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ACEEE: Meet the $100 Billion Market of Energy Efficiency Financing
Feb. 17, 2016 — From a blog post by Brian Stickles, research analyst, finance policy, American Council for an Energy-Efficient Economy (ACEEE):
As the stock market soared to new heights after the Great Recession, so too did energy efficiency financing. Our new paper, "Energy Efficiency Finance: A Market Reassessment," provides an overview of structures that are working in the energy efficiency finance industry today, which markets still remain elusive, and what opportunities the future may hold.
Energy efficiency financing has come a long way in the last few years. In a 2011 paper, ACEEE cataloged a burgeoning industry still trying to find its feet in the wake of financial collapse. That paper introduced the types of institutions, structures, and prominent players in a growing and changing industry and outlined impediments to future growth.
Five years later, there are still underserved markets, but many more instances of success and scale. Multiple sectors of the industry, such as green and efficient buildings, hybrid and electric cars, ENERGY STAR-certified IT equipment, and the energy service company (ESCO) industry have matured into multi-billion dollar segments.
Successful financing mechanisms share a number of similarities: These areas build upon financing products with well-established ties to the larger capital markets, the lending is well integrated into the program designs and provides critical support for the sales process, and the financing programs often provide ancillary benefits outside of just offering capital...
To download the white paper, click here. To continue reading this blog post, click here.
The ACEEE acts as a catalyst to advance energy efficiency policies, programs, technologies, investments, and behaviors. For information about ACEEE and its programs, publications, and conferences, visit aceee.org.
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