Clark Howard on HVAC Energy Savings Payback

Clark Howard on HVAC Energy Savings Payback

Help me with home energy savings

HLN Money Expert Clark Howard
For more tips, visit CNN.com/ClarkHoward

STEPHEN:
The heating system and air conditioning in my house is 21 years old. A contractor has told me that I can spend $5,700 on a new gas furnace that will be 90% efficient and a heat pump that will be 15 seer. This will qualify me for the $1,500 tax credit for energy savings. Is it worthwhile for me to make this investment?

CLARK:
If you plan to stay in your house for a lengthy period of time, it will pay off for you right now with the bonus of the tax credit. And it will definitely pay off for you over the long haul in what you’ll save on energy in winter and summer. But you have to patient, because it is “eventually”. You’re not going to make this money back in two or three years. Depending on the climate where you live and the relative cost versus the energy bills you’re paying now, it could be a 10-year payback. If you want to get a feel for that, go to energystar.gov and look at their calculators to see if the payback is a reasonable period for the length you plan to own your home.