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How Does Energy Efficiency Relate to Renewable Energy?

Scott Sklar
April 24, 2007  |  18 Comments

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There is a lot happening in renewable energy right now, which is great and what we need. But what about conservation? ... Are there any studies showing how much we could save and at what cost if we insulated all the uninsulated houses and double-paned all the windows and sealed all the air leaks? In the same vein what about solar thermal? It's much more cost effective than solar electricity but not pushed nearly so hard, or so it seems. -- Jack M., Bellingham, WA

Jack, While efficiency is alive and well -- the U.S. must do more -- and fast, to meet the challenges of global climate change, increased energy imports and national security. Recent studies (see links below) show we can cut our greenhouse gas emissions in half by using energy efficiency first, but it needs to be followed by an aggressive utilization of renewable energy. The President issued an Executive Order in January 2007, which set goals for federal agencies, such as to improve energy efficiency and reduce greenhouse gas emissions of the agency, through reduction of energy intensity by (i) 3 percent annually through the end of fiscal year 2015, or (ii) 30 percent by the end of fiscal year 2015, relative to the baseline of the agency's energy use in fiscal year 2003. Congress, not to be outdone, passed efficiency credits including for solar water heating and photovoltaics. Tax credits are available for qualified solar water heating and photovoltaic systems are available for systems "placed in service" from January 1, 2006 through December 31, 2008. The tax credit is for 30 percent of the cost of the system, up to $2,000. This credit is not limited to the $500 home improvement cap. For energy efficiency for homeowners (I am not going to cover automobiles, etc., or companies in this Q&A): -- Windows & Doors, which includes Exterior Windows and Skylights, must be Energy Star qualified OR meets IECC1. The tax credit is 10 percent of cost, up to $200 for all windows, skylights and storm windows. All Energy Star labeled windows and skylights qualify for tax credit. Note that Installation costs are not included, and for tax purposes, save your receipt and either the Energy Star label from all your new windows or the Manufacturer's Certification. -- On Roofing and Metal Roofs that are Energy Star qualified, consumers will receive a tax credit of up to 10 percent of cost, up to $500. The roof must be expected to last five years or have a two-year warranty. Note: Installation costs are not included, and for tax purposes, save your receipt and the Manufacturer's Certification Statement. -- For Insulation that meets 2000 IECC & Amendments, consumers save 10 percent of cost, up to $500. For insulation to qualify, its primary purpose must be to insulate. (example: vapor retarders are covered, siding does not qualify). Insulation must be expected to last five years or have a two-year warranty, and installation costs are not included. For tax purposes, save your receipt and the Manufacturer's Certification Statement. -- Central Air-conditioning units must have EER >=12.5/SEER >= 15 and Split Systems must have EER >= 12/SEER >= 14, and consumers can receive a $300 tax credit. For a list of qualified products, go to the Consortium for Energy Efficiency product directory, click on the Air Conditioners and in the "CEE Tier" enter "Residential Tier 2." Note -- not all Energy Star products will qualify for the tax credit. For tax purposes, save your receipt and the Manufacturer's Certification Statement. -- Geothermal Heat Pumps are under the same criteria as Energy Star: EER >= 14.1 COP >= 3.3 Closed Loop, EER >= 16.2 COP >= 3.6 Open Loop, EER >= 15 COP >= 3.5 Direct Expansion $300. All Energy Star labeled geothermal heat pumps qualify for the tax credit. For tax purposes, save your receipt and the Manufacturer's Certification Statement. Also, for your energy efficiency tax credits, you must file IRS Form 5695. The best reports on energy efficiency come from three nonprofits: Alliance to Save Energy, American Council for an Energy Efficient Economy and the Rocky Mountain Institute. But my two favorite recent efficiency studies show we can cut our greenhouse gas emissions in half by using energy efficiency first, followed by an aggressive utilization of renewable energy. The first report is from the European Renewable Energy Council (EREC) and Greenpeace and it is called "Energy Revolution: A Sustainable World Energy Outlook" (use first link below). The other study, "Tackling Climate Change in the U.S. -- Potential U.S. Carbon Emissions Reductions from Renewable Energy and Energy Efficiency by 2030," is from The American Solar Energy Society (ASES) (use second link below). So Jack, I couldn't agree with you more -- and while much is happening, much more could be done. -- Scott Sklar

Related Links

  • "Increasing Renewable Energy in U.S. Can Solve Global Warming"
  • "ASES Report: Renewable Energy Can Curb Global Warming by 2030"

