I am a very strong proponent of “following the money.” In real estate, the old adage is “Location, Location, Location.” In energy, it should be “Efficiency, Efficiency, Efficiency.” That’s where the money is.

Kevin Surace, the CEO of Serious Materials, who makes energy-saving windows and drywall certainly thinks so as he was quoted in a recent Silicon Valley article.

“All the cleantech conferences are efficiency, efficiency, efficiency,” said Surace. “When you really break it down, every dollar spent on energy efficiency pays back the investment four or five times. It saves people money and creates jobs. And it has bipartisan support.”

Venture capital sure thinks so. According to a preliminary tally by the Cleantech Group and Deloitte, venture capital investment in energy efficiency hit a record in 2009 with at least 115 deals worth $996 million. That’s up 39% from 2008.

In a separate report, Greentech says mergers and acquisitions activity in the US energy efficiency market was $1.258 billion in 2009, up from just $164 million.

The investment money is speaking.

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