

October 20, 2010

This conversation has taken a neat twist, hasn't it? Though, I don't know that it's really possible to separate the economics from the psychology in regards to renewable energy because for most people, these aspects of the decision are so intertwined.

People might want to be hip and happening, but when it comes to paying for the high efficiency furnace verses the standard efficiency furnace, the psychology runs smack dab into the economics of the matter because the higher efficiency furnace costs more up front.

People have to consider their own "micro" economic circumstances such as how long they plan on living in the home or can they afford to put the additional money up front or are they better paying a slightly higher monthly utility bill.

The secret in getting renewables better accepted by the public is in making the economics line up better with the psychology. The only way that I see this happening in the near future (in the long run, I think that it's going to be almost a certainty) is to make the tough political decisions such as implementing a cap and trade system that will force ALL of the costs that are truly associated with fossil fuels to be reflected in their price.

By doing so, people will be able to do what is both "hip and happening" and in their own economic self interest.

Bob "Free As The Wind" Mitchell

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About: I'm a writer based in Bloomington, IN. I'm currently writing a book about renewable energy, titled "Renewable: A Reporter's Quest to Make Sense of the Coming R... more »