Buzzword: Recessionista

Rooted in the fashion world, recessionista describes a style maven who stays ahead of the trends without falling too deeply into debt. It joins other reeling-economy Buzzwords, including boomerang children, brickor mortis, and staycation.

Why the buzz? Recessionista is relevant to home improvement, too, especially in these tough times. In 2009, the average consumer will spend $1,300 to undertake 2.8 remodeling projects at home, according to the Home Improvement Research Institute. Obviously that money isn't going to buy dramatic changes for your abode, but it is possible to add style and function on a budget.

Buy second-hand. Clothes hounds shop at consignment shops and thrift stores. For the home, you can buy gently used appliances and building products at salvage shops and Habitat for Humanity-run Habitat ReStores and through organizations like Green Demolitions. Freecycle, an online network used by people to trade household items, is another option.

Accessorize your spaces. This rule gets the most mileage in the kitchen. Whereas new cabinets can cost many thousands of dollars, updating the hardware and applying crown molding, for instance, will transform the look of your kitchen for a small fraction of the cost. For the interiors, inexpensive cabinet organizers improve function and capacity.

Look for alternative materials. In our latest test of countertops, laminates were singled out for their wide variety of patterns and colors. Among flooring, the best plastic laminates actually wore better than most wood, for as little as half the cost. Read more about this option in "10 Questions for . . . Fernando Pages Ruiz, Contractor."

Enhance the lighting. You can create flattering lighting at home with a minimal investment by installing dimmer switches, which allow you to adjust light levels depending on the activity, say high for cleaning and low for dining. Task lighting will make your home a safe, inviting place for people of all ages and abilities. Another easy way to save with lighting is to install compact fluorescent lightbulbs. 

Get your house in shape. Fashion freaks might lose a few pounds to squeeze into a gotta-have-it bargain buy. At home, you need to gain rather than lose—that is, boost the energy efficiency of your space. If single-pane windows are failing, replacement windows can save you 10 to 25 percent per year on heating and cooling and enhance the curb appeal of your home. Plugging air leaks in the attic and walls will save energy and eliminate uncomfortable drafts.—Daniel DiClerico

Essential information: Before you start your next remodel, check out our Home Improvement Guide interactive, which offers buying advice on appliances, tools, and building materials.

10 Questions for . . . Fernando Pagés Ruiz, Contractor

In this installment of 10 Questions for . . . , Senior Editor Daniel DiClerico speaks with Fernando Pagés Ruiz, contractor and author of Affordable Remodel: How to Get Custom Results on Any Budget. Here, Ruiz talks about the upside of the economic downturn, details common remodeling pitfalls, and offers tips for slashing winter heating bills.

How has the credit crunch impacted the remodeling industry?
We had been in a kind of remodeling frenzy. People could justify the expense of remodeling with the rising value of their homes and the fact that it was relatively easy to get money through a second mortgage. Now that justification is over.

Even in good times, the best returns on remodeling investments were only around 90 percent, according to Remodeling magazine's annual "Cost vs. Value" reports. How many mutual funds do you know that advertise to customers that they'll get back 90 cents on every dollar invested? So remodeling was never an investment, and it more obviously isn't now. The motivation for remodeling should simply be that you plan to live in the house and you're spending money to make it how you want it.

Should home sellers be more motivated to make improvements?
If you're selling your house, the idea of getting it into the best selling shape makes tremendous sense, given the intense competition out there. Again, you won't necessarily get the dollars back, but you'll be able to move your house, whereas the neighbor who hasn't done any updating or maintenance may not.

Can homeowners negotiate lower costs on their projects?
It's a time to find good deals because many contractors who were used to doing a job for 40 to 60 percent over cost will now do it for 20 percent over cost. But depending on the contractor, negotiating can be a good or a bad strategy. You may end up with half a project if the contractor is in distress and looking for some cash flow and agrees to do the job for half the price of what he knows it will take. Chances are he won't be able to finish that job. So it is also a time to be careful.

So how do you protect yourself against the project-half-finished outcome?
In remodeling, the advantage always goes to the one with the most information. That's usually the contractor. And contractors know more than they let on. The only way to balance that is to become educated. I tell people it should take six to nine months to develop a plan and get to know the products. By the time you talk to your contractor, you should be able to tell if he knows his stuff or not. And you should definitely know more about your project than he does. You should be a very smart consumer by that point.

What other mistakes do homeowners make?
Starting the work all over the house. This is usually a guy thing, the do-it-yourselfer who starts jumping around doing this and doing that until he finally runs out steam and the house is a mess. You need to start with an overall plan, even if you're going to complete the work in stages. With the plan in place, you can segregate the house into sections and proceed from start and finish in an organized, logical manner.

Can you offer any rules of thumb for determining when a project goes from a DIY-friendly one to pro-required job?
Anything that has to do with safety. If you need to put in new gas lines, for example, it's a good idea to call in a plumber.

Manufacturers have made some projects easier, like tiling a laminate floor or installing a ceiling fan. But leave the skilled work to the professionals, like trim carpentry. If you want your cabinets installed correctly, there are a bunch of things a trim carpenter will know that you won't.

LG pulls some refrigerators from Energy Star program

The U.S. Department of Energy announced on November 14 that some LG and Kenmore refrigerators are no longer part of the federal government's Energy Star program because of concerns over the energy use by these models.

The LG LFX25950, LFX25960, LFX25971, LFX23961, LFX21960, LFX21971, LFX21980, LFX25980, LMX21981, and LMX25981 (shown) models, as well as  Kenmore Trio refrigerators designed and made by LG with model numbers starting with 795 and through-the-door ice and water dispensers, are affected by LG's agreement with the DOE. Read more details in this DOE press release.

