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Posts Tagged ‘Energy Bill’

Don’t think of energy efficiency as Savings… Think of it as Profits.

By Michael Denby, J.D., Principal, Denby Energy, LLC www.denbyenergy.com

Saving businesses money by reducing energy use has significant rewards, but they are often overlooked in favor of more immediate, tangible returns. One of the overlooked benefits of energy savings programs is that they rarely have a one year return, but instead generate bottom line profits year after year.

Often company executives are in the dark when it comes to understanding the amount of money they actually pay for energy. They know with great certainty exactly how much they pay for each component that is used to create the widgets they sell, but they don’t know how much power their buildings and processes consume. And that is a significant gap in their business model.

This article shows how, by investing in energy savings, a business can make significant returns to the bottom line, year after year.

For purposes of this article, let’s assume that you own a small business with average energy bill of approximately $15,000 a year. If your business could reduce that energy bill by 30% by investing $4,000 in energy efficiency would it be worth it?

First, let’s look at the simple payback method. At $15,000 a year, a 30% savings would generate $4,500 in yearly savings. And if you were spending $4,000 to get that energy savings, you would have a simple payback period of .88 years, or about 10 and ½ months. For virtually all businesses, that is a very acceptable return on investment.

Second, let’s look beyond the simple payback method. Let’s look at the investment return over the life of the investment and see what it can do for us. For simplicity, let’s assume that the investments made to increase energy efficiency had a life of 7 years. The initial investment would have been paid off in 10 ½ months, but the benefit (profits) from that investment (returns) continue for the next 7 years. That means after the first year, the business will have 6 more years of those improvements generating a $4,500 return each and every year. The result?

Well since this is a Series question we input $4,500 a year as our “A”, with 6 years as our “n” and 5% as our “i”. The answer comes out to $30,608.55 in total returns(profits) over those 7 years.

Now, let’s look at one alternative – instead of investing back into their business, the owner takes that $4,000 as a payout and puts it into her retirement account. For purposes of this example, let’s assume her retirement account is earning a really strong return of 10% (despite the economic turndown). The $4,000 is a one-time investment, so it runs as a Single Sum Series. After 7 years she would have a total of $7,794. That means she would have left $22,814 on the table. Or better defined, she would have paid the local utility companies $22,814 more than she paid herself for the privilege of wasting energy.

(c) 2008 Denby Energy, LLC  All Rights Reserved.

Michael Denby
http://www.articlesbase.com/business-articles/energy-efficiency-is-a-profit-center-for-your-business-672511.html

Technorati Tags: 10 Months, Amount Of Money, Bottom Line Profits, Businesses Money, Company Executives, Denby, Energy Bill, Energy Efficiency, Energy Llc, Energy Savings Programs, Energy Use, Gap, Initial Investment, Investment Return, Investment Returns, Payback Method, Payback Period, Profit Center, Reducing Energy, Widgets

Running hot water, small space, natural gas, reletively old furnace. Not sure if I should just leave it at a low temperature.

relative old furnace = your gonna pay regarless.

newer furnaces now are energy star rated. they are modulating (old furnaces either run at 100% of its gas consumption or 0%)…modulating furnaces with modulating thermostats will have sensors that determine how much gas is required to heat your home in 5 percent intervals, generally have about 13 different levels of heating. this can save you about 40% on your gas bill alone.

newer furnaces are high efficiency (90% +) meaning for every dollar you spend on your gas bill, at least 90 cents goes to heating your home, only 10 cents up the chimney. older furnaces range in the 78% area when initially installed and after many years become less efficient. you can save a good 20% on your gas bill here as well.

newer furnaces have blower motors powered by DC voltage (direct current)…comparable to how a battery works, these suckers run on less then 24V, they are cheaper to run then a lightbulb. older furnaces blower motors run on 120V AC (alternating current), much larger wavelenghts…very expensive, like running a stove top, or refrigerator. running a DC motor 24 hours a day 7 days a week will cost you roughly 7$ a month, 120V AC motors, over 30$ a month, that’s a savings of about $350 a year on your energy bill

so once you get into the hi efficiency, modulating furnace, with DC motor, you collect energy grants and the government will offer you rebates for being so environmentally friendly.

other things to consider are getting an automatic central panel humidification system (cost less money to heat moist air then it does to heat dry air) as well as a good filtration system. both of these will assure you of never getting sick so long as your in your house.

Technorati Tags: Ac Motors, Best Energy, Blower Motors, chimney, Dc Motor, Dc Voltage, Energy Bill, energy conservation, Energy Grants, Energy Star, Filtration System, Furnaces, Gas Consumption, High Efficiency, Low Temperature, Moist Air, Old Furnace, Stove Top, Suckers, Thermostats

Every single year you should take the necessary steps to winterize your home. This is important because you can actually save money when your home is ready for the winter. How is this possible? Well, you might be surprised because 40% of your energy bill is consumed simply by the heating and the cooling of your home. In this case, it is being consumed by whatever method you use to heat your home. If you winterize, you’re going to be able to reduce that percentage in ways you never thought were possible.

