'Energy Audits' Can Save Homeowners Big Money
Jan. 12, 2006 — -- Energy costs have soared in recent months, but they aren't the only reason many Americans' heating and cooling bills remain painfully high.
Many people assume their houses are just drafty, and they walk around in scarves and stocking caps through the winter because their homes leak warmth like sieves.
Poor insulation and cracks around window moldings and ventilation systems are usually simple enough to fix, but pinpointing the source of the leaks can be tricky. That's where energy auditors -- professional inspectors who track down wasted energy -- can help.
"They call us and say they want an audit because they think their utility bills are too high, but when we get there it tends to be more of a comfort issue -- there are drafts, the rooms are too hot or too cold," said Lee O'Neal, president of NSpects Ltd., a Virginia energy consultancy that performed more than 400 home-energy audits last year.
To perform a home check, auditors place a giant fan in front of a central exterior door and run it for 30 minutes to suck air out of the house. This is known as a blower-door test. Digital equipment takes a reading on how much air moves through the fan.
If the reading is high, auditors begin checking the rest of the house -- including windows, ventilation ducts and attics -- with an infrared camera, which checks air temperatures, and a smoke pencil, which blows a small amount of smoke into the air while the auditor watches to see if air movement moves the smoke.
Trouble spots are recorded, and the auditor gives the homeowner a detailed list of every spot in the house that needs to be addressed. Usually these problems can be fixed by caulking, using expandable foam on the leaks and upgrading insulation. The consumer can make these fixes or hire a professional contractor, which can cost a lot.
Energy audits cost anywhere from $250 to $500, with the average around $300, according to the Residential Energy Services Network, or RESNet, a nonprofit organization that sets national certification requirements for home energy audits. O'Neal estimates that hiring a contractor to upgrade an older home can cost $3,000 to $3,500, and a similar cost is tacked on to new homes built with energy-efficient windows and heating systems.
Because of the cost and because many consumers are unaware of the potential savings to be found in energy efficiency, few people run professional energy audits. And most home builders are not yet including energy-efficiency packages as standard offerings.
"We work with most national builders, and they tell us that if consumers started asking for it, they'd start adding energy-efficient windows and those types of things," O'Neal said. "But homeowners don't ask for it. They'd rather spend the extra money on a home-entertainment system or something like that."
The Environmental Protection Agency estimates that the average American household spends $1,500 annually on energy bills, about half of which goes directly to heating and cooling costs. And that number could climb as much as 50 percent this year as energy prices rise, according to the EPA.
The Energy Department forecasts that prices for crude oil, petroleum products and natural gas will remain high through 2006, pushing heating costs higher this winter. The Energy Department estimates that, on average, households heating primarily with natural gas will likely spend $257 (35 percent) more for fuel this winter than last winter. Households heating primarily with heating oil can expect to pay $275 (23 percent) more. Propane heating costs are estimated at $184 (17 percent) more, and households that use electric heat can expect to pay $72 (10 percent) more than last winter.
Conservationists say the rising costs make this the ideal time to make your home more efficient, either through a professional audit or by searching for leaks and sealing up holes and cracks yourself. The Energy Department and EPA, along with RESNet, are working to teach consumers that energy efficiency could save them money in the form of lower heating and cooling bills.
"The focus is on encouraging people to make energy improvements," said Claudia Brovick of RESNet. "It's convincing people -- you don't have to be cold in your home, and if you do certain things, you can save money."
Brovick noted that some lenders, including Fannie Mae, even offer energy-efficient mortgages for homes that meet the Energy Star label of efficiency -- a strict energy efficiency guideline set by the EPA and the Department of Energy
"The dollar amount of energy savings expected is added onto the value of the home and onto the buyer's income, so they're able to afford a bigger mortgage because of the assumption that they'll save more money," said Brovick.
And upgrading the efficiency of a current home cannot only help immediately with energy expenses but could also improve a home's resale value, she said.
"Once it's an Energy Star home it's always an Energy Star home, so they can use that as a selling point."
The amount of money to be saved obviously varies from house to house and depends on the weather. Heat escaping from leaks is the biggest cause of energy loss, so older homes in particular can cut costs sharply.
Due to the wide fluctuation in energy prices, most auditors make no claims about lowering bills. O'Neal said NSpects tells customers they can expect to reduce energy consumption by 15 to 25 percent if they hire a contractor to make efficiency upgrades.
The company has seen increased business early this year as consumers become more aware of the cost of energy. The company has 130 audits scheduled for the first three months of 2006, putting it on pace for a 25 percent increase over last year.
Brovick said she hopes it's the start of a trend that will save people money and improve energy conservation
"We expect the interest to pick up because of what's going on with energy prices," she said. "Oil costs are going to continue going up, and it's going to cost more to heat and cool your home. But you have the choice to invest now and save money down the road."