If you own one of the aforementioned refrigerators, you will get a free modification of your appliance to make it more energy efficient and receive a payment to cover the difference in how much you'll spend to run your refrigerator and what was indicated on the Energy Guide label; payments will continue up to the expected 14-year life span of the refrigerator.

To get more details from LG, call 888-848-1266 or go to the company's energy-offer Web site.

Look for our additional reporting on this news in the coming weeks.

Buzzword: Zoning

What it means. Don't confuse this week's Buzzword with school or community zoning. Rather, in the context of heating and cooling, zoning refers to dividing a home into two or more areas where you set different temperatures. Historically, zoning was more common in homes with a hot-water boiler system than in those with a forced-air furnace system. But as houses bulked up in recent years (thanks in part to the McMansion movement), the need to zone even forced-air-heating systems increased. Besides having more interior space to heat and cool, big houses are more likely to have living spaces with different exposures. To keep these rooms from getting too hot or too cold on certain days, multiple distribution systems are needed to control the flow of conditioned air.

Zoning is pitched as a way to not only make your home more comfortable but also to save you money by letting you reduce the heating or cooling to seldom-used spaces. Some manufacturers and retailers also tout zoning by suggesting that you can save by running a space heater or pellet- or wood-burning stove in a frequently occupied room and turning down the heat with your thermostat (see video, right) in other parts of the home.

Why the buzz? Residential heating costs for the 2008-2009 season are projected to be higher than for last season, according to the Energy Information Administration and, says the National Oceanic Atmospheric Administration, the lower 48 states will experience 2.4 percent colder temperatures this winter.

Those figures might make zoning a more tempting proposition. And, in fact, zoning has its place in certain situations, including where one room has very different heating requirements from others in a home. "A room with lots of glass or a bedroom built over a garage could both be candidates for zoning," says Buck Taylor, a heating professional and consultant for the U.S. Environmental Protection Agency.

But for retrofit scenarios, the question of whether it pays to implement zoning depends largely on the accessibility of the hot-water pipes (for a hot-water system) or ductwork (for forced-air system). On a forced-air system, if the central air conditioner and furnace share the same distribution system, balancing the airflow correctly can be even trickier and costlier. 

"For homes with a forced-air system, adding zoning is number 11 on the list of things I'd do [to lower energy costs]," says Harvey Sachs, a senior fellow at the American Council for an Energy-Efficient Economy. He suggests you put your money into insulation, windows, and other forms of weatherization. (Read our advice for cutting your heating bill and enhancing the value of your home.) Taylor agrees, even for homes with a boiler: "Every dollar should be spent in the shell of the house, reducing how much heat is required in the first place, before you start trying to solve problems with mechanical systems."

Chandler von Schrader, head of the U.S. Environmental Protection Agency's Home Improvement with Energy Star program, adds ductwork sealing to the steps you should take before zoning your HVAC system. He notes that duct leakage is in the 30 to 35 percent range for many homes. Correcting the problem can lead to significant savings and enhanced comfort. "Unfortunately, sealing ducts is dirty, nasty work, crawling around attic crawl spaces," Schrader says. As a result, it's a lot easier for contractors to simply zone the system. "But that doesn't correct the root cause of the problem," Schrader adds.

As for zone heating with a fireplace, fireplace insert, or wood or pellet stove, that's a smart move only if your home is buttoned up tight and the fireplace is more efficient than your heating system. If your gas fireplace is 70 percent efficient and your furnace is 85 to 90 percent efficient, you're probably better off running the furnace.

Bottom line, zoning is seldom the cure-all that some heating-equipment manufacturers would have you believe. So work with a trained professional to get a comprehensive home-energy audit, including a residential-load calculation, and determine the best approach to improving the energy efficiency of and comfort level in your home. Find a qualified heating pro by reading this story and visiting the Residential Energy Savings Network.—Daniel DiClerico

Essential information: Learn how to save hundreds on your energy costs, and discover the differences between energy savers and every hogs.

Tip of the Day: Simple ways to save energy and money at home

In "Save Energy, Save Money," we focused on big-ticket efficiency improvements, but there are plenty of lower-cost ways to slash your energy bills at home without becoming an energy anorexic, including these and those that follow:

In the bathroom
• Save hot water by taking a 5-minute shower rather than a deep soak in the tub. Replace standard showerheads with low-flow models and turn off any supplemental showerheads.

In the kitchen
• Reheat dishes in your microwave, which likely consumes only about 20 percent of the energy of a typical full-sized oven. On the cooktop, use pans that are the same size as the burner and keep the lid on the pot when you want to boil water.

• Wipe minor oven spills and splatters regularly with a damp cloth so that you don't have to rely as often on the oven's self-cleaning feature. When you do use the self-cleaning feature, start the cycle right after cooking in the oven to take advantage of the preheated space.

• Get the fridge out of the garage. During summer the unit will have to work extra hard to compensate for the 100-plus degrees that a garage can reach. Better yet, consolidate your refrigerator and freezer items into one unit and turn off other refrigerators and freezers.

Around the house
• Unplug your television(s) and most other electronic devices if you use them infrequently or when you're away from home for an extended period. Even when turned off, electronic devices like TVs continue to draw standby power. Also unplug your computer and scanner if they'll sit idle for an extended period.

• To maximize light output, position lamps in the corner of a room, where their light will bounce off two walls. Painting interiors a bright color will also augment light levels, as will regularly dusting lamp shades and lightbulbs.

• Use LED lights for task lighting. In our test of undercabinet lighting, fixtures with LED bulbs were the most energy efficient, even besting fluorescents in the lumens-per-watt department.

• If your existing exterior door is old but still in good shape, install a storm door. During the summer, replace the glass or Plexiglas panels in the storm door with a screen to improve air circulation in the home and reduce the need for air conditioning.

