Do You Know the Differences Between Energy Conservation and Energy Efficiency?

On this blog, we frequently use the terms “energy conservation” and “energy efficiency.” What do those terms mean, exactly? When they get used in general speech, they’re often thought to be interchangeable, but they actually refer to two separate -- albeit closely related -- concepts. Here’s a simple rundown:

What Energy Conservation Is

Energy conservation simply refers to using less energy overall. In most cases, energy conservation involves behavioral changes. So if you see that your electric company bills are getting too high, you might decide to turn up the thermostat in the summer so that your air conditioning doesn’t come on as often (AC is quite an energy hog, accounting for about 19% of residential electrical energy use in the country). Other examples of habits that support conservation are keeping the refrigerator door closed until you know what you’re planning to get out and turning off the lights when you leave the room.

What Energy Efficiency Is

Energy efficiency refers more specifically to using less energy to perform the same functions. That means that, in most cases, energy efficiency is a matter of technology. We can compare some efficiency efforts to the conservation practices mentioned above. Whereas conservation would involve turning the thermostat up, efficiency would involve installing a new AC unit that uses less power to cool to the same temperature. Whereas conservation involves keeping the fridge door closed, efficiency might involve buying a newer, more efficient refrigerator (the average fridge sold today in the U.S. actually uses 75% less energy than ones sold in 1975, despite costing 60% less and being 20% larger). And whereas conservation might include turning off the lights, efficiency would involve switching out old-fashioned incandescent bulbs for CFLs or LEDs.

How They Work Together

There’s no question that we need to get a handle on our electricity usage as a country. In 2013, we collectively used 13 times more electricity than our counterparts did in 1950. So if you’re looking for energy savings, should you care more about conservation, or efficiency? The ideal solution is actually a both/and, not an either/or; they’re two sides of the same coin. We should all be striving to use responsible amounts of energy, and changed habits and improved technology can both support that goal while also allowing us to enjoy modern conveniences. If you want to look at the overall impact of energy usage, you can also think of conservation and efficiency as being two vertices of a triangle, the third being sustainable power generation. Then we’re being smart not just about how we’re using power -- we’re also being smart about how we’re creating it in the first place.

Where have you been focusing your habits, conservation or efficiency? Discuss in the comments.

5 Hidden Energy Eaters in Your Home

In the summer, opening up a bill from the electric company can come as a bit of a shock. But once you get over the initial disbelief, it’s time to start informing yourself about where all that electricity is going. By replacing energy hogs or being smarter about use, it’s possible to see lower electric company bills without much difference in your day-to-day life. Here are some big energy users that might surprise you:

Set-top Boxes

Set-top boxes often keep drawing their full power requirements even when they look as if they’re turned off, making them a big energy eater. The LA Times even reported last year that set-top boxes have become the second-largest energy user in many homes. Game consoles can use quite a bit of electricity as well, especially if they’re kept plugged in and on standby mode.

Furnace Fans 

Space heating/cooling has represented a big chunk of home energy use for a long time, generally floating in the range of 40% to 50% of total utility bills. And your system may be using more electrical energy than you expect. Even if you have a furnace or heat pump that runs on gas, it’s likely you have an electric-powered furnace fan that drives up utility costs. It may not be cost-effective to change your heating system, but you should at least consider a professional energy audit that can give you an idea of where heat/AC is escaping your home -- so you can keep the heat in and get the associated energy savings.

Water Heaters 

Heating water typically accounts for 14% to 18% of the average utility bill. A combination of installing efficient or tankless water heaters -- which heat only as much water as needed -- and taking shorter showers can tackle the problem. You might also consider using cold water for laundry.

Microwave Ovens 

You probably expect large kitchen appliances such as your fridge, freezer, range and dishwasher to draw a lot of power. But if they’re new and efficiency-rated, they probably use less electricity than you think: The average fridge bought today in the U.S. uses 75% less energy than an average 1975 fridge, despite being 60% cheaper and 20% bigger. The real drain in your kitchen is probably your microwave, which draws phantom power when you’re not using it. New standards that will come into effect next year will make microwave ovens less wasteful; in the meantime, you can choose to unplug yours if you use it rarely.