So how can you winterize your home and save some serious cash?

1. Make sure you don’t wait until cold weather has already set in. You want to winterize while the weather is still warm. When you do these tasks in warm weather, you are more motivated to get things done. You’ll also find that the steps you take to winterize your home can also be beneficial all year round. You can look at this as a home improvement project because, let’s face it, you are actually improving your home in a lot of ways.

2. Make sure you get the outside work done first just in case you can’t finish winterizing until cold weather comes. Go ahead and clean your gutters. This will keep melting snow from getting up under your shingles. This can make your roof last longer.

3. Make sure storm windows are installed before the first snowfall. If you can, put them up early. This is better than waiting.

4. Take care of any weather stripping around windows and doors that is cracked or worn. This weather stripping is meant to keep cold air out and warm air in, but that is not going to happen if it isn’t completely intact. Try to find drafts around windows and fill them in. If the drafts are severe, you need to have your windows replaced.

5. Check attic insulation to ensure that the thickness is okay. If you don’t think it is thick enough, add some more. It is better to have too much than not enough.

6. Check furnace filters to make sure they are clean. If they are not clean, install new ones or clean the ones you have. You would be amazed how much money is lost because of furnace filters that are simply not clear of dust and debris.

7. Make sure you have good batteries in your thermostat. Better yet, make sure you are dealing with an efficient thermostat. If you’re not, then you may want to try getting a programmable thermostat that can automatically control temperature. When no one is home, it can automatically lower the temperature to save money.

8. Check the age of your furnace. If it is more than 10 to 15 years old, it is time for a replacement. There are much more energy efficient models out there today. In the long run you will save more money.

9. Make sure you set your thermostat lower. You can save 3% of your energy bill for every degree that you lower your thermostat. Simply layer on clothing to stay warm and that will save quite a bit of money for the year.

10. Try energy efficient blinds. These are special blinds that let in the sun’s warmth during the day and keep the heat in at night when they are closed.

You’ll be quite surprised at how much cash you can actually save by doing these things. If you don’t, then you are spending a lot of money that you shouldn’t have to spend. Sure, it does cost money to winterize your home, but that cost is nothing compared to the cost that you may have to pay to keep yourself warm in the winter.

A. Nutt
http://www.articlesbase.com/home-improvement-articles/winterize-your-home-709569.html

Technorati Tags: Ahead, Attic Insulation, Clean Gutters, Cold Air, Cold Weather, Energy Bill, First Snowfall, Furnace Filters, Home Improvement Project, Lot, Melting Snow, Money, Necessary Steps, Shingles, Storm Windows, Waiting 4, Warm Weather, Windows And Doors

Are you tired of the every rising cost of energy and never having enough cash to keep up with the rises? You could seriously cut the cost of your home energy starting today.

I am an electrician and it amazes me when I visit customer’s homes just how much energy they are wasting and they are often unaware of how they can reduce their energy costs.

Now, I am no saint myself but I am becoming more aware of energy consumption and the cost of energy for my own home. I am starting to feel like my elders of days gone by when they would keep saying “Turn out that light, switch off that radio” etc. does that sound familiar? I find myself doing the same thing with my 12yr old son.

You can do something about YOUR energy bill if you follow the steps I want to show you.

We all pay for energy one way or another at home and at work, unless we have an alternative. All electrical appliances we use are rated by watts. This is a unit of power consumed generally expressed as kilowatt power used per hour.

Now you might not be aware, that basically, if it is plugged in it could be costing you money every single minute of the day when you are not using it. What do I mean by this?

Have you noticed that some of your home appliances have a little red light to tell you it is on standby? What it does not tell you is it is consuming energy even though you believe it is switched off. Some examples of this might be a modern electric kettle, a dishwasher when it has finished its cycle, a computer and monitor – not forgetting your printer, the TV, set top box, DVD or Video player, Radio/alarm clock in the spare room, that old fridge you keep drinks cool in for the summer and it is almost empty the rest of the year.

One way you can slash your energy prices at a stroke today, is to start getting into the habit of turning off all those appliances you are not using. Yes I know, the plug might not be easy to get to, especially if it is hidden behind that TV stand, and looking like a bird’s nest of wires where it is hard to find which lead fits what plug.

There are all sorts of sites which offer guidance on power consumption but that is not the purpose of this article. What if you discovered how easy it is to cut your fuel bills with a minimum of effort and without it costing you a penny.

I guess one of the biggest culprits is the TV corner of most living rooms, but do not forget the kids room or anywhere else where you have a TV consuming energy. You might have a TV, DVD, Video, and Set Top Box, Play-station or other appliances plugged in. My room is no different to anyone elses last thing at night. When I turn off the TV and the room lights I see a soothing aray of coloured stanby lights smileing at me!

Now it is those tiny little lights that should be ringing alarm bells in our heads and screaming at us “I am costing you money every second of every minute and every hour of the day……..” you get the meaning?

