Background

More and more people have discovered that improving the energy efficiency of their home is a very smart investment. In fact, the return-on-investment (ROI) of many home energy improvements far exceeds that of fuel-efficient vehicles (like hybrids) and typical Wall Street products. But, home energy improvements rarely happen by accident. Instead, they stem from a deliberate process to improve a home's energy efficiency. This process begins with an energy audit -- an evaluation of current energy usage and potential savings.

Related Information

Please click on the links (above on the right) for information regarding "Getting Ready" for your Home Energy Audit and "What to Expect" during the audit. We also cover payment options.

To illustrate the key financial considerations involved in home energy upgrade decisions, let's assume that a mid-size (2,625 sq/ft) single-family house built in 2001 has total energy costs (gas and electricity) of $2,000 per year. Wanting to capitalize on the Federal stimulus money before it runs out, the owner spends just under $5,000 to achieve a documented 30% reduction in annual energy costs. This $5000 investment includes $390 for a Home Energy Audit, $4,400 for recommended home improvements and $175 for a HERO Final Rating.

Resale Value: By definition, home improvement renovations increase the value of the home. Using our example, we'll make a conservative assumption that the energy improvements fall in the middle of the "cost recouped" range for ALL renovations. This means that the owner will recoup 70% of the cost of the improvements when the home is sold. This amounts to about $3,100.

Energy Savings: The 30% reduction in energy costs amounts to $600 in savings each year. This equates to a 12% annual "dividend".

BOTTOM LINE: In less than a year, the entire costs (audit plus improvements plus rating) are covered. From that point on, the owner will essentially enjoy an annual $600 dividend. If you can find a similar low-risk investment like this on Wall Street that pays for itself in less than a year AND yields a perpetual 12% annual dividend, please notify us ASAP!