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| The Basics | Time to junk energy-sucking appliances?
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Those old clunkers that seem to run forever may cost more than you realize in extra power bills. Heres a plan to replace the worst first and start saving. Also: Tax breaks that can help.
By Bankrate.com
When's the best time to buy an appliance? If youre waiting until yours breaks, dont. As you put off the decision, you're likely paying much higher utility bills because of the inefficiency of old appliances.
The recent energy bill signed into law by the president provides tax credits to manufacturers of energy-efficient dishwashers, washing machines and refrigerators that meet the latest standards. They may also result in rebates for consumers. Regardless, consumers will benefit from lower utility bills when purchasing high-efficiency appliances.
According to the U.S. Department of Energy, Americans spend more than $160 billion annually to heat, cool, light and live in their homes. A sizable portion of this is squandered by old, inefficient household appliances and outdated lighting technologies. This waste of energy not only consumes billions of dollars from already strained family budgets, it also contributes to power plant emissions that create soot, smog, acid rain and greenhouse gases.
Big savings are possible
The typical family uses approximately 10,656 kilowatt-hours of electricity each year, according to the U.S. Energy Information Administration. At 8.5 cents per kwh, this translates to around $900 or more a year on electricity. Updating select energy-intensive appliances with the latest generation models could trim up to $150 a year from utility bills.
"When you're in the market for a new appliance or other household electronic equipment, you should really look for Energy Star-qualified products because these can be as much as 10% to 50% more efficient than conventional counterparts," says Sara van de Grift, spokesperson for Focus On Energy, a public-private partnership offering energy information and services to utility customers in Wisconsin.
The Energy Star logo is awarded to products that meet or exceed criteria for energy efficiency established by the Environmental Protection Agency and the Department of Energy.
Related news and commentary on MSN Money
Most consumers shop for a replacement only when their old appliance fails. The thought of disposing of a perfectly working air conditioner, refrigerator or washing machine seems counterintuitive and unnecessarily wasteful.
"And there's the rub," said van de Grift. "People really don't have a fixed standard or rule of thumb to go by. Appliances don't come with a 'best by' date or a recommended replacement interval -- and, so, people hang on to them longer than they ought to."
Yet energy and money are wasted by not replacing older equipment. "The money spent on electricity, keeping it long past its prime, could've easily paid for an energy-efficient replacement and then some," she says.
How to get started
Savvy consumers have to do research, make efficiency comparisons and decide for themselves when or if it makes financial sense to replace an appliance. It helps to be aware of appliance life expectancies (see the table below) and to know how much energy is required to run older products compared with newer models.
If a major appliance is very close to or past its maximum service life, it makes little sense to hang on to it, let alone repair it. For the biggest payback, focus first on replacing your home's oldest and greatest energy users: refrigerators, clothes dryers, washing machines, air conditioners and furnaces.
The refrigerator, for example, uses more energy than any other household appliance even though it cycles on and off throughout the day. The older the unit, the more inefficient.
Strides have been made. A typical 1993 model, made when the federal government first introduced refrigerator-efficiency standards, was 99% more efficient than in 1980, says Jill Notini, director of communications and marketing for the Association of Home Appliance Manufacturers. A 2001 model (the year standards were raised) gained 146% in efficiency over the 1980 version.
And todays most-efficient Energy Star-qualified units are more efficient still, using at least 15% less energy than required by current federal standards and 40% less than conventional 2001 models.
Which to swap, when
Replacing an early 1990s-era fridge with a new Energy Star model could save $85 in annual energy costs. And if you are replacing a vintage avocado green, burnt orange or harvest gold beauty that devours a whopping 2,190 kilowatts a year in power, youll save even more.
| How long appliances last | | Appliance | Life* | Appliance | Life* | | Disposal (in the sink) | 12 years | Cook top -- double built in | 21 years | | Trash compactor | 14 years | Microwave oven | 9 years | | Room air conditioner | 12 years | Dishwasher -- under counter | 13 years | | Dehumidifier | 11 years | Dishwasher portable | 11 years | | Dryer | 13 years | Refrigerator -- side by side | 14 years | | Washer -- top load | 14 years | Refrigerator -- top mount | 14 years | | Washer -- front load | 11 years | Refrigerator -- bottom mount | 17 years | | Range -- slide in single oven | 17 years | Refrigerator -- one door | 19 years | | Range -- double oven | 18 years | Refrigerator -- built in | 14 years | | Range -- drop in single oven | 11 years | Refrigerator -- compact | 5 years | | Oven -- built in | 16 years | Freezer -- chest | 18 years | | Cook top -- single built in | 13 years | Freezer -- upright | 15 years |
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*Age at which repair is either impossible or too costly.
Source: Association of Home Appliance Manufacturers survey
A typical 30-year-old clunker consumes $180 to $230 in electricity annually. Modern refrigerators use about 25% of that energy, says Notini. New Energy Star units cost as little as $33 to $51 in electricity per year, depending on size and design. That means a new refrigerator's cost could be recovered in three to six years.
Other energy hogs
| New breaks for homeowners |
Taxpayers can claim credits of up to 10% -- up to $500 -- of the cost of upgrading heating systems, insulation, windows, doors and thermostats, caulking leaks, installing pigmented metal roofs and otherwise cutting energy waste. The credits -- dollar-for-dollar reductions in your tax bill, not just a deduction -- kick in Jan. 1, 2006.
Write-offs for replacement windows are capped at $200. The credit for high-efficiency central air-conditioning, heat pumps and water heaters is capped at $300.
Homeowners installing solar energy systems can claim a tax credit of up to $2,000 as long as the system isn't used to heat a swimming pool or hot tub. Smaller credits are available for fuel cell and photovoltaic power sources.
There are no direct tax credits for new, energy-efficient appliances. Instead, credits of $50 to $175 per appliance go to the manufacturers whose efficiency exceeds the federal minimum. The most efficient appliances tend to be the most expensive, so before you buy the Toyota Prius of washing machines, make sure youll see enough savings to justify the extra cost.
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Clothes dryers are the second-greatest energy consumers. No Energy Star-qualified models are available, but the better and more efficient dryers now possess moisture sensors that switch them off when clothes are dry. These models can, over time, save considerable amounts of power.
Compared to pre-1994 models, a new Energy Star-qualified washing machine can save up to $110 per year by using 50% less energy than older machines. Most full-sized Energy Star-qualified washers also use 18 to 25 gallons of water per load, compared to 40 gallons used by a standard machine. They also extract more water from clothes, reducing drying time. If your washing machine is more than 11 years old, it's due for replacement.
About one-sixth of all the electricity generated in the United States is used to air-condition buildings. A 10-year-old air conditioner is only half as efficient as its present-day counterpart. It makes sense to update AC units more than 10 years old, especially ones prone to expensive breakdowns.
Replacing old appliances before they break down lets you shop for deals, seasonal incentives and utility-sponsored rebates. Wait for them to expire and youll find yourself spending more.
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