Sustainability initiatives have been steadily growing for years, but recent research shows that growth is reaching new heights. Electrical contractors hoping to remain competitive may want to look further into energy-efficiency examples in response.
New research suggests the energy-efficiency market will grow to $90.4 million by 2032. According to a March 2023 report from Guidehouse Insights, increasingly strict government regulations around fossil fuel emissions and a growing public interest in sustainability will drive that growth, taking energy-efficiency to a historic turning point.
Inside the growing energy-efficiency rate
Global investments in efficient energy resources are skyrocketing. According to the IEA, which focuses on international energy policy, the world poured $560 billion into sustainable technologies and renovations in 2022, a 16% increase over 2021. These investments are paying off, as global energy efficiency increased roughly four times as much in 2022 as in the previous two years.
This dramatic surge in global energy-efficiency comes from several simultaneous movements. Part of it stems from technological advancement, with smart thermostats, renewables and similar power-saving technologies becoming increasingly accessible and efficient over the past few years. Increased investment into researching these innovations will likely fuel further improvements.
Workforce trends have likely affected energy consumption trends, too. Homes consume close to half the power offices use, so the widespread shift to remote work could lead to an overall drop in consumption.
Government incentives for sustainability and penalties for environmentally harmful practices have also become more common and increasingly stringent. That trend will encourage more consumers and businesses to embrace energy efficiency.
These rising investments mean it’s more important than ever for electrical contractors to focus on energy efficiency. The demand for lower power consumption is increasing, and contractors that can help customers meet these goals could see considerable growth.
Home in on energy-efficient products and services
The first step to capitalizing on this trend is to offer efficient-energy resources. More customers will want to use power-saving systems like smart home devices, solar panels and heat pumps as they become more accessible. Consequently, contractors who know how to install and maintain them will see greater demand.
Services like energy audits and home wiring maintenance will help contractors serve this growing market. Contractors working on new buildings should learn to wire homes to use electricity more efficiently and consider installing power-saving appliances like smart thermostats from the beginning.
It’s important to market these services and products, not just offer them. Focusing promotional material on energy-efficient offerings will help gain an early lead over the competition as demand rises.
Educate employees and customers
Learning more about these technologies and how they can help improve energy efficiency is also important. Some newer power resources may require different steps or considerations when installing. Gaining that knowledge and skill set before these systems become the industry norm could give contractors an early advantage.
Similarly, electrical contractors should educate potential customers about how they can help them save energy. Studies show consumers are most willing to pay more for energy-efficient houses when they can see power scores along a continuum providing context.
Electrical contractors can use marketing materials, blog posts and similar content to explain various energy-efficiency examples to their target audience. This information will help customers understand how the business can make them more energy-efficient, leading to increased sales.
Adopt energy-efficient business practices
With energy efficiency and sustainability practices becoming increasingly mainstream, businesses should embrace these trends within their internal processes to not fall out of public favor.
More than two-thirds of American consumers say a company’s sustainability is important to their buying decision, and 46% look for third-party verification to validate sustainability claims. That means contractors must prove they’re eco-friendly, not just say they are.
Implementing energy-efficient practices like using renewable electricity sources, tracking energy consumption and embracing remote technologies to reduce travel-related energy waste will help contracting companies save on operating expenses. Additionally, pursuing environmental certifications may help contractors outline a clearer path forward to energy-efficiency and provide evidence of these initiatives.
