Energy Efficiency Investments Outperform the Dow Jones Index

Annual returns on investments from energy efficiency projects are generally favorable—but how favorable are they? A new report by Eric A. Woodroof, Ph.D., CEM, Joshua A. Moote, and Isabella P. Woodroof suggests that over a 20-year period, an investment in energy efficiency can grow 38 times over your initial investment, while the Dow Jones Index would only grow to 4.5 times the initial investment.

Part of the reason is risk—the Dow Jones’ volatility impacts its performance when compared to energy efficiency investments, which are widely considered to be consistent and relatively low-risk. See the details in the full report below.