Investments in Efficiency Deliver Strong Returns

In today’s troubled economic climate, people are searching for places to sock away money that offer the promise of a healthy return. While no one can predict when, or if, the stock market will fully recover, crunching a few numbers does show one safe investment alternative: energy efficiency.
 
Incorporating 10 home efficiency measures carries a 16% rate of return, according to the U.S. Department of Energy  (DOE) Home Energy Saver program. The energy bill for a typical American home averages $1,283 per year, while a home that has purchased and installed ENERGY STAR® products spends just $774. That’s a savings of more than $500 annually. Even better, you get to keep the money you save on your electricity bill; normal investment incomes are taxed.
 
The first two energy efficiency areas to invest in—those with the highest rates of return—are lighting and sealing ducts. Upgrading to compact fluorescent light bulbs (CFLs) and fixtures in a typical home costs about $200, but with an annual savings of $80, the initial investment pays for itself in 2.5 years with a 41% rate of return. Proper duct sealing, which can cost up to $250, pays for itself in 2.6 years.
 
Your next purchase should be an ENERGY STAR® front-loading clothes washer. Even though one costs an average of $194 more than a non-efficient model, you reap a 37% rate of return– allowing you to recoup the extra expense in less than three years.
 
A water heater tank wrap with a R-12 insulation rating should be your next step; the initial cost of $85 saves you $23 every year, offering a 28% return on your investment. An ENERGY STAR® refrigerator, heat pump, and dishwasher follow with rates of return ranging from 18% to 27%. Finally, adequate air sealing and increasing wall and attic insulation offer between an 8% and 9% return.
 
To find out how you can start investing in your home’s efficiency, visit Home Energy Saver at http://hes.lbl.gov. You can learn about local promotions for ENERGY STAR® appliances—and save even more—by using the rebate finder at www.energystar.gov.
 
Meanwhile, Access Energy Cooperative offers several efficiency educational programs including Touchstone Energy Home (a set of nationally recognized standards for building efficiency), a Home Energy Savings Guide, a Light Bulb Energy Saver calculator showing how much money you can save by using CFLs, and Seal the Deal, a do-it-yourself video showing how to lower heating and cooling costs through effective seals on air leaks in your home. Visit www.accessenergycoop.com to start saving today.