Lighting leads in UK greentech retrofits

A new energy-efficiency survey shows that lighting projects are predominant over other technology retrofits implemented in the UK over the last quarter.

The survey was released by performance analysis firm EEVS Insight, which said that energy efficiency is “firmly on the corporate radar.” Almost three-quarters of the 176 respondents had undertaken energy-saving projects in the last three months. Respondents were from a wide range of commercial consumers (142) and energy-efficiency technology and services suppliers (34).

Lighting was the most popular technology grouping: of 457 projects commissioned in the last three months, 25% were lighting-related.

Key survey results from Energy Efficiency Trends report (source: EEVS) 

Naturally, major financial gains were expected by most consumers, with almost eight out of ten expecting projects to pay for themselves within five years. EEVS said this represented a broad 20% annual return on investment. Put into context, in the last 12 months the FTSE-100 Index returned 5.4%, the All Share Index 6.8%, and UK real estate just 3.5%.

Ian Jeffries, EEVS Head of Commercial, said that “commercial energy efficiency does appear to represent a tremendous investment opportunity.”

However, Jeffries also said that the survey has highlighted a major paradox. “While consumers have robust financial expectations, the survey also shows that energy-saving performance – the key driver of financial returns – is rarely measured in a robust and uniform manner,” he said.

As a result, consumers may be unaware of the real financial gains being generated by their energy-efficiency investments, a situation that contrasts sharply with established investment sectors such as equities or real estate. 

Among other survey results, shows that 7 out of 10 projects (70%) were financed using in-house sources of finance. Third-party finance from banks and other financial institutions was largely unused (5%).

The survey also showed general dissatisfaction with the UK government, with respect to its management of both energy-efficiency policy and the wider economy, as the chart below shows.

UK government effectiveness for promoting energy efficiency  (source: EEVS)

EEVS Insight plans to update its Energy Efficiency Trends report each quarter.