Device Chargers 

Personal devices that run on batteries, such as smartphones, tablets and laptops, often have inefficient chargers. One report from the Digital Power Group recently claimed that an iPhone uses more power in battery charging, Wi-Fi connectivity and data use than a mid-sized efficient refrigerator. Unfortunately, there’s no clear way to reduce this cost, but you can research the efficiency of your particular devices and go from there.

 Did any of these surprise you? What other changes in the home can contribute to energy conservation? Discuss in the comments.

How to Stay Cool This Summer Without Breaking the Bank

It seems like winter just ended, but -- depending on where in the country you live -- you might already be thinking about cranking up your air conditioning. With that, however, comes the high electric company bills most homeowners dread. The average American household uses 903 kilowatt hours of electricity each month and pays $107 per bill; however, if you’re a heavy air conditioning user in a region with high energy costs, you already know your bill can get much, much higher than that. And, of course, high energy use has broader implications as well. The U.S. used 13 times more electricity in 2013 than it did in 1950, and that’s a significant environmental concern. But with a few simple steps, you can moderate your energy usage this summer without sacrificing comfort, meaning you can stay cool without feeling guilty or anxious about the bills to come. Here are five do's and don’ts for maximizing your energy savings: 1.     DO: Use a Programmable Thermostat This may seem obvious, but it makes such a difference in energy conservation that it’s worth mentioning again. It’s estimated that a programmable thermostat can offer you a full 10% energy savings annually. 2.    DON’T: Use Unnecessary Heating You might think you’re not turning on the heat in the summer -- but are you baking, cooking on the stove or taking steamy showers? All that heat goes into your house, meaning your AC has to work overtime to keep the temperature down. Grilling is a great choice for more than one reason, but you could also use your microwave more or try to plan no-cook meals. 3.    DO: Look Into New Window Coverings The sun plays a significant role in heating up your house in the summer. Invest in solar screens, special curtains or new shades to keep it at bay. 4.    DON’T: Forget to Switch Your Fans One of the easiest summer energy solutions is giving your AC a hand with some simple household fans. But if your home does have ceiling fans, be sure to switch their direction. In the winter, fans should move clockwise to pull cool air up; in the summer, however, fans should move counterclockwise so that you feel a cool breeze blowing down. There's probably a switch on the side of your fan that you can flip to accomplish this. 5.    DO: Take Advantage of Cold Spots One easy way to get an energy reduction in your climate control use is to give up on getting your whole house the same temperature. Instead, take advantage of natural cool spots, such as the basement or rooms at the back of the house, and hang out there. How else might homeowners get some energy savings this summer while staying cool? Share your suggestions in the comments.

The Information That Could Cause You to Have a Light Bulb Moment About Light Bulbs

The bad news is that the average American household currently uses 903 kilowatt hours of electricity each month, costing $107 each time a bill comes due. The good news, however, is that Americans are getting smarter both about how they use energy and how they get it. Electricity companies have now installed smart meters at 50 million homes across the U.S., allowing 43% of those households to track their weekly electricity use; people are figuring out that simple steps such as installing programmable thermostats can save them 10% on their climate-related energy costs; and residents in deregulated energy markets are seeing that switching to alternative electricity suppliers can save them quite a bit in the long run.

In fact, many energy solutions are incredibly simple from a homeowner’s point of view. If you’re looking for an easy way to cut down on your bills and do your part for energy conservation today, you need look no further than your light bulbs. There are three basic energy-efficient types to consider:

Halogen Incandescent Bulbs

These are a variation on the normal incandescents you’re probably used to, and they come in a wide range of colors to give whatever effect you’re going for. A halogen incandescent has an interior capsule that holds gas around the filament to make it more efficient, and indeed these used to be one of the more efficient options available. But now, while halogen bulbs still meet federal energy efficiency standards, you probably have better options to meet your needs. If you do choose halogen bulbs, keep in mind that you should never change them with bare hands; a small amount of oil on the bulb can cause it to burn too hot and explode.

