‘Energy efficiency to shine in 2010’ reports the San Jose Mercury News

A pair of articles in yesterday’s edition of the San Jose Mercury News shed light on the growing national interest in energy efficiency and on the proposed HOME STAR retrofit incentive program. “Solar and wind power may get the headlines and attention,” the newspaper reported, “but green-tech experts say 2010 will be dominated by energy efficiency, the mundane but critical process of cutting the amount of gas and electricity that homes and offices use.”

Of particular interest to business leaders in the construction and related manufacturing sectors is the fact that investors are increasingly betting on the profitability of reducing energy waste:

Venture capital investment in energy efficiency hit a record in 2009: at least 115 deals worth nearly $1 billion, according to a preliminary tally by the Cleantech Group and Deloitte. That’s up 39 percent from 2008. Meanwhile, solar, which had 84 deals worth about $1.2 billion, was down 64 percent from 2008, and there’s increasing talk about solar being “overfunded.”

“In 2009, there was a pullback and realization by investors that because of the capital intensity of solar, there may be safer places to put their money,” said Scott Smith, U.S. cleantech leader for Deloitte.”

Mercury News staff writer Dana Hull also emphasized the wider economic and environmental benefits of energy efficiency: “It’s increasingly seen as an effective way to create desperately needed jobs, save struggling consumers money, wean America from its dependence on foreign oil and reduce carbon emissions – all at the same time.”

A second article provides an overview of the HOME STAR incentive program:

Silicon Valley venture capitalist John Doerr, who serves on President Barack Obama’s board of outside economic advisers, is a leading champion for Home Star, which he describes as “Cash for Caulkers.” The idea has widespread support from big-box retailers, labor unions, environmental groups and the construction and contracting industries, which have been devastated by the collapse of the housing market. Although national unemployment remains at about 10 percent, almost a quarter of the nation’s construction workers are unemployed, according to the U.S. Bureau of Labor Statistics.

We are in an urgent moment where we desperately need jobs,” said Bracken Hendricks, a senior fellow at the Center for American Progress and an architect of the Home Star legislation. “You have business and environmental interests aligned around making this happen, and happen now. I have never seen a coalition this broad and this committed.”

Here are links to the full articles:

“Energy Efficiency to Shine in 2010”
www.mercurynews.com/breaking-news/ci_14241691

“Government working on ‘Home Star’ Plan for Energy-Efficiency Rebates”
www.mercurynews.com/breaking-news/ci_14261182?nclick_check=1