Report: Minnesota efficiency program returns $4 for every $1 invested
- Minnesota’s Conservation Improvement Program (CIP) generates at least $4 in benefits for every dollar spent, according to a new report from the state's Commerce Department.
- Conducted by energy consulting firm Cadmus, a cost-effectiveness assessment found a total net benefit of about $3.3 billion from lower utility costs and environmental impacts, HometownFocus reports.
- A second, economic impact assessment was also completed, finding a total net benefit of more than $5.9 billion in new economic output and nearly 55,000 job years.
A new report from Minnesota puts energy efficiency in terms of economic impacts, and finds the state's nationally-recognized energy efficiency program is generating value at four times the rate of investment.
“This comprehensive study makes it clear that energy efficiency is a smart, positive investment for our state,” Commerce Commissioner Mike Rothman said in a statement. “The Conservation Improvement Program not only saves energy and reduces utility bills for Minnesota consumers and businesses. It also creates jobs, boosts our economy and protects our environment.”
Cadmus conducted two types of analysis: a cost-effectiveness and an ecomomic impact assessment. Combining both assessments, the firm found that every dollar invested in CIP provides $4 to $4.30 in energy savings, environmental benefits and new economic activity.
The study looked at the statewide economic impact of CIP activities completed from 2008 through 2013, and includes energy savings expected to result through 2032.
The cost-effectiveness assessment found a total net benefit of approximately $3.3 billion from lower utility costs and avoided environmental damage. The economic impact test showed a total net benefit of more than $5.9 billion in new economic output and nearly 55,000 job years. A job year equals one job for one year, according to HometownFocus.
The CIP program allows utilities to offer services to their residential customers, including energy audits and incentives for energy-related improvements alongside rebates for high-efficiency lighting and appliances. For business customers, utilities offer rebates for high-efficiency boilers, chillers and rooftop units; lighting and lighting control systems; and motors.
“The Conservation Improvement Program plays a vital role in helping Minnesota achieve our goals to address climate change and reduce our dependence on power that comes from burning fossil fuels,” said Rothman. “The cheapest and cleanest form of energy is the energy that we never use in the first place.”
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