High Efficiency Upgrades and Return on Investment
High Efficiency Upgrades to Furnace & AC Units
An energy audit is a good place to start if you’re interested in how and where you can save money and improve your home’s overall efficiency. Audit results usually include a high efficiency equipment recommendation. This entails replacing an older A/C unit, furnace or heat pump with a high efficiency model. Sometimes it’s easy to feel pressured into buying new equipment when you’re promised a quick return on investment. However, it’s important to do your research, and to seek professional advice, before making a decision.
Return on Investment for High Efficiency Upgrades
Below is a general analysis of potential energy savings when older equipment is replaced with energy efficient models. These results are based on an average house size of 2,000 sq. ft. located in Central Virginia. Savings depend on a variety of factors like equipment specs, home size and geographic location.
| Heating Option #1 | |
| Current: Single Speed Furnace | Yearly Operating Cost: $2300 |
| High-Efficiency Upgrade: Variable Speed Furnace | Yearly Operating Cost: $2200 |
| Heating Option #2 | |
| Current: Standard Heat Pump | Yearly Operating Cost: $3400 |
| High-Efficiency Upgrade: Energy Saving Heat Pump | Yearly Operating Cost: $3200 |
| Cooling Option #1 | |
| Current: Standard A/C Unit | Yearly Operating Cost: $700 |
| High-Efficiency Upgrade: Energy Saving A/C Unit | Yearly Operating Cost: $400 |
When pairing Heating Option #1 and Cooling Option #1 upgrades, home value increases by about $7000, and energy savings are approximately:
| 1 year | $350 |
| 5 years | $2000 |
| 10 years | $4500 |
| 15 years | $8200 |
| 20 years | $130,000 |
When pairing Heating Option #2 and Cooling Option #1 upgrades, home value increases by about $8700, and energy savings are approximately:
| 1 year | $430 |
| 5 years | $2500 |
| 10 years | $5700 |
| 15 years | $100,000 |
| 20 years | $160,000 |
These are just a few examples of how energy savings can look in real terms. Please call us at 804-745-0007 for more information on getting the most savings out of high efficiency equipment replacements.