
With the economy slowing down, it makes more sense than ever to look at ways to save, and for most of us, the vast majority of our monthly spending goes into our homes, whether as a mortgage payment or in the form of utility bills. The average American household, in fact, spends $1,900 annually on residential energy, nearly half of which goes into the heating and cooling of one’s home. According to the U.S. Department of Energy’s ENERGY STAR® program, another quarter of that spending goes into running household appliances and lighting.
We reviewed potential options for generating one’s own power and fuel-free heating and cooling options in our last issue, but one doesn’t have to spend a bundle to make a difference. And while many homeowners who want to cut their energy costs first look to replacing inefficient HVAC systems, there can be less expensive and even smarter options. Homeowners need to look at their homes as systems. It doesn’t do any good to upgrade to a more efficient HVAC system if you don’t fix home insulation problems and air infiltration issues first. It’s just like throwing money out the window…literally.

Winchester Industries Energy Saving Triple-Pane Window
And with the passage in February of The American Recovery and Reinvestment Act of 2009, there are greater incentives than ever to make home energy improvements. With the help of federal, state, and local tax credits as well as rebate programs offered by some utility companies, the payback on smaller fixes like ENERGY STAR® replacement windows or improved insulation can happen very quickly. And the easiest of fixes, such as replacing incandescent bulbs in the most-used lighting fixtures in the home with compact fluorescents, can begin to pay back the investment almost immediately.
Abby Vogen-Horn, senior project manager for the Building Performance division of The Daylighting Collaborative, cautions homeowners to do their homework before making any residential energy upgrades, regardless of how simple. “Don’t let anyone tell you that replacing your windows will save 50 percent of your energy. You have to pay attention to the glass. Is it low-E? Is it insulated?”
And it’s important to seek out the advice of a professional. One may not want the same type of replacement windows throughout the home, for example. Carl Seville with Seville Consulting, a green building consulting firm based in Atlanta, says, “High performance windows can keep out radiant heat-you might want lower performing windows on the south side of your home to let radiant heat in in the winter.” He says the smartest thing to do is to analyze the home as a whole system and make small improvements as part of an ongoing process to increase efficiency without a large financial sum paid all at once.
WHAT DOES IT COST TO GO EFFICIENT? WHAT DOES IT SAVE?
If you’re thinking about doing some residential upgrades to improve your home’s energy efficiency and save money, it’s important to consider the cost versus the benefit.
Here, we offer some basic analysis of several improvements including windows, insulation, appliances, and light bulbs. The information is based on an average 2,000 square foot, single-story, detached home with 300 square feet of window area, gas heat, and electric air conditioning located in Baltimore, Maryland, and based on the U.S. Energy Administration’s average gas and electricity prices through summer 2007.
Energy Upgrades
| Efficiency | Average Cost | Incentives | Energy Savings | Payback |
| Energy Star Replacement Windows | $300 to $1,000 per window, depending on manufacturer, model, type, and features | 30% of cost federal tax credit up to $1,500; up to $250 property tax credit per fiscal year in Montgomery County, MD | If replacing older single pane windows, savings could be as much as $500 a year in home heating and cooling costs | It will often take as little as three years for replacement ENERGY STAR® certified windows to pay for themselves |
| Insulation | Between $.50 and $2.25 per square foot for basic attic insulation using roll-out batting; $2 to $3.50 per square foot for blown-in insulation | 30% of cost up to $1,500 federal tax credit; up to $250 property tax credit per fiscal year in Montgomery County, MD | Adding insulation to uninsulated homes could result in energy savings of as much as 30% depending on the home’s construction | With the new federal tax credits, upgrading insulation could start paying you back in as little as a year |
| Energy Star Appliances | Clothes washer: $400 to $2,000 Dishawasher: $300 to $1,600, dpending on model and energy efficiency. Refrigerator: $500 to over $7,000 for built-ins | N/A | Clothes washer: $550 in energy savings over the course of its lifetime Dishwasher: $30 in energy savings a year Refrigerator: 40% in energy savings over conventional refrigerators sold in 2001 | Don’t expect a big payback here; if you need a new appliance, then it makes sense to purchase an energy efficient model, but if you’re buying in the hopes of paying yourself back on reduced energy costs, spend your money elsewhere |
| Compact Fluorescent Light Bulbs | $2 to $15 per bulb on average, depending on application | N/A | Save $30 or more per light bulb over each bulb’s lifetime— a CFL will last 10,000 hours compared to about 1,000 for an incandescent | If you replace every incandescent in your home with a CFL, expect a payback in less than a year |
*Energy savings information provided by U.S. Department of Energy’s ENERGY STAR® program and the Lawrence Berkeley National Laboratory.
Contacts:
The Daylighting Collaborative: daylighting.org or 608-238-8276
Seville Consulting: sevilleconsulting.com or 404-597-7782
Resources:
Energy Star®: energystar.gov
Resources available include custom calculations of your home appliances’ electric usage, buying guides for Energy Star certified products, recommendations on window and insulation upgrades, and much more.
U.S. DOE Energy Efficiency and Renewable Energy:
www1.eere.energy.gov/consumer/tips
Tips for consumers to cut energy costs in the home as well as guidelines for how much insulation your home needs depending on its climate and location.
Database of State Incentives for Renewables & Efficiency:
dsireusa.org
Look for your state’s and locality’s incentives for making energy efficiency improvements to your home.
U.S. DOE Insulation Fact Sheet:
ornl.gov/~roofs/Zip/ZipHome.html
Helps you figure your home’s insulation needs based on input of custom information.
Deborah R. Huso is a regular contributor to ChesapeakeHome. She writes frequently about green home innovations.





