GE to Double Investment in Energy Efficiency

Companies big and small are upping the ante when it comes to investments in energy efficiency. For CRE owners and managers, it's logical: Increase their NOI and asset values, boost occupancy and lease rates, and enhance the quality of their properties. For companies like Cisco and General Electric (and Octus Energy, of course), the investment in smart energy efficiency products and services is even more straight forward: Pour resources into a hyper-growth market where customer demand and financial incentives are proliferating by the day.

Take GE: Last week the company reported its plan to invest $5 billion in energy efficient and environmentally oriented projects has been met a year ahead of schedule. GE also announced it is committed to spend an additional $10 billion by 2015.

Why? GE's investment in its "ecomagination" program is paying off. The company said revenue from these products and services increased 6 percent to $18 billion in 2009 and that it has reduced emissions of greenhouse gases blamed for global warming.

"We are doubling down to drive even faster impact and to deliver our contribution to a 21st century energy transformation," explained GE Chairman and CEO Jeffrey Immelt.

The company said revenue from a portfolio of 90 energy efficiency products and myriad services will grow at twice the rate of total company revenue in the next five years.

Bottom line: GE reported its $5 billion investment has generated revenue of $70 billion. Smart energy = smart investment = smart returns.