Home improvements that provide the best return for your money don't always increase the value of your home, but such work pays for itself by cutting energy costs.

This winter, deregulation, harsh weather, increased oil costs, greater demand from a booming economy and a host of other factors have combined to double and triple homeowner utility bills across the nation.

The higher energy costs has prompted the Washington, D.C.-based Alliance to Save Energy to urge home owners who are refinancing to consider cashing in some of their equity for energy-efficiency home improvements -- both to help reduce their utility bills and to help conserve power.

"As energy costs rise and demand exceeds supplies, this is a great time for consumers to improve the energy-efficiency of their home and obtain the tax advantages from these upgrades," says Alliance president David M. Nemtzow.

The League of California Homeowners says consumers often overlook energy-conscious home improvements because cost-vs-value studies don't include them and home owners often can't "see" them.

"These are things that make the home more comfortable, but except for windows you don't see them," said Ken Willis president of the league in Upland, CA.

How much you cut your utility bill depends on what home improvements you select, your area's climate, rebates available from utility companies for some jobs and other factors.

Right now, low interest rates make equity loans for energy efficient improvements more economically feasible and energy efficient mortgages for both purchase and equity loans can help you finance work that eventually will more than pay for itself.

Energy efficient mortgages also increase your home buying power for a fixer-upper and they stretch your debt-to-income qualifying ratios for loans on existing homes. Your local utility company, up-to-date mortgage brokers and the alliance can point you to additional resources.

The alliance says before you begin any work, start with an energy audit. The check up of your home's energy efficiency, will help you determine where your home needs the most work.

Energy Efficient Projects

Insulation -- "In priority for the most return for the least amount of dollars is insulation in the attic and walls," says Willis.

A properly installed insulating barrier in the walls, floors, ceilings and attic keeps out excessive heat and cold and provides even temperatures between rooms. The Environmental Protection Agency's Energy Star Program says ceiling insulation alone can reduce your heating bill by as much as 20 percent. Even with sufficient insulation, however, your home doesn't obtain the full benefit if insulation is incorrectly installed or becomes damp. Increase the "R" insulating factor beyond that required by local building codes and don't forget to insulate plumbing, water heaters and ducts.

Windows, Doors, Skylights -- New double- or triple-paned, argon gas-filled and sealed Energy Star-rated windows, doors and skylights reduce heating and cooling costs and come with added bonuses -- they help block out harmful pollutants and disturbing sound. Utility companies often offer rebates for new windows.

Also seal literally hundreds of cracks and gaps in your home's framing and exterior, including holes for plumbing, mechanical equipment, electrical wiring, exhausts and venting. Air leakage accounts for between 25 and 40 percent of the energy used for heating and cooling in a typical home, according to the EPA.

Duct Work -- Residential ducts can leak 15 to 20 percent of the heated or cooled air forced through them. Examine duct joints and connections, including connections at the heater or air conditioner. Common duct tape doesn't make the connection as well as mastic, foil and fiberglass tape.

Heating, Cooling,Ventilation -- Inefficient, outdated heating, cooling and ventilation systems can harm not only your wealth, but your health as well. Uncirculated, stale air allows moisture, odors and pollutants to linger in your home. Consider replacing systems that don't carry an Energy Star-rating if they're more than seven to 10 years old -- even if they are in fine working condition. With automatic thermostats and a balanced ventilation system, energy savings can be as high as 30 percent.

"So your furnace has 10 to 15 years of useful life remaining. There may be some options available. You may choose to install a flue damper to trap residual heat. Replace old standing pilot lights with a spark igniter. If you have an oil furnace, you might think of installing a flame retention burner," said Cincinnati's Tim Carter, publisher of the AskTheBuilder web site.

"Talk to your heating contractor. See what options they recommend. Do the math. It is simple and only takes a few moments. You might be surprised by the figures," Carter added.

Major Appliances -- Likewise, replace mechanically functional, but inefficient, major appliances including water heaters, dish and clothes washers, dryers, refrigerators, stoves, ranges and others.

"If you are doing a kitchen make over, add Energy Star appliances," say Willis.

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