Energy

Weatherizing Your House

| Mon Nov. 23, 2009 9:17 AM PST

"Using energy more efficiently in buildings may be the fastest, cheapest way to substantially reduce carbon emissions in the short-term," says David Roberts, and I think my only quibble there would be with the word may.  But how do we get people to do it?  Most people don't bother with this stuff even if it already makes economic sense, so putting a price on carbon and raising the price of energy will probably have only a minor impact on getting people off their butts to weatherize their houses and buildings:

Evidence indicates that the elasticity of energy demand is weirdly low.  The price signals that already exist aren’t getting a rational response. People can already save lots of money by investing in efficiency, but they aren’t doing it. They absorb a lot of price pain before they adjust their behavior....Which raises the question: why should price-based policies be our exclusive focus? Why not instead, or in tandem, try to increase elasticity of demand? If the federal government wants to get good job and economic results from its stimulus investments—and it surely does—it should not only spend the money, it should start attending seriously to the project of meliorating the market and behavioral failures in efficiency markets.

How do we remove the barriers? It turns out we know a decent amount about them but comparatively little about how to overcome them.....We’ve had three decades of cheap energy, so there’s been little reason to focus on accelerating efficiency; our know-how froze in the 1970s.

What’s clear is that getting the most out of efficiency will not only mean federal policy but state and local policy,  public-private partnerships, new financing models, new models of information sharing, and much more creative thinking. Because we know so little, there’s a lot we can learn quickly with an all-hands-on-deck effort.

Part of the problem here is simple: inertia.  Or call it laziness if you like.  It's like the difference between opt-in and opt-out: people are far more likely to accept the status quo, whatever it is, than they are to actively seek change.  Look at me: I accidentally ordered a bunch of extra channels from my cable company a couple of months ago, but I still haven't gotten around to cancelling them.  Maybe I never will.  Inertia is powerful.

But we also know that financing is a big part of the problem too.  Most of us don't have $10,000 to get our homes up to snuff, and if we finance the improvements via a loan, the payments need to be low enough that we see a net savings each month.  That might require government help.  Most of us also aren't willing to bother with this stuff if we think we might be selling our house in the next few years.  Creative financing that stays with the house, not the homeowner, can help here too.

But pure marketing is also part of the answer.  Many of us, I suspect, don't really believe all the claims about energy audits.  Even I don't.  Several years we bought a new refrigerator, and the energy savings on the model were plastered all over it.  What's more, the Energy Star program has gotten lots of publicity over the past decade.  And yet, I was still sort of surprised when we got the next month's electricity bill and it was about $20 lower than before.  In my heart, I guess I hadn't ever really believed that all the hype was true.  But the fact is that it really has paid for itself over the past five years.

So yes, this is low-hanging fruit from an economic point of view.  But to get the most out of it, we need a lot more work on quantifying the benefits, on marketing, on behavioral prods, and on financial programs.  Plus we need whatever stuff David is promising to share in a followup post tomorrow.  It'll probably be worth reading.

Advertisement

Advertisement

Kevin Drum is a political blogger for Mother Jones. For more of his stories, click here.

Get Mother Jones by Email - Free. Like what you're reading? Get the best of MoJo three times a week.

Comments

Wasn't there some research

Wasn't there some research (via Freakonomics?) concluding that the prospect of saving money didn't motivate consumers to weatherize? And utility company incentives didn't work either.

The only thing that did work was showing people the lowered utility bills of neighbors who had weatherized.

h

Who Said It Would Be Easy?

One of the businesses I own is a construction company. These days when we talk with home owners, most ask about green building practices, but in the end, none of them want to spend extra for energy efficiency or sustainability. People would rather spend their money on square footage and fancy fixtures.

We aren't going to solve this problem with one great gesture, rather it will take many small steps (this may be why modern politics is helpless to do anything). This is compounded by the fact that most building codes and energy codes are local. Few localities want to be bothered writing regulations that have little local impact, and the standardized codes are currently rather weak.

One thing that could, and should, be done, is requiring that an entire building be brought up to current code if significant alterations are made. We already do this in other areas, for instance requiring the fitment of hard wired smoke detectors during major remodeling.

We might also consider requiring some minimal level of energy efficiency for rental housing.

These are just a couple of common sense ideas. If we really want to solve the problem, it will require thousands more steps like these. Anyone who thinks that any one step (say getting rid of the internal combustion engine) will fix things is a fool.

assist people in replacing old energy guzzling appliances?

Wasn't there some talk about a stimulus bill that would assist people in replacing old energy guzzling appliances?

Berkeley's ahead of the game

The city of Berkeley is out in front on this as it is with financing of residential solar. In this case, the city has set minimum standards in its Residential Energy Conservation Ordinance that must be met when a house is sold or goes through major renovation. This has the twin effects of both forcing the issue and allowing the costs to be rolled into a mortgage. People may not like the idea of the mandate, but this is an idea that has already been tested and proven effective. http://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=16030

It's hard to overcome

I'm not sure whether it's laziness or inertia or some combination thereof. My office is the most poorly-climate-controlled room in the house. It's where I spend most of my time, and it's horrendously uncomfortable. I sweat it out every summer, and I shiver every winter. Even if it cost a thousand dollars to fix, it would be totally worth it. And yet I don't call the HVAC company to have a look at it. Heck, I write a psychology blog and I can't explain why I do this.

Multiply this by 300 million, and pretty soon you've got a real problem on your hands.

Yes, yes, yes! If the

Yes, yes, yes!

If the administration wants a stimulus that will create jobs, energy efficiency upgrades are exactly where they should be focusing. Employ people will helping energy costs. No-brainer.

I insulated my house a few years back and my Winter gas bill dropped by $25-50 a month. I started turning off my computers at night and shaved $10 off my monthly electric bill.

Title 24 has made big strides in forcing new construction to be more efficient (doesn't go far enough in my book, but it is a start.) Where we lack is a similar program to bring the aging housing stock up to date. New windows, insulation, better roofing, air sealing.... Instead of a tax credit to buyers, how about we use that money for energy efficient renovations for each home sale?

And how much did that winterizing

cost you? At $20 to $50 a month just for the winter months, it's going to take a lonnnng time for the payback. Good for you for doing it, but I can't afford to invest that kind of money it it won't pay for itself in no more than 5 or 10 years.

Insulating the attic: $400

Insulating the attic: $400 in insulation costs, two days of my time.

Insulating the walls was done in conjunction with replacing the failing siding of my house. Cost was approx $1000 for the insulation and 3 days of my time putting it in.
Granted, not many people have an opportunity where their walls are open for easy insulation application. I'm not sure of the costs for blown-in insulating.

Windows was another one. Most of the existing housing here in SoCal has single pane. New windows cost me around $2200 for the windows and another $2000 in labor for install. Having watched the installation, I'd do it myself if there was a next time.

renter

I'll second the idea of a minimal level of efficiency for rental housing. I rent, and I pay the utilities. As such there is NO incentive for the landlord to improve efficiency. Heck, I've discovered heating vents that were disconnected from the hot air ducts (i.e., hot air being blown under the floor instead of into the room!) and it took weeks and weeks of pestering. It got done, but the job was so crappy that the next season the ducts were once again disconnected.

This is an area where improvements will only happen through legislation. Unfortunately, I'd imagine that your average landlord has more political clout than your average renter.

Cheap energy

Cheap energy institutionalized its wasteful use. The price shocks of the Seventies and the early Twenty-first Century stimulated consumers to conserve energy by weatherizing their homes, saving both energy and money, but the conserving of energy is still a low priority for many. The low priority for conserving energy dismays some because energy is perceived as an expensive, finite resource. Certainly petroleum is finite, and even the output of the Sun could be considered finite, but consumers are too far removed from the generation of electricity to understand the enormous costs, financial and environmental, it takes to provide it.

Conservation + Job creation

Minnesota used a portion of its Fed stimulus money to create a program that unites residential energy conservation with creating jobs in the remodeling industry via Project ReEnergize ( http://www.homeenergyresourcemn.org/ProjectReEnergize/index.aspx ). Remodeling contractors went to training to understand the construction parameters and the tax rebates for homeowners. These same contractors sold the program to consumers (with the help of a state-wide publicity campaign run by the state builders association). Few restrictions were placed on homeowner eligibility - basically no home built after 2000 and no McMansions. No contractor could sell more than two contracts, so no one cornered the market. In 3 weeks, $2.5 million was sold, producing long term energy conservation, creating jobs in a depressed industry and improving home values.
Packaged properly it is possible to put some sizzle in conservation.

Weatherization Barnraisings

Home Energy Efficiency Team (http://www.heetma.com) in Cambridge, MA has been doing monthly weatherization barnraisings for over a year. Now there are at least 14 other communities that are doing the same thing. Experts lead teams of volunteers weatherize homes and the homeowners pay for the materials. People learn new skills that they can take home and use there. At the end of the day, we share food and there's usually a band playing for the party.