Compact Fluorescent Bulbs

You’ve probably seen some of these twisted bulbs, even if you didn’t recognize the technology behind them. They’re versions of the long, straight tube lighting often used in industrial settings, but now come in more colors to mimic the soft light of incandescent bulbs. Here’s why you should care about them: They use only a quarter of the energy traditional bulbs do, and last 10 times as long. That means they normally pay for themselves in around nine months. When they finally do burn out, remember that they contain trace amounts of mercury, and need to be recycled rather than just being tossed in the trash.

Light-Emitting Diode Bulbs

These up-and-coming energy solutions use light-emitting diodes, or LEDs -- the same technology behind high-end televisions and other electronics. They work using semiconductors that convert electrical energy into light, but what you really need to know is that they use only between 20% and 25% of the energy traditional bulbs do and last 25 times as long. They’re currently a bit expensive, so they’ll take longer to pay for themselves, but prices should come down as the market for them grows.

What other simple energy solutions can lead to major energy savings? Share your ideas in the comments.

Test Your Electricity Deregulation Knowledge With This Quiz

Many households will soon be taking a closer look at their electric bills as we head into summer; air conditioning actually accounts for a full 19% of residential electricity use in the U.S., the biggest slice in the whole residential sector pie. If you live in one of those households, one of the things you may be considering to get more control over your electricity service is switching to an alternative electric supplier.

But how much do you know really about electricity deregulation and what it could mean for your household use? Test yourself with this short true/false quiz.

#1: You Can Switch Your Supplier Without Losing Service

Answer: True

Switching suppliers is really extremely easy.  Once you choose a retail supplier, you’ll probably have to wait a cycle or two before the switch occurs -- there will be no interruption in service, and once it occurs you will still receive your electric bill from your utility company; you will simply have your new electricity supplier listed on the bill under electricity supply detail.

#2: You Might Get Poor Service If You Switch

Answer: False

People are often concerned that by switching to an alternative supplier, they’ll get poor service from the utility company or be left (literally) in the dark should something go wrong. But utility companies are required to respond to outages and maintain service no matter what and with no discretion placed on whether you are with a supplier.

#3: Alternative Energy Suppliers Offer More Incentives

Answer: True

Because a deregulated market forces suppliers to compete for consumers -- the same way any other retail business does -- you’ll find you may be able to get some perks not offered by your utility company. For example,  some suppliers offer a rewards program that can potentially save you money and time on other interests, vacations, and everyday purchases..

#4: You Can Save Money With Alternative Electricity Suppliers

Answer: True

This is really the issue at the heart of electricity generation and the one most consumers have questions about. Will you see lower bills from the electric company once you switch? While your actual prices will depend on the alternative home energy supplier you end up choosing, there is the potential for you to save money by switching because energy prices can vary widely based on a number of factors. Two decades ago, in 1995, electricity generation accounted for a full two-thirds of electricity prices. Today, that figure is less than half, according to the Edison Electric Institute.  Data published in competecoalition.com compares rate changes across electricity markets from 1997 to 2014,  and the data shows that states with restructured or deregulated electricity markets post lower rates of change.  For complete details of the study go to: http://www.competecoalition.com/files/EIA%20restructured%20states%20data%20chart%20April%202015%20update.pdf

How’d you do? Share your score in the comments.

5 Questions to Ask Prospective Alternative Electricity Suppliers

Energy deregulation essentially breaks down the monopoly previously held by utility companies by separating power production from power distribution. Energy deregulation actually began in the 1970s, when the Public Utilities Regulatory Policies Act (PURPA) created a structure for independent power producers. But deregulation became much more widespread and viable after the Energy Policy Act of 1992, which eliminated restrictions on prices charged for wholesale electricity.

The reasoning behind choosing a different electricity generation company is fairly simple: If you live in an area where the electricity market is deregulated, then choosing an alternative home energy supplier could allow you to compare rates, products, services and then pick the best option for your needs while still receiving your power through the public utility as you always have. Actually choosing that supplier, however, can be a little more complex. Here are the five questions you should ask before signing a contract:

1. How Does Pricing and Fees Work?

There are two main pricing models used by suppliers. One is a fixed model, in which you pay a set price for electricity as long as your contract is in effect. The other is a variable or floating model, in which your price depends on several factors  for any given month. Some companies might use a hybrid between these two models. You should also ask about any fees you will pay on top of the cost of your actual energy usage.

