Energy Efficiency Overview

2008 Home Energy Efficiency Report: Texas Comptroller of Public Accounts
October 2008
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Report Highlights:

As required by HB 3070 passed by the 80th Texas Legislature, the Comptroller’s State Energy Conservation Office (SECO) conducted a comprehensive study to identify potential methods for providing home energy efficiency information to Texas consumers.

Texas leads the nation in energy production and in energy consumption.

While industry represents half of that consumption, homes account for 14 percent of demand.

With 8.1 million occupied housing units, even small gains in home energy efficiency will create a sizeable impact. Energy efficiency, therefore, becomes an energy resource.

According to the U.S. Department of Energy, in addition to the benefits of resource conservation and emissions reductions, many households can save 20 to 30 percent on their home energy bills by implementing energy efficiency solutions.

With the 2006 average monthly bill for residential electricity in Texas at $149.29, 56 percent higher than the national average, an efficiency gain of the minimum average projection of 20 percent at 2006 rates represents a $29.86 monthly savings for electricity alone.

With the typical home ownership period of five to seven years, that $29.86 monthly savings realistically represents a savings to consumers of $1,791 to $2,507 over that period if just 20 percent efficiency is gained, more if 30 percent savings is realized. With 87 percent of the state’s 6.3 million homes valued at $200,000 or less, that savings can make a big difference for Texas families.

Texas’ energy use in 2005 represented 11.5 percent of U.S. energy consumption, ranking us ahead of all other states. The confluence of population, climate and energy-intensive industry drive this seemingly disproportionate share.

Texas’ per capita residential consumption of electricity is higher than the national average, due to cooling demand and a greater use of electricity for heating than other states.

The Environmental Protection Agency (EPA) and the U.S. Department of Energy also offer two online tools for consumers. The Energy Star Home Energy Yardstick compares monthly or annual utility costs, which are input by the homeowner, with other homes across the country. The Energy Star Home Advisor provides general energy efficiency suggestions based only on energy types used and ZIP code location.

Many homeowners and even builders have been hesitant to invest in energy efficiency fearing added costs cannot be recaptured. As noted previously, research shows homeowners’ decisions to invest in energy efficiency upgrades hinges on four key factors, including rising and burdensome energy costs, the ability to estimate a return on investment, sufficient income and credible sources of information on cost-effective improvements.

Though market forces felt through higher utility costs are one incentive for increased energy
increased use of energy ratings, higher energy costs are not sufficient by themselves to motivate to act. Other incentives and consumer education may be required to drive demand.

Texas One of 15 States Leading the Nation in Energy Star Homes: In 15 states, more than 12 percent of new homes are meeting Energy Star standards. These homes have locked in annual savings of more than $180 million for homeowners.
Source: Environmental Protection Agency, News Release, July 12, 2007

To launch a voluntary rating-based home energy efficiency program, no statutory changes are needed. However, the success of this program will require a focused and comprehensive outreach and education campaign to raise awareness on the long-term value of home energy efficiency, drive market forces and encourage stakeholders to take action for measurable results.