Feature Articles - Housing
Efficiency investments in home, appliances result in smart, tax-free savings
Jeff Barber, Housing and Environmental Design Specialist, Greene County, University of Missouri Extension, barberj@missouri.edu
In these rough economic times, finding a safe and
productive place to invest money seems nearly impossible.
However, research done at the Lawrence Berkley National
Laboratory in 2001 showed that 10 common efficiency
investments in a home and in appliances could result in a 16
percent average annual return. That is better than the Dow
Jones Industrial Average high performance of 14 percent from
1990 to 1997.
By investing in the efficiency of your home and home
appliances, you can realize returns that are safe, tax free,
directly in your control and profitable.
All 10 of the energy efficiency measures in the study at
Lawrence Berkley outperformed the traditionally safe
investments of 30 year bonds (4.2 percent), money market
accounts (3.5 percent), and the more unpredictable dividends
on common stocks.
So, what are these 10 measures and how do they perform?
1. Changing lights to new fluorescent lamps and fixtures averages a return of 41 percent.
2. Sealing heating and cooling ducts averages a return of 41 percent.
3. Upgrading to Energy Star when replacing a clothes washer averages a 37 percent return.
4. Upgrading to an Energy Star programmable thermostat has an average return of 30 percent.
5. Installing an R-12 water heater insulation jacket averages a 28 percent return.
6. Upgrading to Energy Star when replacing a refrigerator averages a 37 percent return, assuming the old one is no longer used.
7. Upgrading to an Energy Star heat pump when replacing the furnace and air-conditioning system, averages a return of 19 percent.
8. Upgrading to Energy Star when replacing a dishwasher results in an average return of 18 percent.
9. Weatherizing and sealing the home to limit air changes to less than 0.5 per hour has an average return of 9 percent.
10. Increasing wall and attic insulation to 1997 Department of Energy recommended levels has an average return of eight percent, representing the highest cost of nearly $1,800.
The Lawrence Berkley study used 1997 costs. In the years
since that study, fuel costs have increased and the cost of
many of the energy efficiency technologies have dropped.
That means a person can realize an even greater return on
these investments now.
Other opportunities can be realized by taking energy
efficiency tax credits and utility rebates.
The conclusion is very simple. An investment ranging from
several hundred to several thousand dollars can have a very
real return to you with a much lower risk than what exists
in today’s market.
To find out more about this study or tools to help you
save, search the Internet for “home energy savers” or go to
http://hes.lbl.gov/.
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Last update: Wednesday, May 06, 2009
