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3.3.2 Energy Conservation Will Be a Business Opportunity
Investments in energy saving are recoverable. If energy consumption decreases,
payment of electricity charges and gas fees will be reduced as a matter of course. If
energy consumption is reduced to one-quarter, the amount of pay-per-use excluding
basic charges will also be one-quarter. Even if the electricity fee rises and doubles
in the future, it will cost only one-half of the current price. From a long-term perspective, it will be profitable to promote energy conservation.
This means that there is a business opportunity in promoting energy
conservation.
The Center for Low Carbon Society Strategy (LCS) and The University of Tokyo
have jointly proposed a mechanism of “paying electricity as is.” This is a mechanism to ease the burden of households in introducing measures for reducing carbon
emissions, aimed at making the energy saving/renewable energy of households significantly progress without relying on subsidies.
For example, when installing solar power generation systems and household fuel
cells, financial institutions will finance initial costs and electricity fees saved by
their introduction will be used for repayment. As a result, the initial investment
borne by the household will be zero. As monthly payments will not increase unlike
monthly installments, equipment for low carbonization can be introduced even in
homes that lack sufficient funds. It is advantageous for society as a whole to be able
to promote low carbonization measures without subsidizing it.
However, someone needs to take over the initial cost. In the UK, a non-profit
enterprise was established and investments are made mainly by the UK Ministry of
Energy and Climate Change. In Japan, cases of solar power generation promotion
by a subsidiary of Osaka Gas are well known, but since credit screening takes time,
it is not suitable for small scale projects. If households are being targeted, it is still
appropriate to establish a fund. In addition, detailed adjustments are necessary to
produce truly fruitful measures. The results of verification tests conducted at five
places such as Nagaizumi-cho in Shizuoka Prefecture and Shimokawa-cho in
Hokkaido from 2015 are awaited.
Meanwhile, the ESCO (Energy Service Company) project is already established
as a business. The trustee of the ESCO project offers consultations on low carbon
measures for office buildings, provides comprehensive services, and obtains compensation from the water utility cost that could be reduced. After the contract period
has ended, the amount of reduction will be the profit that the consignor will be
making.
When there are major events affecting the economy, such as the collapse of
Lehman Brothers and the Great East Japan Earthquake, investment tends to be narrowed down, but investment in energy saving can certainly be recovered later. It is
hoped that investors such as pension management organizations that ought to firmly
recover their investments will become aware of this quickly.
3.3 Low Carbon Technologies in the Home and Business Sectors
3.3.2 Energy Conservation Will Be a Business Opportunity
Investments in energy saving are recoverable. If energy consumption decreases,
payment of electricity charges and gas fees will be reduced as a matter of course. If
energy consumption is reduced to one-quarter, the amount of pay-per-use excluding
basic charges will also be one-quarter. Even if the electricity fee rises and doubles
in the future, it will cost only one-half of the current price. From a long-term perspective, it will be profitable to promote energy conservation.
This means that there is a business opportunity in promoting energy
conservation.
The Center for Low Carbon Society Strategy (LCS) and The University of Tokyo
have jointly proposed a mechanism of “paying electricity as is.” This is a mechanism to ease the burden of households in introducing measures for reducing carbon
emissions, aimed at making the energy saving/renewable energy of households significantly progress without relying on subsidies.
For example, when installing solar power generation systems and household fuel
cells, financial institutions will finance initial costs and electricity fees saved by
their introduction will be used for repayment. As a result, the initial investment
borne by the household will be zero. As monthly payments will not increase unlike
monthly installments, equipment for low carbonization can be introduced even in
homes that lack sufficient funds. It is advantageous for society as a whole to be able
to promote low carbonization measures without subsidizing it.
However, someone needs to take over the initial cost. In the UK, a non-profit
enterprise was established and investments are made mainly by the UK Ministry of
Energy and Climate Change. In Japan, cases of solar power generation promotion
by a subsidiary of Osaka Gas are well known, but since credit screening takes time,
it is not suitable for small scale projects. If households are being targeted, it is still
appropriate to establish a fund. In addition, detailed adjustments are necessary to
produce truly fruitful measures. The results of verification tests conducted at five
places such as Nagaizumi-cho in Shizuoka Prefecture and Shimokawa-cho in
Hokkaido from 2015 are awaited.
Meanwhile, the ESCO (Energy Service Company) project is already established
as a business. The trustee of the ESCO project offers consultations on low carbon
measures for office buildings, provides comprehensive services, and obtains compensation from the water utility cost that could be reduced. After the contract period
has ended, the amount of reduction will be the profit that the consignor will be
making.
When there are major events affecting the economy, such as the collapse of
Lehman Brothers and the Great East Japan Earthquake, investment tends to be narrowed down, but investment in energy saving can certainly be recovered later. It is
hoped that investors such as pension management organizations that ought to firmly
recover their investments will become aware of this quickly.
3.3 Low Carbon Technologies in the Home and Business Sectors