Contents of RauwLetter October 2009
- Spending Today for Future (and Risk Free) Returns
- Comparing Apples to Apples or Oranges
- Renewables' Growth Rate Beats out Nuclear and Fossil Fuels
- Recycling Facts
- Referral Program
- Customer Coupon
Comparing Apples to Apples or Oranges
To be honest, some of the feedback we've received has suggested that the price of the Fuel Economizer may be a little high. We get it and so we are offering a $100 coupon off the $695 price through October 31st. At $595, we know the Fuel Economizer is a great deal, especially since it has guaranteed 10% savings, a two year payback and a 15 year manufacturer's warranty. By our calculations, the average homeowner can save more than $4,500 over the life of this device (find your personal savings by using our calculator). The savings are truly significant.
In this era of recession, the due regard we give to savings and where we spend our money is more diligent than it perhaps was in the years of plenty. Not a bad thing. Rauw Energy decided to conduct some simple research comparing apples to apples and, in some cases, apples to oranges, as far as the money homeowners can spend on energy conservation.
Next to conventional boilers, refrigerators are one of the greatest energy hogs in our homes. According to the U.S. Environmental Protection Agency on their Energy Star website, replacing a standard, 15 year old refrigerator with a new Energy Star rated refrigerator can save homeowners about 20% in energy costs per year, “You can save more than $810 over five years by replacing your old refrigerator or freezer with a new ENERGY STAR qualified model.”
For example, a homeowner can choose to spend $899 for the Energy Star rated Frigidaire Gallery 18.28 Cu. Ft. Top Freezer Refrigerator (freezers on the top are the most energy efficient) and save themselves about $162 per year in energy costs. On the other hand, comparing energy savings to energy savings, homeowners can choose to spend $595 for the Fuel Economizer and save themselves over $360 per year (based on the price of oil of $2.50 per gallon, average gallons consumed of 1,200 and a savings of 10% [savings are usually higher]).
We're not saying replacing your refrigerator is something you shouldn't do. It is definitely an important step to energy independence and has big environmental benefits as well (if you dispose of your old refrigerator properly ie. having it recycled), however, when comparing the financial investment, the Fuel Economizer definitely comes out ahead.
Let's look at window replacement. According to Anderson Windows, Renewal by Anderson, “A study of identical homes comparing Low-E glass to ordinary dual-pane glass showed a 25% savings on cooling bills, 10% on heating. Savings may vary geographically.” That's pretty impressive and a wonderful energy saving/cost saving project to undertake. So, we took a look at the financial aspects of window replacement.
At www.costhelper.com, they proclaim the average cost for a replacement window is $300-$700 per window but could go as high as $1,000 per window depending on the quality of the existing structural frame. The “double and triple-glazed windows, or those filled with argon gas increase energy savings but bump the cost to the higher end of the scale.”
Although the cost of window replacement can be significant, the government is currently providing a $1,500 tax credit as incentive. The US DOE Energy Star website estimates the energy savings of between $126 to $465 per year when replacing single-pane windows. Their savings estimates are “based on population-weighted regional annual energy use for a 2000 sq. ft., single story detached house with 300 sq. ft of window area, gas heat and electric air conditioning. Estimates use the Energy Information Administration's average gas prices through August 2007 and year to date electricity prices through July 2007. Double-paned, clear glass may not be applicable to all jurisdictions due to mandatory building codes. Actual savings will vary by climate, region and home characteristics.”
Therefore, for an investment of from $3,000 to $10,000 (we're being very conservative here) less the $1,500 tax credit, the dollar savings range from $630 to $2,325 over five years. Compare that with an investment of $595 (complete) for the Fuel Economizer with guaranteed 10% savings and your financial payback is $1,650 over five years. You recoup your cost in 2 years and then can enjoy substantial savings, no mess, no fuss, no maintenance.
We're not advocating that people forget about their windows. New windows are a good way to save energy and they are aesthetically pleasing. We're simply looking at where a homeowner can get the most utility from their hard earned dollars.
Let's look at caulking, weather stripping and insulation. Assuming you're a pretty good do-it-yourselfer, caulking and weather stripping is a project you can tackle. The cost of caulking ranges in the $8 to $10 per tube range and the manual caulking gun is around $18. For a 3,000 square foot house you'll more than likely need 10 tubes of caulking. Weather stripping around doors will run in the $50 range. Don't forget the rubber gaskets for electrical outlets and switches.
Insulation is a matter best left to the pros, especially if it involves blown-in insulation in walls and attics. According to costhelper.com, “A complete insulation job on a typical family home can run $2,000 -$10,000 or more, but averages $2,500 -$5,500, depending on materials, the regional climate and the local economy.”
Energy conservation by plugging up a leaky house through caulking, weather stripping and insulation is truly a good project to undertake and there are tax incentives out there to help in the costs of doing so. To do a really thorough job, you may want to add the Fuel Economizer to your boiler. Not only will your home benefit from the increased efficiency of insulation and weatherization, your boiler's efficiency will complement your overall goals of decreased energy consumption, a lower carbon footprint and increased financial savings.
