Energy efficiency: A 21st Century Investment
July 11, 2011 by Mark
For safe, guaranteed returns invest in your own home’s energy efficiency
Homeowners who invest in Spray Foam Insulation will realize financial benefits immediately and for as long as they own their homes. This page focuses on spray foam insulation and it economic return.
Your returns are:
- Guaranteed return – unlike batt or blown insulation, or the stock market, spray foam will not degrade in performance over time.
- Perpetual, nontaxable return. Once invested your return will continue, increasing in value as utility rates rise.
- A more valuable home – invest in the home you live in, no one cares about the investment as much as you do.
| Example: The Gale’s live in a well maintained 1750 sq ft home built in the mid 1970s. Mrs. Gale noticed the floors in the old house were cold and damp and wanted to do something about it. During a free insulation audit R-13 fiberglass was discovered in a vented attic. |
|---|
Energy Expense Analysis
| Energy Costs | ||
|---|---|---|
| Winter | Summer | Annual Total |
| 800.00 | 600.00 | 8400.00 |
| Heating and Cooling portion @60% of total energy bill |
5040.00 | |
| Dollar Savings @ 20% improved efficency = 1008.00* per year | ||
Problem: Cold floor and room over crawl space, R13 attic fiberglass insulation
Solution: Apply 2″ closed cell foam in crawl space to prevent rising dampness and apply 5.5″ of open cell foam to seal vented attic, Cost: $5400
| Cost analysis @ 20% improved efficiency | |||
|---|---|---|---|
| Total Cost | 5400.00 | ||
| Tax Credit | 300.00 | ||
| Cost After Tax Credit | 5100.00 | ||
| Annual Energy Savings | 1008.00 | ||
| Payback years | 5yrs | ||
| 5 yr Return | 5040.00 | 99.5% (Capital Recovered) | |
| 10 yr return | 4980.00 | 98% ROI | |
ROI Comparison
The chart below compares several investment options. Over a 10year period, a $5400 spray foam investment in home comfort and clean air, will perform on par with a 9% growth stock. The added benefits of cleaner air, draft free comfort and a smaller carbon footprint add to the efficiency side of the equation.
| Savings Account @3% | Stock Market @9% | Spray Foam Insulation** | ||
|---|---|---|---|---|
| Investment | 5400.00 | 5400.00 | 5400.00 | |
| 5 yr Earnings | 839.01 | 2690.94 | 1140.00 | |
| 10 yr Earnings | 1817.40 | 6705.48 | 6180.00 | |
| Return on Investment @10 years |
41% | 123% | 114% | |
| Amount at risk | Safe – FDIC Insured | 100% | None | |
| Taxable | 100% | 100% | No tax | |
| Other Benefits | None | None | Draft free, comfortable living space Improved Indoor Air Quality Reduced carbon footprint |
Energy cost reductions depend on many factors including HVAC equipment, non-HVAC energy usage, lifestyle and other factors.
* Energy reduction figures are based on EPA estimates
** Based solely on energy savings at current utility rates
In the example above, energy costs are computed at steady utility rates. Any increase in energy costs will improve performance of Spray Foam column.
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