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Financial Matters

March 11, 2010

Inside Consumer Reports Test Labs: Review of the GE GeoSpring electric heat-pump water heater

GE GeoSpring electric water heater
The new GE GeoSpring can save you money.

You might have recently seen a TV ad showing a troop of snow monkeys bathing in a hot spring that's seemingly heated by the new GE GeoSpring electric heat-pump water heater. "Heating your water in your home any other way is going to seem primitive" the ad concludes as the monkeys soak blissfully in the steaming water.

It's a neat commercial, but what could be most interesting to you is how much money the GeoSpring water heater might save you. GE says the unit could reduce water-heater operating costs up to 62 percent and save the average U.S. household $320 a year.

Based on our preliminary tests in a room with an ambient temperature of 65° to 70°F, the GeoSpring has produced energy savings of at least 50 percent compared with a standard GE 50-gallon electric water heater. That would result in annual savings of $280 or higher, based on the $560 cost of running a standard 50-gallon electric water heater and the 2009 national average electricity price of 11.4 cents per kilowatt hour. (This U.S. Department of Energy calculator can estimate your water-heating costs.)

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March 9, 2010

Cash for Appliances Update: Bigger rebates generate greater consumer interest

If Iowa and Minnesota are any indication, the more generous the rebate in the U.S. Department of Energy's $300 million State Energy Efficient Appliance Rebate Program, the faster the money tends to go. Both states exhausted their cash for clunkers for appliances funding in a single day. (Iowa doled out $2,881,000; Minnesota, $5,009,000.)

Such demand may explain why Florida is requiring residents to reserve rebates for the sizable 20 percent givebacks through its $17,585,466 Energy Star Appliance Rebate Program, which runs April 16-25. "We don't want a lot of disappointed people," program manager Brenda Buchan told The Palm Beach Post.

Several other states, including Pennsylvania and Texas, are also requiring reservations, perhaps a sign that there's pent-up demand for appliances among consumers. Indeed, based on the latest Consumer Reports Index, the major-appliances category was one of only two where consumers spent more in February.

Daniel DiClerico

Essential information: Get the latest information from the cash for clunkers for appliances Web site in your state. Also check out our cash for appliances buyer's guides to dishwashers and washing machines and find out where to buy appliances.

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March 9, 2010

Keeping PACE: Town of Babylon helps homeowners pay for green improvements

PACE Babylon Energy Efficiency
Get money for green home improvements.

Swapping out incandescent lightbulbs with the best compact fluorescent lightbulbs and replacing an old showerhead with a low-flow showerhead are easy, low-cost ways to lower your monthly utility bills. However, the up-front costs for some energy-efficiency-boosting projects can be substantial, such as installing new heating and cooling equipment and windows.

In an effort to spur homeowners to make energy-efficient improvements, municipalities nationwide are turning to Property Assessed Clean Energy, or PACE, bonds. A town issues a PACE bond and uses that money to lend homeowners the money to undertake energy-saving upgrades; the homeowners pay back the loans via a surcharge on their property taxes. Read more about PACE bonds in "10 Questions for . . . Jack Hidary, Chairman of SmartTransportation.org."

The Town of Babylon, on Long Island, New York, has implemented a PACE program, providing up to $12,000 per home for energy-saving improvements that are made based on an energy audit. It's one of eight municipalities participating in the Long Island Green Homes & Buildings Consortium.

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March 3, 2010

Tip of the Day: Don't shy away from haggling on major-appliance purchases

Haggle When Buying Appliances
Some legwork can save you on appliance buys.
Given how expensive major appliances are, it makes sense to look for rebates and additional incentives. Many consumers are doing just that, as cash for clunkers for appliances seems to be a success in some states.

It also pays to look for sales and other deals and to be a tough price negotiator. In an online survey by the NPD Group market-research firm of 7,130 adult Canadians who reported buying a major appliance from May 2008 to April 2009, less than a third of consumers surveyed paid full price. Half bought the item on sale and nearly 20 percent haggled on the sticker price.

