Making Your Home Energy Efficient
With increased fuel prices and a looming energy crisis, homeowners across the nation are exploring ways to convert their homes to be more energy-efficient. Many homeowners feel that by making some small changes they can improve their energy bill and hopefully save some money in the process. Several different things can be done, including installing new windows or doors, investing inefficient appliances, and changing a few light bulbs. Read on to discover more about how making these small changes can save you money in the long term.
A recent study conducted by a non-profit group tested
the relationship between energy efficiency and a homeowner’s ability to repay a loan. The study found that the risk of homeowner loan default is nearly one-third lower than energy-efficient homes, which are rated higher on the importance scale. If you own your home for at least four years, you reap the rewards from this higher interest rate, lower monthly payments, and extended property value. After making these changes, your annual return on investment (ROI) increases by nine percent. This is based on a hypothetical dollars per year scenario. To put this return on investment scenario into perspective, it is possible that after making just these three changes, your monthly payment could be up to $100 higher.
If your goals are long-term
the savings from these three changes may not be worth the upfront investment. However, if you’re looking for a smaller return on investment, these investments will work well. You can easily see how quickly these investments can add up. The trick is finding ways to replace your smaller, single-figure investments with larger, more significant ones.
Another benefit is how quickly you will recover
the costs of making the changes. In most cases, the ROI is equal to the cost of making the initial investment and never costs more than the total amount over the course of five years. This means that you can save ten percent or more on each investment and pay little to nothing in interest for the duration of your mortgage term. In some cases, if you’re able to find a high ROI investor, you can even recoup the cost of the energy-efficient upgrades from them faster than they pay you. As a result, there is little to lose, no risks, and big savings.
The easiest way to start adding energy efficiency to your home
is to update your appliances and to replace all non-renewable appliances with those with energy-efficient parts. Energy star labels are starting to pop up on products as well. Once you have upgraded your appliances, you can begin to replace your non-renewable items with energy-efficient alternatives. You can also begin to replace your home with a HETE model. With a high star rating, your home is more energy-efficient and pays less in energy costs than a house without a star rating, the same house with a low star rating pays more in energy costs than a house with a low star rating.
Adding new windows, improving the insulation of your home,
installing efficient heat and air conditioning systems, and changing your light bulbs all have a dramatic effect on the value of your house. When you begin to feel the economic pinch, it is time to take a long hard look at your investments and make the necessary changes to your home. Many people who have begun the process of improving their homes in this way report savings of over ten thousand dollars. If you’re serious about saving money, it is time to consider making your home energy efficient. And, when you begin to benefit, you’ll wonder why you waited so long!