Finance: Lowering energy costs

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Doing a fairly good impression of a goldfish when you tear open the envelope and look at your power bill. You're not alone. Since 2003 power prices have increased by seven per cent a year.

Trying to figure out how to reduce your power bill has become a national pastime.

Here are Element's suggestions for your budget.

For nothing
Shop around for electricity: retailers have varying rates. Visit powerswitch.org.nz to compare (try the savings calculator) or whatsmynumber.org.nz? - the average saving is $160 per year.
Check out powershop.co.nz where you can buy in advance or shop for bargains. Ask if your power company offers multi-rate tariffs - different power prices for different times - doing your washing in the middle of the night can be done with a timer plug.
Stop draughts: make draught snakes for doors with high ground clearance, fill holes or gaps in the floor.
Drying: use the sun instead of the tumble dryer and save $60 every year. Wash clothing in cold water: save $60 each year.
Beer fridge: If you have a second fridge, use it only at the weekend and save $100 every year.
Check your hot water: it should be at 55 degrees at the tap. Every 10 degrees above that costs an extra 10%.
Towels: it takes a couple of hours to dry a towel. A timer switch on your heated towel rail will save $100 each year.
Phase out standby mode: TVs, stereos and electronic equipment all have the telltale red light, but washing machines, dryers, and phone chargers left on at the wall can also drain energy. Switch everything off at the wall and save $75 a year.
Defrost your freezer: it will run more efficiently.
Taps: fix dripping taps.
Water: when turning on a tap for some cold water (ie filling the kettle), make sure the lever is pushed all the way to the cold side.

Small investment
Lighting: For every four high use bulbs you change from incandescent to LED or fluorescent bulbs, you save up to $80 per year.?
Timer switches: get a timer switch for your appliances which sit on standby, and you don't have to go around switching them off at the wall each night. Go a step further with smart switches like the intelliswitch ( intelliswitch.co.nz ).

Moderate investment
Smart metering: Smart metering systems give the ability to get power consumption data, in the form of energy usage graphs - right down to the hour.?

This year Genesis Energy, in its Tomorrow Street initiative, launched HomeiQ, a set of single and multi-plug boxes that communicate wirelessly to a central 'brain' which is then connected to the internet as well as an in-home display unit. It makes it possible to remotely control your home. The idea is that HomeiQ will be used in combination with the advanced meters that provide half-hourly, daily and weekly power use information.

Low flow: Water efficient shower head. A low-flow shower head (running at 6 - 9 litres per minute) can save $120 a year.
Insulate your cylinder: Insulating your hot water cylinder (if it's not an A-grade cylinder) will cost about $100, and will save you $50 a year.

Significant investment

Insulate your home: A 100sqm home will cost from $2800 to insulate, and will save you $168 a year, as well as making your home more pleasant.
EECA grants are available. Visit www.eeca.govt.nz to find out if you are eligible.
Double glazing: up to 15% of your home's heat is lost through windows. For a 100-square-metre house you'll probably need between $7000 and $10,000.
Choose efficient appliances: watch for the Energystar logo (see page 28).
Solar hot water: Solar can provide 50 - 75% of your hot water and takes a day to install, at a price of between $4000 and $7500. Save $775 per year. EECA provides ENERGYWISE™ funding of $500 - $1000 depending on the size and efficiency of the product. Check www.energywise.govt.nz/funding-available to find out more.?
Hot water heat pump: a hot water heat pump, such as the ecospring model (ecospring.co.nz), can reduce hot water costs by up to 70%.
Photo voltaics: A standard 1kWp PV installation will save you about $500 a year in energy costs, and will cost between $6000 and $9000 to install. The lifespan of such as system should be at least 25 years.
Renovate: Many NZ homes do not make use of the sun's energy, so renovating can bring his heat and light into your home. Building in thermal mass, such as concrete, brick or tile floors and walls around heat sources, can trap heat during the day and release it at night. A house renovated properly in the North Island may need no source heating at all. New building legislation means you must go with a licenced practitioner for this type of work or you might end up with a major headache when you go to sell.

Your power bill make up
33% Heating your home
30% Water heating
9% Lighting
8% Cooking/refrigeration
15% Washing machines, dryers, TVs, computers and other appliances
?5% Other