• Buy a humidifier. During heating season, the colder it gets outside, the lower the relative humidity will be indoors. Providing some humidification will help to improve comfort, but don't overhumidify. Use a model with a humidistat to control indoor moisture levels.—Daniel DiClerico

Buzzword: Energy Anorexia

What it means. Rooted in the serious medical condition anorexia, energy anorexia refers to a situation in which people follow an extremely strict carbon-footprint-shrinking regimen. (Carborexia and greenorexia are other names for this approach to living.) The New York Times used the term "energy anorexics" in the October 19 article "Completely Unplugged, Fully Green," which reported on people dedicated to using significantly less energy in many aspects of their lives.

Why the buzz? In these energy-conscious times and in a country where a fad or fashion of the moment can spur significant lifestyle changes or even turn into fanaticism, some folks have become energy anorexics. The Times piece sparked great debate on the Web, with the blog of Sharon Astyk the epicenter of much of the discussion. Astyk, who was featured in the article, took issue with the story in a recent post, noting, for example, that her son doesn't play organized baseball due to scheduling conflicts with her family's observance of the Jewish Sabbath, not because she doesn't want to drive him too far to play. And commenters on the blog defended her energy-minded lifestyle.

Most of our buzzword items highlight trends in industry or society at large, and the terms are generally tame. But energy anorexia and energy anorexics seem harsh and insensitive given the difficult medical issue from which they're derived. Indeed, similar terms like "true greens" and "enlighteneds" might be a better way to get across the idea.

So we'll leave it to you to come up with a catchy, complimentary expression for people who are environmentally impassioned and acting upon their beliefs. Post your suggestion(s) in a comment below, where you can also share information on how you're working to save energy on your own.—Daniel DiClerico

Essential information: There's no need for extreme measures to save energy at home, as detailed in our October 2008 "Save Energy, Save Money" feature, this tip of the day, and the Buzzword on weatherization.

Vintage Consumer Reports: Fluorescent lighting

"Fluorescent lighting has a sufficient surplus of virtues to make any advertising man delirious with its exploitation possibilities."—Consumer Reports, January 1941

Millions of Americans were introduced to fluorescent lighting at the 1939-40 New York World's Fair. Soon thereafter, our engineers tested fluorescent bulbs and found that this newfangled type of lighting was superior to incandescents and, despite its higher price—a 15-watt fluorescent tube cost 95 cents and produced comparable light output to a 10-cent 60-watt incandesecent—offered consumers considerable long-term savings since fluorescent bulbs used less electricity and lasted much longer.

That 1941 report proves that what's old is new. (Download a PDF of the article: Consumer Reports_Fluorescent 1941.pdf.) As we've found over the last year and a half during our tests of Energy Star-qualified compact fluorescent lightbulbs, each CFL you install as a replacement for an incandescent bulb will trim your electric bill by at least $30 over its life even though it costs more than an incandescent with comparable light output. We've heard from readers who say their CFLs burned out to soon, yet nearly every bulb we've tested has lasted at least 3,000 hours—triple the typical life of an incandescent—and some much longer than that. (Read our latest testing update.)

We weren't concerned about reducing greenhouse gases in 1941 but today know that energy-sipping CFLs can help substantially reduce carbon-dioxide and mercury emissions from coal-fired power plants. (You can find out which power sources provide electricity to your home by reading "Uncover the Source of Your Power.") That environmental upside is not greenwashing but rather another reason to replace your incandescent bulbs with CFLs.—Kimberly Janeway

Essential reading: Read our advice on how to handle a broken CFL and watch our video (above). And stay up on the next wave of illuminations technology, solid-state lighting.

Buzzword: The Tie Goes to the Dolphin

What it means. With the World Series between the Philadelphia Phillies and the Tampa Bay Rays under way, you might hear the phrase "the tie goes to the runner" used at some point during the best-of-seven set. Here's hoping there's not a decision as controversial as the blown safe call first-base ump Don Denkinger made during Game 6 of the 1985 World Series between the Kansas City Royals and the St. Louis Cardinals.

"The tie goes to the dolphin"—more of a buzzphrase than a buzzword—puts an environmental spin on the baseball axiom. It originally referred to canned tuna: When other factors like taste and cost are equal or at least similar, consumers who believe the tie goes to the dolphin will choose a brand with the "Dolphin Safe" logo on the label (shown). But the buzzphrase can be applied to other categories, including all manner of household appliances and gear, when environmental or energy-efficient issues come into play.

Why the buzz? Steven H. Saltzman, the editor of this blog, turned me on to this concept. Saltzman told me that an official from a federal agency had uttered the phrase during a meeting they had to discuss the energy efficiency of and federal standards for appliances. The phrase seems especially apropos at a time when consumers have been greenwashed by marketing campaigns touting the environmental friendliness of products.

Most U.S. consumers don't base their purchasing decisions solely on a product's greenness. They will, however, make green the tiebreaker between two otherwise similar products. In fact, nearly 90 percent of Americans say they would choose an eco-friendly product if it were to cost the same as an equal competitor, according to a report by BBMG, a New York City-based branding and integrated-marketing firm.

That's why we factor in energy efficiency when rating many household products. With refrigerators, for example, we measure not only temperature performance, noise, and usable storage space but also energy efficiency. In a tie-goes-to-the-dolphin scenario, you'd choose the Maytag MFC2061HE[W], $2,250, over the comparable Maytag Ice2O MFI2266AE[W], $2,050, since the former is more energy efficient.

For washing machines, the Whirlpool Cabrio HE WTW6600S[W], $1,000, and Kenmore (Sears) HE2t 4756[1], $900, both provide very good washing performance. But the Kenmore is a front-loader and will use less water than the top-loading Whirlpool. The tie goes to the Kenmore.

