How Do You Afford Major Home Energy Conservation Improvements?
If your home needs major energy conservation work such as attic or wall insulation, or you are considering a new energy efficient boiler or furnace, the up-front costs can be substantial. By obtaining low-cost financing and taking advantage of the many economic benefits from this work, you will often find it is actually possible to save more money than you pay out – even in your first year. Part I will show you how to find and calculate total estimated savings from these for this first year. Part II will show you how to find and estimate the long-term economic benefits from energy efficiency improvements. Receive a low-cost audit offered by your utility company, or local or county government. You should receive a list of possible energy conservation improvements along with an estimated cost and “payback period” for each. This is the number of years required for each improvement to pay itself back through reduced energy costs. Decide which of the suggested improvements you would like to
In Part I of this series, we covered how to calculate savings from energy conservation improvements for your first year. Part II will show how to find and calculate your long-term savings – which for many will turn out to be in the tens of thousands of dollars! In Part I we calculated the estimated first year energy savings after energy improvements (=Y). To determine the cost savings (=C) for the period T you intend to stay in your home, use the following equation: C = Y+[(T-1) x S] where T is the time you plan to spend in your home after the improvements, and S is the yearly savings from your energy improvements alone (refer to Part 1). For example, if your first year savings Y is $1500, your yearly energy savings S is $1000, and the time you plan to live in your home after energy improvements is 20 years, then C = $1500+[19 x ($1000)] = $20,500. Another important consideration is the increase in your home value for your energy efficiency improvements. The EPA estimates that for ever
