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David Bach The Automatic Millionaire

David Bach, The Automatic Millionaire

Eco-Friendly Ways to Cut Energy Costs

by David Bach

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Posted on Friday, June 1, 2007, 12:00AM

Warmer weather is finally here, and so is your chance to take a much-needed vacation and reconnect with those you love. Unfortunately, high temperatures also mean high energy bills, and the Energy Information Administration predicts a 2.6 percent increase in electricity costs this summer.

Overall, the average household spends over $1,600 on fuel and electricity throughout the year. According to the U.S. Department of Energy, more than 50 percent of that is spent on cooling and heating our homes. And on top of that, the Environmental Protection Agency reports that we spend as much as $500 per year on water and sewer bills.

Seven Money- and Energy-Saving Tips

Fortunately, with a few changes you can slash your water and utility bills in half. Here's my checklist for saving a bundle this summer, while also making your home more environmentally friendly and energy efficient:

1. Get a home energy audit.

This whole-house checkup will uncover the trouble spots in your home, and identify which problems you should correct now in order to save the most money over time.

Call your local utility company to see if they offer a free home energy audit -- many do. If not, they'll likely be able to refer you to professionals who offer this service for a fee, which could range from $100 to $400 depending on where you live and how big your house is.

The investment is well worth it, because over time the inspection will pay for itself with the money you'll save on your energy bills. For some great tips on hiring an expert, visit the Department of Energy's web site. If you're the do-it-yourself type, read their tips on performing an audit on your own.

Once you've completed a comprehensive home energy audit, you're ready to start saving some serious cash.

2. Seal up air leaks.

Sealing air leaks and adding insulation to attics, basements, and crawlspaces is one of the cheapest and quickest energy improvements you can make to your home. A home energy audit is the best way to identify air leaks.

According to the Department of Energy, sealing air leaks will cut your utility bill by over 10 percent, so the average household will save $160 over the course of a year. Visit Energy Star's web site for some great tips on sealing and insulating.

3. Tune up your air conditioning.

Two-thirds of all U.S. homes have air conditioners, either as individual room units or as a central air system. It's estimated that air conditioning accounts for about 70 percent of summer energy costs.

Regardless of the type you use in your home, start the summer season by performing some simple maintenance. Simply by cleaning or replacing dirty air filters, the Consumer Energy Center estimates you'll save 2 percent -- or another $32 -- on your bill, and you'll prolong the life of your system as well.

If you use a room unit and it's more than 10 years old, it's time to upgrade to a new, energy-efficient model. According to Energy Star, you'll not only save an average of $25 a year on your electric bill, but you'll also be using 10 percent less energy.

Before purchasing your new unit, avoid the common mistake of buying one that's too large. Contrary to what most consumers believe, an oversized air conditioner can actually be less effective rather than providing better cooling. Energy Star can help you figure out the best size for your room.

If you have a central air conditioning system, the Alliance to Save Energy estimates that you'll save 10 percent a year -- or $160 -- if you use a programmable thermostat to raise the temperature when you're not at home.

4. Supplement air conditioning with an attic fan.

An attic fan controlled by a thermostat will lower the temperature of an entire house. Attic fans (also known as whole house fans) are relatively inexpensive at about $250, but when used in place of central air conditioning will lower your energy bill by a whopping 30 percent.

Buy and install an attic fan this summer and you could save about $230 the first year alone. The Department of Energy has more information.

5. Unplug appliances before you go on vacation.

Did you know that appliances that are off but still plugged in continue to use power? It's true, so before you leave for your summer vacation unplug everything that you can, including your computer, TV, stereo, washer, dryer -- even your cable box and cable modem.

Once you're back home, buy yourself several "smart" power strips for about $35 apiece. Eliminating "idle currents" will save you another 10 percent on your energy bill -- another $160!

