Tag Archives: Energy Improvement

Stretch Your Budget the Furthest

By Brad Fletcher, Energy Analyst 

When a homeowner engages in energy efficiency upgrades on their home, the list of possibilities can sometimes feel exhausting. Unlike a kitchen upgrade or the addition of a bedroom, a whole house energy efficiency plan may be designed and executed over an extended period of time. An energy professional will help homeowners find the incentives and/or rebates available for the upgrades they recommend. Homeowners, with the help of an energy professional, typically develop a hierarchy of upgrades based on the cost effectiveness of each improvement for the home. Here are a few to start with:

Air sealing and insulating the home is an investment ranging from $50-$2000. Keeping the heat in and the cold out makes practical sense and is often the upgrade that stretches the homeowner’s dollar furthest.

Replacing the lighting with higher efficiency bulbs such as Compact Fluorescent Lighting (CFL) or Light Emitting Diodes (LED) can cost between $5-$50 per fixture and result in a short payback period making this investment a no brainer.

In a typical home, the heating and air conditioning system(s) consume the most energy and cost the most to operate. Upgrades to the HVAC system can result in considerable savings. Improving the mechanical system can include duct sealing, thermostat replacement, cleaning and tuning or in some cases, replacement with a more efficient system.  These improvements can range from $50-$3000 depending on the size of the home and extent of improvements.

Replacing water fixtures may seem like an unlikely way to save energy, but installing low-water usage or aerated fixtures in your kitchen and bathroom will reduce the amount of hot water needing to be generated by a home’s water heating system. Improving the efficiency of faucets and shower heads can range from $2-$200 and save both energy and water.

Older kitchen appliances can consume much more energy than newer, Energy Star rated appliances. Replacing old appliances that have become one of your home’s largest energy hogs will not only cut your total energy cost, but improve the look of your kitchen as well! A combination of dishwasher and refrigerator replacement range from $1500-$3000.

While there are abundant opportunities to improve the efficiency of an existing home, there are even more possibilities that exist in new home construction. This is due to both the technology that can be applied during the construction process as well as the ‘blank slate’ approach where builders can utilize more stringent standards and design features to improve the energy efficiency of your house. When constructing a new home, be sure to speak with your builder about how they can help reduce the cost of operating the home.

If you’re building a new home or doing energy upgrades to your current home, an energy professional can work with contractors and homeowners to calculate which upgrades provide the homeowner with the biggest bang for their buck. Beautiful light fixtures and stunning floor coverings are amenities you are able to see every day while energy efficiency is an amenity you can also feel and see on your monthly utility bills. With a wide range of upfront investment possibilities, energy efficiency is the only investment that will pay you back!

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Fannie Mae Adopts Energy Improvement Feature for Mortgage Loans

Fannie Mae’s new Energy Improvement Feature has replaced its Energy Efficient Mortgage Feature and benefits individuals upgrading an existing home through a purchase or re-finance mortgage.  Features of the new Fannie Mae product include:

  • The financing of energy improvements found by a RESNET Home Energy Rating to be cost-effective of up to 10% of the as-completed appraisal.
  • The cost of the home energy rating can be included as the cost of energy improvements.
  • Appraisers will be responsible to determine the as-completed value of the home based on the energy efficiency improvements.
  • Appraisers will also be responsible to verify that the energy efficiency improvements being financed were actually completed.
  • Only single family homes qualify.

For more information, visit the ESG Energy website.