Where’s the Money for Energy Efficiency Financing?
Amongst the problems with energy efficiency upgrades is the little issue of money. Even though the projects will ultimately save a city, business or household money over the long haul, it’s tough to get people to invest the money upfront, if they even have it to begin with.
Experts in the field often note that the right financing schemes could unlock millions and likely billions in energy savings in the coming decades. But a report from Lawrence Berkley National Laboratory, “The Limits of Financing for Energy Efficiency,” refutes that claim. It does not assert that financing doesn’t matter, but there’s a whole lot more that needs to be right than just a financing model to move the industry forward.
“If you were an economically rational robot, you’d do it,” said lead author Merrian Borgeson, a researcher in the Electricity Markets and Policy Group at Lawrence Berkeley National Laboratory. “But people aren’t like that.”