2. What Contract Lengths Are Offered?

Before you sign anything, you should know if you are allowed to switch back to your previous supplier at any point or if you are required to stay under contract for a set length of time. You should also ask about the penalties should you want to get out of your contract early.

3. How Are the Two Aspects of Billing Handled?

Since deregulated energy markets split production and distribution into two services. In many cases you will continue to receive the same bill from your current public utility company, with the only thing that changes is the name of the delivery provider within that bill. But you should ensure that you will continue to receive only one electric bill and if not, understand how the new bill will be coming to you so no payments slip through the cracks.

4. How Do You Generate Your Electricity?

Each electric company has a slightly different profile in terms of how it generates its power. If you have strong feelings about sustainability or renewable options, then you will want to choose a supplier that shares your values in terms of green electricity generation. Remeber to ask about those power production methods and decide if they line up with your values.

5. When Will the Switchover Happen?

There will be no interruption in your service if you switch to an alternative electric supplier, but you will probably want to know for bookkeeping purposes when your new supplier anticipates the switchover occurring.  The switching time frame is controlled by state laws and/or regulations.  For example, some states allow switching to occur in a few days while other states have proceedures which may result in the switching taking up to 1 to 2 billing cycles. Do you have any questions about choosing alternative electricity suppliers, or about energy deregulation in general? Join the discussion in the comments.

5 Energy Conservation Myths That Could Be Sabotaging Your Efforts

Energy conservation is an important goal, both because it will help you bring down your electric company bills and because it benefits the planet as a whole. In the U.S., electricity use in 2013 was 13 times greater than in 1950; even with greener electricity generation methods, that consumption has a negative impact on the environment. That’s why it’s so important that we all join in and try to reduce our energy usage. But in your conservation efforts, it’s important you don’t get drawn into some popular myths. Here are five of the most common that need busting: Myth #1: It’s better to leave the light on than turning it on and off several times.It’s often said that it’s best to just leave the light on if you intend to come back to a room in a minute, but there’s no evidence to back that up. Your best shot at reducing consumption is to always get in the habit of turning off the lights when you leave the room. Myth #2: Keeping your thermostat at a constant temperature takes less energy.Since the largest portion of residential electricity use in the U.S. goes to air conditioning (19% of total residential electricity consumption), it makes sense for energy conservation efforts to focus on AC. But you shouldn’t fall for the common myth that it takes more energy to cool a room back down than it does to keep it at a constant temperature. If you’re looking for energy savings, it’s best to only cool a room when you’re actually using it. Myth #3: Turning your heat/AC to the most extreme setting leads to a faster result.Turning your thermostat all the way up or all the way down won’t heat or cool the room any faster or save you any energy. In fact, it’s far more likely to just stay on longer, heating or cooling the room beyond what you need for comfort. That’s why a programmable thermostat is often worth the initial cost. Myth #4: Using hot water from the tap before boiling it saves energy.This myth might intuitively feel true because if you fill a pot with hot tap water before putting it on the stove, it will take a shorter amount of time to boil. But heating water takes energy no matter what. In this case, you’re just moving the task to a different appliance, your water heater, and then running hot water through the pipes so that there’s a greater chance for heat loss and waste. Heating water is actually one of the largest energy expenses in average homes, accounting for between 14 and 18% of utility bills. The most efficient choice is simply boiling cold tap water in a pot with a lid. Myth #5: When you turn your appliances off, they’re off.Even when you hit the off button, your appliances and gadgets are still drawing electrical energy. Depending on the appliance, this might be a very small amount of energy, or it might be a very large amount of energy. You can look back at some of our previous blog posts for more on which household appliances are the worst offenders. Have you heard any other common energy conservation tips that need fact checking? Join the discussion in the comments.