How Homeowners can be Green on a Budget

The United States ranks among the countries that produce the highest levels of greenhouse gas emissions and consume the largest quantities of energy. The United States needs to invest in renewable energy sources, smarter electric grids and systems of distributed generation that will help sustain the environment. However, these investments in power infrastructure upgrades require the concerted effort of multiple stakeholders and are multi-year processes. Homeowners are among the most empowered to make immediate, positive changes. They can reduce their electricity consumption through behavioral changes and use energy-efficient appliances in their homes. Many energy-efficient products are similar in price to their environmentally harmful counterparts, and financial incentives that both the government and utilities offer make these products more affordable.

Improved Living Standards are Directly Linked to Increased Energy Consumption

Consumer behaviors and technologically advanced lifestyles mean that energy consumption will only rise. Indeed, the average U.S. household uses multiple televisions, computers and telephones. Centralized air conditioning and appliances, such as dish washers and clothes dryers, are common features of the21st century home. These appliances and electronics improve living standards, but they drain power sources if operated inefficiently. As the following chart demonstrates, appliances combined with lighting constitute the greatest percentage of home electricity use:

Source (News - Alert): U.S. Environmental Information Administration

A Few Changes in Habits and Purchasing Decisions Can Make a Home Greener

 A green home incorporates environmentally responsible, resource-efficient processes throughout its lifecycle, from design and construction through operation, maintenance, and deconstruction. Green homes address concerns over economy, utility, durability and comfort while minimizing many negative impacts that the built environment may have on human health and the natural environment. Though individuals may not be able to control how their homes are built, they can commit to a greener home by selecting appliances, paints and home fixtures that are more energy efficient and less pollutant than their traditional counterparts. Homeowners can also follow the following tips:

 Tips for Appliances and Fixtures

• Use a programmable thermostat to control temperatures during hours when you are away from home.

• Use energy-efficient lighting, such as compact fluorescent or light-emitting diode (LED) bulbs, instead of typical incandescent bulbs.

• Opt for energy and water-efficient dishwashers, clothes washers, refrigerators and air conditioning systems.

Tips for Home Improvement

• Insulate attics, ceilings, walls and floors to control heat gain or loss.

• Install a green roof, which is covered with vegetation that absorbs rainwater and provides insulation.

• Install solar thermal collectors or photovoltaic panels on the roof.

• Install renewable energy systems, such as solar panels that heat hot water systems or power electricity systems.

• Use paint that contains low or no volatile organic compounds (VOCs). VOCs are carbon-containing compounds that pollute the air and can cause environmental and health damages.

Tips for Behavioral Change

• Air dry dishes, as water heating is the greatest component of energy used by a dishwasher.

• Open windows on cooler days to reduce indoor temperatures instead of lowering air conditioner settings.

• Reduce waste by recycling.

• Plug televisions, DVD players and other electronics into power strips that can be turned off when electronics are not in use. Electronics plugged directly into an electric outlet continue to consume energy even when powered off.

In addition to lowering energy and water consumption, homeowners can be green by using environmentally friendly cleaning products. The Clorox Company, SC Johnson, and Seventh Generation are among companies that promote sustainability through a line of cleaning products with significantly reduced or removed chemicals that pollute the environment. Furthermore, efforts to reduce electricity use include laundry detergents that are made to work well in cold water and reduce the need for heating during wash cycles.

Environmentally responsible products are widely sold in popular retail outlets, such as Sears, Home Depot and Lowes. Energy Star-rated clothes washers are available for less than $400, dishwashers for less than $300, and low-flow toilets for under $100. Even more financially accessible upgrades include LED light bulbs for less than $14, low-flow shower heads as low as $15, and plant-based dishwashing liquid for about $4.

Image Caption: The majority of homeowners already participate in the green movement through installed energy-efficient appliances. 

 Rating Systems Help Identify Sustainable Options                                                                                                                   

Rating systems help homeowners identify sustainable buildings and energy-efficient products. The Leadership in Energy and Environmental Design (LEED) for Homes rating system by the U.S. Green Building Council certifies single-family and low-rise multi-family residential developments based on the extent of their sustainable design, construction and operation features. Other rating systems and certification programs include the following:

• Energy Star rating for appliances and consumer electronics, which typically exceed federal efficiency standards by between 15 percent and 50 percent

• Energy factor (EF) rating for appliances and equipment, which measures overall energy efficiency based on device type

• Seasonal energy efficiency rating (SEER) for air conditioners (A/Cs), which requires a minimum rating of 13 for an A/C to be sold in the United States and a minimum rating of 14 for Energy Star certification

• The Natural Products Association (NPA (News - Alert)), which certifies cleaning products composed of at least 95 percent natural ingredients and made by processes that do not use harsh chemicals

 Tax Credits and Rebate Programs Lower Costs for Homeowners

When a consumer invests in an efficient dishwasher or solar panels, many utilities and government entities offer financial incentives beyond lowered electric bills. The Home Star Energy Retrofit Act of 2010 is a $6 billion federal rebate program that encourages retrofitting homes with energy-efficient solutions. While this Act is pending approval in the Senate, homeowners can still take advantage of 2011 federal energy efficiency tax credits, including the following:

• $300 for purchasing gas and oil water heaters with an EF rating of 0.82 or higher

• $300 for purchasing electric water heaters with an EF rating of 2.0 or higher

• 30 percent of cost for purchasing photovoltaic systems

• 10 percent of cost, up to $500, for purchasing materials that improve home insulation

In addition to federal programs, individual state programs offer consumers incentives for energy-efficient upgrades. One such state program is the New Solar Homes Partnership in California. This 10-year, $400 million program, which began in 2007, encourages the use of solar energy. Other examples of state incentives include a 100 percent sales tax exemption for purchasing geothermal and solar energy equipment in Maryland and $250 in rebates for purchasing qualifying air source heat pumps and central A/C replacements in Florida.

Some local utilities offer time-of-use pricing with reduced rates to customers who use energy at off-peak times, such as at night or on weekends. Total savings can be as high as 60 percent.  Moreover, many utilities issue grants and rebates in support of energy-efficient efforts, as exemplified in the following chart:

Figure 1.1: Financial Incentives Offered by Utilities (United States), 2011

Homeowners can locate further information about utility and state-specific programs available to them by going online to the Database of State Incentives for Renewables and Efficiency.

Final Remarks

Ultimately, much of what a homeowner can do to be environmentally responsible does not require additional spending, but rather a shift in what one purchases. Energy-efficient appliances and non-toxic cleaning products are priced affordably, and slight behavioral changes cost nothing. Lower electricity and water bills, tax credits, and utility rebates increase a homeowner’s return on investment, making the transition toward a green home as much a prudent financial decision as an environmentally responsible one.