The Economics of Energy Efficiency and Renewables.

There's understandably a lot of excitement about photovoltaics, solar water heaters, geothermal heat pumps, wind turbines and other sources of renewable energy for the home. We all want to be self-sufficient. It's part of our national psyche. And, particularly for the environmentally motivated among us, the desire to reduce our dependence on traditional energy sources is strong.

But when looking at potential energy upgrades for your home, you should keep in mind a few important considerations:

1) Should you decide to invest in renewables, the scale and cost of your investment will depend on the amount of energy your home consumes. If you can cut your home's energy consumption in half through simple, low-cost measures and thus reduce the investment necessary to make a significant difference in your non-renewable energy use (think: 1 solar panel vs. 2), you've made a good investment.

2) Return on investment.  Air sealing might be a $1,000 dollar investment upfront and could save you $500 or more per year, which would give you a 2-year ROI. A wind turbine in your back yard on the other hand, might cost somewhere in the ballpark of $15,000-$20,000. It's a constructive investment but it would take longer to pay for itself.

3) Energy efficiency is about more than energy efficiency. Done right, sealing air leaks and upgrading your insulation are both measures that have a high ROI, will reduce your carbon footprint and will reduce your energy bills. But these relatively inexpensive fixes will also reduce drafts, make your home warmer in the winter and cooler in the summer and potentially increase the health and longevity of your house. That's a lot of bang for your buck. One of our clients explained it well with his home energy audit experience .

We are great fans of renewable energy but it makes good financial sense to prepare your house for renewables by making it as energy efficient as possible. 

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