In some cases, the energy-efficiency deal maker is not so obvious and becomes apparent only when you calculate the savings you'll generate over their entire lifetime. Compact fluorescent lightbulbs cost more than incandescent bulbs, but because CFLs last significantly longer and use so much less energy, they're the hands-down favorite.

So next time you're choosing among products, opt for the one that will save you money and help the environment.—Daniel DiClerico

Essential information: Use our interactive Home Improvement Guide for room-by-room buying guides.

Q&A: Is it a worth the extra cost to buy windows filled with argon gas?

The replacement windows I'm considering buying come with the option of using argon gas to boost their energy efficiency. Should I spend more to get the argon gas?

It is generally not a good investment to replace windows just for energy-efficiency purposes. But if you need to replace irreparable windows or are undertaking a home remodel, then consider the incremental costs of higher-efficiency replacement windows over models without such features as specialty gas fills, including argon, or low-e coatings.

Large incremental costs for these options generally outweigh their benefit. Argon, for instance, typically increases the insulating R-value of a window by only half a point. (Insulated-glass windows, also called double-pane glass, typically have an R-value of around 2.0 to 3.0. R-value is the measurement of thermal resistance; the higher the number, the more efficient the window. Learn more about the energy performance of windows.)

This small increase in insulating value from the argon gas will get you slight energy savings, but the additional initial cost could significantly extend the payback time for the windows. What's more, the argon does little or nothing to reduce transmission of ultraviolet and infrared radiation. UV light from the sun can damage your furnishings but, more important, infrared radiation transfers heat into or out of a home. Studies have shown that windows with a low-e coating can measurably reduce solar heat gain during cooling season (assuming you do not draw curtains or blinds anyway). However, homes in cold climates tend not to see a benefit from this option.

It's worth noting that many manufacturers of high-quality windows, including all those we tested for our latest report on windows, now use argon-filled glass as the standard for their windows. In fact, some companies might charge you more if you want windows with glass that provides less insulation, including models with only air-filled glass or with no low-e coating.

Essential information: Learn how to choose the best windows, understand the different window types and designs, and find an expert installer.

Tip of the Day: Cut your heating bill, boost the value of your home

Combining no- and low-cost weatherizing tactics with government and utility incentives can help raise or at least maintain the value of your home and slash your energy bills. You'll also help protect the environment.

Several energy-saving projects can reduce your heating bills this winter, according to our calculations. For instance, insulating the attic or basement is typically inexpensive and easy to do yourself. Adding attic insulation can lower your heating costs from 5 to 30 percent, according to a U.S. Department of Energy study.

Another simple measure you can implement right now is to drop the temperature setting on your household thermostat(s). For every degree you lower the temperature, you can save about 3 percent on your heating costs. Also consider lowering the setting 5° to 10°F when no one is home and at night.

Weatherizing you home can save you up to 30 percent on heating. And tests performed by the Oak Ridge National Laboratory for the DOE showed that an aggressive weatherization program at your house can provide a 33.5 percent decrease in natural-gas consumption for space heating.

What's more, every dollar you shave off your energy bills with such home improvements can add more than $20 to the resale value of your home, according to a study by the Appraisal Institute. And a recent study by Seattle-based GreenWorks Realty showed that energy-efficient homes spend 18 percent less time on the market and sell for up to 37 percent more per square foot than conventional homes. (Consumer Reports has been leading the way on home-energy savings for decades, as detailed in "How to Cut Your Fuel Bill," from our August 1941 issue. As you'll see in this free PDF download—How to cut your fuel bill 1941.pdf—what's old is new.)

"We call efficiency the 'first fuel' that a homeowner consumes," says Suzanne Watson, policy director for the American Council for an Energy-Efficient Economy. "Once you get that flowing, it cuts down your use of expensive secondary fossil fuels."

Seal holes
Cracks and crevices at all levels of your home allow expensive heated air to escape from your home; in an older house, those nooks and crannies can be the equivalent of a 2-square-foot hole in the side of the house. (Picture that.) But, estimates the DOE, proper weatherization alone can cut energy bills by at least 30 percent. Some utility companies provide free energy audits to pinpoint problem areas at your home; you can also find certified professionals in your area through the Residential Energy Services Network.

If you want to do the work yourself, look for dirty insulation, a sign of air movement that reveals other gaps you must fill. Also install precut foam pads to insulate electrical outlets, an often-overlooked source of cold-air infiltration and make sure you insulate holes in floors where heating and water pipes emerge. If you have steam radiators, place foil-faced insulation behind them to reflect heat back into the room. If your doors and windows are structurally sound there is no need to replace them. But you should replace any worn weather-stripping around doors and windows to cut drafts, which can make you feel colder and cause you to raise your thermostat setting.

"Add Insulation to Lower Your Heating Bills" and "Stay Warm Without Getting Fleeced" offer additional DIY ways to seal gaps.

Buzzword: Weatherization

What it means. Weatherization is the practice of making a building more energy efficient by sealing its exterior against wind and precipitation and protecting its interior from heat and cold. Buttoning up the envelope of a house with insulation and caulk is the first line of defense. But best weatherization practices treat a building as a single energy-consuming system and might include such whole-house measures as replacing old heating, cooling, and water-heating devices with higher-efficiency models.

Why the buzz? In the presidential debate between candidates John McCain and Barack Obama on October 7, 2008, moderator Tom Brokaw asked the candidates what sacrifices Americans will have to make to get the country's economy back on track. One of Senator Obama's points covered energy use: "Each and every one of us can start thinking about how can we save energy in our homes, in our buildings," he said. "One of the things I want to do is make sure that . . . you are able to weatherize your home or make your business more fuel efficient." (Read the full debate transcript.)

