Energy Pulse: Americans Must Make 4 Energy-Efficient Home Improvements to Lower Utility Bills
You need to make at least four energy efficiency home improvements to see a considerable drop in your utility bills, according to a Nov. 1, 2011 survey by Shelton Group. While four is the “magic number,” the survey results indicate that Americans might believe just a couple of home energy improvements will do the trick.
The national survey, Energy Pulse 2011, polled 1,502 homeowners and renters in the United States from Aug. 9-22, 2011 on their attitudes about energy-efficient products and services.
Most Americans Stop at 2 or 3 Home Improvements
The study found that Americans who completed an average of four energy-efficient improvements, such as adding insulation or installing tankless water heaters, noticed a decrease in their monthly utility bills. However, the average number of energy-efficient home improvements undertaken by the sample was 2.6 – not enough to affect utility bills.
The survey authors deduced that most Americans who invest in energy efficiency expect to make two or three small changes and see results on their utility bills – when they don’t, they lose motivation to make more energy-efficient improvements. Thus, the authors recommend a nationwide education effort on home energy improvements.
The Green in Consumers' Wallets Still Matters Most
Reconfirming results from Shelton Group’s previous studies, the Energy Pulse survey found that “to reduce my utility bill” is the No. 1 reason consumers make energy efficiency improvements. In addition:
- Keeping in trend with 2010, about 60% of respondents said their utility bills have gone up over the past two years. However, 71% of respondents think they use the same or less energy now as compared to five years ago.
- Consumers continue to have a high tolerance for bill increases. On average, utility bills would have to go up by $112 to push Americans to spend more on energy-efficient upgrades.
- Most respondents from the random sample think their homes are energy-efficient. In fact, 49% of homeowners rated their homes as “efficient” and only 23% thought their homes were inefficient.
- Only 15% of respondents have received a home energy audit and only 33% think they need one. The authors surmise that home energy audits continue to be the “colonoscopy of energy efficiency.”
- Low-income households are the least likely to make energy efficiency improvements, and 32% of low-income respondents said their homes are inefficient.
Recommendation: Nationwide Education on Energy Efficiency
The authors write that in order to increase Americans’ average number of energy-efficient home improvements to four, they must receive education on how to pay for and carry out such improvements – as well as what benefits to expect.
“Americans tend to have unrealistic expectations when it comes to utility bill savings from energy -efficient improvements,” Shelton Group President Suzanne Shelton told the Alliance. Shelton noted that homeowners are just scratching the surface of home upgrades, as many start and end with changing their incandescent light bulbs to CFLs.
“The government and utilities have spent hundreds of millions of dollars to get Americans to act, but they aren’t reaching the magic number,” Shelton added.
The survey authors conclude that “the top energy saving driver for a majority of Americans continues to be about dollars and cents.” However, consumers’ lack of personal energy plans relates to the federal government’s lack of a comprehensive, federal energy policy. As a call to action, the report emphasizes the need for a national “vision around energy and energy efficiency.”
Additional Studies on Consumers’ Energy-Saving Propensity
- A Consumer Federation of America study found that nearly 96% of respondents think improved appliance efficiency is important for lowering electric bills.
- A University of Texas at Austin poll found that 80% of consumers are very/somewhat interested in reducing their own energy use, and 73% are concerned about the portion of their household budget spent on energy.
Blog Type: Efficiency News
Programs: Communications Program, Policy and Research Program
Early in the article you mention tankless water heaters an an energy efficient upgrade. I was under the impression that replacing a tankless heater with an indirect water heater is in fact an energy efficient upgrade. Do I have this wrong, or are they one in the same?
Well, it may seem like people stop at just two or three and maybe they do but often it isn't because they think that is enough, it is most likely because the money is not there to make those improvements.
These tips for home improvements are great for saving money on energy bills, if you pay attention, and there is a push to get people to do them as soon as possible.
I would like to know if Shelton ask the 15% of those households that had an energy audit performed, how many actually used that information to retrofit their home. My experience tells me that thousands of audits have been performed over the years with only a small percentage of those audits seeing implementation.
As a renovation lender I discuss the use of an energy audit with each renovation project. Energy upgrades can be included in the plans and specs for either the FHA 203k or the Fannie Mae HomeStyle renovation loans. The 203k also allows the use of an Energy Efficient Mortgage in conjunction with the k to better leverage your funds. At Wells Fargo we allow a borrower to add on to their loan the cost of a solar package (not to exceed 20% home's value) with no down payment on the solar enhancement. Search out lenders that understand the energy retrofit market and ask about what financing options are available for your project.
As a professional energy conservation educator, I look at the way the housing structure and the people in it use energy.
Structure:
1) Space heating,
2) space cooling and
3) water heating account for more than half your household's energy use.
4) Refrigeration accounts for another 10 to 15%.
Adequate insulation in the walls, attic and crawl space go a long way toward reducing energy use for heating and cooling. Insulating water heater pipes helps reduce heat loss at the water heater tank. Reduce hot water use by installing faucet aerators and low flow showerheads, changing the water level when doing laundry, and fixing hot water drips and leaks. If your fridge is older than 1993, replace it. Don't use a second fridge or freezer unless you need it. When it's time to replace a major appliance, consider downsizing and select Energy Star rated appliances.
People:
1. Set your thermostat to 65º when your home is occupied, lower it to 60ºF when you're sleeping, and set it to 50ºF when your home is unoccupied. Cost: nothing.
2. Turn things off when you're not using them and unplug them if possible/practical. Cost: nothing.
3. Replace incandescent bulbs with compact fluorescent bulbs (CFLs). start with your household's most frequently used lights and the lights that are on the longest. Cost: $15 to $50, depending on the style of bulb. Payback period: 3 to 6 months.
4. Install and use a programmable thermostat. Prices start at $20.
So, why dont you tell us what the 4 areas are and likely costs and or options for financing?
While the survey authors did not give specific recommendations, they did highlight the following aspects about home energy efficiency improvements that homeowners are currently undertaking:
- Of the homeowners surveyed which had undertaken energy efficiency improvements, 23% indicated that the first activity was to install high efficiency/ENERGY STAR- qualified windows, followed by 16% who said they installed extra insulation. 19% said that the second activity was to purchase ENERGY STAR qualified appliances and 21% added caulking or weather stripping as their third home improvement.
- The authors also note that homeowners are not tackling energy efficiency improvements in the order that makes most sense from a financial and energy consumption standpoint. One of the examples they cite is that a basic programmable thermostat costs between $25- $80, is fairly simple to install by a homeowner and can save about $180 per year in energy costs (about 9%). The return on investment is 200% and payback is immediate – if the homeowner uses it properly. However, installing programmable thermostats does not rank among the top three home efficiency improvements made by homeowners.
