Energy Efficiency in Buildings: Partnership Opportunities for German Companies in Illinois and Minnesota
GACC Midwest - German American Chamber of Commerce of the Midwest, Inc.
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The high level of energy consumption in buildings in the greater Illinois and Minnesota area represent great sales potential for companies from Germany. We will be examining Illinois and Minnesota rather than the entire Midwest because the cities of Chicago and the Twin Cities are leaders in accelerating and promoting energy efficiency strategies through local programs and policies.?In fact, improving energy efficiency in buildings in the US is one of the biggest ways to reduce CO2 emissions. The building sector consumes almost 35% of US energy. 1 The states of Illinois and Minnesota ranked 5th and 18th in the 2022 US state energy comparison for residential energy consumption, while Illinois also ranked 5th for business energy consumption. 2?
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Causes of Non-Energy Efficient Spaces:?
Due to several factors, American buildings tend to consume more energy than many other industrialized nations. The unique situation of the extreme continental climate, combined with consumers' preference for air-conditioned homes, means that heating and cooling account for a large portion of household costs. On average, just two end uses account for more than half of a household's annual energy consumption: space heating and air conditioning. 3 The Midwest in particular is prone to hot summers and very cold winters, which exacerbates the need for efficient air conditioning.???
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Potential for German Suppliers:?
In Illinois alone, over 80,000 workers are employed in the energy efficiency sector, and the U.S. will continue to be a major market in energy efficiency. 4 In Minnesota, the clean energy industry comprised almost?60,000 jobs in 2022, 72% of which were in the energy efficient technologies sector. 5?
Although German products in the field of energy efficiency are usually seen as more expensive, they are usually a good option compared to other products on the market due to their design and durability. German companies can be involved as suppliers in the projects, this can be a good way to penetrate the US market. Industry expert and architect Craig Brandt explains that German construction products are known for their high quality: “When a builder is looking for precision, German products come to mind.” German products that require a high level of engineering, such as advanced glass technologies, are especially in high demand and use.? Furthermore, it is crucial for projects to keep the payback period as short as possible in order to be successful on the American market. Projects with a payback period of less than three years are preferred in most cases and projects with a payback period of more than five years are usually not attractive to companies in the USA.?
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Technical Solutions:?
There are many solutions to making buildings more energy efficient in the US and specifically the Midwest. Implementing these changes are a great way for German manufacturers to have a hand in breaking into the US market.?
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About 90% of households in the US are not adequately insulated, further driving up energy consumption. 6 Building insulation offers one of the most cost-effective ways to improve energy efficiency and comfort in buildings.?
Heat gain in summer and heat loss in winter through windows are responsible for 25-30% of energy consumption for heating and cooling in residential buildings. 7 Therefore, correctly installed energy efficient glass and window frames are important.?
According to the Department of Energy, the use of LED lights in homes has the potential to transform lighting and efficiency in the United States. LED lights use at least 75% less energy, and last up to 25 times longer than incandescent lighting. 8 LED offers the opportunity to save energy, reduce costs, and receive rebates.?
Conclusion:?
There are many partnerships to be forged between German businesses who can work on sustainable solutions for US buildings. Are you a German business interested in learning more about industrial decarbonization and energy efficiency? Are you looking to break into the US market? Join our upcoming delegation trip to Chicago and Detroit!?
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