Energy Efficiency Basics

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credit-squeeze-522549_1920Saving energy in the home will result in financial savings, but needs to be prioritized in order of importance. The financial equation of energy saved against the investment in the energy saving technology needs to be compared.
Saving money is the primary motive behind energy efficiency. Improving one's carbon footprint is also a significant benefit.

All energy efficiency requires investment. The payback on the investment needs to be carefully worked out, taking into account not only the electrical savings and the financial benefits of the savings, but also the capital cost and the loss of income from the funds invested into the energy efficient technology. Generally the payback on energy efficiency will significantly outperform the returns from the money if invested.

The options are as follows:

  1. Water Heating
  2. Lighting
  3. Appliances
  4. Insulation
  5. Heating /Air Conditioning
  6. Solar Photovoltaic

In order of priority, the following steps should be considered based on the payback period of each:

Type of Technology Typical Payback Period (system dependent) Anticipated Lifespan
Solar Water Heater 2 - 6 years 20 - 25 Years
Insulation (if applicable) 2 – 8 Years 25 Years
Lighting (CFLs & LEDs) 3 – 6 Years 60 Years
Solar Photovoltaics 6 – 11 Years 25 Years +
Heat Pumps (domestic) 4 – 12 Years 15 Years

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