The latest facts bear out an important truth as we approach a new era in efficiency: we’re doing more with less energy.

That was a major finding in the 2025 Sustainable Energy in America Factbook from BloombergNEF and Alliance member Business Council for Sustainable Energy.

The United States is on the cusp of a new era of energy expansion. Energy demand grew in 2024, as did the U.S. economy. And as the nation continues to grow economically, improved energy productivity is emerging as a key driver of growth.

Let’s look at three key findings from the Factbook, starting with energy productivity.

1. Economic Growth Decouples from Energy Use

First things first: Is energy productivity the same as energy efficiency?

Not quite.

While both terms are related to using energy effectively, "energy efficiency" focuses on minimizing energy consumption to achieve a specific output, while "energy productivity" looks at the total economic output generated per unit of energy consumed.

In simple terms, efficiency is about using less energy to do the same thing, while productivity is about doing more with the same amount of energy.

Example of energy efficiency: Switching to LED light bulbs that use less energy to produce the same amount of light.

Example of energy productivity: A factory that produces a high volume of goods while using a relatively low amount of energy would be considered highly energy productive.

Energy productivity essentially measures how much value is extracted from each unit of energy used. And, as the Factbook highlights, it is an essential metric to grade U.S. competitiveness in the global market.

In 2024, the U.S. economy expanded 2.8%, while primary energy consumption grew 0.5% year on year, resulting in a 2.3% increase in U.S. energy productivity.

This data is important because it shows a decoupling of economic growth from energy use. This trend underscores the potential for continued growth without a corresponding increase in energy consumption—and emissions.

The numbers are even more compelling over time: Over the past 10 years, U.S. energy productivity increased 29%, showcasing the country's commitment to smarter energy use.

2. Utility Spending on Energy Efficiency Reaches New Heights

Record-high utility spending on energy efficiency in 2023 (the last year for which there is complete data) marked a standout achievement in the energy sector.

Following a dip in spending during the pandemic, utility investments rebounded strongly, rising 14% year-over-year to reach $8.8 billion—its highest level in eight years—according to data from the American Council for an Energy-Efficient Economy (ACEEE).

Key spending highlights include:

• Electricity efficiency investments: $6.9 billion (all-time high)
• Natural gas efficiency investments: $1.9 billion (all-time high)

This commitment to efficiency is already yielding impressive results. According to ACEEE data, electric utilities saved 23.2 TWh of energy in 2023, representing 0.52% of retail sales.

3. Energy Efficiency Sector Continues to Create U.S. Jobs

The total number of workers employed in the energy sector grew by 3%, to roughly 8.36 million in 2023 (the last year for which there is complete data), according to an annual U.S. Department of Energy report.

Energy efficiency continued to grow as a major job creator, employing over 2 million Americans.

Energy efficiency is the largest employer in the clean energy sector, offering jobs with wages 28% higher than the national median, the Alliance has tracked. Investing in energy efficiency creates jobs across sectors, including manufacturing, construction, and business administration, offering opportunities in nearly every U.S. county.

Looking Ahead: Sustaining Growth and Efficiency

As the United States continues its path toward energy expansion, maintaining momentum in energy efficiency will be crucial. By prioritizing investments in smarter energy use and innovative technologies, the nation can continue to boost economic productivity while minimizing environmental impact.

At the Alliance, we continue to urge policymakers to support policies that promote energy efficiency, such as Energy Efficiency Resource Standards (EERS) and tax incentives for efficiency upgrades.

Find out more about our policy actions.

And to download the full Sustainable Energy in America 2025 Factbook, click below: