Lower Winter Fuel Costs + Mild Weather + Energy Efficiency + Federal Tax Credits = Good News for Consumers

Washington, D.C., October 6, 2009 – Lower heating fuel prices combined with anticipated milder weather should result in lower heating bills for U.S. households this winter, according to the Energy Information Administration (EIA) – and that is welcome news for consumers in these uncertain economic times, the Alliance to Save Energy said today.

The Alliance added that employing energy efficiency measures around the house can reduce heating costs even further, while making homes more comfortable and lowering their carbon footprints.

The 2009-10 Winter Fuels Outlook released today by the Energy Information Administration says the average U.S. household’s heating bill for the 2009-10 season will be lower than last winter’s by $84, or 8 percent. The Alliance has projected that the average U.S. household will spend a total of $2,200 for home energy in 2009.

“Heating accounts for 31 percent of the typical home’s energy costs,” said Alliance President Kateri Callahan. “So using energy efficiency measures to lower those heating bills will keep real money in consumers’ pockets. Simply tightening up your home and insulating sufficiently to avoid sending precious warm air ‘out the window,’ for example, can cut yearly heating bills by up to 20 percent.”

Homeowners also can consider defraying part of the cost of certain energy-efficiency upgrades by taking advantage of federal tax credits in place now through 2010.

“Uncle Sam is now providing a 30 percent tax credit – a dollar-for-dollar reduction in your income taxes owed – of up to $1,500 during the remainder of 2009 and throughout 2010 for specific energy efficiency home improvements,” Callahan added.

All the details on qualifying products – which include not only insulation and sealing products but also highly efficient furnaces, heat pumps, and windows, among others – are available at www.energytaxincentives.org.

According to EIA:

• Households that heat primarily with natural gas are expected to spend $875 this winter, an average saving of $105 (12 percent) compared with last winter.
• Households heating primarily with heating oil are expected to spend $2,000 this winter, saving an average of $40 (2 percent) compared to last winter.
• Propane users also are expected to spend an average of $2,000 this winter, a decrease of $280 (14 percent) from last winter. That decrease varies broadly by region, from 21 percent in the Midwest to 5 percent in the West, EIA notes.
• Households that heat primarily with electricity can expect to spend $1,000 this winter, an average of $20 (2 percent) less than last year.

The Alliance suggests the following winter (and year-round) home energy tips:

• Smart Fix – Plug up leaks to the outside – Seal air leaks with sealant, caulking, and weather stripping; and install appropriate insulation for your climate to increase your comfort, make your home quieter and cleaner, and reduce your heating (and summer cooling) costs up to 20 percent. (Please note that for these products, installation costs are not eligible for the current federal tax credit.)
• Properly maintain your HVAC system. Just as a tune-up for your car can improve your gas mileage, a semi-annual or yearly tune-up of your heating and cooling system can improve efficiency and comfort. The federal government’s ENERGY STAR website can help you find a qualified individual (www.energystar.gov/index.cfm?c=heat_cool.pr_contractors_10tips).
• Keep furnace filters clean. Check your filter every month, especially during heavy use months (winter and summer), and change it if it looks dirty. At a minimum, change the filter every three months. A dirty filter will slow down air flow and make the system work harder to keep you warm – wasting energy. A clean filter will also prevent dust and dirt from building up in the system, which could require expensive maintenance and/or cause early system failure.
• Let a programmable thermostat “remember for you” to lower the heat while your home is empty and/or overnight to reduce heating costs by up to 10 percent – and allow you to come home and wake up to a toasty, comfortable house.
• Consider installing ENERGY STAR qualified heating and cooling equipment. If you have to replace your HVAC equipment, consider a unit that has earned the ENERGY STAR. Installed correctly, these high-efficiency units can save up to 20 percent on heating and cooling costs. As noted, certain highly efficient models qualify for the current federal income tax credit.
• Seal your heating and cooling ducts. In a typical house with a forced air system, about 20 percent of the air that moves through the duct system is lost due to leaks, holes, and poorly connected ducts. Sealing and insulating ducts increases efficiency, lowers home energy bills, and can often pay for itself in energy savings. Also, a well-designed and sealed duct system may make it possible to downsize to a smaller, less costly heating and cooling system that will provide better dehumidification. Insulate ducts in unheated areas such as attics, crawlspaces, and garages with duct insulation that carries an R-value of 6 or higher.
• Save on the cost of heating hot water – Keep the temperature at 130 degrees, and insulate the hot water storage tank according to manufacturer’s directions, without covering the thermostat. For detailed information, see the U.S. Department of Energy’s Energy Savers consumer booklet at www1.eere.energy.gov/consumer/tips/.
• Open curtains and other window treatments on your west- and south-facing windows during the day to allow sunlight to naturally heat your home, and close them at night.
• Go “window shopping” at www.efficientwindows.org to discover how high-performance ENERGY STAR-labeled windows can cut heating costs by as much as 30 percent compared to single-pane windows, while increasing indoor comfort and lessening fading of home furnishings.
• Also look for the ENERGY STAR label, the symbol of energy efficiency, when replacing or buying appliances, electronics, lighting and many other product categories to save up to 30 percent in related electricity bills. See www.energystar.gov for details on all 50 types of products.