I'd like to see a weatherization barnraising on the White House with the full participation of "This Old House," "Extreme Makeover: Home Edition," and all the other TV carpentry shows. That would be a great kick-off for a "Cash for Caulkers" program. I'd also like to see less issue ads about climate change and more practical lessons about what we, individually and collectively, can do about it. I've done what I can with my own solar videos on youtube (user: gmoke).

A market proposal?

If the weatherization savings are so profound over time, here's a bizarre idea for overcoming the inertia. The theory here is that homeowners will be pleased to get a small benefit, coupled with the warm fuzzies from being kind to the planet, as long as they don't have to spend anything much out of pocket.

I'm going to completely invent numbers here just to explore the idea. Suppose it costs $5,000 to weatherize Mr. Jones's home, but Mr. Jones will save $1000 in utility bills per year (like I said, I'm making this up). Suppose the following happens:

1) The federal government loans $5000 to Mr. Jones's utility companies at some low interest rate, say 6%, if they can persuade him to get his house weatherized.
2) The utility company pays some weatherizing company to get Mr. Jones's home properly weatherized.
3) Mr. Jones pays nothing out of pocket, but agrees to pay some percentage of the savings from weatherization to his utility companies for some period of time, out of his monthly utility bills. Thus, the utility company and Mr. Jones split the $1000 each year in some way.
4) If Mr. Jones sells his house before the weatherization is paid off, the balance comes out of the sale price of his home.

The big trick, which might make this untenable, is defining what "savings from weatherization" really are and how to quantify them. Perhaps Mr. Jones would get to keep more of the savings if he cut a larger percentage of energy usage off his bill or something.

Still, I wonder if you could structure something that would make the utility companies some money if they did the weatherization properly and Mr. Jones some money if he was smart about energy usage. That could get around the inertia issue because the utility companies could approach their customers with an eye to extra revenue and sell their customers on making a little cash and doing a good thing for the planet at the same time.

For what it's worth, Orange

For what it's worth, Orange County is SoCal Edison territory -- right? Best as I can tell, your power rates start about 50 percent higher than ours up in one of the little socialized power paradises up in NorCal, and they climb almost geometrically once you cross the baseline.

All EnergyStar appliances, all cfls, still can't save a dime, the power's so cheap.

It doesn't have to be expensive

I believe one of the issues is that people only see the big expensive projects. I am not even close to being rich, more like slightly about poverty level (by choice). My neighbor across the street lives in a similar house, built the same year as mine, about 90 years ago. She recently paid over $1,800 for oil to heat her house for the winter. My total bill to heat my house last year was just above $600. The only difference was my high efficiency gas heater (that already paid for itself), I keep my house at 63 degrees (I actually got used to it and I'm from the tropics), wear layers of clothing, use plastic sheets on my very old windows and curtains on the rest, cover my pipes, etc. I only increase the temperature while I shower. I buy what I need for the next year on sale at the end of the season. I usually spend about $40-$50 a year on weatherizing supplies. I live in Central Minnesota and cold (very) season here lasts around seven months, if we are lucky. Yes, I could spend $10,000 plus and save myself a few hours a year, but why?

Weatherization is a Job-Creating Machine

It was great to hear President Obama emphasize the job creation power of weatherization tonight. It doesn't need to cost anywhere near $10,000 to weatherize your home. This past weekend I volunteered with WeatherizeDC, a local non-profit group that employs a community-based model so that most homes in an area spend $2000-$4000 to reduce their energy consumption by 15-30%. I had a great time talking to folks in northwest DC about reducing their carbon footprint and saving on energy bills - lots of people want to do that, they just don’t know where to start. WeatherizeDC works with a local home performance business and a labor union who train and employ people for these good green jobs. So making your home more energy efficient saves homeowners money, generates work for small businesses, and is good for the environment.

If you’re interested in getting involved, visit weatherizedc.org or watch volunteers in action: http://www.youtube.com/watch?v=2Fj3YOTcxUQ. It was snowing when I went to the local office for the canvass training, so I expected to be part of a small group – I was pretty shocked when I was joined by more than 30 other people!

Post new comment

Alternately, you may login to or register an account
The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <ul> <ol> <li> <blockquote>
  • Lines and paragraphs break automatically.

More information about formatting options

MoJo Comments: Send Us Your Feedback

We changed our spam software to better filter comments. Should you encounter any issues, please let us know.

Photo Essays

The chaos and humanity of war.
The craftspeople and musicians of Appalachia.
A selection of '70s ads depicting African-Americans.
As climate change melts the permafrost, native villages slip into the sea, taking a way of life with them.