Energy Efficient Homes – How Long to Recoup Your Investment?

Posted on 07. Dec, 2011 by Joy in HVAC Care

Energy Efficient Homes – How Long to Recoup Your Investment?

Everyone wants to save money and as the environment becomes more of a concern it is in all of our common interest to make our homes more energy efficient. Heating and cooling costs are a large part of a homeowner’s budget, and you may be wondering how long it will take to recoup the money you invest to upgrade your home’s HVAC system and add features to make it more energy efficient. This is a valid concern. Adding energy saving features and appliances to your home is not cheap, but you will get a significant return on your investment once the upgrades pay for themselves.

Rising Energy Costs

One of the main reasons a homeowner may want to upgrade their home’s HVAC system and add energy efficient systems to their home is the rising cost of energy. According to the Statistics Canada website energy costs from October 2010 to October 2011 rose:

• Energy prices increased 11.7%
• Gasoline prices rose 18.2%
• Fuel oil prices increased 22.1%

These increases are reflected as an increase on your power bill. As fuel source prices increase, the cost of heating and cooling your home will also increase. According to the U.S. Energy Information Administration, electricity costs vary by location. The states which have the highest energy costs include:

• Hawaiiat 25.12 cents per kWh
• Connecticutat 17.39 cents per kWh
• New Yorkat 16.31 cents per kWh

As you can see it would be beneficial to invest money today into making your home more energy efficient and see a cut in your fuel costs right away. You will also recoup your investment in time and experience even more savings once your upgrades pay for themselves.

Where Does Our Electricity Come From?

North America is supplied with power from several power grids that include most ofCanadaand the Northern and Midwestern United States. Although research is currently underway to find alternative sources of energy, fossil fuels remain the number one source for generating electricity. Coal comprises 45%, natural gas gives us 24%, and petroleum comprises 1% of the fuel used to generate electricity. Nuclear power and renewable energy sources make up the remaining 20%. Renewable energy sources include hydropower, biomass sources, wind power, geothermal power, and solar power.

Energy Saving Options for Homeowners

You can take advantage of renewable energy sources for your home. Although the initial investment may put you off, this investment will pay for itself in time and put money in your wallet. According to One Block Off the Grid these major renovations will save you the following amounts:

• Solar panels for water heating cost an average of $2,500 to install. It will take 8.8 years to recoup your money at a savings of $280 a year. Over 20 years you will have saved $5,800 in energy costs.
• Solar panels installed to heat your home cost an average of $13,000. In just 10.8 years they will pay for themselves and over 20 years you will have saved $60,000.
• A green roof, perfect for flat roofs, cost around $8,000 to install and will pay for themselves in a reduced amount of energy used to heat and cool your home in 10 years. You will save $800 per year and in 20 years an extra $18,000 will be in you wallet.
• For other types of roofs, a smart roof which uses energy saving shingles, reflective materials and metal roofing to retard heat transfer into your home, cost an average of $2,000 to install and will save you $300 per year. After 20 years you will have saved $6,000.
• Low emissive windows cut down on the heat coming into and out of your home. They cost an average of $700 a piece and will save you $300 a year. After 20 years low emissive windows will have saved you $6,000 a piece in energy costs.
• Thermal mass floors, such as tile which hold heat better than traditional flooring, cost an average of $3,000 to install throughout your home. Each year you will save $400 and after 20 years your savings grows to $8,000.
• Radiant floors have special heat producing tubes installed under your flooring and costs about $4,000. Each year you will save $550 and after 20 years you will save $11,000.

These major improvements and renovations can save you tens of thousands of dollars over a 20 year period. As soon as you install them you start to save each year. A savings you will see reflected on your energy bills right off.

Minor Home Improvements

A major improvement is a good idea if you plan to stay in your home for the long haul. These upgrades and improvements can be done by most homeowners saving you even more money on installation. There are some minor improvements you can make that will not break the bank and start to save you money right away.

• Low flow shower heads cut down on the amount of water you use. They pay for themselves in less than a year to the tune of a savings of $300 per year. In 20 years you will have saved $6,000.
• Programmable thermostats control when the heat and AC come on in your home. You can program them to make your home warmer or cooler before you get up in the morning or come home from work. On the average they cost $115 and give you a savings of $180 a year. Over 20 years you will save $3,600.
• Much of the wasted energy and cost come from leaks in your duct work. If you seal these leaks you can save $300 per year and $8,000 in 20 years.
• Add to your insulation in your walls and attic. This will cost around $750 and save you $300 a year. After 20 years your savings grows to $6,000.

Professional HVAC Improvements and Upgrades

To save even more money you might consider having a professional HVAC service install the following upgrades:

• A water retention system collects rainwater and gray water and recycles it for irrigation and use in your toilets. A large scale water retention system costs an average of $7,200 and will save you $215 per year. After 20 years you’ll save $4,320.
• Replacing your old furnace to a newer model will save you $300 a year on energy costs. A new furnace varies in price depending on the size of your home, but on the average it will cost you $1,145. Over 20 years you can save $6,000.
• Save on buying bottled water with a whole house filtration system. You can save $312 depending on how much water you’d normally buy and in 20 years your savings will be around $6,240. Whole house filtration systems run about $1,000 or install.
• A geothermal system can be used to heat or cool your home. It will either draw heat from the ground or disperse it into the ground to cool your home. Geothermal systems run around $30,000 and take 10 years to pay for themselves. You’ll save $3,000 a year and after 20 years your savings will be $30,000.

Upgrade Now and Save Money

You may not want to have all of the upgrades done to your home at once. Look at your utility costs and see where you are spending the most money. Then you can choose the upgrades and new systems to install. Although you will have to pay for them, you will experience a savings on your energy costs right away. Consult a professional HVAC expert for recommendations to save energy and money for your home.

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1. Increases Your Home’s Value by Increasing its Energy Efficiency