Cutting Energy Waste Could Save Households $31,000 Through 2050

Energy costs are pressing on consumers across the country, but a recent report from the American Council for an Energy-Efficient Economy finds that simply cutting energy waste through increased efficiency can save a household $31,000 between now and 2050.

Through widespread adoption of efficiency improvements and demand flexibility, the report estimates energy costs could fall by $4.6 trillion nationally, reducing peak energy demand by 20% and lessening the need for building new power plants. The report says that improved efficiency can also strengthen the electric grid, reduce pollution, and improve public health. Those gains come from four primary areas: buildings, industry, transportation, and the grid.

Rather than focusing on one technology, researchers focused on eight broad strategies. These include upgrading appliances and lighting, building more efficient new homes, retrofitting existing homes and buildings, expanding electric vehicle use, improving transportation systems, modernizing industrial equipment and processes, and implementing widespread demand flexibility (using power during off-peak times).

The benefits also come in the form of improved public health. The report finds that better efficiency could prevent 22 billion metric tons of greenhouse gas emissions and reduce illnesses and premature deaths. In addition, energy savings would allow businesses and consumers to spend more elsewhere, resulting in economic growth and job creation.

Building efficiency presents the largest opportunity. Winter heating, summer cooling, indoor lighting, and appliances account for a substantial share of both grid demand and household bills, so efficiency gains cut waste and spending directly. The report recommends more efficient appliances and lighting, heat pumps, better insulation, tighter new construction, and retrofits of older homes. The heat pump is the strongest single measure, delivering two to four times more heat per unit of electricity than conventional heating systems.

The report also recommends wider adoption of electric and hybrid vehicles, public transit, and biking infrastructure, along with better freight efficiency. Each reduces exposure to gasoline prices, a volatile line item in most household budgets. The grid question is answered not by pushing more electricity through the system but by using it at smarter hours. Preheating water and precooling buildings ahead of the daily peak, smart thermostats, overnight vehicle charging, and battery storage all flatten the curve. This avoids construction of many new power plants and creates room on the grid for booming data center demand.

To meet these goals, the report concludes that adoption of stronger appliance efficiency standards, financial incentives and rebates, and investment in research and development will be needed, along with better utility efficiency programs, consumer education, and workforce training. However, using energy more efficiently is one of the most cost-effective ways to meet the nation’s energy evolving needs.