18 Comments

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Mircea Faur, Ph.D.
Mircea Faur, Ph.D.
May 16, 2007
Jack, here's a good site for you:

http://www.findsolar.com/index.php?page=rightforme⊂page=efficiency

For a more detailed set of good info, go to:

www.findsolar.com

Save this site, as it is the best one source site that is helpful in planning/analysis and calculating the benefits of Renewable Energy.
lee aikin
lee aikin
May 16, 2007
I have been very concerned with the conservation problem, especially since I found out that construction, demolition, building and maintaining buildings and homes uses 50% of the worlds energy, whereas vehicle fuel only uses 25%. Also a DOE official reports that energy saved is twice as valuable as energy produced. Therefore I have developed a strong interest in superinsulated straw bale homes. See my article at: http://ecobusinesslinks.com/straw_bale/straw_bale_solar_sustainable_development.htm
Jan Goffey
Jan Goffey
April 25, 2007
I so agree, it is difficult to make old houses as air tight as new, but some of the panelizd houses you can buy now, on steel frames with thick insulated panels come with energystar rated windows and doors and are virtually air tight. I think the old way of building stick frame draughty houses has got to end. The ancients built with adobe (USA)and cob (Uk) and whereas this is labor intensive, and not always geographically possible, a steel frame house can be put up in a few days wherever you live. I think this a way forward.
Matthew Swyers
Matthew Swyers
April 25, 2007
The Alliance to Save Energy link above is incorrect. It should be http://www.ase.org/

m
allen gordon
allen gordon
April 25, 2007
Its interesting that you didn't mention the work of Amory Lovins and the Rocky Mountain Institute here. Quite some years ago, Lovins was pushing energy conservation strongly and as a means of avoiding the necessity for building more power plants. You also didn't mention all of the phantom loads in our houses that consume just a few watts while appearing to be powered off. This applies to any device that is operated by a remote control. While these items seem insignificant, a few watts multiplied by millions of households totals the output of a major generating station.
Ed Brown
Ed Brown
April 25, 2007
The terms "energy efficiency" and "conservation" are used interchangeably in the question and answer on this topic. These two concepts are not the same.

The DOE defines the terms this way: Energy conservation is any behavior that results in the use of less energy. Energy efficiency is the use of technology that requires less energy to perform the same function

Turning of a light OFF is an act of conservation. Installing a compact fluorescent bulb is an investment in energy efficiency. Conservation is free - energy efficiency is not. Energy efficiency requires an energy input - conservation does not (except our own energy).

In times of limited energy and financial resources, we should be focusing heavily on conservation. Put up a clothesline instead of buying a new Energy Star clothes dryer. Use the money you would have spent on the dryer to insulate your attic.

Ed
Ronald Corso
Ronald Corso
April 25, 2007
Your answer doesn't address the question as to how renewable energy relates to efficiency. And, your answer does not discuss building renewable energy projects that are more efficient than the typical fossil fueled, nuclear or other renewables such as wind, solar etc. The one source of energy that fits that description
would be to develop the country's hydro potential which has an efficiency greater than 90 %. Estimates show that the potential is nearly 20,000 MW without the construction of new dams. I guess that we shouldn't be surprised by this oversight since Renewable Energy Access has only sporadically mentioned hydropower and has no expert or advocate, as far as I know, on the subject.
Peter Greenberg
Peter Greenberg
April 25, 2007
I am not quite sure why renewables have been getting so much interest these days as opposed to energy efficiency. I guess it is a sexier thing for politicians. We manufacture energy efficient lighting for industrial spaces (warehouses, mfg, school gyms...) Paybacks at 4,000 hrs per year with no incentives, tax credits... are about 4.3 years and less than 2 in a 24/7 facility. By contrast solar water heaters have about a 30 yr simple payback and about 80 yr for PV (all at .07/kwh). There is still a ton of energy efficiency out there, even in rebate rich states with high energy costs
www.energywisegroup.com
Tim Lyden
Tim Lyden
April 25, 2007
One very building method that I have been using that fits into both category is ICFs / Insulated Concrete Forms.

Yes you do have to pay for them, but after a few years they will pay for themselves in Energy $avings, and will then continue to pay you back in Energy $avings dividends forever.

Modern ICF buildings save between 40% & 80% heating & cooling requirements.
Now thats what I call Conservation.
They are also extremely Energy Efficient.

They also Never Rot, are Hurricane-Proof, Tornado-Proof,
Mold-Proof, Fire-Proof, Draft-Proof, Sound-Proof, and a few more.

The National & ICC code should mandate double the current R-Values, and oppose the NAHAB & Oil Lobbiests.
Orienting all new homes South should also be Mandated.
The early Greeks used Passive solar, & said only a fool would build their house not facing the sun.

Tim Lyden
Scott McMeekin
Scott McMeekin
April 25, 2007
I understand that there is a new (old) method of producing concrete that requires far less energy than the methods used today. Is anyone out there familiar with the process and quality of the product?
William Brobeck
William Brobeck
April 25, 2007
All of the improvements mentioned by Mr. Sklar require varying degrees of financial commitment by the businessman or homeowner. For schools, churches and low-income housing apartment owners, that's next to impossible. Perhaps the question should be "How can renewable energy pay for ALL your energy efficiency improvements?" The answer is simple - the patented BSE energy debit card.

