Does it make sense paying $8,000 to save $50/month in heating?
 

I got this inspection report on the renovation I should be doing to reduced the energy cost on a house. The total of the renovation cost is around $8,000 and it will reduce energy cost by about $50 per month.

Would you spend that kind of money to save that little?

in 13 years that 8,000 investment will have barely paid for itself. Do you plan on living there for 13 years? Do you think that in 10 years there won't be better way to effeciently save energy costs?

8000 divided by 50 = 160. It will take 160 months to make up for the cost.




Or am I way off?

I say you change house

dont forget about inflation ;)

also..is some of that cost able to be deducted from tax?

i mean do you work in your home?
ask your tax guy

I could see myself living there for 5 years; beyond that, who knows.

Two things. You have your initial cost (8000) and your initial savings ($50/month). Straight line says "takes forever to get your money back".

However, does that 8K investment improve the value of the house? if you did the work and then sold the house, would you get more money for the house as a result?

Key question right there.

Also, I'd advise you to look for programs that offer grants and discounts on this type of home improvement project. I know here in Manitoba right now there are several going on. I'm just about ready to start calling contractors for my rental house... will be at least a $20k project but will improve it greatly. Similar houses on that street sold for well over $200k recently, and since I only paid $68K for that house originally I should easily be able to recoup the cost and then some... that is if I ever sell. It's valuable revenue property.

heh i notice many people forget to factor in the environmental aspect..

If we keep doing everything with only the cheapest way it can be done in mind our kids are going to have the crappiest shithole to live in.

:thumbsup :thumbsup :thumbsup

Yes Alex, you must do it for the environment or we're all going to die, what were you thinking?
At least do it for the children.

I don't think I'd get more money for just from doing the work, I might get some of the money back if I'm lucky. People that can afford more expensive houses usually buy in other neighbourhoods....

now way. in 13+ years not worth it. IMO if it doesnt pay for itself in 1-3 years then look for an alternative

Here in Quebec, we have Hydro Quebec that give grants to replace manual thermostats with electronics ones,we are talking less than $100 in reimbursement here.

I'm assuming Canada has an energy department. You may want to see if they have any special grants or loans out. If a loan will let you swing under $50, it may be worth doing.

I really wouldn't do it unless the new unit would make your house more comfortable as well. Example: I would like to add insulation and new windows to my house. I don't think the savings will counter the expense, but it would make the house much more comfortable.

Regarding the environment, yes its true we should try to do what we can, but we also have to be realistic. One person spending $8k for a new unit is not going to make much of a difference. In 10 years, when the standard unit is much more energy efficient and cost efficient, then an actual difference would be made.

Very few people ride a bike instead of driving just to "save the environment". It just isn't practical.

very well spoken SIR!

Well it really depends what kind of person you are.

Me, on the other hand, Fuck no. Spend 8 grand, to save 50 bucks that u would probably spend in 1 single day, no thanks.

It's a poor investment unless:
a. you care about the environment
b. renovation would increase the value of the house significantly

dont see the point myself

I am changing all my house hold bulds to energy effectient ones.

13 watt bulb = a 30 watt bulb
26 watt bulb = a 100 wat bulb

I am going green slowy.

yeah what Alex say is true, i think your from Quebec or Canada, checkout with local electricity compagny (Hydro-Quebec here), they have A LOT of energy saving refund plan for investment like that

I did check the Hydro-Quebec site, they reimburse a few dollars for termostats, light bulbs and "Energy Star" appliances. The appliances and the compact fluorescent bulbs, I already have; and for the termostats, I'll get less than $100 in reimbursement to put electronics termostats troughout the house.

I think their program is more for builders that make new houses and for industrial and commercial buildings. They give practicall nothing for old houses from what I see on their site!

n0 man do the math !

My 15 watts mini compact fluorescent bulb egual a 60watt bulb and last for 10,000 hours.

Well 8,000usd is way too much to invest in such thing.

Actually all the numbers are in Canadian dollars.