This is not the first time a president or a candidate for that office trumpeted energy efficiency. President Jimmy Carter famously wore a beige cardigan during a 1977 fireside chat in which he talked to the American public about the country's energy crisis. Carter's wardrobe choice is remembered more than his message, made explicit in his 1979 Crisis of Confidence speech, in which he warned: "The energy crisis is real. It is worldwide. It is a clear and present danger to our nation."

In today's world, weatherization should remain relevant beyond Election Day. With that, we've pulled together steps you can take to weatherize your home, helping you to save yourself money and reduce your energy use. If your more motivated by money than by patriotism, note that on average, weatherization reduces heating bills by 32 percent and overall energy bills by $358 per year at current prices, according to the U.S. Department of Energy.

Plug the big leaks first. Start in the basement and attic and seal any gaps around your plumbing pipes, ductwork, light fixtures, and electric wiring that allow air to flow out of your house. Also seal around your chimney and flue pipes, being sure to use products suitable for high temperatures. Lay insulation between attic-floor joists and on the hatch or door, or add more if it's already there. Also look for dirty insulation, a sign of air movement that reveals other gaps you must fill. Insulate ducts running through the attic, basement, or other unheated spaces.

Stop air infiltration. Insulate the ceilings in an unheated basement or crawl space or around the exterior walls if they are heated. Also be sure to insulate ducts and hot-water pipes.

Program thermostats for savings. Lower your heating-system thermostat 5° F at night and 10° F during the day if no one is home, a move that will shave up to 20 percent off your heating costs. Many electronic setback thermostats let you set a different schedule for each day. Many automatically switch from heating to cooling, and some tell you when it's time to change your furnace or air-conditioner filters. (Read more about air purifiers.)

It's Change a Light Day. Install some CFLs

A simple, inexpensive way to save money and energy at home is to replace incandescent lightbulbs with compact fluorescent lightbulbs. A good day to start your bulb-swapping if you haven't already is today, national Change a Light Day.

If every American household were to replace a single incandescent bulb with an Energy Star-qualified CFL, the energy saved would light more than three million homes for a year and reduce annual energy costs by $600 million, according to the U.S. Department of Energy.

Don't buy just any bulb—there are performance differences among CFLs, so our experts recommend using only Energy Star-qualified bulbs. And as we reported in this story about the myths and realities associated with these bulbs, today's Energy Star CFLs are much better than earlier versions, as manufacturers have addressed the problems of harsh light, flickering, and slow warm-up times. Even the mercury content has been significantly reduced.—Kimberly Janeway

Essential information: Proper recycling of CFLs is important. Learn about Home Depot's nationwide CFL-recycling program. And find out who invented the CFL. No, it wasn't Thomas Edison.

Buzzword: Smart Grid

What it means. Grid is a basic term when it comes to providing electricity to end users, be they homeowners, schools, factories, hospitals, or office buildings. It refers to the infrastructure that delivers electricity from the point of generation to the consumer. Grids consist of a transmission system, which moves electricity from power plants to substations, and a distribution system, which sends it along to the users.

A smart grid uses the same basic infrastructure but overlays it with modern technology. Smart grids are supposed to offer several advantages over traditional versions. They are self-monitoring, meaning they can identify overloads in the system and prevent blackouts; are more secure against human attacks and natural disasters; give users real-time information about their consumption, paving the way for variable pricing, smart appliances, and more efficient usage (leading, in turn, to lower utility bills); and are compatible with sources of green power.

Why the buzz? The gains of smart-grid technology are many, but until recently they've also been mostly theoretical—even after Title XIII of the Energy Independence and Security Act of 2007 called for the construction of a 21st-century electric system. But earlier this year, Xcel Energy announced that it had tapped Boulder, Colorado, to be the first Smart Grid city in this country. Besides being manageable in size, the 100,000-person city sits near several key research institutes and is home to what one Xcel rep termed early adopters, folks who aren't afraid to try something new. (Would that make them alpha geeks?) The announcement was big news for Boulder.

"We're very excited to be a partner," said Jonathan Koehn, the city's environmental-affairs manager. "It promises to be a great demonstration of what smart grids can do to benefit consumers and utility companies."

The project will unfold in phases over the next few years. Two substations have been upgraded with smart technology, and by the end of the year, 15,000 Boulderites will be equipped with smart meters that allow them to monitor their power usage online. The meters are free to anyone who opts into the program, with Xcel and its SmartGridCity partners picking up the tab.

As smart grids spread throughout the country, figuring out who should pay for the smart meters has become a source of debate. Frederick Butler, commissioner of the New Jersey Board of Public Utilities and cochair of the National Association of Regulatory Utility Commissioners-Federal Energy Regulatory Commission Smart Grid Collaborative, puts the cost of a meter at $100 to $200, though that price is expected to fall as the technology matures. "It's a work in progress," says Butler. "The smart grid really has potential, so we want to deploy it in a way that doesn't turn people off, but rather gets them excited."

Central to the discussion is determining who benefits from smart grids: utility companies or customers. "Once we fully identify the benefits, we can assign an appropriate cost allocation," says Butler. Any costs covered by consumers will likely be in the form of a surcharge on their bills for a year or two. But not in Boulder, where early adoption has its perks.—Daniel DiClerico

Essential information: Read more about smart meters and check out our Energy-Saving Guide for tips on cutting energy use at home.

Don't shop by the label alone

Appliances and other items that qualify for the federal government's Energy Star program use less energy than other products in their category. An Energy Star-qualified refrigerator, for example, uses at least 20 percent less energy than the maximum amount allowed under the current federal standards.