Bill Brobeck
Chief Technical Officer
Brobeck Solar Energy LLC
http://www.brobecksolarenergy.com/
Marc Plante
Marc Plante
April 25, 2007
I installed a solar hot water system recently, and it works great! Bought used hot water panels (plenty out there), a new, stainless steel hot water storage tank, and plenty of copper tubing. The whole setup cost about $3000 and took a couple of weekends to do yourself. Now, our hot water boiler is shut off completely for the sunny days and we have plenty of hot water. At $660/tank of oil, I am anticipating payback within 10 years! But with the 45% tax incentives, maybe in only 5 years!
EUGENE Lucas
EUGENE Lucas
April 25, 2007
There was no answer about solar-thermal which is a highly efficient way to capture solar energy, which can be used in a variety of ways. The old fashioned hot water heaters have been around since the 1920's. Residential/commercial solar-thermal is hot in Europe, but has virtually been used in the U.S. only to heat swimming pools. That may soon change. There's lots of solar-thermal energy around - about 20 times more than we can use. What's been holding solar-thermal back is that it needed to be large-scale to be cost-effective; and off-the-grid power is still cheap.
Keith Campbell
Keith Campbell
April 25, 2007
Don't forget Commercial, High Rise, Government, Municipal, Transportation, Educational and Industrial Buildings.
Keith Campbell
Paul Leow
Paul Leow
April 25, 2007
Does anyone have any information on how efficiency would effect the costs for renewable energy and/or traditional energy production?
Tom Barrett
Tom Barrett
April 25, 2007
At a recent solar energy conference a representative of a major PV company was selling me a system by telling me that with their system I would never have to worry about saving energy again. I could use as much as I wanted for whatever I wanted because I was producing it all for free. I had noticed him telling everyone who came to his company's booth the same thing. So I was interested in this company's approach to selling solar. He asked me what I did and told him I developed and managed energy conservation and efficiency programs and he said,"We are going to put you out of business!" What kind of male bovine feces is this? Especially from a rep of one of the major PV companies in on Earth!
Albert Nunez, CEM
Albert Nunez, CEM
April 25, 2007
ONE OF MY LATE GREAT MENTORS, RICHARD L. CROWTHER, FAIA TAUGHT ME 30 SOME ODD YEARS AGO WHEN TALKING TO ME ABOUT THE BUILT ENVIRONMENT SAID, "THAT IF YOU HAVE FIVE DOLLARS TO SPEND, SPEND THE FIRST DOLLAR ON ENERGY CONSERVATION, SPEND THE SECOND DOLLAR ON ENERGY CONSERVATION, SPEND THE THIRD DOLLAR ON ENERGY CONSERVATION, SPEND THE FORTH DOLLAR ON PASSIVE SOLAR ENERGY AND THE FIFTH DOLLAR ON ACTIVE SOLAR AND THE REMAINING LOAD WOULD BE SO EXTREMELY SMALL THAT IT CAN BE PICKED UP WITH FOSSILS WITHOUT GUILT".

THIS BASIC ADVISE STILL HOLDS TRUE TODAY ONLY I WOULD CHANGE THE WORDING TO BE MORE CONTEMPORARY.

See next comment for a continuation.
Albert Nunez, CEM
Albert Nunez, CEM
April 25, 2007
SPEND THE FIRST DOLLAR ON CONSERVATION- INSULATION, HIGH PERFORMANCE FENESTRATION, KILL VAMPIRES, PARASITICS, ADD SMART STATS AND PIR SWITCHES, ETC.

THE SECOND ON WASTE RECOVERY (HEAT, WATER, POWER, ETC.).

THE THIRD ON ENERGY EFFICIENCY (ANYTHING THAT SWALLOWS ENERGY IN THE PROJECT SHOULD BE ONE OF THE TOP ENERGY STAR RATED.

THE FOURTH ON PASSIVE SOLAR, DESIGN AS IF NATURE MATTERS AND RESPECT THE NATURAL ENERGY FLOWS OF THE GIVEN SITE AND INCLUDE APPROPRIATE VEGETATION IN DEVELOPING THE SITE PLAN TO OPTIMIZE MICRO CLIMATE PRECONDITIONING AND WHILE YOU ARE AT IT, CONSIDER BEING A VEGETARIAN TO LIGHTEN YOUR PERSONAL CARBON FOOTPRIN.

AND THE FIFTH ON ACTIVE SOLAR, TO ME THIS LAST SECTION INCLUDES EARTH COUPLED OR WATER SOURCE HEAT PUMP TECHNOLOGY AS WELL AS SOLAR THERMAL AND PHOTOVOLTAIC SYSTEMS.

ADHERE TO THIS LIST, THEN THE REMAINING LOADS WILL BE SMALL (<5% OF CONVENTIONAL); PICK THAT UP WITH GREEN TAGS.

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Scott Sklar

Scott Sklar

Scott, founder and president of The Stella Group, Ltd., in Washington, DC, is the Chair of the Steering Committee of the Sustainable Energy Coalition and serves on the Boards of Directors of the Sustainable Buildings Industry Council, the...
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