subject: Recouping The Cost Of Replacement Windows [print this page] One of the big selling points that many replacement window companies use when talking to homeowners about replacement windows is how the windows will recoup their costs over time due to the energy savings they provide and the upgrade to the look and feel of your home. This is a very real and very true statement, however, homeowners should know the details about this formula when they are considering putting new replacement windows in their home.
The statement most often used by window replacement companies is new windows will pay for themselves in energy savings. True, but it is important to understand that there are a lot of variables that factor into how quickly this will occur. Is it going to take twenty years? Not likely. Are the windows going to pay for themselves in two years? Simple answer: No.
Some of the variables to consider when making an assessment on recouping your replacement window investment include:
1. How cool do you keep your a/c during the summer?
2. How efficient is your a/c?
3. Do you have additional insulation in the home to help reduce heat gain?
4. How old and drafty are your current windows? Single pane? Double Pane?
5. Do you have a lot of east, west, or south facing windows that collect heat during the day?
6. What are your winter heating costs? Do you run a gas furnace or electric heating through the a/c unit?
7. What are energy prices going to do over the next five to ten years?
8. How many years do you plan on living in the home?
There are many other factors, but it is good to get a basic idea to understand that while new windows will reduce energy costs, the impact they have depends upon many other factors.
So How Long is it Going to Take?
Studies show that the average time for a full recoup of money invested in replacement windows due to energy savings falls between 10 and 13 years. For a simple understanding lets work the math and see how this plays out.
Here are the variables:
1. Average window replacement project costs: $9000
2. Average heating and cooling costs (annual): $4200/year
3. Average energy savings realized from replacement windows: 20%-30% (using 20%)
So with these variables in mind here is our math:
Annual savings per year: $4200 * .20 = $840 savings/year
Divide the project cost by the annual savings: $9000/$840 = 10.7 years
As we stated earlier, the variables associated with this rough calculation can greatly influence the time line for recouping the cost of the windows. If you have old single pane windows with an inefficient a/c, new windows will have a quick and significant impact on your savings. Likewise, if your home is heated a lot in the winter and your average energy costs are higher, it will take you longer to recoup the cost of your new windows. Understanding the variables that are at play with your specific house will help you to set expectations when it comes to recouping the cost of your replacement windows.
Buying for so much more than just getting your money back
While the idea that replacement windows are going to be a home improvement that will actually pay for itself, they should be considered for the increase in the quality of life and the reduction of energy consumption before how fast they pay off. Any homeowner listening to a pitch about replacement windows should be happy that their home is going to be more comfortable, they are going to help the environment by reducing energy costs, and their house is going to look nicer. Be realistic about recouping the cost of replacement windows and enjoy the daily long term benefits that replacement windows have to offer.
*One last Payoff bonus
Another unsung payback benefit to replacement windows that is not often discussed is the resale value of the home. Buyers today are looking for homes that are updated and energy efficient and new replacement windows are something that is visible and can be factored into the price of the home when it sells. Studies show that homeowners can recoup up to 78% of the cost of the replacement windows in additional resale value of the home.
If you couple this factor with the energy savings you can greatly shorten the time frame to recoup the investment on replacement windows. The bottom line: no matter what the hype about increased energy savings, no matter what the time line, no matter how much more valuable your house is with new windows, replacement windows are a great investment in your home and your quality of life.
