Category Archives: Alternative Energy

Roadblocks to Bridging the Energy Efficiency “Apathy Gap”, Part 1

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Assuming you were suddenly given $10,000 for home improvements, which of the following would you do?

  • Remodel Kitchen or Bathroom
  • Replace carpet or add hardwood or tile
  • Replace windows
  • Replace roof
  • Repaint interior or exterior
  • Replace hot water heater
  • Add insulation
  • Finish out basement or bonus space

If you picked kitchen/bathroom and floors as your first and second choices, welcome to the club. You chose the same as a majority of consumers, according to the Shelton Group’s EnergyPulse survey, released this week.

Here’s another question: Did you factor in the home improvement’s ROI in your decision?

That’s actually a concern for many homeowners when it comes time to invest in remodeling, yet it’s not clear today which option leads to greater resale value and why. Home-buyers are a finicky bunch and may pay more for marble counter-tops than a high efficiency hot water heater, even though the latter pays for itself in energy savings in just a few years. Of course, a home buyer isn’t going to throw a housewarming party in her basement to show off her new EnergyStar boiler… but how much cash does a boiler need to save before it wins investment over sexier renovations?

A heck of a lot, according to energy efficiency experts, who note that consumers are very irrational when it comes to home improvement decisions. In the latest example, the Shelton Group found that consumers would endure up to $129/month increase in utility bills before investing in energy efficiency renovations, demonstrating what Shelton Group calls the “Apathy Gap – the price people are willing to pay to do nothing.”

The Apathy Gap

The Apathy Gap is notorious among energy policymakers and economists, who cite the average consumer’s ridiculously high internal discount rate for energy efficient projects – as high as 70 – 80% in a recent study by Efficiency Vermont. By comparison, most consumers extend a 5% discount rate to Uncle Sam when buying US Treasury bonds. Do people really think that investing in retrofits (essentially the laws of physics, as proofed in building science, plus some installation risk) is 16 times more risky than the Federal Government?

The Apathy Gap is extremely irrational. In Predictably Irrational, Dan Ariely asks, “Why do people splurge on a lavish meal, but cut coupons to save twenty-five cents on a can of soup?” Similarly, energy efficiency advocates should ask, “Why do house hunters scrutinize mortgage rates, but ignore utility bills?”

In both cases, the reason is that consumers make decisions emotionally, in conformity with social norms. Bank and broker advertising have taught home buyers to rate compare, but no one has shown them how to negotiate on utility bills. Around Boston, where I live, a winter heating bill may only be a few dollars shy of a monthly mortgage payment. Installing an efficient boiler can lower a heating bill by tens of thousands of dollars over the 30 year span of a typical mortgage. Yet many home buyers would discount that payback so much as to make the boiler less valuable than the marble counter-tops.

There are similar forces at work across the full range of residential energy efficiency products and services. Even low-cost and no-cost behavioral changes, like replacing lights with free CFLs or running dishwashers at night, have unreasonably high hurdles to adoption given their easy savings.

In my next post on this blog, I’ll describe what I see as the major roadblocks to bridging the energy efficiency “Apathy Gap”.

Alex Patriquin is a marketer, entrepreneur and energy efficiency advocate. Prior to founding his latest company, he worked for Compete.com, a digital marketing intelligence platform, as a market researcher for leading search and online media companies. His work at Compete was widely cited in media publications like the New York Times, Wall Street Journal and Wired.

Alex lives in Cambridge. He also blogs at DigitalVerdure, and can be found on Twitter.

More than 4 out of 5 economists agree…

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…the United States should act to curb emissions.

“Many observers look at economists as skeptics of the need for (climate) mitigation,” says economist Gary Yohe of Wesleyan University in Middletown, Conn. But “most accept the unquestionable consensus from the natural scientist that the planet is warming and humans are to blame.” —Dan Vergano, USA Today

Continue reading →

Local companies learning how to green their business

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greenwardThe Cambridge Energy Alliance and the Sustainable Business Leadership Program hosted a Green Your Business Affair on November 9th to help local commercial entities learn about energy efficiency and sustainability programs. Over forty businesses came out and mingled with other interested green leaders.  The event brought together representatives from the efficiency, renewable energy, nonprofit, design, and retail sectors. The Cambridge Energy Alliance, the Sustainable Leadership Program, Prism Consulting, and Mass Energy Consumers Alliance shared information on ways businesses can become more sustainable and save money at the same time.

The event was held at Greenward , a small, locally-owned eco-boutique in Cambridge, MA, run by the husband-and-wife team of Scott Walker and Simone Alpen. Locally brewed beer was be provided by the Cambridge Brewing Company, pizza was donated by Stone Hearth Pizza, and organic fair-trade chocolate from Theo. Nothing went to waste, as Vegware donated all the cups, plates, napkins, and cutlery. The Sustainable Business Leadership Program also offered free, “The Busy Business Owner’s Guide to Sustainable Business Practices” publications at the event.