I saw a programme recently where someone demonstrated that his TV alone used a third of the power it used normally, just by being left on standby. That is quite alarming. Can you see how easy it is the start slashing your energy consumption in a single flick?

Get into the habit of switching off all your gadgets, those extra lights in the room and unplug those you are not sure about just in case. It is good practice to unplug appliances from the socket just in case there is a wiring fault. A neighbour’s son bought a new computer and left it switched on all the time. It caught fire and they had to call the fire brigade. The appliance was obviously faulty and fortunately he was at home to prevent it being worse that it would have been had he gone out!!

Ian Middleton
http://www.articlesbase.com/home-and-family-articles/wake-up-smell-the-coffee-energy-companies-are-robbing-us-blind-slash-your-energy-costs-today-743480.html

Technorati Tags: Electric Kettle, Electrical Appliances, Electrician, Energy Bill, Energy Companies, Energy Consumption, Energy Costs, Energy Prices, Getting Into The Habit, Home Appliances, home energy, Kilowatt, Light Switch, Little Red Light, Player Radio, Radio Alarm Clock, Smell The Coffee, Spare Room, Video Player, Year One

It’s that time of year again – the weather is getting a bit cooler as the fall and winter seasons begin. The dropping temperatures will inevitably affect energy costs, and as you look at ways to keep your energy bill down by winterizing your home, remember to consider the roof.

Taking steps to keep your energy bill under control, such as finding drafts and sealing them, replacing old insulation, and checking your vinyl siding and windows for wear and tear are all futile efforts with an old, battered roof.

The Cost of Your Old Roof

Just as a hat keeps you warm in the winter, your roof functions in a similar way for your home – it holds the heat in. But if your roof is old and worn, if your home has no “hat,” your efforts to heat your home could literally be going through the roof. In addition, an old roof is often leaky, contributing to mold and bacteria overgrowth in your home. The end result can be chronic allergy problems and even respiratory infections for you and your family, because you are breathing in contaminated air.

A trained professional roofing contractor is best-equipped to identify problem areas on your roof and let you know whether minor repairs need to be done, or if there is enough damage, wear and tear to warrant a roof replacement instead.

The Value of a New Roof

Replacing your roof is an investment, helping to cut your energy costs and increase the value of your home. A 2005 annual report by Remodeling Online Magazine reported the average cost of replacing a roof can range anywhere from about $11,500 to $17,000, depending on where you live in the United States.

And your new roof can prove to be a lucrative investment if you ever decide to move. GAF Materials Corp., (a manufacturer of residential and commercial building supplies including roofing materials) reports that, according to a group of realtors surveyed, up to 40 percent of your home’s curb appeal is your roof. Though its impact is more subtle, the appearance of your roof can attract buyers to your home and increase the resale value of your home when you’re ready to sell.

Before You Shop

Often, a poor-quality roofing job does not show any signs of a problem for years. Getting a new roof is a major investment in your home, so be very careful when you begin to look for a contractor. In addition to making sure you see a portfolio of their previous work, ask for references and make sure you call them.

When looking for a roofing contractor, you want a qualified professional who will use the best materials and back up their work with a good warranty that doesn’t just cover the roofing materials, but also covers the labor to repair those roofing materials should you need repairs done.

If you have a roofing contractor in your local area that is a Certified Master Elite Roofer – only 2% of all roofers in the U.S. carry this distinction – you can rest assured that the work done on your home is excellent quality and is covered under a strong warranty.

Roofing Accessories to Consider

As you talk with contractors, keep in mind that the installation of a new roof involves more than just nailing in your shingles. A good roofing job will include at least a waterproof leak barrier, and ideally an additional layer of protection from the elements, sometimes called “roof deck protection.” Once this foundation is laid, then your shingles will be laid down.

Also discuss attic ventilation with your roofing contractor – without it, in the summer, your attic can get so hot that it actually bakes your shingles. And in the winter, the hot moist air heating your home can get trapped in your attic, soak and diminish the effectiveness of your insulation, and increase your energy bill.

Lastly, if you were ever thinking of getting skylights for your home, now is the best time to plan for them.

Many homeowners wait until their roof is leaking, there is major, visible damage or there is a complete catastrophe before replacing their roof. What these homeowners don’t realize is they are wasting money on their energy bills in the meantime. A new roof will increase the beauty of your home, cut your energy bills, and play a major role in your ability to sell your home at your asking price. Find out the condition of your roof before the winter weather sets in so that you can be aware of its condition and avoid the headaches that come when catastrophe pushes you into the emergency purchase of a new roof.

Michael Clem
http://www.articlesbase.com/advertising-articles/cutting-energy-bills-with-roof-replacement-64513.html

Technorati Tags: Allergy Problems, Cost Of Replacing A Roof, Curb Appeal, End Result, Energy Bill, Energy Bills, Energy Costs, Fall And Winter, Futile Efforts, Gaf Materials Corp, Lucrative Investment, Problem Areas, Professional Roofing Contractor, Replacing A Roof, Respiratory Infections, Roofing Materials, Taking Steps, Vinyl Siding, Wear And Tear, Winter Seasons