Kevin Barbeau
Communications Intern, FOCUS St. Louis
An article in today’s St. Louis Post-Dispatch [“Energy Saving is Slow to Catch On” by Business Reporter Jeffrey Tomich] tackled the issue of energy efficiency in Missouri and the programs available to businesses wishing to implement more efficient, less impactful, and – ultimately – cost-saving energy solutions. The story detailed a $24 million incentive program offered by Ameren UE that helps finance energy-efficiency efforts.
The problem: Since its inception almost a year and a half ago, the story cites, less than $3 million has been utilized.
The assumption would be that Ameren hasn't allocated the funds in a timely manner, but it looks like the businesses themselves are balking at the program. Savings gained from energy solutions is a long-term payoff – one that most Missouri businesses aren’t inclined to budget in or wait for. While the cost of implementing energy-efficiency projects varies based on the size of both the business and the scale of the project, it is always a substantial investment versus standing pat.
While this inaction among businesses is certainly cost-related, it also supports a statewide energy inefficiency trend. A 2009 study by the American Council for an Energy-Efficient Economy ranking state energy policies, initiatives and standards (among others) had the state of Missouri in a tie for 41st. The complete ACEEE scorecard is available for free online.
So what needs to happen to encourage businesses big and small to embrace energy efficiency? Tax breaks – the buzzwords of the day – help, and programs such as Ameren’s can ease the financial burden slightly, but for most businesses, where the bottom-line rightfully directs decision-making, the cost is still too high. As with most large-scale systemic advances, it will likely take a statewide plea or another energy crisis to encourage businesses to invest now to save in the future.
There is one train of thought, rapidly gaining momentum in the corporate world, which – if implemented as a marketing tool – both supports the move toward energy efficiency and positively affects a company’s financial report: Social Responsibility. Companies are starting to embrace this simple, yet sometimes overlooked, aspect of consumer-business relationships as a part of its fiscal plan, rather than as a separate philanthropic arm. Consumers will support a business with social and community goals that match their own. For the larger population, environmental sustainability is now a major topic of interest and perhaps businesses in St. Louis and Missouri will soon tap into that social energy to move toward cleaner, more energy-efficient operations.
What can St. Louis’ community do to encourage businesses to increase their energy efficiency? What is the tipping point for businesses, when social responsibility (or lack thereof) affects them financially? Put your thoughts in the comments and for more information, ideas and actions, take some time to read through FOCUS St. Louis’ Environmental Sustainability Roadmap. If you are interested in incorporating energy efficient practices and materials in your home or business, review the Database of State Incentives for Renewables & Efficiency for information on available federal, state and private rebate/incentive programs in Missouri.