The article below cites an objective study of energy improvements homeowners have been doing to their existing homes — comparing cost with “investment return” — the savings received from the improvements. BOTTOM LINE: Even when accounting for the broader societal benefits of energy efficiency investments, the costs still substantially outweigh the benefits; the average rate of return is approximately -9.5% annually. Just to restate the obvious, that’s a NEGATIVE 9.5%annual return on energy improvement investments.
That being said, obviously there are different steps that a homeowner can take to improve energy savings. Some make sense, some are a joke.
A poorly fitting door or window (with a resulting draft) can be dramatically improved with $5 worth of weather stripping. But retrofitting a double-pane window doesn’t pencil out. Not even close.
INITIALLY installing some energy efficient features (notably insulation) in a new home can make good sense. Blowing more insulation in an attic might be a good idea — depending on how much insulation you have now. But retrofitting — ripping something out to put something else in? Not so much.
BTW, this study was done in MICHIGAN. I live in San Diego — the mildest weather in the country. Local hucksters try to get us to put in double pane windows with all sorts of outlandish claims. And some homeowners fall for the pitch — especially with government subsidies.
One other thought — this is about HOMEOWNER cost and savings. Not included is the energy used to make and install the retrofits. Like solar, it seldom pencils out.
WALL ST JOURNAL
http://www.wsj.com/articles/notable-quotable-1438383116
Notable & Quotable
The costs of residential energy efficiency investments substantially outweigh the benefits.
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Go to the link to read the article.