We all hate spending money on utilities. I highlight companies and other initiatives working to save renters money on energy — by providing portable, cheaper tools, new financing tools to afford expensive retrofits, or new sources of green energy cheaper than your utility. As renters, we should be aware and support these efforts. According to a survey by , more renters are worried about rising utility bills (70%) than rising rents (63%). Freddie Mac These concerns aren’t unfounded. Utility costs (electricity, gas, water, and sewer), from one analysis of public real estate records, add up to to renters’ costs. These costs hit low-income renters the hardest, eating up . The biggest utility culprit is — Of electric and gas costs, of it is due to heating and cooling. It’s clear, then, that more energy-efficient and energy- units mean more and financial empowerment for renters. 25% to homeowners’ costs and 27% 21% of their incomes entire energy electric and gas take up 49% of total utility costs, followed by internet and cell phones (29%) then water (7%). 58% producing money Most solutions are impractical or too expensive for renters and landlords Renters are to be energy efficient. Solar panels or insulation retrofits are (1) too annoying or impossible to move to your next apartment or (2) too with . Landlords — who own the building — otherwise do not care about saving you money since you pay for your own utilities. This gap between renters’ and landlords’ interests is called the “split incentives problem.” So you — the renter — use what’s there: Drafty windows and earth-killing appliances your landlord hasn’t updated since the 1980s. 30% — 40% less likely than homeowners expensive large up-front costs The split incentives problem leaves a lot of money on the table. of the floor, wall, and ceilings, , saved 63% off heating costs, resulting in $500 of savings a year. The most cost-effective retrofits, such as $5000 fabric insulation and double-glazed windows, the University of Nottingham found, have . Similar studies found that controlling the temperature in each room throughout the day — and shutting off air flow in empty rooms using smart vents, like or — can result in energy savings from to for a cost of . Closing your shades at night, for instance, can save up to of your heating costs. If the thought of closing all those blinds everyday overwhelms you, . Insulation retrofits the Salford Energy House study found payback periods of 3 to 6 years Ecovent Flair 25% 40% $490 per room 17% Luftron’s smart shades open and close at optimal times at $350 per window Unfortunately, these cost-saving solutions are too expensive or impractical for most renters, especially if they can’t take those improvements with them to their next apartment. Fortunately, startups and other initiatives are starting to address these problems. Meet the startups fighting energy waste Strategy #1: Affordable and portable tools for renters To address the fact that some tools are too cumbersome or impossible to move to your next apartment, a swath of portable energy-saving or energy-producing tools have come onto the market. . A $250 Nest can result in savings of of your heating and cooling costs, with a by saving $120/year. These are small and easy enough to install and reinstall as you move to different apartments. produces a smart thermometer that collects hourly temperature data to advocate for tenants who suffer from a lack of heat. Smart Thermometers 10–15% payback period, as one analyst estimates, of 1.5 years Heat Seek Example smart thermostat . The connects to your home’s electrical panel and provides insight into your energy usage. Neurio, which is a monitor for solar energy, claims to reduce your payback period for solar by . pays you money to cut back on electricity when there is high demand for it in your area. Residents, according to the FAQs, can make a year. Energy monitors Sense Home Energy Monitor 30% Ohm Connect $100-$300 Sense Home Energy Monitor tells you where you’re wasting the most energy . For $200-$400 or , local technicians measure airflow and detect sources of drafts in your house. Using this information, you can use targeted insulation to save money on heating and cooling costs. One person documents that he spent $400 on the audit and , resulting in a one-year payback. Search the ’s database to find an energy auditor near you, but confirm they’ve passed muster by searching their business in the Better Business Bureau database. Furthermore, check to see whether your electric or gas provider will give you a rebate to install insulation as a result of your audit. One person found for these items. Energy audits even for free $500 on insulation and labor costs to save $1000 a year residential energy services network his provider gave a 75% rebate Energy auditors come to your home and find sources of drafts and energy loss using data like the above. . The $200 — $3000 sets and offer allow you to avoid expensive labor and construction costs because these panels can be mounted on decks or placed on the ground. Additionally, they can be plugged straight into your home’s existing outlets and generate electricity. Enthusiasts have adapted these panels for use in their apartments, placing them near or balconies. One Michigan Technological University study found that , . In the future, could be commonplace, sidestepping the need for space or labor-intensive physical alterations to install solar. Plug and play or portable solar Pluggedsolar Inergy Solar window sills plug and play systems can create payback periods of under 5 years 2 years faster than normal solar systems energy generating solar windows ” using window sill and balcony panels. One author aspires to put his apartment “off the grid By wrapping a $250 Cozy over your radiator, you can control your room’s heat better. No longer do you have to open your windows in the dead of winter. Plus, a Cozy is digitally monitored. So when