6. Save with smart landscaping.

The outside area surrounding your home can really make a difference with the temperature indoors. Planting shade trees on the south, east, and west sides of your home will protect it from the hot summer sun.

According to the Alliance to Save Energy, smart landscaping could save you over $100 a year. Join the National Arbor Day Foundation for a $10 fee and you'll get 10 free shade trees that you can plant this summer.

7. Use water wisely.

According to the Environmental Protection Agency, the average American family of four uses 400 gallons of water each day. About 30 percent of that is for outdoor use, and more than half of that is for watering lawns and gardens. The rest is used to wash our cars and fill our swimming pools.

By being more aware of our water consumption and conservation, the EPA estimates we can save about $132 a year.

Start the summer by maintaining your sprinkler system. Look for leaks and replace cracked heads and valves. Irrigation systems with a rain shutoff device and a soil moisture device ensure you're not over-watering, which many people tend to do. Watering at night minimizes the evaporation that takes place in the heat of the midday sun.

Also, adjust your lawnmower setting for a height of two to three inches -- taller grass needs less water because the soil doesn't dry out as quickly. Finally, plant shrubs, trees, and flowers that are native to your local climate so they won't require as much water to keep alive.

If you're serious about conserving water both outside and inside your home, check out this water usage calculator to help figure out how much water and money you could potentially save.

Don't Forget Your Tax Credits

It's entirely possible to keep cool and comfortable this summer without having to worry about an outrageous energy bill. You'll feel great about doing the right thing for both the environment and your bank account.

Here's a nice extra incentive: The Energy Policy Act of 2005 provides tax credits to consumers who perform certain energy-efficient home improvements through Dec. 31, 2007. You don't want to miss out on these added savings, so find out if you qualify.

Have a great summer, and if you have a money-saving, "go green" tip that you'd like to share, take a moment to post a comment below.

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49 Comments

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  • Petunia - Sunday, June 10, 2007, 11:19AM ET  Report Abuse

    • Overall: 3/5

    This article does remind us of what we all need to do. However, it has been my experience in past years that whenever I do make changes to be the best energy saver I can be by using less - particularly electricity and gas - that my bills do NOT go down much because the energy companies raise the rates if we don't use enough energy to keep the CEOs in their lavish style of living. Besides having all of us try to save energy, there needs to be something done about the energy corporations and producers to keep the rates from escalating so much as we cut down use.

  • Vinbeazel - Saturday, June 9, 2007, 1:23PM ET  Report Abuse

    • Overall: 5/5

    The REEP Energy Education Project recommends that people start their own energy education group...through a local community center or church/synagogue or parks and recreation center. Talk to energy companies, and get involved with schools or water district discussions related to energy costs in your region. Get your children and their friends involved in finding a local energy project, with a scouting or boys/girls club or 4H group. Our whole world offers opportunities to learn and become involved in the clean energy revolution!! GO GREEN!!

  • Yahoo! Finance User - Saturday, June 9, 2007, 1:23AM ET  Report Abuse

    • Overall: 5/5

    Al Gore invented David Bach. Enough said.

  • Yahoo! Finance User - Wednesday, June 6, 2007, 9:39AM ET  Report Abuse

    • Overall: 5/5

    Today in the wall st journal there's an article that business schools are now teaching environmentalism to its MBA students. Educating our future leaders on how to conserve and reduce waste is essential. Thanks for the reminder tips.

  • Lt2211 - Wednesday, June 6, 2007, 1:44AM ET  Report Abuse

    • Overall: 2/5

    Same old, same old. The bit about appliances that are off but not really off, is way over blown. Although they may show an illuminated LED, the amount of current drawn is so small you won't notice it on your bill.

  • __A_YAHOO_USER__ - Tuesday, June 5, 2007, 11:09PM ET  Report Abuse

    • Overall: 4/5

    Yea explain the gas prices and then tell us how to save!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Yahoo! Finance User - Tuesday, June 5, 2007, 10:11PM ET  Report Abuse

    • Overall: 4/5

    More people need to take this stuff serious. The fact is, we all can make a difference doing our little parts here and there. It all does add up.

