Deciding on Energy Upgrades for your Next Home Improvement Project

It might seem counter-intuitive, that in a time when financial hardship is more common than ever, to consider taking on home improvement projects.  However, part of the government's stimulus ideas included granting tax credits to homeowners who try to upgrade the energy efficiency in their homes.  Of course, the upfront costs involved with any project might be prohibitive, regardless of the benefits down the line.  Can any of these projects make sense for a family with a tight budget?  Here is a look at five home improvement projects you might want to consider, even at a time like this.

1. Bracing the home for winter.  While new windows all around the house might be out of the realm of possibility at the moment, storm windows can be a good short term option.  If the winters can take on a nasty character in your part for the country, the extra protection might add up to 20% in savings.  Storm windows can cost lest than $50.  Your savings will probably be able to cover 3 or 4 windows in the first year.  Anything after that, you will go into the black.

2. New appliances and lights.  If you've been saving for an addition or other large-scale project, you might save a dramatic amount of money on energy by switching to energy-efficient appliances and light bulbs.  Simply changing to fluorescent lights with every bulb in the house can change your energy costs.  Appliances will be a more sizable investment.

3. Adding on insulation.  You won't feel guilty by adding insulation to your home: the price is definitely worth it.  Less than $300 can take care of whole rooms that are at risk (especially your attic).  Meanwhile, adding a coating to your entire home might run to over a thousand dollars.  The savings afterwards?  Some experts estimate that 20% of your energy costs could be chopped off your bill on a monthly basis.  If you pull out the calculator you'll see how much sense this project makes.  You may even qualify for rebates or tax credits if you get the right type of insulation.

4. Water heater replacement.  While water heaters can be pricy, they might make a lot of sense for large families.  Every time someone takes a shower, the costs start to add up on an old water heater.  Energy-efficient models will be eligible for tax credits, making the near-future costs of your water heater more attractive.  Meanwhile, the savings could amount to over 50% of your current hot water costs.

5. Window replacement.  One project which sounds intimidating but could actually make the biggest difference in comfort in your home is window replacement.  Tax credits are definitely available to stop the unwanted air flow and energy losses in your home.  Qualified windows may cost as much as $200, however.  It will seem more like an investment, but this project is guaranteed to pay off.