Reducing Home – Related Energy Costs

In reviewing the electricity price trends over the past 50 years (refer to figure 1) real electricity prices are at a level consistent with the industry’s lowest real level of the 1960s. Since many consumers are interested in reducing their overall household costs, there are certainly opportunities to reduce costs related to the use of electricity. However, the first step requires an understanding of typical consumption levels and unit costs.

Targeted Devices

The following discussion summarizes, by device, areas where consumers can realize savings (assuming a kilowatt-hour of electricity cost $0.10):

• Heat Pump/Central Air: Assuming typical consumption of 15,000 watts and a cost per hour of $1.50, the use of heat or central air conditioning costs between $15 and $22 per day.
• Water Heater: A typical household will spend several dollars a day with washing clothes, taking showers, and cooking food. A typical load of clothes uses $1.50 worth of electricity and a shower costs approximately $1.00.
• Refrigerator: Typically operating 10 hours a day, refrigerators cost in the range of $1.00 to $2.00 per day.
• Computer and Televisions: Leaving a computer or television on all day will cost between $1.00 and $2.00 per day.
• Light bulbs, seemingly low in cost per hour ($0.6 cents per hour), can accumulate costs rapidly with our tendency to leave several fixtures on continuously. Typically, a continually running light bulb can cost between $1.00 and $2.00 per month. Multiply that time the number of light bulbs in a typical house would easily equate to potential waste in the range of $20.00 to $30.00 per month.

Realization of Energy Cost Reductions

In order to realize any reduction in energy costs, consumers will need to alter behaviors and activities relative to the above targeted and other devices:

• Use programmable thermostats and apply discretion in setting temperatures for central heating and air conditioning.
• Improve efficiency in washing clothes and use energy efficient shower heads.
• Avoid keeping the refrigerator door open for extended periods of time.
• Minimize the amount of time computers and televisions are on, particularly in recreational settings.
• Turn off lights when not in use (notwithstanding safety and security)

No one action will have dramatic results. But taken in their entirety, can easily save a household $500 per year.