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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.