McKinsey & Company’s report, The Case for Investing in Energy Efficiency, shows that US$170-billion can be invested in energy efficiency projects globally for 13 years with an average internal rate of return (IRR) of 17%, which will generate US$900-billion of annual savings by 2020.
Just how good an investment is energy efficiency? To benchmark it, the long-term average return for investing in the stock market is 10% and for real estate, 16%. So energy efficiency gives a better rate of return than the two things we’ve always been told generate long-term, proven returns.
via Going green pays dividends.
Tags: commercial real estate, energy efficiency, internal rate of return, irr, real estate, stock market
