By Brian Kaminer on January 4, 2013
When I evaluated energy improvements to my home in 2008, I spent a lot of time looking at the financial return. In order for this to work, I said to myself, the financial return must be there – and, as it turns out, it is. The amount of air leaking out of my house was equal to having a 5-foot by 5-foot hole in one of my exterior walls, open all the time. Heated and cooled air was being sucked out my house and money was floating away with it. I was determined to capture those dollars.
Financially, I evaluated the retrofit / energy conservation and renewable energy improvements to our 5,000 square foot 1976 Colonial as an investment. I was seeking a 7- to 8-year payback, where my energy (electric and oil) savings would cumulatively be more than the initial cost of the improvements. The upfront investment/cost created an annuity of savings that continues to increase the return on investment for every year of savings.