2010-The Year of Energy Efficiency

Solar and wind power may get the headlines and attention, 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.

Energy Secretary Steven Chu regularly describes himself as an “energy-efficiency nut.” Sixteen states, including California and New York, have passed legislation enabling homeowners to finance energy-efficiency upgrades through their property taxes. President Obama even declared insulation “sexy” at a Home Depot last month.

Then there are the sheer numbers:

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.

Energy efficiency generally refers to a wide range of technologies designed to cut energy use such as improved lighting, greener building materials and sophisticated software that monitors power consumption.

And 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.

Home energy use accounts for 21 percent of the nation’s carbon footprint, roughly twice the carbon emissions of passenger cars, according to the Pew Center on Global Climate Change. There are 100 million homes in America, and energy-saving measures like insulation, caulking, and heating and cooling system upgrades can reduce household energy consumption by 10 percent to 40 percent, according to a memo by the President’s Economic Recovery Advisory Board.

When you really break it down, every dollar spent on energy efficiency pays back the investment four or five times. It saves people money and creates jobs.