Amongst the numerous measures the world has taken to wean itself off the fossil fuels, only a few have been successful in making the businesses, homes and vehicles more energy efficient. Various psychological and financial barriers have kept governments and organizations from realizing the actual potential of energy efficiency programs.

6 Reasons Why Energy Efficiency Programs Fail

Conor MacGuire | Green Energy Scotland Limited

Depending on the relative cost of energy at a particular time, energy-efficiency programs and capital investments have been a regular part of industrial life for many years. The techniques and technologies required to enhance energy efficiency are well known. However, as per the universal feedback, organizations are facing major issues surrounding the long-term sustainability of improvement program benefits.

In fact, many customers and suppliers have reported a complete erosion of energy-efficiency within a few years of program continuation. Let’s take a look at 6 key reasons why energy efficiency programs fail:

#1 Executing Without Measuring

One of the main reasons contributing to energy efficiency program failures is not taking out sufficient time to measure the current energy performance of the organization and gaining vital insights on energy consumption.

Identifying various areas involving wastage is necessary in order to achieve “real” and “lasting” energy savings. Utilizing intelligent energy auditing and measuring solutions can help organizations gather accurate data and thus help identify areas that need to be focused upon for best results.

#2 Ignoring The Basics

Implementing advanced technology solutions does not make any sense if you sideline the fundamentals.

In the absence of proper installation of basic insulation materials and power-consumption devices, you may be successful in achieving a few of your energy efficiency goals, but the missing gaps will undoubtedly result in continued wastage of energy.

#3 Avoiding Integrated Energy Management Solutions

When it comes to getting different systems to work together, nothing can work better than the integrated energy management solutions.

Unforeseen emergencies can occur anytime. So, monitoring energy consumption from a remote site can help you apply solutions in real-time. Ignoring the use of integrated energy management solutions can again result in energy efficiency program failure quite easily.

#4 Not Taking Initiatives

Not everyone in an organization may look at “save energy” as a goal worth their time. It’s the duty of the company to promote behavioral shifts in energy usage.

Energy consultants and experts are prominent resources of information about energy usage and efficiency.

Organizations failing to take such initiatives often struggle to continue with energy efficiency programs in the long run.  

#5 Flawed Business Case

Basing a decision on purchase price of new equipment while completely ignoring the changes in operating costs may result in poor ROI of the project.

Likewise, accepting cheap lighting upgrades can cost dearly in the absence of adequate lights which have to be replaced again. In the worst case scenario, cheap lighting may just fail to meet safety standards and ultimately result in significant financial losses.

#6 No Post-Project Verification

If there is no baseline, it is almost impossible to prove that a particular project has succeeded, if you don’t measure and compare again.

Organizations that ignore such post-project measurements and evaluations often miss out on necessary improvements that ought to be carried out to achieve higher return on investment.   


Hope you enjoyed the article contributed by Green Energy Scotland Limited a green deal assessor organization in Scotland. They provide energy saving advice & green deal assessment services in Scotland. You can get more update by following us on Facebook

The content & opinions in this article are the author’s and do not necessarily represent the views of AltEnergyMag

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