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Common Misconceptions About Energy Efficiency


In today’s world where many people and companies are striving for environmental friendliness and sustainability, energy efficiency is becoming an increasingly popular topic. For many companies, however, energy efficiency is misunderstood and there is a lack of awareness as to how, in addition to becoming more sustainable, energy efficiency can improve a company. Some very common misconceptions about implementing energy efficiency in a company are:

Energy efficiency is too expensive or not worth the cost.

  • Common payback periods for energy efficiency projects are as follows, LED lights: 2 years or less, improved HVAC systems and controls: 1-3 years, heat recovery: 2-5 years, compressed air systems: months-2 years, managing fixed/base load: less than one year.[1]

  • Energy prices are rising therefore threatening profits[2], energy efficiency is a plausible way to combat this increase in prices.

  • After the payback period there are both energy savings and non-utility cost financial benefits, such as lower maintenance cost, improved asset value, and increased productivity that allow for companies to profit off of improved energy efficiency.

  • There are often incentives or rebates that one can take advantage of to help subsidize the costs.

There could be a detrimental impact on the experience of customers.

  • Many changes have either no noticeable or a positive effect on customer experience, for example lighting projects often allow for better lighting in facilities.

  • Consumers as well as potential employees want to be involved with companies that participate in sustainable practice, therefore energy efficiency is attractive to them.

  • Public image is important and sustainability including energy efficiency allows for companies to have an improved image in the public eye.

Changes will have too much of an effect on operations.

  • Many projects that improve energy efficiency, such as LED lighting or improvements to HVAC systems, have huge benefits for companies however virtually do not affect operations.

  • Many energy efficient options allow for improved operations such need for maintenance on a less regular basis.

[1] Stiller, Paul. “Building a Business Case for Energy Efficiency.” Life Is On, Schneider Electric, 2017, file:///C:/Users/info/Downloads/eBook_Building-a-Business-Case-for-Efficiency.pdf.

[2] Langford, Guy, and Guy. “2019 Travel, Transportation, and Hospitality Industry Outlook.” Deloitte United States, 10 Jan. 2019,