» Help Clients Reduce Energy Costs

Help Clients Reduce Energy Costs

From lighting controls to solar power, there are ways to help clients cut costs.
By: 
Mark Terry
Issue Date: 
January 2006

It's no secret that natural gas prices are going up, due in large part to the devastating effects of hurricanes on the Gulf Coast production facilities. Consumers Energy estimates that prices could be as much as $35 higher per month this winter for an average-sized house. What we don't know is if this will affect electrical prices as well, because the majority of new electrical power plants run on natural gas.

How can you help your clients decrease their electric bills?

Lighting
One of the simplest ways to cut electrical bills is to suggest customers switch from regular incandescent lights to compact fluorescents lights (CFLs). Glen Salas, engineer with D&R International, a partner with Partnership for Advancing Technology in Housing Partner (PATH), says, "Make sure it's ENERGY STAR® qualified lighting. They have improved their specs, and you get good quality light. You use about 5 to 25 percent of the energy of traditional lights, even though they cost more. But the price is coming down."

The only problem with CFLs is they are not easily adaptable for dimmer switches. Matthew Matenaer, energy advisor for the Wisconsin Focus on Energy Commercial Programs, says, "CFLs use about a quarter of the wattage of a typical incandescent and usually have a greater light output. Anytime you can replace an incandescent lamp with a CFL, do so as long as it doesn't have dimming capabilities or you need dimming performance."

Cost-Saving Options
ENERGY STAR has a great deal of useful information on its Web site, including tables that indicate how much savings a homeowner will make based on the number of fixtures they replace with qualified lights. They also have suggestions for cost-savings, such as:

Ceiling fans. Reversing the direction of fans in the winter will help move warm air from the ceiling and distribute it more evenly around the room.

Programmable thermostats. Thermostats that automatically turn the heat down during weekdays and at night are inexpensive and can add up to big savings. Focus on Energy notes this can save as much as $100 per year on heating bills.

Furnace fans. Matenaer says you should always purchase a high-efficiency condensing furnace with an ECM Motor that will vary the speed of the fan to meet the need.

System maintenance. In homes and small offices, old equipment or insulation can be inefficient and expensive. Matenaer says, "Make sure insulation levels are sufficient, tune up air conditioning systems regularly, change filters regularly and use the most efficient lighting. If it's an office building, purchase ENERGY STAR equipment as often as possible. If there's an outdoor condensing unit for the central air conditioning ensure that the SEER (Seasonal Energy Efficiency Ratio) is at least a 12 or 13. If you have window AC, make sure the energy efficiency is as high as possible."

Solar power. "Photovoltaic is going to become more popular in 2006-2007," says Douglas Meek, with Highland Building Consultants in Green Bay, Wis. "There are federal tax credits available to homeowners for systems that are commissioned after Jan. 1, 2006, and that's going to push the industry a little bit."

State Programs
Some states, such as Wisconsin, offer evaluations on ways to improve the energy efficiency of businesses or homes. "What we do is offer third-party objective opinions on how to improve the energy-efficiency of your business, of home, school, etc., as well as offer incentive cash-back rewards on any energy efficiency improvement you make as long as we're involved before the project is completed," Matenaer says. "In some cases we offer incentives or cash-back rewards to the recipients who make the energy efficient upgrades. From time to time we offer home energy checkups when we're teaming up with a local utility for small businesses."

With winter on your doorstep, helping clients save money in simple ways is a value-added service you can supply with little overhead or energy expenditure.


Sidebar Title: 

Tax Credit for Energy Improvements

Sidebar Body: 

The federal government is offering a tax credit up to $500 for energy efficient improvements made by homeowners from Jan. 1, 2006 to Dec. 31, 2007. The tax bill lists a number of specific items that are covered, although some are still not spelled out. Karen Schneider, spokesperson for the Environmental Protection Agency's ENERGY STAR Program, says, "Some things are covered in the tax bill, so we know they specify replacement windows, added insulation, furnaces and boilers, central air conditioning units and water heaters. All those things are specified in the bill, and each has a different cap for the amount of savings."

The credit is up to $500 over the two-year period, so if all the work is done in the first year, it doesn't apply to the second year. The caps also vary from straight dollar amounts to percentages. Schneider says, "If it's a water heater, you can get up to $300 in tax credit, but if you install insulation, it's 10 percent of the cost up to $500."

For more information about the tax credit and what specific items are covered by the bill, visit the Energy Star Web site.

*Note: This content is for informational purposes only. Lowe's makes no warranties and bears no liability for use of this information. The information is not intended, and should not be construed, as legal, tax or investment advice, or a legal opinion. Always contact your legal, tax and/or financial advisors to help answer questions about your business's specific situation or needs prior to taking any action based upon this information.