Cost-Benefit Analysis of Residential Energy-Efficiency Upgrades in Phoenix, Arizona

Abstract

With worldwide energy consumption rising, there is a need to reduce energy use of the housing stock. While this general idea is well-known, there is an overwhelming amount of product data and manufacturers claims through which the homebuilder or designer must sort to make informed selections of energy-efficient upgrades. The main objective of this research was to identify cost effective–energy efficient upgrades from a group of 16 commonly available choices, and rank them according to the most beneficial for the least cost. This study was conducted in Phoenix, Arizona, and included a sample of 30 production-style homes typical of the Phoenix metropolitan area. Energy-simulation software was used to perform energy evaluations and derive the benefits of each upgrade. The cost of each upgrade was obtained from a database of national average costs and from a local context. Differences in the selection of beneficial upgrades vary dramatically with the source of the cost information. This research provides a generic methodology that can be used by builders and designers to select appropriate energy-efficient upgrades for a given geographic area that will provide high operating benefits relative to the amount of capital investment.