Not everyone embraces haggling. A subscriber survey by the Consumer Reports National Research Center found that only 33 percent of people who bought major appliances tried negotiating. But of those who did, 75 percent succeeded in getting a lower price—saving a median of $100 on a purchase.

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March 2, 2010

President wants to seal the deal on cash for caulkers

Homestar Cash for Caulkers Insulation
Adding insulation would get you a Homestar rebate.
Hoping to drum up support for the Homestar energy-efficiency program, President Barack Obama spoke today at Savannah Technical College in Georgia about the $6 billion cash for caulkers program, or Homestar.

Under the Homestar plan, you'd get a 50 percent rebate up to $3,000 on insulation, duct sealing, windows, roofing, and heating and cooling equipment, and other energy-efficiency improvements. If you pay for a full energy audit and follow through on its recommendations to boost the overall energy efficiency of your home by at least 20 percent, you'd receive a $3,000 rebate.

Administration officials expect 2 million to 3 million homeowners to participate in the cash for caulkers program, which must approved by Congress.

Cash for caulkers is another example of the administration's energy-efficiency efforts, joining the $300 million cash for clunkers for appliances and the $4.7 billion Weatherization Assistance Program. It's also part of the administration's effort to create new jobs.

"Here's one of the best things about energy efficiency. It turns out that energy-efficient windows or insulation, those things are products that are almost exclusively manufactured right here in the United States of America. It's very hard to ship windows from China. So a lot of these materials are made right here in America," said the president.

Daniel DiClerico

Essential information:
Try these easy ways to cut your home energy use and visit our Energy Saving & Green Living guide.

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March 2, 2010

Appliance retailers, manufacturers hoping for some March madness with cash for appliances rebate programs

Cash for Clunkers for Appliances
The U.S. Department of Energy's $300 million State Energy Efficient Appliance Rebate Program tipped off yesterday in Alaska, Arizona, Arkansas, Colorado, Idaho, Iowa, Massachusetts, Minnesota, New Jersey, Ohio, Rhode Island, South Carolina, South Dakota, Utah, and Washington as well as the Northern Mariana Islands.

If you're in the market for new appliances covered by your state's program, you might want to shop sooner than later since the rebates seem to be a hit with consumers.

• In Iowa, the $2.8 million rebate program opened and closed yesterday. "Thank you for your interest in the Iowa Appliance Rebate Program. Unfortunately, all rebate funds have been reserved and applications are no longer being accepted" reads a note today on the Iowa Office of Energy Independence Web site.

• In Minnesota, the state's $5 million Trade-in and Save Appliance Program was overwhelmed by consumers yesterday, according to this report in The Free Press.

• In Nebraska, Neil Moseman, director of the Nebraska Energy Office, told the Omaha World-Herald that the state's $1.71 million in rebates for heat pumps, central air conditioners, clothes washers, dishwashers, gas furnaces, oil furnaces, and refrigerators next month, will be gone in less than 30 days.

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February 26, 2010

Cash for Appliances Update: Florida encourages recycling, Illinois targets water heaters

Cash for Clunkers for Appliances Rebates
Take advantage of a cash for appliances rebate.
The U.S. Department of Energy's $300 million State Energy Efficient Appliance Rebate Program is up and running in many states. Here's some recent news related to the cash for clunkers for appliances rebate program.

Remember, before you head out to shop, use our free buyer's guides to the many appliances eligible for rebates, find the find out where to buy appliances, and see what other readers have to say about kitchen, laundry, and heating and cooling equipment in our appliances forums.

Florida adds recycling bonus
Florida's appliance clunkers program, which starts on April 16 to coincide with the week of Earth Day, will provide a $75 bonus to consumers who recycle their old appliances, according to this report from The Miami Herald. That's on top of 20 percent rebate on the pretax price of Energy Star-qualified refrigerators, freezers, washing machines, dishwashers, room air conditioners, and gas-powered tankless water heaters. Read our Q&A on appliance recycling for more details.

