Firms not taking up energy efficiency ‘due to high upfront costs’

Energy certificate

Businesses are not installing energy efficient technologies due to large upfront costs in the short term and savings only seen in the long term.

That’s according to a new report which states that payback period for energy efficiency projects “varies greatly based on the client’s energy consumption and the technologies involved”

It adds: “Energy-saving lighting with movement sensors can have a payback period of less than three years, whereas heating, ventilating and air conditioning equipment and insulation can have a payback period of 10 years or more”

Citing DECC the report by financial services firm Standard & Poor’s said energy efficiency projects in UK public building showed overall payback periods of between four and seven years.

The report showed $90 billion (£60bn) was invested in energy efficient buildings sector last year.