California repayment program would extend lending options to homeowners

As with any long-term investment, home energy improvements can come with a hefty up-front cost that is not justifiable until benefits are achieved or the reforms pay for themselves over an extended period of time. But, what if energy-efficient homes could be created through third-party financing and borrowing?

California lawmakers are currently considering a plan that would allow homeowners to fund home energy improvements by modifying their utility bills to account for any upgrades.

The plan would require homeowners to schedule an energy audit by a home inspector, who would then make recommendations for energy improvements, such as energy-efficient heating and insulation. If homeowners' banks are accepting, they can then repay the loan in installments through their monthly utility bill.

Then, as long as utility companies are also willing to participate, the on-bill repayment program could help consumers make improvements without jeopardizing their wallets in the short-term.

"Everybody in this room can presumably borrow a pot of money for energy efficiency through an unsecured loan – it's called a credit card," Brad Copithorne, the Environmental Defense Fund's Energy and Financial Policy specialist, said at a recent panel discussion, according to Forbes Magazine. "But, the rates for unsecured credit, for good reason, are 18 percent. That's not going to get it done."

If this plan does not get adopted on a widespread scale, homeowners may need to find alternate ways to fund energy enhancements. They could embrace lower-end improvements, such as using CFL or LED bulbs, or they may just take incremental steps when making their homes more green. A qualified Washington, D.C. home inspector can help a homeowner determine which upgrades deliver the most meaningful return-on-investment at reasonable cost.

A parent in Australia did not need a neighbor or home monitoring system to make sure his teenage daughter didn't throw a party while he was away. All he needed was a device he used to monitor his home's energy efficiency.

David Rose never imagined using his Fluksometer for that purpose, but the fact the device provided him with real-time data about his home's energy use made it too easy for him to pass up checking his home's energy use constantly. Last New Year's Eve, he did just that, when he realized that energy use had spiked well beyond what would be required to operate the refrigerator, which is the only device he expected to be on.

Oddly enough, the energy use suggested that his air conditioning system and television were also in operation. He called his daughter, who he thought was out of town, to see if she knew the reason for the high rates of energy consumption. He suspects that she turned off all the devices she had been using for her party, then called him back to say that somehow, the air conditioner and television had been left on when the family left.

"By this stage half the restaurant [was] crowded around my phone, watching the next development with excitement," according to Rowe's website. "My teenage brains-trust were calling 'party' but there was no way to know for sure. Sure enough the power drops, down to about 180W [after the phone call]. About what the fridge motor uses."

Devices like the one used by Rowe can provide tremendous value to savvy homeowners who understand how to use data obtained by monitors. Home energy efficiency is attainable using these tools, in addition to seeking a home inspection and energy audit conducted by a D.C. home inspector.

The fact that many homeowners have the option to keep their lights on or use water excessively usually causes them to do so, even when they do not need to. New technology, though, could take this power out of the hands of consumers while lowering their energy bills in the process.

For years, consumers have used timers to control their appliances and lights. The devices plug directly into an outlet and can be set to turn off power after a set number of hours. They are somewhat limited, however, in that most can only be programmed for a 24-hour period.

More advanced devices, which are routed directly into the hardware of the home, can be tailored specifically toward a homeowner's unique needs, such as when a family goes on vacation for an extended period of time. Families could, for example, set the lights to stay dimly lit in the evening and then turn out when the family normally goes to sleep. The technology can be adapted outside of the lighting field.

"It's only a matter of time before more people use home automation technology to control lighting and even water, including the sprinkler system," Carnes Audio owner Matthew Carnes told Mashable. "You don't need to water your lawn when it's already raining. Technology helps cut back on unnecessary energy use and costs."

According to industry experts, the next step will be consumers who can control these appliances using smartphone applications. Hardware that can be controlled with mobile applications used to only be available for high-end homes, but as costs go down, more consumers should have access to them.

Whatever savings consumers generate through energy-efficient lighting, such as LED or CFL bulbs, exponential savings could be possible if these lights are only allowed to be operated during certain times. Additional utility savings could be generated following an energy audit led by a home inspection company in the Washington, D.C. area.

Akron, Ohio homeowner Patricia Maher is more worried about saving money on her energy bill than the fact that her home now shares a building material with one of the ill-fated homes from the Three Little Pigs fable.

This blog often reports on different materials that are used to make energy-efficient homes, but never before has a home that uses straw and mud as prominent fixtures of a property been discussed. But, Maher's home used 350 bales of hay as insulation and mud to finish the walls.

"The straw thing was very hard," Maher told Akron's ABC affiliate. "The bales are not easy to maneuver. We had to make sure they were in the walls correctly."

Maher's home is being built from scratch with energy-efficiency in mind. It will boast energy-efficient windows, a wood pellet stove and a reflecting metal roof, all to try to cut energy costs. The project is being led by Kent State University architecture professor Joseph Ferut, who wanted to design a home using archaic techniques, while still allowing it to fit in with other homes in the neighborhood.

