March 5, 2019

Energy efficiency spending to top $11 billion by 2028

Annual energy efficiency spending in North America is expected to reach nearly $11.3 billion in 2028, with a compound annual growth rate of 4.6% over the forecast period (2019-2028) as electric energy efficiency is moving to integrate other distributed energy resources (DER) to help ensure grid reliability, meet state and provincial efficiency requirements, and help some localities meet their emissions reduction targets or other energy goals. 

This forecast, from Navigant Research’s report, North American Utility Energy Efficiency Program Implementation, explains that decreasing technology prices and the possibility of third-party program administration—vendors and service providers that contract with utilities or other program administrators to manage energy efficiency programs—are also driving energy efficiency spending in North America. While steady growth is expected to continue through the decade, regulatory inconsistency, tight pricing margins, and market saturation of energy efficiency technologies present challenges.

 “The developing use cases and the increasing integration of utility energy efficiency programs with DER suggest continued growth of energy efficiency over the coming decade as more connected devices come online, and utilities simultaneously work to ensure grid reliability,” says Brett Feldman, research director with Navigant Research.