But in an interesting twist, Energy Star qualification could lead some people to buy a product that uses more energy than one that doesn't. How's that?

A look at snack foods can help explain this conundrum. In recent years, health experts have warned consumers against ignoring the serving sizes of low-fat snack foods, as noted in a study from Cornell University. It turns out that some folks tend to wolf down more of a food labeled low-fat and end up eating as many as or more calories than they otherwise would have. A similar thing happens when people buy a more power-hungry product just because it carries the Energy Star sticker.

"Energy Star, in some cases, can be somewhat misleading for consumers and can even lead to a perverse incentive for people to purchase larger and more energy-consumptive products," says Jennifer Thorne Amann, director of the buildings program for the American Council for an Energy-Efficient Economy, a Washington, D.C.-based nonprofit that promotes energy efficiency. "By buying on Energy Star alone, some people are actually costing themselves a lot—not only by buying a more expensive product but also by spending much more to operate it."

Consider the 48-inch GE Profile PSB48LSRBV built-in side-by-side and the 327/8-inch GE GTS22ISSRSS top-freezer. The $6,950 side-by-side uses 645 kWh annually and is Energy Star qualified while the $1,179 top-freezer uses about 18 percent less energy but does not qualify for Energy Star because it uses more energy than the most efficient top-freezers with similar capacity.

We're not suggesting that these are apples-to-apples comparisons—consumers who prefer the above side-by-side should buy it, knowing that it is among the most efficient built-in side-by-sides on the market. But you don't want to shop based on Energy Star qualification alone since it does not guarantee absolute energy savings.

You'll also need to use the information on the Federal Trade Commission's EnergyGuide label (shown) for the products you're considering and compare their annual energy use. (Before you shop, refer to your monthly utility bill to see how much you pay for electricity and/or gas. That cost will help you determine the annual operating cost of an appliance or other product.) 

And don't forget to do your research on ConsumerReports.org before you head to the store. Not only will you get valuable buying advice, including ratings and brand repair history, but for many products you'll also find our efficiency ratings, which we believe better reflect how you use the products you buy and how much they'll cost you each year. Armed with this information, you'll make wiser choices all around.—Ed Perratore

Home-heating costs projected to rise this winter

While you might be relieved to see prices at the pump drop in recent weeks, your energy-cost euphoria will likely be short-lived.

Not to be a bummer, but home-heating bills are expected to soar during the 2008-2009 heating season, which runs from October 1 to March 31. The average American household will pay $1,182, up 19.8 percent from last year, according to the Energy Information Administration. That's a 65 percent increase from 2003-2004, says the EIA. (All figures here are from the EIA, which revises them every month. You'll find updated information on the EIA site.) It's no wonder one of the most common searches on ConsumerReports.org is for wood- and pellet-burning stoves.

Some regions will be harder hit than others:

People who live in the Northeast and heat with oil are facing the biggest price increase—they'll pay on average $2,725 this winter, up 37.1 percent over 2007-2008. The national average price for heating with oil has grown more than 198 percent from 2003-2004 to 2008-2009.

Southerners who heat with propane will pay on average $1,578, an 18.7 percent increase over 2003-2004. The national average price for heating with propane has soared just over 100 percent from 2003-2004 to 2008-2009.

Residents of the West who heat with gas will pay on average $684, the lowest regional cost in the country. Nonetheless, that's a 23.8 percent increase, even with the stepped-up production of natural gas. The national average price for heating with natural gas has climbed almost 61 percent from 2003-2004 to 2008-2009.

And Midwesterners who heat with electricity will see the smallest hike. It will cost them on average $1,051 to heat their homes, a 4.7 percent climb. The national average price for heating with electricity is up almost 34 percent from 2003-2004 to 2008-2009.

Regardless of where you live or what type of fuel you use, get your heating system checked before the cold weather comes. It's also a good idea to insulate the attic, install a programmable thermostat, and seal leaks and cracks throughout your home. Read more about keeping your energy costs down in "Heating: Stay Warm Without Getting Fleeced."—Daniel DiClerico

Essential information: Learn more about energy efficiency by reading our "Save Energy, Save Money" feature in the October 2008 Consumer Reports. The issue also contains a review of tankless water heaters, an update on our testing of compact fluorescent lightbulbs, and an investigative piece on the federal government's Energy Star program. Finally, learn about heating safety.

EPA finds fault with Consumer Reports Energy Star article

As energy prices continue to rise in this country, it's no wonder that American consumers are shopping for more efficient cars, appliances, and other products.

At Consumer Reports, we have long recognized the importance of energy efficiency and in recent months have paid even greater attention to the subject, including a July 2008 cover story on gas-saving sedans. (Read more about fuel efficiency.)

The theme of our October 2008 issue, on sale and online now, is "Save Energy, Save Money" (cover, right). We review tankless water heaters and compact fluorescent lightbulbs and reveal energy-efficient products that will save you money. We also include a checklist of 25 easy ways for you to cut your energy use at home.

But the October story that's so far received the most buzz is "Energy Star Has Lost Some Luster," which highlights some problems with this federal program administered by the U.S. Department of Energy and the Environmental Protection Agency.

The EPA has taken issue with aspects of the story. I've received e-mails from federal officials about our story and earlier today spoke with an EPA representative about the agency's concerns. Let's just say that, for now, we agreed to disagree. (Other organizations, including the American Council for an Energy-Efficient Economy, recognize the importance of our findings.)

You can read the EPA's response to our story by clicking on "EPA's Response to Consumer Reports Oct 2008 article on ENERGY STAR" in the headlines section on the Energy Star Web site. And check out our reply to the EPA: Consumer_Reports_response_to_EPA.pdf.

