Money Management

Five Ways to Save on Energy Costs

April 2008

The average American household spends $1,900 a year on energy bills, according to the government’s Energy Star program. Whether you’re preparing for the heat of summer, the frigid temperatures of winter, or looking to lower your gasoline expenses, there are many practical ways to cut down on costs, according to Pennsylvania Institute of Certified Public Accountants (PICPA). The tips below will help you save money and do the earth a favor by cutting greenhouse gas emissions too.

CONDUCT AN ENERGY AUDIT
Conducting a home energy audit can help you identify problems that could be costing you money, such as drafts that let in cold air; insufficient insulation; poorly maintained heating and cooling equipment; or inefficient lighting. The U.S. Department of Energy’s Web site (www.energy.gov) has instructions for conducting an energy audit. If you’d like to bring in an expert, many electric or gas utilities offer these audits for free or at a reasonable charge.

ADOPT ENVIRONMENTALLY FRIENDLY IDEAS
If you conduct a home energy audit, you may find that you can cut costs by taking easy, money-wise steps that cut power usage. For example, simply unplugging appliances when not in use will lower energy consumption. Many appliances draw energy even when not in use. Another good idea is to close the blinds in the summer time to keep out the sun’s heat and to open them in the winter to let in natural warmth.

PICK THE RIGHT APPLIANCES
If you look for the Energy Star label when selecting energy-using products, you’re likely to use less power, save money, and help the environment. These products, made by many manufacturers, all meet energy-efficiency specifications set by federal government agencies. There are Energy Star-qualified products in a wide range of categories, including household appliances, heating and cooling equipment, home electronics, and office
equipment. Find more information on the Energy Star label online at www.energystar.gov.

TURN OFF THE LIGHTS
This easy step will make a real difference in reducing your energy bills and helping the environment. Many people remember to turn off lights in unused rooms in their homes, but this step is sometimes forgotten in an office. According to the Natural Resources Defense Council, most energy used in an average commercial building is for lighting. Get in the habit of turning off lights at lunch or in empty offices and conference rooms.

PERFORM REGULAR CAR MAINTENANCE
Your home and office aren’t the only places where smart steps will cut energy or fuel costs. It’s possible to save $100 a year on gasoline by keeping your car engine tuned up and your tires properly inflated.

CONSULT A CPA
As you can see, there are many simple ways to cut expenses by lowering your energy use. If you are interested in learning more about the best steps to reduce costs in any aspect of your financial life, consult a CPA. A CPA can provide money-savvy ideas that you can apply to your every day life. To find a CPA in your area, visit www.IneedaCPA.org.

Founded in 1897, the Pennsylvania Institute of Certified Public Accountants is a professional association of more than 19,000 CPA practitioners in public accounting, industry, government and education. PICPA is the second oldest state CPA organization in the United States. Use PICPA's CPA Locator to find a CPA in your area.