photo credit: TerenceKearns.com

One of the easiest, and most internally satisfying ways to save money is by being environmentally friendly. This is part 2 of a multi-part series entitled ‘Green Matters’, which will focus on how reducing your environmental burden will also reduce your expenses. Not only is it the right thing to do, but choosing low cost green alternatives is becoming easier by the day. Part 2 of Green Matters is going to show you how to save money on your heating & cooling bills.

If you’ve ever owned a home or paid energy bills while renting, you know that energy can be a significant chunk of your overall living expenses. According to energyhog.org, the average U.S. household spent $2,200 on household energy costs in 2007, or $183 per month. Furthermore, as much as half goes towards heating and cooling. Let’s take a look at how we can slice your heating and cooling bills. 

1. Lower your thermostat in the winter: for each degree you lower your thermostat, you have the potential of decreasing your heating expense by 5%. That means that simply lowering the temperature from 72 to 68 degrees (the average range that most people feel comfortable at) could lower your heating bills by up to 20%.

2. Purchase an Energy Star programmable digital thermostat: according to Energy Star, installing an Energy Star programmable digital thermostat can cut your heating and cooling costs by $150 per year. A programmable thermostat enables you to regulate your household temperatures periodically without having to constantly remind yourself, even while you’re away. This can help you lower your bills in two ways:

• While you are away: You can set your thermostat to change temperatures while you are at work. For instance, in the winter you could set your thermostat for 60 degrees from the hours of 9AM to 5PM. Similarly, in the summer you could set your thermostat for 80 degrees during those times.
• While you sleep: In the winter, you can use an extra blanket and/or comforter to stay warm. I have been able to go as low as 62 degrees at night and still stay plenty warm. In the summer, try using only a sheet and leave the windows open.

3. Seal your Air Ducts: this can lower your heating and cooling expenses by 20% if done properly, in addition to adding to the overall air quality of your dwelling. You can use metal tape to seal off joints where your cuts meet. Check out the Energy Star guide to properly sealing your ducts.

4. Seal Home Leaks and Add Attic Insulation: this can also lower your H & C expenses by another 20%. I recently purchased cellulose insulation and rented a insulation blowing machine from Home Depot (free with 24 bags of purchased insulation). I was able to add a foot of insulation to my entire attic (which previously had very little) for about $350. I expect to recoup my costs with each passing winter. Here is a DIY Guide to Sealing Air Leaks and Adding Attic Insulation. Also, make sure that your windows, doors, light fixtures, and external electrical outlets are sealed from allowing external air to seep in.

5. Purchase an Energy Star Qualified Furnace:which will save about 15% in heating costs over a non-qualified version. Compare similar models and run the math on how long it will take you to recoup the added expense for an Energy Star model versus a standard model, based on your heating bills. If you think you’ll realistically be living in your home long enough to warrant the step up in price, pull the trigger.

6. Be Smart with your Water Heater: I recently set my water heater temperature slightly past the ‘vacation’ level, barely into the ‘warm’ category. I have found that even in the winter, this has resulted in very hot water for showers. If you also have to turn on the cold water when taking a shower, your water heater is probably set at too high of a temperature.

7. Regularly Maintain your Furnace, AC, and Duct-work: this includes changing the air filter monthly during heavy use months. If you have older machines, you will want to have them tuned with the earliest signs of inefficiency. Efficient running machines can save a bunch on your bills.

If you found this article helpful, subscribe to my free RSS feed, or sign up for free email updates! You may also find the following article of interest:

Green Matters: Reducing my Commute will Fund my Retirement; 10 Ways you can Save at the Pump!

Free Google Docs and Excel Personal Budget Planner Spreadsheets!