Energy-efficiency spending to grow in 2010, survey finds

MILWAUKEE — Spending on energy efficiency is projected to grow as the economy improves and businesses ramp up capital spending, according to the latest energy-efficiency snapshot from Johnson Controls Inc.

The company surveyed more than 1,400 executives in North America about energy costs, carbon-mitigation plans and energy-efficiency spending trends for its annual Energy Efficiency Indicator, released Monday.

The survey found that improving energy efficiency in buildings is by far the biggest priority for business owners and energy managers as a way to reduce carbon emissions. But other factors are also driving interest in energy efficiency, including projections of higher energy costs. On average, those surveyed say energy prices will rise 7 percent in 2010.

The survey also found that even with no carbon mandates in place, 14 percent of those who responded work for companies that have rolled out public commitments to reduce their carbon footprint.

Barriers to deploying more energy efficiency remain, however, both in access to capital as well as concern about the payback period, or return on investment, for funds invested in energy efficiency, the survey found.

"Energy efficiency is a high area of prioritization and focus," said Dave Myers, president of the building-efficiency business at Johnson Controls. "Even in a challenging economic year it remained a very high priority. Investment was stable, and in many cases there was an increase in investment."

In a finding that surprised panelists during a webcast announcing the study's results, 32 percent of those who responded said they increased investment in energy efficiency in 2009, despite the tough economy.

That could be in part because energy-efficiency upgrades are generally funded through internal capital and operating budgets, whereas access to outside capital has been difficult, Myers said.

Peter Molinaro, vice president at Dow Chemical Co

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