Investigating the Financial Feasibility of Energy-Efficient Appliances Used in Homes

Abstract

In the U.S., the residential sector accounts for 21% of all energy use. The adoption of energy efficient appliances can, in part, help reduce site energy consumption in the residential sector. In turn, such reduction will lead to lower monthly utility bills, as well as lessening the carbon footprint formed by the residential energy use. The literature, as well as green building guidelines, such as LEED V4 for homes, recommend the use of energy-efficient appliances. However, the initial cost of these appliances can be significant. As such, there is a need to assess the economy of replacing traditional appliances with energy-efficient ones to ensure the financial feasibility of such approach. This paper presents a preliminary framework that defines and describes the interrelationship between the main parameters needed to conduct a comprehensive life-cycle cost analysis to determine the feasibility of investing in energy efficient appliances in the home.