The Cambridge Energy Alliance and the Sustainable Leadership Program aims to host similar events in the future. Suggestions for future locations or venues are welcome. What better way to get your business in shape, than trimming the energy and resource waste in your company—so get connected today!

Cambridge residents cut carbon as part of International Day of Climate Action

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Area 4 Light Bulb Exchange

Area 4 Light Bulb Exchange

On October 24th, volunteers worked with the Home Energy Efficiency Team (HEET) and the Cambridge Energy Alliance to weatherize Cambridge buildings and provide efficient light bulbs and resources to Area 4 residents as part of the International Day of Climate Action.  This local grassroots effort was part of 4,000 world-wide groups that demonstrated their commitment to fighting climate change by rallying in big cities and engaging in creative community actions. The International Day of Climate Action is called on world leaders to commit to bringing carbon emissions down from its current 387ppm to a safe level of 350 or less.

Women's Center Barnraising

Women's Center Barnraising

Over seventy volunteers came together to weatherize both the Women’s Center and the Wendell Street coop through air sealing improvements to the windows, doors, and gaps in the basement, plus other efficiency measures like installing compact fluorescent light bulbs.  The communities of Reading, Boston, Waltham, Arlington, and Maynard will continue the spirit of the International Day of Action with weatherization barnraisings scheduled for the next 30 days. The buildings included homes for mentally disabled adults and a church.

The HEET team also collaborated with the Cambridge Energy Alliance to help Area 4 residents save energy and cut carbon by exchanging incandescent light bulbs for compact fluorescents.  The light bulb exchange was a huge success; saving Area 4 residents over 29,000 pounds of carbon per year by replacing 346 incandescent light bulbs.  In addition, the Cambridge Energy Alliance completed its fall canvass in other Cambridge neighborhoods that day by exchanging 579 cfl lightbulbs, saving an additional 341,378 lbs of carbon. These outreach activities also provided energy effiency resources to help families start saving money, plus connect them to energy effiency programs for their homes or businesses.

Many of the Cambridge volunteers ended the day by joining the Boston 350 Under Water Festival.  Hundreds of citizens gathered en masse in downtown Boston’s Christopher Columbus Park and engaged in positive attention-getting and imagination-catching activities.  The Boston 350 event used the iconic image of sea level rise to draw attention to the threat of global climate change.

The International Day of Action reflected the famed mantra “Think global and act local”!  There are a number of ways to get involved in sustainability, energy, and climate activities which can be found on the Cambridge Energy Alliance calendar.  To get involved in the Home Energy Efficency barnraising events visit there website at heetma.com/.

Heimlichkeitwindmühlen

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Marine windmills Besides aesthetic, and grid connectivity issues, siting wind farms is further complicated by concerns over interference with doppler radar. This must certainly frustrate some meteorologists, but I expect most readers would agree that clean energy is a reasonable exchange for less accurate forecasting; assuming that more radar installations couldn’t compensate. Unfortunately, the interference also causes problems for air traffic control and monitoring as well. Luckily research into a number of possible solutions is underway.

President Obama at MIT this Friday!

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obama2President Obama will be speaking in Cambridge at MIT in Kresge Auditorium this Friday.  While attendance is by invitation only, MIT will have a live webcast available to the public.  The president will deliver the address in Kresge Auditorium on clean energy and will be joined by Massachusetts Governor Deval Patrick.

President Barak Obama has been an advocate of clean energy solutions to the climate change challenge, calling for the US to, “make the investments that would allow us to become the world’s leading exporter of renewable energy”.  The White House website has an Energy & Environment page dedicated to the accomplishments they have achieved up to date including efficiency investments in the American Recovery and Investment Act and increasing fuel efficiency standards.    These have been great steps forward in moving us towards a clean energy future, but much more needs to be done to address the climate change crisis.

While Copenhagen is only a couple of months away, it is unclear if President Obama will attend this pivotal meeting.  Todd Stern, US Special Envoy for Climate Change, said that President Obama would go to Copenhagen only if sufficient progress was being made in the negotiations.  During a United Nations speech Obama expressed his concern for having developing nations commit to carbon emission reductions as well.

“Yes, the developed nations that caused much of the damage to our climate over the last century still have a responsibility to lead, and that includes the United States. And we will continue to do so — by investing in renewable energy, promoting greater efficiency, and slashing our emissions to reach the targets we set for 2020 and our long-term goal for 2050,” Obama said. “But those rapidly-growing developing nations that will produce nearly all the growth in global carbon emissions in the decades ahead must do their part as well.

While most of us will not have the opportunity to meet with the President this Friday, we can view the live (or archived) web-cast and get informed on the clean energy solutions for our nation.  In addition, this Saturday over 4,000 community action events are happening across the globe as part of the International Day of Climate Action.  You can get involved by finding an event happening in your community or organize one yourself.  This is an excellent opportunity to send a collective message to our national leaders that there is no time to wait!

Greening Government

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us_flag_green On Monday, as another step in leading by example, the Obama administration initiated a government-wide suggestion box for ideas to green the executive branch. For two weeks federal employees will have the opportunity to submit and vote on ideas which will then be referred to committee.

