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High upfront Capital Costs and Long Payback Periods are the Barriers to Energy Efficiency

By Environmental Defense Fund, U.S. Environmental Protection Agency and Nicholas Institute for Environmental Solutions, July 2011


Saving energy is the most efficient way to meet our energy needs. The best source of energy is the one never used. Unfortunately, most companies still aren't take advantage of energy efficiency opportunities, neglecting billions of dollars of potential savings.

By eliminating wasted energy, the U.S. could reduce its fossil fuel use, move toward energy independence, and reduce its greenhouse gas (GHG) emissions by almost 40% by 2030.

Energy efficiency represents a huge untapped opportunity for meeting the dual goals of financial return and environmental protection. That is one of the top-level findings from "Show Me The Money: Energy Efficiency Financing Barriers and Opportunities."

However, the authors of the report heard a variety of barriers to stand in the way of these cost savings and associated GHG emissions reductions i.e. high upfront capital and development costs, long payback periods and uncertainty of savings and lack of capital.

But energy efficiency doesn’t have to be expensive or time consuming. New technologies like our cutting-edge LUXADD™ Express T5 Retrofit Kit allow for fluorescent lighting retrofits at a Return of Investment (ROI) of less than 1 year.



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