Johnson Controls reached some surprising conclusions in its latest Energy Efficiency Indicator Global Survey results, which it released in June. The survey includes feedback from 2,882 respondents. Among them, CEOs, CFOs, real estate leaders, and facility managers from organizations ranging from small businesses to global corporations, and from a variety of industries, including manufacturing, healthcare, information and communication technology, construction, consulting, retail, and government sectors.
It found that 71% of respondents say they are paying more attention to energy efficiency now than they were one year ago, and 85% indicate that energy efficiency is a priority in planned new construction and retrofit projects. Moreover and most surprisingly, 56% claimed to have invested more in energy efficiency in the last 12 months compared to historic levels – despite the global recession. Overall, 60% say that energy management is extremely or very important to their organizations. What’s more, respondents from India and China are more likely to consider energy management very or extremely important – 85% – compared with 53% of those in EU and the U.S.
Not surprisingly, 97% of the respondents said that cost savings was the top reason for interest in efficiency measures, which far outstripped other priorities, such as greenhouse gas reduction and enhancing public image and government/utility incentives. The results also showed that building owners and managers prefer to decrease the energy footprint of a building, rather than install onsite renewable energy and purchase renewable power by a 3:1 and 4:1 margin, respectively.
However, the economic incentive for improving energy efficiency also has its inverse; namely that 65% of respondents cited lack of capital budgets, uncertainty over savings, and insufficient payback as the primary barriers for adopting energy-efficient measures. Thus, cash is king and will remain the primary driver in decision-making in the buildings sector (as noted in our recent report “Diamonds in the Rough: Uncovering Opportunities in the $277 Billion Green Buildings Market“).
Fortunately, energy-efficiency technologies and their purveyors are getting due recognition from those in the position to adopt, and Property Assessed Clean Energy (PACE) bonds and similar financial packages in the EU and the U.S. (see the May 3, 2010 LRGJ – client registration required) will go a long way to solve capital issues and return on investment (ROI) problems. Also, the survey makes clear that technology developers – and investors looking to put money to work in the building efficiency space – should look to provide equipment and IT as a service, with its attendant lower upfront costs and risk, rather than traditional sales.
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