New survey: Utility leaders prioritize energy efficiency for a sustainable future

Rising energy demand, extreme weather, and aging infrastructure are putting utilities under pressure. The challenge isn’t just about keeping the grid running—it’s about making it stronger, more flexible, and future-ready. Energy efficiency is at the core of this transformation, providing a reliable foundation for grid stability and long-term value.

A new ICF survey of utility program leaders underscores this reality: 98% agree that evolving energy efficiency programs is critical to delivering a strong return on investment. But for energy efficiency to have the greatest impact, utilities must excel in three key areas: customer engagement, affordability, and technology integration. These elements drive participation and ensure that energy efficiency strategies lead to real-world grid resilience and sustainability.

Customer engagement: A business imperative

Energy efficiency programs only work if hard-to-reach customers participate. According to the survey, 100% of utility leaders acknowledge the importance of engaging economically burdened communities. But what strategies are most effective?

Utility program leaders identified their top messaging and educational approaches:

• Transparency in program details – 41% say clear, upfront communication fosters trust and clarity.
• Communicating financing options – 39% emphasize the need to explain available financial support for energy investments.
• Providing actionable tips – 37% report that personalized energy-saving advice empowers customers to make informed decisions.
• Offering financial incentives – 36% highlight rebates, discounts, and bill savings as key motivators for participation.

Strong customer engagement isn’t just good policy—it’s good business. When utilities implement these strategies effectively, they see higher adoption rates, improved demand management, and stronger customer relationships.

Ensuring affordability and access

Utilities design their customer programs to be affordable—a key priority for utility leaders, regulators, and customers. For example, optimizing energy use and reducing costs is essential to ensure that utilities can deliver cost-effective energy efficiency programs without causing the price of power to increase. Utility companies also offer financial incentives, such as rebates and discounts, to help offset the initial costs for consumers, making it more affordable for them to adopt energy-efficient measures.

But low-income households often don't join energy efficiency programs, even though they would benefit the most from them. And 93% of program leaders admit that their current support for financially vulnerable communities falls short of what is necessary. Taking a whole-of-utility approach to energy affordability encourages utilities to strengthen outreach to disadvantaged communities, such as by offering financing options for new investments (e.g., insulation, duct sealing, HVAC upgrades).

When energy efficiency programs are accessible to all, they not only reduce household energy costs but also contribute to broader economic stability, making communities more resilient in the face of rising energy demands.

Technology as a catalyst for change

Technology is revolutionizing how utilities approach energy efficiency. Leaders in the field are integrating artificial intelligence (AI), digital twins, and distributed energy resource management systems (DERMS) to improve grid performance and optimize energy use.

Utilities that embrace these innovations gain a more holistic view of their assets, better forecasting capabilities, and the ability to create smarter, more adaptive load management strategies.

AI has grown significantly in the last three years, with a notable surge in investment and adoption across various industries; this shift is primarily driven by the rapid development of generative AI models. A strong 65% of utility program leaders view leveraging AI as a game changer versus an overhyped solution.

As markets and conditions evolve, technology and AI analytics are giving utilities the tools to better navigate this new era of transformation and address the emerging challenges of rising demand.

A call to action for utility leaders

As the energy transition accelerates, energy efficiency must be at the core of utility strategies. The ICF survey makes it clear: utility leaders recognize energy efficiency as a powerful and immediate tool to drive resilience, affordability, and sustainability. The imperative is to maximize program efficacy through effective engagement, expanded affordability, and advanced technology.

At ICF, we partner with utilities to translate these insights into measurable outcomes, developing energy efficiency strategies that deliver long-term impact.

How does your utility compare?

Download the full survey report to explore key findings and see how industry leaders are shaping the future of energy efficiency.