We got the results of our EnergyStar audit on Saturday. They’re recommending $20,000 worth of work, and promising that we’ll probably save at least $150 a month on average based on last years energy bills. They also said we could save another $150 a month if we did the windows, but doing them in a way that’s sensitive to the age and architecture of the house (ie. not replacing leaded glass windows and wood frames with modern plastic crap) would be really expensive – maybe $30,000 to $40,000.
The problem is that the net present value of $150 a month for 10 years (which is the expected lifetime of the new furnace) is only about $14,000. Obviously energy prices will go up, and the only energy year we have records for, last year, was unusually mild, so the savings might be greater in a year like this year. But it’s still hard to say “go ahead and spend that money” with such an uncertain pay-back. So I have to think about the non-monetary pay-back as well, like the fact that the house will be more comfortable, and it will reduce our carbon footprint, and it might have a small positive affect on the value of the house.
Still, $20,000.
Sigh.