The COVID-19 pandemic is, of course, having a tremendous impact across the U.S. One hundred thousand or more will likely perish and tens of millions will have lost their jobs or had their businesses greatly weakened – including those in the energy sector.

1. Most companies are not thinking about energy right now. Of course, any company’s main concerns these days will be the health and safety of themselves and their employees, making sure technologies work so people can work from home, and maintaining their systems if they are allowed to function. Nobody is thinking about energy and upgrades and how to save usage and cost.

2. No or few site visits. Most companies and buildings that were seriously looking at energy upgrades are not going through with them. Many contractors are prohibited from or do not want to work in places where health is unsure. Many energy firms have had business losses “overnight” and have had to lay off staff.

3. Lack of capital. Potential customers for energy efficiency upgrades will be hard put to find the money to pay for potential projects – even if they understand the many benefits. The pandemic has put the U.S. in a recession, meaning there is less money available for projects and businesses looking to rebound will focus on projects with immediate paybacks or ways to re-attract their customer base. The many business failures probably will mean reduced revenue for many utilities and governments, meaning less money available for incentive programs. The good news is that the potential follow up to the CARES package is rumored to contain stimulus provisions for energy. Plus, several states want energy efficiency to be part of their recoveries, as well, as they understand that energy efficiency is one way to benefit businesses (help them reduce costs).

4. Losing motivation.  There is a concern that society will lose its motivation for energy management and sustainability as more data is published that the new recession and lockdown situation has caused traffic, power demand and green-house gas emissions to decline rapidly. Of course, a need for energy efficiency may return if people will return to our previous high consumption lifestyle.

5. Real estate changes.  We simply don’t know what the future of the workplace and its real estate will be, causing businesses to wait until that is worked out to design space more efficiently. People have gotten used to working from home and using video conferencing. When the lockdowns end, will businesses move to smaller spaces, encouraging staff to continue to work from home? Or might they wish to move into larger spaces to enable greater distances between employees as we continue to have social distancing at least until the virus is completely controlled? Until businesses decide on these trends (likely, many months or years), companies may be hesitant to invest in energy efficiency.

However, there are factors that favor a robust comeback of the energy efficiency sector.

1. Energy efficiency will be critical for businesses making a comeback. For most such businesses, it will be hard to bring back staff, make one’s product, get back customers, etc. Sales may lag for some time, even when lockdowns are lifted. Thus, it will be more important than ever for a company to lower costs, one of the greatest ones being energy. As long as energy projects are seen as financially beneficial with a short payback, it will be important for a business trying to come back to reduce regular costs, and energy efficiency meets this.

2. Prepare for the next “big thing”.  The pandemic hurt businesses so much and so quickly, certainly making people realize that one must prepare for circumstances that can potentially change rapidly. One way to prepare is to lower costs and operate more “lean and mean”. Being energy efficient is certainly an example to help businesses weather the next potential “storm”.

3. Climate Change may be the next “storm”.  While the pandemic was caused by a microscopic virus, perhaps the next big effect on people’s health and businesses is the opposite extreme. The changes to huge planetary systems, encompassed by Climate Change will surely cause large-scale death and business upheavals. Of course, the best way to deal with upheaval is to be efficient. Given Climate Change is so linked to energy, energy costs will likely rise significantly in the future, so controlling these costs by being energy efficient and using renewable technologies will likely be favored greatly.

For these reasons, it would appear that the energy efficiency business market will suffer in the short-term, but can undergo tremendous growth in the longer term.

CCES has the experts to help your company develop an energy plan and help you incorporate energy efficiency in your future growth plans to provide many competitive financial benefits. Contact us today at karell@CCESworld.com or at 914-584-6720.