How to save on energy costs now-increase efficiency, take advantage of incentives
We all have a responsibility to use energy wisely
If you add up the costs of running your HVAC equipment and water heater year round, it can account for up to 60% of your overall energy costs. There are simple habits you can do every day to reduce these costs and there are larger commitments you can make when it’s time to replace equipment.
There are 3 considerations that effect how much energy you consume and the cost
- The utility company that delivers energy via pipes or wires to your home
- The efficiency rating of your existing equipment
- How you and your family use the energy and equipment in your home
An older, low efficiency furnace drains family and energy resources
Rising energy costs put a strain on household budgets. Increased energy demands put a strain on local utility companies. The fastest, most impactful way to lower energy usage and costs is to install higher efficiency furnaces, boilers, heat pumps, air conditioners and water heaters. The example below illustrates a typical furnace that’s 20 years old
How efficient is the furnace in your home?
AFUE stands for annual fuel utilization efficiency. It’s a rating that specifies what percentage of the fuel you pay for goes toward heating your home. More importantly, it tells us how much fuel is wasted.
78% Efficiency equals a 22% loss
If your furnace is only 78% efficient, you’re wasting 22 cents on every dollar you spend for energy. That’s a lot of money and wasted energy.
Every $100 spent equals a $22 loss
Every $1000 spent equals a $220 loss
Rebates, tax credits and discounts make your move to higher efficiency equipment attractive
Utility companies are highly regulated by state and local governments. It’s to their advantage to help you conserve energy instead of building expensive power plants. That’s why utility companies offer attractive incentives to help you purchase and install high efficiency equipment. But that’s not all the incentives that could exist.
Savings for equipment replacement can come from these sources:
- Utility company rebates
- Equipment manufacturer rebates
- State, local, and federal programs and tax credits
- Promotional savings from your home services company
- Donnelly’s will help you maximize all these incentives and submit applications to the rebate providers on your behalf and you enjoy the savings.
Everyone wants to be confident they’re making the right decision when making a large purchase. In addition to rebates and other incentives, energy saving calculations can convince you the return on your investment will be strong. You can try interactive online calculators like the energystar.gov link below. We provide you with this data in our equipment replacement proposal.
The move to electrification for home heating and cooling
Burning gas or oil as a primary fuel source for heating our homes produces emissions that are harmful to the environment. High efficiency heat pumps don’t burn gas or oil, they run on electricity. There is a trend towards using electricity to drive all home appliances. We expect to see rebates and offers to drive this trend accelerate in the future.
Is a high efficiency furnace worth the cost?
The fastest, most impactful way to lower energy usage and costs is to install higher efficiency equipment. The right equipment and the correct installation are crucial to maximizing your investment. There are lots of programs and money available to help you offset the cost of high efficiency upgrades. Now’s the best time to replace old heating and cooling equipment, give Donnelly’s a call to schedule your in-home consultation.