Skip to main content

How tightening your home can save you money

JONATHAN FAHEY
AP Energy Writer

NEW YORK — That precious, cooled air that leaks out of your home every summer is money leaking out of your checkbook.

Electricity prices are expected to rise faster this year than they have since 2009, to a record average of 12.5 cents per kilowatt-hour, according to the Energy Department. And prices are highest in the summer, just when you need more power to run the air conditioner.

But many residents are paying far more than they should to cool their homes because cold air is leaking out and hot, humid air is getting in. The air seeps through obvious places, like under doors, and not so obvious places, like cracks around plumbing that you can’t see.

“We accept a much higher level of bad performance in our homes than we would in our cars. You shouldn’t be uncomfortable.” says Jennifer Amann, director of the buildings program at the American Council for an Energy-Efficient Economy. “Homes don’t have to perform badly.”

To see if your home is a bad performer, try a thorough home energy audit. They are offered through utilities and local contractors and are often subsidized by state energy efficiency programs.

The audits can cost $100 to $400, but they can lower both summer cooling bills and winter heating bills by finding leaks and other sources of wasted energy. How much you save depends on how much repairs cost, the size of the leaks found, how big your home is, and your electricity price.

Knowing whether or not you need a home energy audit — and whether it will pay off — is tricky. Amann says you should get one if you feel like you are paying too much for electricity (who doesn’t!), and she suggests talking to friends and neighbors. Some utilities are making it easier to see how your usage compares with others nearby, either as part of your bill or with online tools.

If you opt for an audit, Amann suggests using a contractor who participates in the Department of Energy’s Energy Star home performance program.

A thorough audit — more than just a walk-through of your home — will include something called a “blower door test.” A device is attached to your front door that sucks air out of your home, allowing leaks to be detected. It also establishes a baseline to test the home again after leaks are fixed to determine how effective the repairs were.

Some repairs will be clearly cost-effective, like adding insulation or closing up cracks with caulk or weather-stripping. Others might not be. Windows and central cooling and heating systems are so expensive that the savings might not justify replacing them if they are still working well.

If a new central air-conditioning system costs $5,000, including installation, and it cuts power consumption by 20 percent, it would take 18 years for it to pay off for a typical power customer. If it is time to replace the system anyway, buying the most efficient one available usually pays off more quickly.

The auditors will have tips for reducing energy use in other ways, like unplugging devices that aren’t being used or replacing inefficient appliances and lighting. They’ll recommend changes in behavior, too, such as not running appliances like dishwashers that add heat and humidity to a home during the hot part of the day.

“These are simple, common sense things but sometimes people just don’t think about it,” Amann says. “We all have our habits.”

On the web:

http://www.aceee.org/consumer

https://www.energystar.gov/index.cfm? c=home_improvement.hpwes_for_homeowners

Jonathan Fahey can be reached at http://twitter.com/JonathanFahey .

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story