The existing suggestions are available for perusal on GreenGov at right, below the video. They include (many copies) of the usual suspects, like occupation sensors for lights or double-sided printing, as well as gems such as:

Replace grass lawns that require mowing with wild flowers that do not. This will save on pollution from lawn mowers. —Kris, Bethesda

Good idea. That should also cut down on run-off and water used for irrigation, as well as providing useful habitat for wildlife Kris.

There are also disappointing revelations like:

Many employees have mini refrigerators to keep their lunch cold. Each one uses around $30 per year worth of electricity. We could encourage people to share and eliminate the extra ones by charging a fee of $20 per year for a refrigerator permit. —Carl, NIH

Why aren’t there communal (high-efficiency) fridges in the first place? They’re a standard fixture in most offices…

Green investments not so rosy? Not so fast.

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Soros_talk_in_Malaysia by Jeff OoiA few months ago, we noted that T. Boone Pickens announced he would be scaling back his plans for renewable energy. Fortunately, the renewable energy sector continues to draw interest from major investors. Last week George Soros announced plans to invest $1_000 million in renewable energy, as well as create a $100 million group to monitor the sector and furnish policy advice over the next ten years.

iPhone Carbon Watch: Apple Leads Electronics Industry Again

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My iPhone is a pretty much constant presence in my life, from checking my email first thing in the morning to watching my nephews play with the DoodleBuddy app. But until last week, I never seriously considered its impact on the environment.

That changed when Apple published greenhouse gas emissions from its operations and products for the first time. The report, available at www.apple.com/environment, goes farther than other consumer tech companies have by accounting for product usage.

Apple iPhone emissions

It turns out that my iPhone produces greenhouse gases equivalent to about 55kg of carbon dioxide over the full course of its lifecycle, from sourcing to recycling. My use of my iPhone produces about 27kg of carbon dioxide.

To put that in perspective, 55kg of CO2 is equivalent to burning 22 gallons of gasoline in a car or 8 propane cylinders on a backyard grill. If I planted 5 tree seedlings in my backyard tomorrow, it would take them 10 years to sequester the amount of carbon my iPhone produces.

OK, so what? Twenty-two gallons of gas and 10 trees ain’t such a bad trade given that the iPhone is… well… downright awesome.

Truly. The iPhone is one of the most successful consumer tech products in history. Apple has sold 21M iPhone units since Q3 2007, shattering sales records.

All those iPhones have produced a lot of carbon emissions, equivalent to 1.16b kg to be exact, or roughly the same amount as a coal-fired power plant in one year of operation.

NY Times rising consumption

Source: New York Times

Bottom line: there isn’t enough land enough in the world to offset America’s greenhouse gas emissions from electronics by planting trees.

To halt our rising carbon emissions, America needs more than offsets. We need renewable energy alternatives at scale and stringent energy efficiency standards, especially for our electronics, “which now represent 15% of household power demand, and that is expected to triple over the next decade,” according to the New York Times and International Energy Agency.

Many are working hard to accomplish this goal. California recently proposed to ban the sale of high energy televisions. Flat-screen TVs and video game consoles can use more energy than refrigerators in some American homes today, due to a lack of mandatory efficiency standards. Massachusetts has followed suit by hearing testimony on TV efficiency.

Apple, in the same report cited above, announced that all of their desktop and laptop products now come with EnergyStar certification, an industry first. Going further, Apple also boldly withdrew from the US Chamber of Commerce, stating “Apple supports regulating greenhouse gas emissions, and it is frustrating to find the Chamber at odds with us in this effort.”

That’s a proactive step forward and a first for a major consumer brand. Other electronics manufacturers should follow Apple’s leadership.

Alex Patriquin is Founder and CEO of Digital Verdure, a digital media and sustainability company based in Cambridge, MA. Read more at his blog, DigitalVerdure.com.

Smart Grid = Smart Appliances

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smart_dryerYesterday’s New York Times carried an article about appliance maker Whirlpool, who was the recipient of a $20 million grant from the Federal Government to fund product development in the rapidly developing field of smart appliances.

These devices, once connected to a Smart Grid-enabled electricity supply, will be able to receive information from the grid and cycle down their power demands during times of peak energy use (and higher costs per kWh). At the moment, they are anticipating savings of $40 per year for a standard size dryer.

As always, your mileage may vary.

Next in the Smart Grid appliance pipeline, General Electric Co. will soon roll out its first commercial smart appliance, a hybrid electric heat pump water heater. The company said the pump will save consumers $250 a year in energy costs.

Other “demand response” appliances expected within the next year are refrigerators able to delay defrost cycles and dishwashers that delay operation until energy demands and costs decline at night.

The Federal Energy Regulatory Commission estimates smart grid-enhanced home appliances could shave up to 7 percent off U.S. peak demand through 2019. When this is added to the 15% reduction in demand that Smart Grid monitoring devices have been able to achieve in field testing, we have within our grasp the ability to reduce electricity consumption by 20% without making any structural changes within our homes.