Can You Afford Your New Home’s Energy Bills?

Buying a home is expensive, and most people searching for a home are already well aware of that. Money must be set aside for closing costs, repairs, and moving costs. And it’s probably not a bad idea to have that “little extra something” in the bank for an unexpected expense.

Yet even the most prudent home buyers often overlook a considerable expense: Utilities. From inefficient systems and appliances to simply having more square footage than an apartment or smaller home, the cost of utilities can be the unexpected expense home buyers don’t consider until their first bill arrives. But like any other cost, considering energy costs before the home is purchased can remove the element of surprise.

Taking such costs into consideration starts before you even set foot in a house you would like to buy, according to Charles Segerstrom, Supervisor of PG&E’s Energy Training Center in Stockton. “Before you even look at energy hogs, you should look at the location,” Segerstrom explains.

He suggests home buyers look at factors such as the existence of trees, houses, or other structures that block the sun or wind, as well as the type of siding the house has and whether solar heating panels are evident.

“The vintage will tell you more than anything,” Segerstrom explains, noting that older homes often need energy-efficient upgrades. “But if I were looking to buy a home, when I got to the home, I would look at the building envelope itself.”

Segerstrom points out that features such as the placement of shade trees, the existence or lack of dual pane windows, and the condition of weatherstripping all make a significant contribution to the size of the home’s energy bill.

Once inside, Segerstrom advises that home buyers look at the heating and cooling systems, as well as major appliances.
And while many homes in the East Bay have appliances sold with the home, the older the appliance, the more likely energy is used unnecessarily — meaning existing appliances that come with the home may not be the deal they appear to be.

Segerstrom encourages home buyers to look for the ENERGY STARÃ?® logo on appliances. “Energy Star is the benchmark for energy efficient appliances,” he explains. And even fairly new appliances can be energy hogs. “A 20-year-old air conditioning or heating system can have just half the efficiency of a more modern, Energy StarÃ?® unit.”

Newer refrigerators are also likely to be an energy saver. “Current refrigerators can use less than one half of the energy of refrigerators made 10 years ago, and use 60 to 70 per cent less than those made 15 years ago,” Segerstrom notes.

Even the duct system should be considered. “You want to see whether the duct system has been properly installed, and make sure it hasn’t come loose.” Segerstrom explains that work on the house over the years, from installing antennas and wiring to adding insulation, can inadvertently knock the duct system loose, reducing energy efficiency.

Even the type of energy used can greatly impact the size of a homeowner’s first utility bill. “Look at the fuel source of your end use equipment,” Segerstrom notes. “For example, an electric water heater can be two and a half times more expensive than a gas water heater.” So if you are leaving a gas-heated apartment for an electrically heated home, Segerstrom notes, “You may be very surprised by the size of your energy bill.”

In addition to what is already there, Segerstrom says that what people bring with them (and plan to do once they move) can also raise utility bills considerably. In addition to the litany of electronic equipment, from computers to phones to televisions, many home buyers plan on adding amenities they do not currently have. “People will see an increase in energy usage, particularly if they are adding unusual amenities like wine cellars or portable spas,” Segerstrom notes.

PG&E estimates that 44 per cent of a home’s energy bill is spent on heating and cooling, another 33 per cent on lighting and appliances, and 14 per cent on heating water. Refrigeration alone accounts for the remaining 9 per cent.

Given that breakdown, Segerstrom advises that a programmable thermostat is an important energy-saving device. “The most energy-consuming things in the home are those we take for granted. So a programmable thermostat will ensure we don’t forget to turn down the heat when we go to work or go to sleep,” he advises.

With energy usage being so important to a home’s affordability, some Bay Area home builders are including energy efficiency right into their building plans. J. T. Wahrlich of Pulte Homes oversees the home builder’s energy efficient systems.

Wahrlich is the first to point out that, rather than piecemeal items here or there, Pulte uses a complete system that takes energy efficiency into consideration at every step of the building process, including their recent homes in Brentwood and Mountain House. “It’s really a whole house design that makes it energy efficient,” he explains.

“It comes down to a whole house design — insulation, windows — and we have different consultants that help us design them.”

Pulte uses the Environments For Living�® (EFL) program, which helps home builders incorporate energy-saving building and appliances into each new home.

Pulte’s development in Mountain House is at EFL’s Gold level, while their current Brentwood development is at the Platinum level. A completed and sold out development in Tracy also was designed at the Platinum level.

While some home buyers hire separate inspectors just for energy efficiency issues, many do-it-yourself sources are available on the web.