Look for continued coverage of Energy Star on this blog and on ConsumerReports.org.—Steven H. Saltzman

Q&A: Are there any tax credits for installing a residential solar-energy system?

Hoping to save on our energy bills, we're considering installing a solar water heater at our home. Does the federal government offer any tax breaks for these systems?

Given the high upfront expense of solar photovoltaic (PV) systems and solar water heaters, it's no wonder you're interested in financial incentives to alleviate some of the cost. Federal tax credits for PV systems and solar water heaters do exist, though you'll need to move quickly because they expire this December 31. (OCTOBER 2008 UPDATE: The $700 billion Emergency Economic Stabilization Act of 2008 extended and expanded the tax credits for residential solar systems. Read more in this post from the Consumer Reports Money blog.)

Advocates of solar energy fear the end of the tax credits will discourage adoption of these promising technologies. "If the federal solar credits expire as planned, it will definitely put a huge damper on the market, and we'll see a large drop in installations," says Larry Sherwood, a consultant to the Interstate Renewable Energy Council, a nonprofit that promotes renewable energy.

Federal tax credits for solar power have helped double the number of commercial and residential installations of PV and solar-water-heater systems since taking effect in 2006, according to the new "U.S. Solar Market Trends" report by Sherwood. Rising energy prices and state incentives have also played a role in spurring the market, particularly in states where those incentives have the biggest payoff.

California, with the largest state incentive program for PV systems, dominates the market with 69 percent of all installations. Similarly, Hawaii, with its generous incentives, accounts for half of the solar-water-heater market. (Read this blog post for more on solar water heaters in Hawaii.)

Still, most Americans own neither type of system since they remain prohibitively expensive. Check out this listing of state incentives for solar power; select "Solar (All)" in the drop-down menu. You'll find more information on renewable-energy incentives on the same site.

A PV system capable of fully powering the average U.S. home costs $64,000 to $80,000 installed, says the Solar Energy Industries Association trade group. While much cheaper, solar water heaters still cost $5,000 to $7,000, including installation. Such steep prices make renewable-energy incentives attractive.

The existing federal incentives allow you to take a 30 percent tax credit up to $2,000 for the purchase and installation of a PV system or solar water heater. But even that's not enough, says the SEIA, which is pushing for an eight-year extension of the federal credits and to eliminate the existing $2,000 limit for residential buyers.

Some progress toward that goal has been made. Last May, the U.S. House of Representatives passed the Renewable Energy and Job Creation Act of 2008, which extends the credits for eight years and also doubles the cap to $4,000 for residential buyers. But after eight attempts, the Senate has failed to pass a bill of its own.

Given the need for more secure, clean-energy technologies, we shouldn't let the sun set on these important incentives.—Kristi Wiedemann, Science and Policy Analyst, GreenerChoices.org

Essential information: Find out how solar and other renewable-energy technologies are greening the workforce, get the latest buzz on backyard wind power, and learn about tax credits and rebates for energy-efficient appliances. Also read what Consumers Union has to say about the hidden price you pay for energy.—Kristi Wiedemann, Science and Policy Analyst, GreenerChoices.org

10 Questions for . . . Tom Reddoch, Electric Power Research Institute

In this installment of 10 Questions for . . . , Senior Editor Daniel DiClerico talks to Tom Reddoch, director of energy utilization for the Electric Power Research Institute (EPRI), a nonprofit that does R&D work for the electric-utility industry. Here, Reddoch discusses hyperefficient appliances, electric vehicles, and why not everyone embraces smart-meter technology. Consumer Reports hasn't put all of Reddoch's ideas to the test, but they add to the energy-use debate.

The EPRI uses the term hyperefficient. What does it mean?
We decided we wanted a phrase that would differentiate our research from what I'll call normal improvements in efficiency. These are quantum leaps in efficiency, along the lines of the 75 percent reduction in energy use that happens when you go from an incandescent lightbulb to a compact fluorescent.

On the residential side, we're interested in three key areas of hyperefficiency. The first is heat pump water heaters. Making hot water using a heat pump is more efficient that making it from natural gas, and it has a smaller carbon footprint.

The second area is converter-driven ductless heat-pump air conditioners. Today's systems blow heated and cooled air through a series of ducts. The new systems have a variable refrigerant that flows through a piping network from room to room, where a heat exchanger takes the cool/heat from the refrigerant and discharges it into the room.

The third area is appliances. Let's look at refrigerators: They lose their chilled air when the door is opened—the larger the opening, the more cool air is lost. So one thought is to go to refrigerators with multiple small doors. There's already a Japanese product with as many as seven doors. The other appliance technology we're looking at is a combination washer/dryer/heat pump.

Are there any downsides to heat pumps?
An air-to-air heat pump draws heat out of the air. Therefore as you move north into colder temperatures that task becomes progressively more difficult. In colder climates, the best heat pump value is in geothermal or ground-source units, which draw heat from an underground piping network.

Whether air or ground, heat-pump systems cost more on the front end than other systems. So the other challenge here is behavior based. Heat pumps have the potential to deliver good long-term value, but people don't always look at the long term as much as they look at the short term first cost.

How is the national power grid changing?
The IQ of the electric system is rising as we create a so-called "smart grid." This allows us to do things on an automated basis, capturing some of the energy efficiency benefits that we might otherwise miss. If you think about it, when you shop for gasoline, you drive around and you look for signs posting the price. But with electricity, you only see the end result on your bill. The modern system will make pricing information more readily available, which in turn will lead to variable pricing by time of day, similar to what goes on at the gas pump. Utilities will convey when supply is short and pricing is high and through that homeowners will hopefully respond by consuming less.

