Energy Efficiency and Conservation

Energy conservation and efficiency both relate to the use of energy and energy services, such as powering a vehicle or a toaster, firing a boiler, cooling an office, or lighting a parking lot.

Energy conservation occurs through reduced consumption of energy services. Examples of energy conservation at home include:

• Turning off lights
• Setting the thermostat lower in the winter

Energy efficiency means using less energy to provide the same level of energy services or obtaining more energy services from the same energy input. To be energy efficient is to provide services with an energy input that is relatively small. Ways you can make your home more energy efficient include:

• Replacing incandescent light bulbs with compact fluorescent bulbs
• Putting more insulation in your attic

Efficiency Is Different from Conservation

Sometimes energy conservation is mistaken for energy efficiency.

Consider an office building that post signs reading "Be More Energy Efficient — Use the Stairs Instead of the Elevator." If people heed the sign and take the stairs instead of the elevators, is this an increase in energy efficiency? Less energy is used, but services are reduced. So technically, this represents energy conservation.

The Rebound Effect Complicates Energy Conservation Efforts

If demand for energy services remains constant, then improving energy efficiency would reduce energy consumption. But some of the energy efficiency improvements do not reduce energy consumption. For example, although appliance standards and building codes have increased efficiency, consumers may offset these gains by demanding larger home sizes, larger appliances (for example, flat screen TVs), and new or expanding end uses (for example, computers, networking equipment, and telecommunications devices). Because fuel efficient vehicles make travel cheaper, consumers may choose to drive further or faster, thereby offsetting some of the potential energy savings.

This offset is called the rebound effect.

Consider this example: a homeowner adds storm doors and attic insulation. At the same time, however, the homeowner raises thermostat levels in the winter, which results in the same amount of energy use as before. Has this household improved its energy-use efficiency? In a technical sense, yes. The household receives higher levels of services (a warmer interior) for the same energy input.

There Are Many Ways To Use Energy More Efficiently at Home

If you wish to use energy more efficiently in your home, there are many options, including:

• Obtaining a home energy audit to ensure that your furnace and appliances are running efficiently
• Installing proper insulation in your house and around your hot water heater
• Caulking and weather stripping windows and doors to seal out cold or hot air
• Installing a programmable thermostat and reducing or raising temperature settings on your thermostat, especially when you’re not home
• Using ENERGY STAR products, which are rated as more energy efficient than other alternatives

Several Federal, State, and local tax credits are available to home or business owners for installing specified windows and doors, solar panels, geothermal heat pumps, biomass stoves, and many other product upgrades in existing homes or businesses.