Cost vs. Investment

6/30/2026

 

I recently saw a quote from a state lawmaker on the East Coast who said that his constituents could tell the difference between a cost and an investment. The line resonated with me because there is a difference and now seems like a good time to clarify that. 

The lawmaker was talking about efforts in some states to cut funding for energy efficiency programs as a way to reduce consumers’ energy bills. (The good news was that the Massachusetts state senate seemed to be resisting that urge, because, at least in part, they understood the difference between a cost and an investment.)

 

We are in a moment where there’s a lot of talk about energy affordability. And in some states local leaders are cutting energy efficiency programs, maybe in part because the funding for those programs appears as a cost on consumer energy bills. 

But there’s a difference between a cost and an investment.

While energy efficiency programs might appear as a fee on your utility bill there is a huge body of research that shows us that those are investments—that the energy efficiency programs yield benefits much larger than the initial expenses.

Here in Wisconsin every dollar invested in Focus on Energy in 2025 yielded $3.57 in benefits. Focus on Energy is an investment where we spend a little (too little, really, but that’s another blog) to generate a lot of benefits.

 

It makes sense to cut costs but it is foolish to eliminate investments. As I write this I am reminded of the 18th century English saying about being “penny wise and pound foolish.” Eliminating investments that pay off might save pennies in the near term but it means you lose whole dollars over time. 

Here in Dane County we have a lot of examples of smart investments in clean energy. Local governments that prioritized investments in staff and projects have realized millions of dollars in Elective Pay credits from the federal government in addition to lower utility bills. The individuals and organizations that purchased electric vehicles (EVs) are seeing lower operating costs (including no costs for oil changes). Clean energy investments—which have an upfront cost, to be sure—yield long term benefits because they are investments.

 

I appreciate that these are difficult times and that everyone is looking for a bargain. That means it is extra important for all of us to be thoughtful, to think about the long term, especially when we’re looking at big decisions like funding priorities. Make sure you’re clear on what’s a cost and what’s an investment.