Energy-efficient heating and insulation will allow the home to spend about $300 annually in heating costs, which is close to the price a normal household pays for winter heating in one month.

Whether builders choose to use old or new techniques to promote energy efficiency, it is a goal that should be highly sought after. Existing homes may need to be upgraded with efficient energy use in mind, but remodeling should not be a problem if a homeowner has a reliable home inspection service on his or her side. A Washington, D.C. home inspector can lead an energy audit to find areas in the home that can be enhanced.

Despite an increased prevalence of energy-efficient utilities, lighting and HVAC systems in American households, a majority of American consumers still believe that the benefits of natural gas use outweigh the risks associated with the practice commonly used to extract that fuel source from the soil.

A Harris Poll released this week found that 66 percent of Americans feel this way, while only 17 percent feel that the dangers and associated health risks involved with collecting natural gas for use in American homes exceeds the benefits. Comparatively, 79 percent praised solar power, while 76 percent thought the benefits of wind power outweighed its risks.

The process used to access natural gas from deep below the earth's surface – hydraulic fracturing – has been criticized by many for the environmental effects that are associated with the practice.

The process requires about 70 to 140 billion gallons of water to complete in the United States each year, air quality may suffer in regions where the process is more common and dangerous chemicals could sink into water supplies and groundwater aquifers. According to nonprofit advocacy group Earthworks, additional public health risks may be associated hydraulic fracturing processes in specific locations.

Even though Americans think natural gas is relatively inexpensive, they may not realize the cost savings that could be possible by converting to energy-efficient homes. Homeowners who have hired a home inspection company to survey their properties have realized just how significantly energy upgrades can help slash utility bills.

After an energy audit is conducted, homeowners may make simple enhancements to their lighting by installing CFL bulbs, or they may choose to conduct more invasive procedures, such as hiring a contractor to overhaul their heating and insulation.

Consumers may think they can just go out and purchase LED and CFL bulbs to replace their incandescent predecessors, but they may also need to contact an electrician and home inspection professional if the socket in question is controlled by a dimmer. 

Homeowners may have installed dimmers in their living rooms and dining rooms years ago, in order to allow them the opportunity to alter an area's environment through adjustable lighting. After all, not many people want to eat dinner under a blinding cluster of light bulbs set to their maximum power.

The U.S. government's decision to gradually phase out incandescent bulbs has rendered some dimming devices useless, as many are designed specifically to work with older bulbs, not their newer energy-efficient counterparts.

"The vast majority of existing home installations prior to 2011 were designed in such a way that the lighting devices are unable to effectively support dimmable LED or CFL bulbs," Leviton executive Michael Neary told Health News Digest.

To continue to use adjustable lighting, some consumers have had to stock up on incandescent bulbs to use in those sockets, even though they waste more energy. Others have sought the help of electricians to install different types of dimmers that are required to control some highly efficient bulbs. A third option is to find models of energy-efficient bulbs that work with traditional dimmers.

Energy-efficient homes do not have to be inadequately lit homes. A Washington, D.C. home inspector will have the knowledge needed to assess a home's lighting needs and current energy use through an energy audit, which can reveal areas of the home that can be upgraded. Once homeowners slash their energy bills, they will understand the true benefit of seeking outside assistance.

Energy-conscious consumers appear willing to shell out more money for more expensive LED and CFL bulbs, as long as they last longer and are energy efficient. Would consumers be willing to pay $50 for one light bulb, though?

Last week, The Washington Post reported that Philips will soon begin offering an LED bulb that runs on 10 watts, lasts longer than traditional bulbs and emits brighter colors. Although consumers may scoff at the $50 price tag, Philips is on the right track when it comes to lighting solutions.

"I don't want to say it's exorbitant, but if a customer is only looking at the price, they could come to that conclusion," Home Depot senior official Brad Paulsen told The Washington Post. "This is a Cadillac product and that's why you have a premium on it."

LED bulbs are appealing to consumers because they last about 20 times longer than the average incandescent bulb – 100,000 hours compared with 5,000 hours. The primary reason for this difference is that most of an incandescent bulb's energy – about 80 percent –  is lost as heat energy. An LED light is much more energy efficient, in that it only loses 20 percent of its energy to heat. This may also make bulbs safer, as they are not nearly as hot.

Although LED and CFL bulbs do have higher up-front costs, their extended lifetimes, relative to incandescent bulbs, provide long-term financial benefits to consumers. Users of these energy-efficient bulbs also do not have to worry about regularly purchasing and changing light bulbs.

Upgrading lighting is one of the easiest ways for a consumer to begin unlocking the basics of energy-efficient homes. To learn about addition strategies to cut utility bills, homeowners should contact a Washington, D.C. home inspection provider to conduct an energy audit in their residences.