Green Home Improvement Guide

Renée Clark loves her Alexandria, Virginia, home, but until recently her utility bills often left her perplexed. “My water bill would be almost $200 a month and one time it was nearly $500,” Clark says. Some of her neighbors, on the other hand, had bills in the $70 range. So, when she learned about a program that would pay for energy improvements on her home, she took advantage of it.

In December, GREEN DMV Inc., a Washington, D.C.-based nonprofit organization that promotes environment-friendly living and green jobs to low-income communities in the Washington metropolitan area, paid more than $3,000 for renovations on Clark’s home through private donations from financial institutions. The improvements included weatherstripping, caulking, appliance replacement, and non-toxic painting. “We discovered her toilet was the culprit for the high water bills,” says GREEN DMV co-founder Rhon Hayes, so they replaced it with a high-efficiency model. Since all the changes, “there’s less air coming into my house,” Clark says, and her most recent water bill dropped to $154. Her heating bill, which typically ran nearly $300 a month during the winter, was down to $189 in January.

Like Clark, many American homeowners are finding they can save money over time by taking on a green renovation project. “These are renovations that are going to have both a monetary and a healthy impact on the occupants,” says Nate Kredich, vice president of Residential Market Development for the U.S. Green Building Council. By fixing energy leaks, homeowners can cut 10% to 15% off their bills, says Martin Holladay, senior editor at GreenBuildingAdvisor.com. In some parts of the country, homebuyers pay a premium for energy-efficient homes, says Sandra Adomatis, a Punta Gorda, Florida-based appraiser and instructor for the Appraisal Institute, which offers courses on appraising structures with energy-efficient and green features.

Energy efficiency could be worth much more in the future. The Sensible Accounting to Value Energy Act seeks to require mortgage lenders to consider a loan applicant’s ability to pay projected energy costs in addition to the principal, interest, taxes, and insurance. “If lenders start considering the cost of energy, that’s going to make these energy-efficient homes more desirable and more affordable, and you’re going to see people willing to pay a little more up front in order to have that payback every month,” Adomatis says.
Whether you’re hoping to cut your energy bills, improve your home’s air quality,
or clean up the environment, a green renovation project can help you get there.
Here’s how to determine your specific home renovation needs and ensure that your project is a success.

Determine your priorities.
First you must decide why you want to go green. Some homeowners are concerned with water efficiency. Others want to cut their heating and cooling bills or make sure their home is free of toxic materials. “If I have children who have asthma or allergies, then indoor air quality is going to be really important to me,” says Kredich. Once you’ve identified your biggest objective, you can decide which renovations will help you achieve it.

Get a home energy audit.
If your main priority is cutting energy costs, this step will show you where to start. “A home energy audit is where a qualified, trained energy professional comes into your home and performs a series of tests to identify opportunities to make the home more energy efficient,” says Kredich. An audit may find that you should replace your windows, for example. Your utility provider may offer free or discounted energy audits. You can also hire an auditor by looking for one certified by RESNET or the Building Performance Institute Inc. An  audit for an average three- or four-bedroom home may cost about $150 to $200.

Consider your budget.
You can spend $50 or $50,000 to make improvements to your home. So you want to determine which modifications will save you the most money over time. Most renovations will pay for themselves in energy savings. But the question is how long it will take for that to happen. Some homeowners may be willing to wait five years, while others may take an even longer-range approach. You shouldn’t make renovations until you know how much you’ll save and how long the payback period will be. A home energy auditor should be able to provide that information, says Holladay. “If they can’t do that, you’ve got the wrong type of person giving you advice,” he adds. “You probably shouldn’t hire them.”

Go for the practical.
When we think of green renovations, we sometimes picture a solar panel roof or an elaborate rainwater harvesting system, but often the best renovations aren’t as complex. “If people put solar panels on their roof but their home leaks air like a sieve, then all that investment they’re making is literally flying out of the windows every single month,” says Kredich. Hayes suggests weatherizing your home first to keep energy intact. After that, consider upgrading to appliances with the Energy Star label, which means they meet government-backed energy efficiency requirements.

Look for the money.
Energy efficiency improvements don’t just benefit you; they help the environment. So the government has a vested interest in helping Americans make green renovations. “Folks really have an opportunity to take advantage of state and federal programs that have been put in place to ease the financial burden for those who want to make sustainable upgrades and green retrofits,” says Hayes.
For example, the state of Maryland recently offered a 35% rebate on improvements such as attic insulation and whole-house air sealing. To find similar programs, do an online search with your state’s name plus “energy office.” On the national level, the Weatherization Assistance Program falls under the U.S. Department of Energy and provides grants that enable low-income families to make their homes more energy-efficient. Find programs that administer the funds at www.eere.energy.gov/wip/project_map. Another site to find a list of federal, state,

and local incentives promoting energy efficiency is www.dsireusa.org. You may also qualify for federal tax credits for certain energy-efficient purchases such as windows, doors, and water heaters (www.energystar.gov, click on Tax Credits for Energy Efficiency).

Choose a contractor and supplies.
Check references and licenses just as you would with any contractor, but you also want to make sure you find someone who’s familiar with energy efficiency retrofits, suggests Kredich. “Weatherization contractor” and “home performance contractor” are terms often used to describe those who have energy-efficiency experience. You can also ask if the contractor has any special certifications. The National Association of the Remodeling Industry (NARI) offers a Green Certified Professional designation and the American Society of Interior Designers has a Regreen Trained Certificate Program in conjunction with the U.S. Green Building Council.

There’s no single standard for green products or materials, but you can find eco-friendly items at many retailers, such as Home Depot’s Eco Options brand. Other websites, such as www.ecofriendlytek.com, list suppliers of green products.
Once you’ve decided on your renovations and lined up your money, supplies, and contractors, the only thing left to do is wait for the work to be done and realize the eventual return on your investment. “From what I see, most folks’ apprehension is that up-front investment,” says Hayes. “But over time you’ll realize the benefits and you’ll help your energy savings, your pocketbook, and the planet as well.”