  • WillieD - Tuesday, June 5, 2007, 10:02PM ET  Report Abuse

    • Overall: 2/5

    There are a lot of things we can do to conserve energy. What we really need to do is make the engergy and oil companies to get more practical on the salaries they pay their "top" people. They all make more a year than the President. In fact, do a news search on different CEO's salaries, ex: exxon ceo salary. This alone is in the hundreds of millions a year which reflects on our gas pumps. Check your local power company or the parent company. The less we use, the more they charge and the poor are the ones that get hurt the most. BUT do they care?

  • Jeff - Tuesday, June 5, 2007, 10:02PM ET  Report Abuse

    • Overall: 3/5

    Some of this stuff I already do I know and I know I've saved money,Anything do we can do to save money and the enviroment,so why do republicans on here complain,when they love saving money,unlike our President and his spending,does he have expensive eco-friendly farm ? Gobal warming does exsist,you choose to not to notice intell it affects you,we've had some the hottest summers ever on recorded temps,ice is melting at the caps,Greg swanson makes good points,Now he just needs to work on his TV dinners,Just kidding.LOL

  • Yahoo! Finance User - Tuesday, June 5, 2007, 9:50PM ET  Report Abuse

    • Overall: 3/5

    okay, the article wad helpfull? but what about gas, and other forms of heating and cooling homes!!!!!!!!!!

  • Yahoo! Finance User - Tuesday, June 5, 2007, 9:49PM ET  Report Abuse

    • Overall: 5/5

    Thank you so much, David. I always learn so much from you.

  • urlnts1 - Tuesday, June 5, 2007, 8:59PM ET  Report Abuse

    • Overall: 1/5

    $1600 a year for gas and electric is a pipe dream...he should check his facts!

  • KaitiannaC - Tuesday, June 5, 2007, 7:56PM ET  Report Abuse

    • Overall: 5/5

    You could also switch to flourescent lightbulbs instead of the conventional 60 watt o 100 watt bulbs. They save energy and provide great light at the same time.

  • gregs - Tuesday, June 5, 2007, 7:36PM ET  Report Abuse

    • Overall: 3/5

    I attend the USC School of Architecture and study these issues extensively. The ideas mentioned by David are obviously good things. But there are more effective ways to reduce energy cost than searching for "Tax Credits". There are 3 major items are not even mentioned. These are Lighting, Appliances & Windows. First, Change out all of your light bulbs with Compact Fluorescent and you will cut your lighting costs by 70%. One 18 watt Compact Fluorescent produces the same amount of light as a Standard 60 watt bulb. Same amount of light, but 30% the energy cost. Secondly, buy EnergyStar appliances. This means Refrigerators, Washing Machines, Dryers, Water Heaters, and many more. My Apartment has a Fridge that uses around 600kw of energy... sounds ok right? an EnergyStar Fridge uses 300kw!! Half the energy cost. Thirdly, install insulated windows. This can be the most expensive choice, but everyone needs to replace windows after a while. In any house or building, the #1 "infiltration" point is your windows. Most heat energy is gained or lost through windows. Now, you should not replace every window, there is no need. The north side of your home gets the least amount of light, and therefore is the least important for double paned glass. The south side of your house usually gets the most sun at noon, when the sun is overhead. So that means there is not a large amount of light coming directly into the windows. Usually a nice overhang can shade an entire window easily. The east and west windows receive the most direct sunlight (during sunrise and sunset). Most often 3pm is the peak time for air conditioner usage. So look through your house, find the "hot spots" that occur from your windows. My parents changed out 5 "floor to ceiling" windows in their house and they cut their energy bill dramatically. This landscape advice is partially correct. You should plant deciduous trees along the southern, eastern and western side of your house. These trees have leaves in the summer, which will block out the sun. Then in winter they loose their leaves, allowing the sun to come in and warm your house. If you plant a Pine tree you will have a cool house in summer and a cold house in winter. Secondly get rid of sprinkler heads in planters and use "drip irrigation". These use less water and work more effectively. Plant a drought-tolerant lawn. Be careful of planting "native" plants. In Laguna Beach and Malibu they have a large array of native plants. Each year the plants grow wild, then dry up and become a fire hazard. So pick and choose carefully. Or be a determined gardener and clear the dry brush during the summer. As far as Air Conditioning goes, buy EnergyStar! Then there is a better way to save energy, outside of an attic fan. If you can, try and "Zone" your system. This means you can set it up to condition your living room and family room, but not the rest of the house. Why cool the upstairs bedroom at 3pm, when you won't be in there until 9pm? Granted this can be very difficult on an existing home, but if you can do it, you can save a lot of money. Many houses (especially in California) are built on raised foundations. This means the crawl space under the house can be accessed and you may be able to run a zoned Air Conditioner. Finally, the biggest waste of Air Conditioner Energy is made by the people using the Air Conditioner. Silly but true! Some people leave to work at 8am and set the thermostat to 78 degrees... why? So the cat will be cool? No, so the house will be chilly when they get home. People waste more energy by simply not thinking. Close your doors, to the outside AND to the bedrooms and bathrooms. Close the windows, make sure your house isn't loosing cool air through an open bathroom window. Spending money and time to weather seal your house and make it air tight is pointless if you don't close the windows. Gregory Swanson USC Masters of Building Science