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February 25, 2010

Sears goes "RAD" and touts its appliance-recycling efforts

Sears RAD Program Appliance Recycling
Sears is the only retailer participating in RAD.
A recent Sears TV commercial take a humorous approach to promote the retailer's participation in the U.S. Environmental Protection Agency's Responsible Appliance Disposal program*, a voluntary effort established in 2006 to better ensure the recovery of ozone-depleting substances (ODS) from old household appliances. Sears started its RAD participation in 2007.

A couple dozen utility companies are RAD partners. But Sears is currently the sole RAD retailer, part of a campaign to strengthen its green cred with consumers that includes heavy promotion of the $300 million State Energy Efficient Appliance Rebate Program, or cash for clunkers for appliances. The Sears site features a rebate finder that lets you search for available appliance rebates by ZIP code. (Read "10 Question for . . . Brett Battles, CEO of Castanea Labs" for details on the company that created the rebate finder Sears uses.) Note that some states require that you recycle equipment to get a cash for appliances rebate.

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February 11, 2010

Weekend Project: Insulate hot-water pipes to cut down on heat loss

The pipes that snake out from a hot-water or steam boiler and from a water heater radiate heat much like a conventional radiator or baseboard. You might welcome that heat if you spend a lot of time in the same unheated space as your boiler or water heater.

But if you'd rather decrease the heat loss from those pipes (not to mention prevent any burn risk from them), follow the four easy steps in this latest Weekend Project (photos for all four steps are below) adapted from our Complete Guide to Reducing Energy Costs ($19.45, including shipping).

Insulated hot-water pipes can reduce heat loss and keep the water in them 2° to 4°F higher than uninsulated pipes, according to the U.S. Department of Energy. And your water heater will not have to flush and reheat the pipes each time you run hot water to the same area of your home during peak-usage periods. The only tools you need are a measuring tape, a pair of scissors, and a sharp retractable-blade utility knife.

A very important point: Check your owner's manual or on the boiler or water heater itself for the required clearance from the appliance and its flue. Certain foams could emit toxic gases if they burn.

Also find out which type of insulation and tape/wire/clamp to use. The installation here shows foam insulation, but for a gas-fired boiler or water heater, use unfaced fiberglass pipe wrap, held in place with either foil tape or wire.

Finally, measure the diameter. Plumbing pipe is measured by its internal diameter (3/4 inch is common), but the actual outside diameter will be larger, depending on the material. The outside diameter of 3/4-inch black iron pipe is more than 1 inch, for example.

1. Attach the first sleeve. Using the scissors, cut a 45-degree angle on one end of a length of insulation, then slip the sleeve over a section of pipe so that the angled miter cut ends up against the first turn in the pipe. At the other end, cut the sleeve to length with the utility knife.

2. Add the second section. Cut a 45-degree angle in the sleeve and fit it against the 45-degree angle already in place.

Insulate Water Pipes Weekend Project

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February 8, 2010

In this big chill, Ice House Detroit nears completion

As we reported last fall, the Ice House Detroit project was conceived by architectural photographer Gregory Holm and architect Matthew Radune as a way to draw attention to what's happening in the Motor City as a result of the devastating blow suffered by the housing market there.

As detailed on the Ice House Detroit blog, the duo has been wielding water hoses and battling the winter sun as they worked to encase one of the city's thousands of abandoned houses completely in ice, what they label "an architectural installation and social change project." Holm and Radune say they're on track to complete the project on schedule. You'll find photos of the project on the blog.

It was no small feat to turn the house into a supersized igloo. To keep the top portion of the roof from melting on sunny winter days, for instance they created a cross breeze in the attic that quickly dropped the interior temperature of the home from 42°F to 24°F. (A Weather.com 10-day-range forecast for the cit shows temperatures staying below 30°F.)

Holm and Radune have also developed a warm relationship with the local inhabitants, as the house has served as an icicle-draped catalyst for fund-raising projects, including a recent volunteer meal drive that helped feed 250 homeless people.

Gian Trotta

Essential information: "Buzzword: Reburbia" details how other distressed residential properties, like those in America's boomburbs/boomburgs, might being transformed. Our weekend project on attic insulation can help your own home from feeling icy on winter days or a sweat box over the summer.

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