Funding Home Efficiency Improvements By: Addie Armato 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 an predict when, or if, the stock market will fully recover, crunching a few numbers does show one safe investment alternative: energy efficiency. Even in good financial times the annual Wall Street return on stocks averages 14 percent, followed by 4.2 percent for 30-year bonds and 3.5 percent for money market accounts. In comparison, incorporating 10 home efficiency measures carries a 16 percent rate of return, according to the U.S. Department of Energy Home Energy Saver program. Looking at it another way, 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, a nice profit for smart and efficiency-savvy investors to take to the bank. Even better, you get to keep the money you save on your electricity bill; normal investment incomes are taxed heavily. 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 lightbulbs (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 percent rate of return. Proper duct sealing, which can cost up to $250, pays for itself in 2.6 years and matches lighting’s high rate of return. 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 percent rate of return– allowing you to recoup the extra expense in less than three years. A programmable thermostat provides another boost to your bottom line. With a 30 percent return it pays for itself through energy savings in 3.7 years. A water heater tank wrap with an R-12 insulation rating should be your next step; the initial cost of $85 saves you $23 every year, offering a 28 percent return on your investment. An ENERGY STAR refrigerator, heat pump, and dishwasher follow with rates of return ranging from 18 percent to 27 percent. Finally, adequate air sealing and increasing wall and attic insulation offer between an 8 percent and 9 percent return. Source: U.S. Department of Energy Home Energy Saver If you would like more information on energy efficiency ideas, Pointe Coupee Electric can help you by providing brochures and other literature. We also offer residential energy efficiency seminars for groups of eight or more. If you would like more information about the seminars, please call the Member Services Department at 225-638-3751.