COVID-19 slows US residential energy efficiency industry says GlobalData


At the end of April, approximately 20 US states stopped residential energy efficiency retrofitting to low-income households, according to GlobalData.

In these states, residential energy efficiency work was suspended by utilities, states, service providers and small businesses, as it was deemed non-essential.

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Somik Das, Power Analyst at GlobalData, said: “Energy efficiency activities are treated as non-essential work and hence were stopped in some US states. A home inspection is vital to implement energy efficiency measures, and homestay orders and social distancing practices resulted in the stoppage of retrofitting activities.”

Some companies are taking out loans to pay workers while some are providing stipend to workers for at-home training. To secure safety of the energy efficiency sector, many regulators are approving cash payments to energy efficiency contractors.

Das added, “The well-being of the sector is of critical importance. In 2019, 3,736TWh of electricity consumption had taken place in the US. In 2020, it is expected to be 3,750TWh. In a normal scenario, retrofitting helps understand the wastage of electricity in a given sector leading to energy efficiency, which has direct implications of safeguarding the environment. However, in times of crises like this, it ensures a smoother and more stable shift in the load from one sector to another.”

This story first appeared on our sister site, POWERGRID International.