they’re placed throughout a building, data is fed back to boilers to redistribute heat. Increases in energy efficiency result in a . Smart Radiator Covers. payback of two years . ThinkEco’s $45 modifying outlet (or “modlet”) easily plugs into existing outlets and prevents appliances from consuming standby power. Also called “vampire energy,” this form of power use has accounted for up to nearly . . Smart outlets 7–8% of the UK’s household energy use Payback periods range from 6–9 months Strategy #2: New financing to overcome up-front costs To address the fact that some tools or retrofits too expensive to purchase, a swath of new financing opportunities have come onto the market to make $10k-$20k solar panels or insulation retrofits affordable for renters. Importantly, while landlords have to provide consent, these tools don’t require the same renter — who will, on average, move out in 1–2 years — to pay back the obligation. . Landlords have to disclose this obligation to new tenants, but this should not be a barrier as tenants generally face unchanging utility costs and (in Arkansas) are initiatives that pay for energy-efficiency or solar retrofits upfront (or help you find lenders). The energy savings over decades pays for the upfront costs plus interest, resulting in minimal or new increases in the renter’s utility bill. This financing tool is called “on-bill financing.” If a tenant moves out before the payback period, the , since the improvements stay with the physical structure. Similarly, targets homeowners and has plans to work with renters in the future. On-bill financing. Matter.solar Ouachita Energy Cooperative obligation can be transferred to the new tenant Sealed , where third parties pay for costs up front (the “solar loan payment”) and beneficiaries pay back the loan helped by electric bill savings Sealed’s visual illustration of on-bill financing Instead of relying on a single company, like Sealed, to provide financing, and scales this concept. Investors in the same state can lend money to fund energy-saving or energy-producing retrofit projects. or, in Mosaic’s case, even by selling extra power back to utilities. using BlocPower’s scheme. Crowdfunding. BlocPower Mosiac Tenants can pay their obligations back through on-bill financing One church saved $3000 a month People and other smaller investors — not banks or big investors — to finance your project. lend you capital . While this solution still requires you to get consent from your landlord, Grid Alternatives provide to low-income families in exchange for allowing community volunteers and job trainees to get hands-on experience (“ ”) to install those panels. Because this model is free for the renter and landlord, landlords can’t complain about the cost and there are no obligations to payback. Barnraising free or low-cost panels barnraising Grid Alternative supervisor and trainee at work Strategy #3: New sources to buy energy beyond your local utility This strategy minimizes both aspects of the split-incentives problem. Tenure isn’t an issue. Renters can buy cheaper, renewable energy sources regardless of where they live. Upfront costs aren’t an issue. Third parties build and maintain these farms. Lastly, landlord consent isn’t an issue. Local solar farms sidestep any need to install solar on your roof; a requirement that blocked up to of US residents from using solar energy. 92% , which is available for NYC residents, buys, trades, and sells energy from multiple suppliers using machine learning algorithms to optimize for price. They . “Smart” energy retailers. Drift estimate cost savings of 10%-20% . , Renovus, and build solar gardens into which renters can for little or no upfront cost using on-bill financing. Renovus in New York and Nexamp in Massachusetts, for instance, allows renters to purchase energy with no upfront cost that is — cheaper than market rate. Cost savings from solar-produced energy not only pay for the lease but also result in credits to your utility bill. you can use to find a community solar project near you. Solar farms Solstice Arcadia Power lease solar panels 10% 15% Energysage has a database No longer do you need a large, centralized solar farm, which would be expensive or impractical to house in space-scarce cities. Microgrids are networks of independent energy producers — your neighbors, for instance — who can sell their excess energy to you. You can buy cheaper energy and they can make extra money. up to 13% of costs. University of California San Diego, for instance, saves with its microgrid. Green Mountain Power’s . Efforts are underway by , ME SOLshare, and Sonnen, providing access to energy to rural and urban dwellers alike. Micro-grids. By using the newest technologies, reducing the distance of electricity transmissions, and removing overhead, microgrids can cut $8 million a year $2.7 million microgrid will pay itself off within 2–5 years Lo3 Energy With nightfall, solar panels can no longer generate electricity, forcing homes to rely on the grid. But with batteries, solar can store extra energy produced by microgrids and solar farms throughout the day. A $14,000 battery can take to pay back. While targeted towards homeowners, can benefit renters by increasing the efficiency of solar farms and microgrids who sell energy to renters. Batteries that store extra energy. 8–12 years Swell Illustration of Brooklyn’s Microgrid Project Ideally, we’d live in a society where policies would incentivize developers, landlords, or renters to build or retrofit green. See, for instance, Germany’s to help renter access solar on their apartments. But until then, to save money on your utility bill, it’s going to take some work. These products can be good investments in the long-term, paying itself off and saving you money over the decades. recent bill If you’ve used any of these products or services, I’d love to hear your experiences. ☞ Agree or disagree? Add me on LinkedIn with a note here .
