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Forbes
9 hours ago
- Business
- Forbes
Is The Juice Worth The Squeeze: Energy-Efficiency Projects Make Cents
Homeowners can have both energy efficient heating/cooling and savings with the help of an energy ... More analyst. With the burden of rising energy costs, many homeowners are feeling the pinch in their pockets. The National Foundation for Credit Counseling reports that 'Government agencies define utilities above 6% of your income as a high energy burden.' However, it is not just the high energy costs that are the issue, but also the site's energy consumption that is driving up the bill. But there is hope—energy efficiency projects can provide relief from this financial strain. According to the American Council for an Energy-Efficient Economy (ACEEE), the average U.S. household spends about 3.1% of income on energy, while low-income households spend more than 8%, with some exceeding 16%. To resolve high energy utilization, homeowners should look into home energy-retrofit projects that are cost-effective—meaning that the investment has a positive impact on the household budget. Take a look at the Forbes article in April titled, 'Our Energy Bills Are High, And This Is Why,' to learn about the 'why' behind high energy bills. After an energy audit, the building science practitioner should review the report with the homeowner. The report should capture all diagnostic testing and show where the customer should start investing. The energy-modeling software report should provide detailed information to empower customers to make informed decisions. The solutions often come with cost-benefit metrics such as 'Simple Payback,' 'Savings-to-Investment Ratio (SIR),' and 'Return on Investment (ROI),' all of which can give homeowners a sense of control over their energy usage and costs. Simple payback is a financial metric that calculates how quickly an investment is recovered. This may be important to some people, as money has more value today than it will in the future due to inflation. This concept is known as the 'Time Value of Money.' For commercial projects, the ideal goal is for a project to pay for itself within five years. In the residential sector, projects are considered fair if they pay for themselves within 10 years or less. Example: Retrofit costs $1,000 and saves $100 per year. Payback = (1,000/100) = 10 years The SIR metric indicates that a project will pay for itself. To calculate the SIR, divide a project's savings by its initial investment. The SIR considers the life cycle cost of the retrofit project. An SIR of 1 means that the project will pay for itself in its useful life. The higher the number, the more the project will pay for itself. SIR may not matter to some customers, as comfort may be what they value. For example, in the Midwest region of the country with short summers, an air conditioner, even if considered high efficiency, will not run long enough to offset its initial investment. Despite this, customers still want to be comfortable and will purchase the system anyway. $30,000.00 (existing system) - $20,000.00 (cost of the new system) = $10,000.00 (savings) $10,000.00 (savings) ÷ $5,000.00 (initial cost) = 2 SIR 2 SIR means the retrofit will pay for itself twice during its life cycle. The Annual Return is the interest rate your money earns on your retrofit project. It is similar to returns in a 401(k) or investment account. The Annual Return is the reciprocal of the SIR. To calculate the Annual Return, take the annual savings of a project and divide it by the initial investment of the project. Example: Retrofit costs $1,000 and saves $100 per year. Annual Return = (100/1,000) = 10% The energy savings from the project can often cover the financing payments, making the retrofit budget-neutral. In conclusion, energy-efficiency retrofit projects are not just practical—they are essential. They empower homeowners to lower utility costs, increase comfort, and invest wisely in their property's future. With supportive data, financing options, and a clear return on investment, the case is clear: energy efficiency is a smart financial move and a step toward a more sustainable, affordable lifestyle.
CNET
21-05-2025
- Lifestyle
- CNET
Slash Your Summer Electric Bills With These Home Tips
Summer is almost here bringing warm days, shorter nights and a rising electricity bill as you try to stay cool while it's scorching outside. Last summer we saw record-breaking temperatures, making it the hottest summer on record and that directly translates into higher electricity bills from running fans and air conditioners. When dealing with sweltering temperatures, you need an air conditioner that can keep your home cool. It's understandable to want a comfortable environment, but it's also important to remain conscious of how energy-efficient your home is. You may be tempted to turn the temperature on your thermostat all the way down, but lowering the temp will raise your electric bill. So, we've compiled some tips to keep your home as cool as possible while minimizing the amount of electricity you use. Something as simple as turning on a fan or closing the blinds during the day can make a big difference. Here are six tricks to keep your home cool and use your thermostat more economically when it's warmer outside. (For more, we also recommend investing in a smart plug or a smart thermostat, adjusting the temperature of your thermostat and weather-stripping to save extra cash.) 1. Sign up for an energy audit CNET If your home isn't brand new, the cold air inside is probably seeping out through doors and windows with spotty seals, a poorly insulated attic and other locations of sneaky cracks. To see how well your home is holding in the cold, sign up for a home energy audit with your utility provider or a local contractor. A certified home energy rater or auditor will check your home for leaks and recommend the best way to make your home more energy-efficient. Don't want to spring for an audit? You can do a DIY audit instead. Stand outside your home and run your hand around the windows and doors. Can you feel the cold air escaping? If you do, caulk around leaky windows and add insulation around doors. Easy Ways to Lower Your Utility Bills and Save Money Easy Ways to Lower Your Utility Bills and Save Money Click to unmute Video Player is loading. Play Video Play Skip Backward Skip Forward Next playlist item Unmute Current Time 0:00 / Duration 8:13 Loaded : 6.10% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 8:13 Share Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Get a smart thermostat If you haven't upgraded to a smart thermostat -- such as one by Ecobee or Nest -- it might be time to make a change. Smart thermostats can regulate heating and cooling when you're not home to save money. Plus, you can adjust the settings remotely using an app on your phone or via voice commands. Here's our list of the best smart thermostats to help you make the best decision for your home. 3. Check the placement of your thermostat Thermostat placement can play a big part in how well your air conditioner works. If you put the thermostat on a wall right next to a hot window, for instance, your air conditioner will kick on much more often than it needs to because your thermostat will think the room is hotter than it actually is. Here's how to pick the perfect wall for your thermostat and the ideal temperature you should set it to. You can also consider a smart thermostat that comes with extra room sensors, allowing it to keep track of the temperature throughout your home. 4. Close the blinds A window letting in the hot sun won't just heat up your thermostat, it'll heat you up, too. During the warmest part of the day, close your blinds to keep out the sun. It can also help insulate your windows, which stops the cold air from escaping. There are also special insulating blinds, curtains and drapes that can keep your home even cooler. A fan can help save on cooling costs. Chris Monroe/CNET 5. Try a ceiling fan You don't always need to amp up the AC to feel cooler. Using a ceiling fan can make a room feel cooler, enough that you can increase the thermostat temperature by 4 degrees "with no reduction in comfort." If you want to get high-tech, you can install a smart ceiling fan that connects to an app and automatically adjusts based on schedules you create. Just make sure your fan is rotating counterclockwise in the summer to get the most benefit. 6. Increase the temperature To save the most money, always set your thermostat to the highest temperature you can comfortably stand. A programmable thermostat makes it easy to keep your AC at the right temperature. You can program the unit to hold at higher temperatures while you're at work and cool down right before you get home. You can save 10% a year on your cooling bills by setting your thermostat just 10 to 15 degrees Fahrenheit higher for 8 hours each day, according to the Nebraska Energy Office. The US Department of Energy recommends aiming for an indoor temperature of 78 degrees Fahrenheit when you're at home. If 78 degrees isn't doable for you, even a small change in temperature can knock your energy bill down by up to 3% annually. For more energy savings, explore our home sustainability cheat sheet full of eco-friendly tips and read about how you can save money by unplugging certain appliances when not using them. More money-saving hacks for your home
