Mike Taylor is the publisher of Solar Kismet, where he orginally published this post.

Natural Gas , or how I saved $200 this winter (Part 1 of 2)

We moved to the DC area last September and in the first bill from Washington Gas, it had a table of the previous owner’s natural gas use for the last year. A perfect opportunity for a little data analysis…

Using data from the National Weather Service, I was able to make sure that the numbers were comparable. If last January was colder than this January, it wouldn’t be apples to apples, but for months with similar “heating degree days,” they had the same average temperature and any differences in natural gas use would be a good assessment.

December 2006 (us) and January 2006 (old owner) had similar temperatures (639 and 672 HDD respectively). The old owner used 142 therms and we used 63 therms, which based on this year’s prices, saved us $90.

January 2007 (us) and February 2006 (old owner) were also very similar (746 and 733 HDD respectively). The old owner used 156 therms and we used 88 therms, which saved us $76.

That’s $166 in only two months!

So your first thought is that I must be freezing all the time. Nope. The thermostat is set at 70 F right now. Spent a lot of money? Nope. We have the same house, furnace, water heater, stove, etc.

Here are my secrets, which cost less than $100 and only a little effort:

• Bought, installed, and programmed a programable thermostat - We set it at 68-70 in the morning and evening, 55 at night, and 50 when we’re at work in the day. And no it doesn’t take more energy to heat the house back up.
• “Hold” the thermostat when gone - If we’re leaving for the evening, not coming back from work until late, or going away for the weekend or a week, we set the thermostat at 55 F. The cats don’t mind.
• Closed off the guest room - I shut the vent and we keep the room closed (unless a guest is visiting of course). No one’s going to notice. We do the same for a three-season office with poor insulation.
• Covered up the holes - We have a whole house fan in the second floor ceiling, which I assume will be great in the summer, but is basically a hole in the ceiling in the winter. I cut out some cardboard and taped it up. I also put weatherstripping around the attic “hatch” in the ceiling.
• Shut the basement door - It’s gross down there anyway.

Other things I’ve done since, i.e. they aren’t included in the above numbers:

• Seal the “attic bypasses” - You have hundreds of holes in your wall, which basically create a highway for warm air to escape through the walls and out the attic. I bought outlet gaskets, basically foam inserts, to put behind the light and electric outlets. For some, I put a little sealant foam around the outside if the gasket didn’t cover it enough. There are other things to do…for more information on these secret heat losses click here (PDF) - insulation without address the bypasses is almost useless. The better solution, if you have access, is to seal the tops of the wall cavities from the attic (but think about whether you’re going to insulate the walls in the process).
• Covered up more holes - I’ve since covered the kitchen fan and the office vent.

Other things you can do:

• Put up plastic on the windows - It’s not fun, glamorous, or good looking, but it works. I did it in Minnesota but we have better windows here in Maryland.
• Wrap the water heater - Trendy these days but not as necessarily if you’re water heater is newer and uses foam insulation (vs. fiberglass).
• Wrap the pipes - Buy the foam piping insulation and wrap the first few feet of the hot AND cold water pipes going into and out of the water heater. Go nuts and wrap the rest of the hot water pipes if you want to. Do the same if you have a boiler.
• Caulk - Caulk your attic bypasses. Caulk the window edges. Caulk it all.
• Put in a low-flow showerhead - They work well.
• Insulation - If you’ve addressed the attic bypasses, then insulation makes sense. Go with the ceiling and then perhaps the walls, but this isn’t necessarily a cheap option.

Things not to do unless money is no object - if you run the numbers, they aren’t your best investments:

• Don’t replace the windows for energy reasons - Do it for aesthetics. Do it for comfort. Don’t do it expecting to save oodles of money and run from anyone who says otherwise.
• Don’t replace your furnace for energy reasons - Do it for safety. Do it for a remodel. Do it if it’s broken. Have the old one checked out for safety and efficiency, but if it’s working fine, let it keep working.
• Don’t replace your washer or dryer for energy reasons - Do it if it breaks. Do it for a remodel. And when you do, get a front-loading washer and a gas dryer with a moisture sensor.

Next time: Electricity, or how I have a $30 electric bill (Part 2 of 2)

Editor’s note: Today, we’re happy to bring you the first of what we hope will be many guest posts on the Green Options blog. Today’s guest post comes from our friends at Solar Kismet.

