Published March 8, 2010

Energy-efficiency experts agree: Before buying or leasing a solar-electric system, consumers who take steps to save energy at their homes or businesses stand to reap the highest returns on their investments.

Measures such as switching from incandescent lights to compact-fluorescent bulbs, caulking to stem air leaks, adding insulation and buying high-efficiency appliances may be less enthralling than investing in an elegant new technology like solar photovoltaics, but are known to be effective at saving money.

In addition to devoting resources to new energy-production technologies, the United States is investing in efficiency as well – far beyond urging people to change their light bulbs.

In Minnesota, a company called SAGE Electrochromics has been awarded a conditional loan guarantee of $72 million from the U.S. Department of Energy, plus a $31 million tax credit, to develop innovative window glass that the company and government experts believe has the potential to reduce energy costs on a large scale.

The $103 million will help SAGE establish a new manufacturing facility for electronically tintable glass that can change from a clear state to a tinted condition at the push of a button.

By controlling the amount of sunlight entering a building, the company expects that its approach will yield significant savings on air-conditioning, heating and lighting costs. Research by the National Renewable Energy Laboratory and the Lawrence Berkeley National Laboratory suggests that electrochromic glazing could reduce heating and air-conditioning requirements as much as 25 percent.

Widespread use could cut the country's energy budget as much as 5 percent, researchers estimate.

The company said it will use the funding assistance to build a high-volume manufacturing plant next to its headquarters in Faribault, Minn., to ramp up production for commercial, institutional and residential applications.

The project is expected to result in the addition of about 160 full-time jobs to the company's existing work force of about 100. In addition, at least 200 construction jobs will be created.

Groundbreaking is scheduled for the summer of 2010, with shipments of glass from the new plant to begin in the latter part of 2011.

"Our technology is a game-changer for the building industry," said John Van Dine, SAGE's founder and chief executive, in a news release. "With this funding, SAGE will now have the scale and capacity to bring this remarkable technology to the market in high volume. These revolutionary windows will have a significant impact on reducing the nation's energy consumption."