Is there a risk that electric cars will someday be a drain on the power grid?
By most plausible scenarios, the introduction of plug-in hybrid electric vehicles will increase our total electric requirements by 5 or 6 percent by 2025 to 2030. That's a modest number but it will have dramatic impacts. We'll improve our security situation because we won't have to rely on the rest of the world for so much oil. From an environmental perspective, gasoline engines are nasty polluters, so electric vehicles will clean up the air.

It's not like every car on the road will suddenly be electric. There are 70 or 80 million cars on the road in the U.S. And we introduce vehicles at the rate of about 14 or 15 million a year. At that rate, by 2050 about 70 percent of the new cars that we could inject into the market place would be electric. So it's a gradual introduction.

What is the current state of smart-meter technology?
This is one of the rapidly changing areas in the electric business and a source of great debate. Electric meters on homes today have an extremely low IQ. But meters are becoming smart devices with an ever-increasing IQ. I like to use the analogy of computers. You have to replace your laptop every three to four years or it can barely handle the next version of software. Therein lies the issue. As innovation continues, a meter that used to last for 25 or 30 years might suddenly become antiquated in four to seven years. So we have a dilemma. How do we best place "smarts?" In the meter or in an external throwaway device? The answer is TBD.

10 Questions for . . . Ed Hammer, CFL Inventor

In this installment of 10 Questions for . . . , Associate Editor Kimberly Janeway speaks with Ed Hammer about his 1975 invention, the compact fluorescent lightbulb, and why it took so long for this innovation to reach the marketplace. Hammer (shown with the first CFL) has worked in the lighting industry for 50 years and holds more than 40 patents.

How do you feel about being called the father of the CFL? And does Edison inspire or haunt you?
"Father of the CFL" is a nice title—I'm fine with that. I wasn't haunted by Edison. I wanted to make the world a better place; it's still my goal.

What led to your invention?
I was a senior physicist at GE Lighting in Cleveland and was working in fluorescent lighting in 1973, when we had the energy crisis in this country. As a result, we designed a bulb commonly called the F-40 Watt-Miser, the first energy-efficient linear fluorescent lamp. That said, I thought we might as well get a replacement for the 100-watt incandescent lamp. That type of lighting is very, very inefficient.

What did you envision as a replacement for incandescent bulbs?
I thought if we could get a fluorescent replacement, we'd get more efficient lighting. I was also thinking compact and to get it to look like an incandescent I would make it spiral and bend it with certain geometry, but it wouldn't be easy. My colleagues gave me many reasons why it wouldn't work.

From conception to prototype took up to two years, and my first compact fluorescent lightbulb was good. It's on display at the Smithsonian National Museum of American History in Washington, D.C. Today's spirals look very similar to the first one.

You invented the CFL in 1975. Why did it take so long for it to reach stores?
A number of reasons. There wasn't enough money for GE to do the CFL. It got delayed. Time goes on and there were other projects. In 1985 we tried to do the CFL, but bending it was very difficult because there wasn't automated equipment. GE thought the CFL was a good bulb but too expensive to make. The bending was done manually and the other parts were automated. The only place in the world where CFLs could be made and sold at a reasonable price was China. In the end, GE wasn't the first to bring CFLs to market.

Were there any problems with the first CFLs?
One big problem was that they operated with a high-frequency electronic ballast. People complained they were having problems with their TVs and they'd take them back to the store. The output frequency of the CFLs was the same as the frequency from the televisions and was causing interference. Once we identified the frequencies being used, the remote-control people designed around it. Interference is no longer a problem, but that slowed down sales of CFLs.

Shower or bath: Which uses more water?

“Take showers instead of baths to save energy,” is an oft-repeated adage of water and energy conservation advocates. But the Department of Energy’s water-heater-sizing pages now list the average shower as consuming 12 gallons and the average bath only 9 gallons of hot water. 

The DOE is also saying that homeowners are using from 15 to 30 percent of their total energy budget just to heat water—up from an earlier 14 to 25 percent estimate. So is soaking instead of scrubbing the way to go?

A spokeswoman for the EPA (which provided the figures to the DOE) says the new figures were based on a study it commissioned in 2000 by independent water-engineering-and-management firm Aquacraft. Ten homes in Seattle were fitted with data loggers on the main water meters a separate meter was placed on the feed line to the water heater and the results measured over two separate two-week periods.

“The nine gallons was actually the actual average draw of water into a bathtub, but you’re talking about an event that can involve more than one draw of hot water,” says Aquacraft President Bill DeOreo. “So that’s not an accurate measure of total average use.”

Consumer Reports’ own experts believe the previous 20 gallons of hot water per bath that the EPA was using (which was in turn based on a studies done by the Gas Appliance Manufacturers Association) to be still a better benchmark.

They also stress that the best way to save hot water is to take showers rather than baths, limit the time of showers, use a low-flow showerhead, and turn off any supplemental showerheads in each shower stall.

Many utilities and municipalities are following this advice. The Portland, Oregon Water Bureau has given away over 4,500 1.5- gallon-per-minute showerheads and 4,000 five-minute “Shower Timer” hourglasses to its customers.

“The hourglasses aren’t as functional as the low-flow showerheads and aerators we give away; they’re more of a behavioral tool,” says Sarah Statner of the Portland Water Bureau. “But we get a lot of positive feedback and hear they inspire more conversations about conservation than any showerhead every will.”

Also backing the move for water economy is the popular eco-blogger Crunchy Domestic Goddess, who has issued her own Five-Minute Shower Challenge that’s drawn numerous responses.—Gian Trotta

Essential information: Find out about the wide variety of high- and low-flow spraying options available Showerheads special. Our GreenerChoices.org Web site offers "50 Ways to Save Water." And see our October issue for a special comparing the performance of tankless, or on-demand, and conventional storage-tank heaters.