Most of us in the Green Blogosphere have followed new company Citizenrē, and its REnU program, with great interest. Mike has been analyzing the company at Solar Kismet, and we asked him to share his thoughts with our readers.

As Green Options launches new features and tools in the coming weeks, you’ll see that we’ll be involved in helping consumers consider their options for solar power. As such, we firmly believe that full transparency is necessary for the solar industry’s continued growth. This author’s thoughts and ideas are his own, and do not necessarily reflect those of Green Options, its management or staff.

Green products come in all shapes and sizes, with many varying claims about their content, performance and cost. Sometimes it’s hard to understand the nuances of something you don’t want to become an expert in - you just want it to be excited about your green choice and have it work. Renewable energy is no exception.

Renewable energy captures everyone’s imagination, much more so than its practical cousin, energy efficiency (those funny-looking lightbulbs really do work). But it’s hard to evaluate what the best renewable energy options are environmentally and economically. You can buy green electricity (but is that really helping anything?), you can install a solar system on your house (but it’s so expensive!), you can get more energy efficiency (so boring!), or you can have a solar system installed on your house for no money down and fix your electricity rates for the next 25 years (really?).

Did you catch that? “No money down” and “solar energy” aren’t two words that normally come together. But they have in the last two months and it’s caught the eye of thousands of people interested in selling and buying these systems. But what’s the catch? Exactly. Here’s a short lesson in “too good to be true”…

I should preface this by saying that I’m a skeptical person. I’m not going to be the one leading the masses with inspiration, so when I first heard of Citizenrē, a new solar energy company and their “no-money down” solar business model, small flags went up. I didn’t think too much of it at first. But when I started to get questions from multiple, non-related sources (consumers, industry, consultants, etc), I realized that Citizenrē had started to gain real marketing traction and decided to look into it a little more…

Citizenrē purportedly offered consumers the best of all solar energy worlds - a solar electric system on your home for no money down, no risk, and insurance against future electricity cost increases. Their goal was to install 100,000 solar systems per year on homes across America and they were recruiting salespeople from all over the internet, as well as pushing press releases, websites, and blogs touting their goals and promises everywhere. (Editor’s note: According to Renewable Energy Access, Citizenrē now plans to install 25,000 systems annually).

Here’s how Citizenrē’s model would theoretically work:

Interested consumers sign a contract with Citizenrē to have a solar system installed in exchange for a monthly solar system rental fee; reportedly, if you signed a 25 year contract, no deposit was required. Homeowners and businesses in more than 35 states would be eligible (those with net metering and a retail electric rate of 7 cents per kilowatt-hour or more). The monthly rental fee would be equal to the amount of electricity the solar system would produce annually multiplied by your cost of electricity (or even less). So instead of paying your electric company $100, you might pay them $50 and Citizenrē $50, if it offset 50% of your electricity use that month. Note that you haven’t saved any money at this point. Theoretically, you could pay Citizenrē a little less, say $45, if your Citizenrē rate was lower than your electricity rate. But the main benefit is that you lock in your electricity prices for the length of the contract and assuming electricity rates go up over time, you started to pocket the difference as personal profit.

A quick example:

• A 3 kilowatt solar electric system installed in Colorado might produce 4000 kilowatt-hours per year;
• If a home uses 8000 kilowatt-hours per year, it will offset 50% of your use;
• If your electricity rate was 9 cents per kilowatt-hour (cents/kWh) and you signed a contract with Citizenrē for the same amount, you pay each $360 per year (save nothing);
• If your electricity rate went up to 10 cents/kWh the next year, you would pay the utility company $400 and Citizenrē $360 (save $40);
• You can move your solar system once at no charge, or reassign the contract to the new homeowner.

What’s in it for Citizenrē? They take your monthly rental fee, the federal solar tax credits, accelerated business depreciation benefits, potentially lower costs from vertical business integration, and potentially the renewable energy credits (if legal).

I should stress that this business model in and of itself is not new. At least three companies (SunEdison, MMA Renewable Ventures, and Solar Power Partners) offer the same concept to companies or utilities installing large solar systems in limited markets where the incentives and policies align. And I suspect the concept will trickle out to more states and smaller solar systems over time. But not now and not Citizenrē.

Unfortunately, Citizenrē has put their marketing cart before their solar panel horse. They have built up a salesforce of thousands and pre-sold thousands of solar systems, but they have nothing to install for at least a year. Not one solar panel.

Next Time: If the business model isn’t new, why does Citizenrē raise so many flags? (part 2 of 3)