Wednesday, October 20, 2010

Winter Heating Bills: Higher Overall Depending on Region, Energy Efficiency Upgrades

Source: Alliance To Save Energy

Your heating bills are likely to be slightly higher this winter compared with last winter, but costs will vary widely depending on where you live and what kind of fuel you use, according to the U.S. Energy Information Administration’s (EIA’s) Winter Fuels Outlook. But energy efficiency upgrades can help curb bills no matter where you reside.

Although households stand to use less heat this year because of a forecasted mild winter, higher fuel prices will offset these savings. Overall, households in the continental United States will pay an average of 2.5 percent, or $24, more for heating this year than they did last year, for a total average bill of $986. But differences in regional weather, fuel mix and fuel prices will have strong effects on heating costs throughout the country.

Data comes from the annual Winter Fuels Outlook, which was released on Oct. 13 and predicts winter heating bills throughout the United States, based on the EIA’s energy price projections and forecasted weather data from the National Oceanic and Atmospheric Association.

A Warmer Winter

Compared to last year’s frigid temperatures, this winter will be a relief for many Americans. On average, temperatures will be 3 percent higher in winter 2010-2011 than in the 2009-2010 season, and 1 percent higher than the 30-year average.

However, not all regions will experience this warming trend: While the Southeast will enjoy temperatures 15 percent warmer than last year, the Northeast will be 5 percent colder.

Higher Fuel Costs Mean Bigger Bills

Despite an overall warmer season, most consumers will spend more on heating this winter because fuel prices are expected to increase compared to last winter.
Many factors, both national and international, can account for the increased fuel prices, including increased international demand for energy and the weakened U.S. dollar, according to the Associated Press.

Region, Heat Source Affect Heating Costs

The bottom line on Americans’ heating bills will largely depend on where they live and what fuel they use for heat. The relatively small proportion of Americans who use heating oil and propane will see the greatest spending increases. But natural gas spending will be up only slightly, and electricity expenditures will actually be lower than last year, according to EIA projections.

Cost changes also vary substantially from region to region. For instance, Midwestern homes can expect bills from 6 to 14 percent higher than last year, while Southern homes can expect bills between 6 and 3 percent less than last year’s.

So How Much More Will YOU Spend?

Choose your U.S. region and heat source to find out how much more (or less) you might be spending this winter. All numbers are rounded and based on EIA projections for the continental United States and reflect the six-month period from October 2010 through March 2011.

If You Use…Natural Gas

About 52 percent of households nationwide use natural gas to heat their homes.

  • Average natural gas heating spending: about $780, which is 4 percent—or $25—higher than last winter.
  • In the West: about $500 (3 percent, or $15, lower than last winter).
  • In the South: about $690 (3 percent, or $20, lower than last winter).
  • In the Midwest: about $850 (6 percent, or $45, higher than last winter).
  • In the Northeast: about $1,150 (12 percent, or $120, higher than last winter).

If You Use…Electricity

About 37 percent of households nationwide use electricity to heat their homes.

  • Average electric heating spending: about $940, which is 2 percent—or $20—lower than last winter.
  • In the West: about $900 (unchanged from last winter).
  • In the South: about $860 (4 percent, or $35, lower than last winter).
  • In the Midwest: about $1080 (1 percent, or $10, higher than last winter).
  • In the Northeast: about $1490 (5 percent, or $65, higher than last winter).

If You Use…Heating Oil

About 7 percent of households nationwide use heating oil to keep their homes warm in the winter, with more than three-fourths in the Northeast.

  • Average heating oil spending: about $2120 (12 percent, or $220, higher than last winter).
  • In the West: about $1390 (9 percent, or $110, higher than last winter).
  • In the South: about $1,620 (4 percent, or $50, lower than last winter).
  • In the Midwest: about $1,610 (10 percent, or $140 higher than last winter).
  • In the Northeast: about $2,200 (13 percent, or $260, higher than last winter).

If You Use…Propane

About 5 percent of households nationwide use propane to heat their homes.

  • Average propane heating spending: about $1,970 (8 percent, or $135, higher than last winter).
  • In the West: about $1,980 (10 percent, or $185, higher than last winter).
  • In the South: about $1,680 (6 percent, or $100, lower than last winter).
  • In the Midwest: about $1,920 (14 percent, or $240, higher than last winter).
  • In the Northeast: about $2,680 (14 percent, or $325, higher than last winter).

Keep Costs Down with Energy Efficiency Upgrades

While you can’t control the weather or the price of fuel, you can control your costs by improving the energy efficiency of your home and being smart about your energy use.

“With heating accounting for 31 percent of the typical home’s energy costs, energy efficiency measures that lower heating bills will keep real money in consumers’ pockets,” noted Alliance President Kateri Callahan.

Federal income tax credits for energy-efficient upgrades—including insulation and sealing products and highly-efficient furnaces, heat pumps and windows— expire Dec. 31, so the time to invest is now.

The metal roofing options we at Energy Roofing Systems offer are an excellent solution to the problem of keeping your home warm during colder months. Instead of letting household heat escape through the roof like shingles, our metal roofs will actually contain heat and keep the house warmer. Monthly energy bill savings up to 40%!

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