Green Calgary

Going Green and the Return on Investment

Filed in: Energy, Products & Services, Water Conservation

Reader Question

Dear Mr. Lubyk,

What is the return on investment (R.O.I.) for the various water and energy saving upgrades? I ask because I have a limited budget and I want to know how to best prioritize the changes I want to make. Should I replace toilets or should I upgrade my windows? Should I replace my 15 year old fridge or the 20 year old dishwasher? A few examples of how to best prioritize these investments would be extremely helpful.

Thanks,

Phil

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Ashley's Answer

Dear Phil,

Though economic savings should not be the sole motivator for making environmental change, it is an important consideration, especially for those of us with a limited budget. Prioritizing is crucial, as it keeps us from becoming distracted with lesser details. And as you’ll see, the best ecological choices are also good economic choices. Utility prices will inevitably rise as we move forward and this will have a positive effect on each investment.

I’ve listed the upgrades with the quickest return first, while those with longer payback periods are listed toward the bottom. All costs are approximate, as are the rates of return. Many are eligible for rebates and I’ve made notes on what you can expect for a rebate at the bottom of each item.

Low Flow Tap Aerator (Cost: $3; R.O.I.: 1 month):

Switching from a standard 2.2 gallon per minute (~10 litres per minute) aerator to a 1.5 gallon per minute (~6.8 litres per minute) aerator will cut water use by roughly 22,000 litres annually, while saving you approximately $35 in water and sewage costs each year). Click here to view low-flow tap aerators available at Green Calgary’s EcoStore.

Clothes Drying Rack (Cost $25-$75; R.O.I.: 3 to 9 months)

Non-dryer options can save homeowners more than $100 a year in electricity, while adding moisture to dry indoor air. They also make clothes last longer and smell naturally fresh. Click here to view clothes drying racks available at Green Calgary’s EcoStore.

Low-flow Shower Head (Cost $10; R.O.I.: <6 months)

Switching from a 2.5 gallon per minute shower head to a 2.0 gallon per minute model will cut water use by approximately 13,000 litres annually, saving you over $20 per year. Low-flow shower heads also cut hot water use, which results in additional savings. Click here to view low-flow shower heads available at Green Calgary’s EcoStore.

Low Flow Toilet (Cost: $90+; R.O.I.: 6+ months)

Switching from a standard 16.5 L per flush toilet to a low-flow (6 L per flush) model will cut water use by roughly 52,000 L per year, saving you approximately $80 in water and sewage costs annually).

Rebate Info: the City of Calgary has a $50 per water-wise toilet rebate, which is available to homeowners on a water meter. For more details click here.

Dual Flush Toilet (Cost: $149 and up (minus the City of Calgary’s rebate); R.O.I.: 1+ years)

Switching from a standard 16.5 L per flush toilet to a dual flush (3/6 L per flush) model will cut water use by roughly 57,000 L per year, while saving close to $87 in water and sewage costs annually).

Rebate Info: the City of Calgary has a $50 per water-wise toilet rebate, which is available to homeowners on a water meter. For more details click here

Programmable Thermostat (Cost: $50; R.O.I.: <1 year)

Installing a programmable thermostat and programming it to go down by five degrees Celsius while you are away at work or sleeping can translate to big savings over the lifetime of the unit. For each degree Celsius you lower your heat (for a minimum of an 8 hour period), you can expect to save 2% on your heating bill. 

Energy Star Fridge (Cost: $600+; R.O.I.: 4+ years)

Replacing a fridge manufactured before 1990 will cut electricity use dramatically. A new Energy Star fridge may use as little as 285 kWh annually, while a fridge manufactured in 1984 may use as much as 1,500 kWh annually. Thus, a new Energy Star fridge may use one quarter the electricity of a 1984 model and half the amount of a 1990 model. This translates into annual savings of $65 to $120. You can save even more by selecting a smaller fridge, which may in fact be better suited to your needs.

Front Loading Washing Machine (Cost: $800 (minus $100 provincial rebate); R.O.I.: 5+ years):

Front load washers use 35-50% less water and up to 50% less electricity than a conventional top-loader. As such, you can expect to save approximately $150 per year by upgrading to one of these energy efficient models.

Rebate Info: the Alberta government, through Climate Change Central, is offering a $100 rebate for qualifying Energy Star front load washing machines. For more information click here

Energy Star Dishwasher (Cost: $500+; ROI: 7+ years)

Replacing a dishwasher manufactured before 1990 will cut water, electricity, and gas use dramatically. Electricity use can be cut by half, while water use may be reduced by three quarters. And because 80% of the energy used by a dishwasher is to heat water, less water per cycle translates to significant natural gas savings. You can expect annual savings of $70 or more by replacing a pre-1990 dishwasher with a newer Energy Star model.

Insulation (Cost: variable; R.O.I.: very good, especially if you take advantage of the multiple rebates)

In terms of gaining efficiency, the addition of insulation to your home may be one of the greatest investments.

Rebate Info: As part of the ecoEnergy Retrofit Initiative the feds are offering up to $5,190 in rebates for the addition of insulation. For more information click here . In addition to the federal rebates, you may also be eligible for up to $3,150 in provincial rebates. For more information click here

Tankless Hot Water Heater (Cost: $950 and up, plus installation (minus rebates); R.O.I.: 5+ years)

The average Alberta household uses 140 GJ (gigajoules) of natural gas annually, with approximately 23% used for the purpose of heating water (77% used for space heating). At a price of $8 per GJ of natural gas, the average Albertan pays just over $255 per year to have hot water.

If a person were to install a tankless system at $3500 installed (vs. a tank-type system at $1000 installed) it would take 25 years to see a return on investment. However, a tankless system lasts twice as long (or more) as tank-type system, so this must be factored in and will drastically improve the investment potential.

Rebate Info: As part of the ecoEnergy Retrofit Initiative the feds are offering up to $375 in rebates toward the purchase of eligible tankless systems. For more information click here.  In addition to the federal rebates, you may also be eligible for up to $300 in provincial rebates. For more information click here

HE Furnace (Cost: ~$5000 (minus ecoEnergy Retrofit rebate); R.O.I.: ~14 years)

The average Alberta household uses 140 GJ (gigajoules) of natural gas annually, with approximately 77% used for the purpose of space heating (23% used for water heating). At a current price of $8 per GJ of natural gas, the average Albertan pays just over $860 per year to heat their home.

Switching to a high-efficiency furnace will, on average, cut heating bills by 35%. Though gas is currently $8 per GJ, you can expect to pay more for it in the future. A doubling in the price of gas will cut the ROI time from 14 years to 7!!!

Windows (Cost: highly variable; R.O.I.: highly variable)

It is estimated that leaky, inefficient windows can result in significant heat losses, accounting for up to 25% of all heat escaping from the home. Double-glazed, low-emissivity (low-E) windows are expensive but are certainly worth the investment for those planning on staying in their home for some time.

Note: Energy Star qualified windows are eligible for a $40 per unit rebate through the federal government’s ecoEnergy Retrofit Initiative. For more information click here .

As you can see, payback for energy efficient upgrades can range from one month to several decades. Past experience tells us that utility costs will continue to climb higher, so with a little forecasting an unattractive investment may in fact turn out to be a tremendous investment down the road. Investing in efficiency today not only shields us from unexpected rate hikes, but it reduces pollution and, hopefully, will be the beginning of the transition to a more resilient future; one where we are less dependant on cheap fossil fuels for our well being.

Sensibly,

Ashley

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