How Much Does Home Energy Efficiency Really Cost?
In the end, it can actually save you $
To combat climate change, energy efficiency is the “easy button.”
Poorly Insulated, Leaky Homes/Buildings
Collectively, our homes and buildings use ±40% of America’s energy, mostly for heating and cooling. But many are poorly insulated and leaky.
Picture dollar bills steadily leaking out of your doors and windows. And walls and attic. Floating in the air and burning up in the atmosphere.
Instead of continually wasting energy (and $$), the easiest/simplest/cheapest fix is to stop the leak… using readily available, high-performance insulation and other solutions that help seal the building “envelope.”
Opposing Energy Efficiency Upgrades?
So why the pushback on energy efficiency building codes from some folks in the home building industry?
I’m curious because many companies that build homes are already using cutting-edge technologies and modern building materials to create homes that are airtight, energy efficient and really comfy. Some builders even make homes that produce more energy than they use and return energy to the grid.
But on Capitol Hill and in the states, the fight for stronger energy codes has been peppered with dubious statistics about the alleged cost of building homes to the most recent energy code, the 2021 International Energy Conservation Code (IECC). Policy makers keep hearing that energy efficiency measures are driving up the average cost of a new home by tens of thousands of dollars.
Uh, no. Those estimates are wildly inflated. According to HUD, the cost of complying with the energy code is ±$7,200 (single-family home national average).
Down Payment, Return on Investment
And that initial down payment – to save energy and $$ for decades – can create an immediate return on a homeowner’s investment.
Here’s how.
The cost of energy efficiency upgrades can be spread across the life of the home loan. For both new and resale homes. And that small incremental monthly cost can lead to significantly larger savings on monthly energy bills. So, homeowners can save more money on energy bills each month than the small increase in their monthly mortgage payment – from month number one!
Slightly higher mortgage payment = much lower energy bill
BTW: There are federal and state programs and grants that can make this financing available without increasing the down payment.
Even when energy efficiency upgrades are not rolled into a mortgage, homeowners typically will save money through lower energy bills, over time. And they get a bonus: Energy efficiency improvements can increase the home’s resale value.
So… the high-performance insulation, building sealants, windows, doors, skylights, appliances and other energy-efficiency upgrades – often made with durable plastic – can actually save money.
Because a small investment pays dividends in lower energy bills – and lower greenhouse gas emissions (GHGs).
Remember: We’re Combatting Climate Change
To combat climate change as a nation and as a global community, we must invest in technologies and take steps to reduce GHGs over time. Upgrading energy efficiency in our homes and buildings is one of the simplest, smartest and most cost-effective solutions.
As one home builder put it:
“One of the ways we can do something that is good for both the environment and our homebuyers is to build high quality, energy efficient homes. Not only do energy efficient homes have a mitigating impact on the environment, but they also can reduce utility costs, lowering the overall cost of homeownership and making the American Dream attainable for a more diverse group of people.”
Indeed.