  • Paul H - Tuesday, June 5, 2007, 7:18PM ET  Report Abuse

    • Overall: 2/5

    Very basic info. I guess some people may benifit from reading, but gosh who doesn't know this. It always depends on where you live, and what your lifestyle is.

  • Kevin - Tuesday, June 5, 2007, 5:53PM ET  Report Abuse

    • Overall: 3/5

    pretty basic stuff. doesn't hurt to try. By the way, while the sun is the source of heat, the atmosphere actually controls the climate. For example without the atmosphere, the moon's temperature ranges from about boiling in the sun and about 170 degrees below zero in the shade.

  • Yahoo! Finance User - Tuesday, June 5, 2007, 5:31PM ET  Report Abuse

    • Overall: 5/5

    Bottled water is a waste of money and the packaging is bad for the earth. Buy a water filter and purifier and get your water from your faucet. You'll save plenty.

  • Yahoo! Finance User - Tuesday, June 5, 2007, 5:26PM ET  Report Abuse

    • Overall: 3/5

    Good article. Weird eco-nut comments. Come on now Children Of The Corn. There is no ecological footprint. There is no global warming. Not you, not me, not the totality of humanity has the ability to save the planet. Only God Almighty can save the planet (or for the agnostics, that huge bright shining ball in the sky commonly known as the sun calls the climate shots, not us puny humans). Take some valium eco-nuts.

  • ted - Tuesday, June 5, 2007, 5:25PM ET  Report Abuse

    • Overall: 4/5

    Kudos to the author. More articles like this one need to be written to remind people of ways to conserve. No, it's not hard - - but if it's so easy why aren't more people doing it?

  • Yahoo! Finance User - Tuesday, June 5, 2007, 5:22PM ET  Report Abuse

    • Overall: 5/5

    my husband and I got a home energy audit done. It was a free audit offered thru our local power company and it really turned out to be an eye opener for us - very helpful to see what needed to be done to make our house more energy efficient. We'll see if the monthly bill reflects the work we've done so far.

  • Yahoo! Finance User - Tuesday, June 5, 2007, 5:21PM ET  Report Abuse

    • Overall: 2/5

    Turn off lights your aren't using. Unplug unused appliances. Learn to live in a warmer home in the summer. Cut back on water consumption. How hard it this?

