Businesses remain committed to greener energy consumption, Deloitte study finds

Published on June 20, 2017 by Kevin Randolph


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Marlene Motyka

Increasing affordability, technological advancements and demand from consumers has led businesses to continue to reduce their energy consumption and use more renewable energy, a recently released annual study from Deloitte concluded.

The study consisted of more than 700 interviews with business decision-makers responsible for energy management practices at companies with over 250 employees across all industries, and more than 1,500 interviews with household decision-makers for utility services.

“The findings of the 2017 study indicate that sustainability is not a fad: U.S. residential consumers and businesses remain committed to reducing their energy consumption and expanding use of renewables, even as federal policy backs away from environmental protections and climate change action,” Marlene Motyka, Deloitte’s U.S. and Global Renewable Energy Leader, told Daily Energy Insider on Monday.

The seventh annual study, conducted by Deloitte with Harrison Group, was done in March.

Around half of businesses surveyed for the study said they are working to increase the amount of renewable electricity they use. Six out of 10 of the businesses surveyed have on-site electricity generation, an increase from 35 percent five years ago. In addition, 33 percent said they plan to increase the amount of electricity they self-generate.

Motyka said she expects solar and wind to continue to be major players in businesses’ energy strategies and that battery storage technologies will gain a more prominent role in energy management as costs associated with the technology continue to fall over the next decade.

Despite uncertainty about government support for energy and environmental initiatives, other factors have caused businesses to continue to reduce their energy usage and use cleaner energy.

“Our survey shows that climate change and green energy has moved beyond politics and into action,” Motyka said. “We have both qualified and quantified that demand for clean energy and renewables has passed a tipping point. With costs declining and technologies advancing, green energy has become more of an economic issue – increasingly able to solve both environmental and affordability concerns.”

A total of 80 percent of the businesses surveyed indicated that reducing electricity costs are vital for maintaining an image that keeps them competitive. And 45 percent said that it is a central part of their corporate strategy. Eight in 10 said that procuring energy has shifted from being merely a cost to an opportunity for reducing risk, improving resilience and creating new value.

Cost remained the top motivation for reducing energy use, but other incentives, especially consumer demand, gained influence. Slightly more than 60 percent of business respondents reported that their customers are demanding that companies use a certain percentage of renewable resources.

“Businesses that haven’t yet jumped on the energy management train are running out of time to make the leap, and the study will help them identify opportunities and navigate challenges when implementing an energy management strategy,” Motyka said.

According to the study, increasing clean energy use is the No. 1 energy concern among consumers with 37 percent citing using more solar and 25 percent using more wind as their top priority.

Clean energy is so important to consumers that they would switch energy providers and even pay more for it. Approximately six in 10 consumers said they would consider switching suppliers in order to use more clean energy and would pay a 4 to 8 percent surcharge on their electric bills for renewable energy.

Climate change may be the reason for this interest in clean energy, especially among younger generations.

According to Motyka, these trends are not likely to change anytime soon, especially as those younger generations continue to gain more influence. The clean energy revolution, she says, is underway.

“The most compelling aspect of the 2017 Resources Study is that demand for renewable energy by consumers and businesses – along with a long-term commitment to cleaner portfolios from utilities – is fundamentally and permanently shifting energy attitudes and decisions, independent of federal stances,” she said. “There is no turning back and the momentum will continue to propel energy management and support for renewables by residential consumers and businesses.”