  • Scorpio23b - Tuesday, June 5, 2007, 5:15PM ET  Report Abuse

    • Overall: 2/5

    Let's see, Al Gore spends 3,000 per month on utilities for his house. And flies around on private jets. Is that green?

  • jim - Tuesday, June 5, 2007, 4:36PM ET  Report Abuse

    • Overall: 1/5

    Articles like this one are maddening! Advising people to cut their "Energy costs" in a criminally fraudulent market stucture is like telling passengers to put their heads out the window of the plane and blow backwards to reduce fuel cost. Why don't we have an article about gov regulation effects, biased tax structures, bribes, supply manipulation and overseas investment support schemes??? I would guess it is because you haven't a clue.

  • Yahoo! Finance User - Tuesday, June 5, 2007, 2:49PM ET  Report Abuse

    • Overall: 1/5

    Useless nonsense.

  • LisaM - Tuesday, June 5, 2007, 2:36PM ET  Report Abuse

    • Overall: 2/5

    So...what if you don't have air conditioning in the first place (why get A/C when the temperatures only go over 100 for 2 weeks a year at most?), have replaced all your light bulbs with compact fluorescent bulbs, have adjusted your watering system (it's now largely drip watering), have landscaped to provide the best mix of shelter, shade and sunlight, and you don't HAVE many quick-start appliances plugged in in the first place (two computers with flat screens and a television set), don't have an electric clothes dryer, and already have an energy star refrigerator? Oh--and the house is under 1500 square feet. Oh. Sorry. I guess I'm still living like it's 1975. I suppose I should be dead because of all the "necessities" I'm missing. I don't think it's an issue of cutting back on energy usage as it is an issue of cutting back on consumption, period. And that just ain't gonna happen until something drastic, like a nuclear bomb or a huge earthquake or some other catastrophe on a multi-state scale occurs.

  • Yahoo! Finance User - Tuesday, June 5, 2007, 2:05PM ET  Report Abuse

    • Overall: 5/5

    Conservation is the easiest and fastest way to save energy. Just turn it off.

  • Thomas - Tuesday, June 5, 2007, 1:37PM ET  Report Abuse

    • Overall: 5/5

    Another great idea is installing a ceiling fan to reduce your AC costs. In a study by Arthur D. Little, Hunter ceiling fans were proven to be able to deliver household utility savings of up to 40% in the summer. A recent Home Depot ad campaign is highlighting these same benefits.

  • Yahoo! Finance User - Tuesday, June 5, 2007, 12:55PM ET  Report Abuse

    • Overall: 4/5

    Some good ideas. I have had a 36" attic fan for 20 years here in FL and in spring and fall it saves many $$ not having to run AC by cooling my masonry house at night and letting it warm slowly during the day, of course no good in summer when night time temperatures do not fall enough and its very humid. Some other ideas not so good. I had an energy audit and they wanted me to change all the windows, I calculated it would have taken at least 25 years to repay that huge cost, instead I just replaced the sealing strips on the existing ones for a few $$. Likewise changing the AC unit just because its old, very long payback unless your AC bill is huge. Instead consider just running it until it fails then getting an extra efficient unit when you have to replace it any way.

  • Yahoo! Finance User - Tuesday, June 5, 2007, 12:44PM ET  Report Abuse

    • Overall: 4/5

    Another easy way to cut costs and save energy is by installing a clothesline (especially with summer upon us). I went to the hardware store and got the needed supplies for less than $10. An eco-friendly solar powered clothes dryer!

  • Michael K - Tuesday, June 5, 2007, 12:42PM ET  Report Abuse

    • Overall: 4/5

    Or you can save water by not having a big lawn. Use rocks, landscaping that's less thirsty, sections that you just let grow wild, paved areas (you might find concrete or brick surfaces more useful than just grass--and why have any outdoor yard areas if it won't be somehow useful to you?)...

Showing comments 6-35 of 49<< PreviousNext >>

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