With summer heat on the rise, many Coloradoans are cranking up the air conditioner. According to the U.S.
Energy Information Administration, this seasonal heat results in July and August being the months with the highest energy consumption of the year. But energy is expensive, and cooling and heating your home is the biggest contributor to your utility bill. The U.
S. Department of Energy (DOE) reports that the average U.S.
family spends $2,000 per year or more on utilities, with heating and cooling accounting for more than half the bill. Rising energy costs amplify this impact. According to WalletHub.
com, electricity prices increased by 6.2% in 2023 and are only expected to drop slightly in 2024. In this context, it’s excellent news for homeowners and renters that Colorado’s energy costs are the seventh lowest in the nation, as reported by WalletHub’s analysis.
Colorado ranks eighth for the best energy efficiency in homes and cars. Lower energy costs can significantly reduce monthly expenses, which is particularly beneficial for homeowners and renters alike. WalletHub compared each of the 50 states’ total monthly energy bills, including electricity, natural gas, home heating oil and motor fuel consumption.
The analysis found that energy costs vary significantly from state to state. For example, Colorado’s $470 total monthly energy cost puts the state at No. 43.
Compare that to Wyoming’s total monthly cost of $1591 — the highest energy cost in the country. According to Justin Perryman, an adjunct professor at Washington University School of Law, several factors contribute to the variances, including energy sources, supply and demand, and the state’s competition level based on regulatory authorities. “Simply living in one of the least energy-expensive states may outweigh any individual measures when it comes to cutting down monthly bills, though.
People planning to move in the near future should definitely consider energy costs when deciding where to settle down,” says WalletHub Analyst Cassandra Happe. Even so, energy-efficient measures in the home are worth implementing. According to DOE estimates, they could reduce a family’s utility costs by up to 25%.
“Properly adjusting the indoor temperatures on your thermostats probably is the low-hanging fruit to cut your energy bill. When it is extremely hot outside, you may want to adjust your thermostat setpoint a little bit higher to reduce the difference between indoor and outdoor temperatures, which determines how much energy your AC would consume,” advises Shouqiang Wang, Associate Professor at the University of Texas at Dallas. Wang also recommends using smart thermostats programmed with different temperatures to suit your schedules, such as when you are away from your home, on vacation, or sleeping can help save your energy bills.
Reducing the amount of motor fuel required for transportation is another factor that could boost savings. The DOE also found that a more fuel-efficient vehicle could save the average driver about $950 annually. High energy costs are likely one reason homebuyers are expressing a growing interest in sustainable and energy-efficient features.
In a recent National Association of Realtors® (NAR) survey, more than 60% of respondents said they seek energy features that reduce operational costs and carbon emissions. The NAR 2023 Realtors® & Sustainability Report reflects a positive shift towards environmentally conscious practices among real estate professionals and homeowners. The report outlines specific green features that appeal to homebuyers, including solar panels, eco-conscious updates, green construction practices, and energy-efficient designs that offer quality living and comfort.
See how the 50 states rank in energy costs and energy efficiency in the WalletHub reports at wallethub.com/edu/energy-costs-by-state/4833 and wallethub.com/edu/most-and-least-energy-efficient-states/7354 .
Tom Kalinski is the broker/owner of RE/MAX of Boulder, the local residential real estate company he established in 1977. He was inducted into Boulder County’s Business Hall of Fame in 2016 and has a 40-year background in commercial and residential real estate. For questions, e-mail Tom at tomkalinski33@gmail.
com , call 303.441.5620 or visit boulderco.
com . Stay up to date with area Real Estate and Home & Garden news information with the latest e-edition version of atHome Colorado online This article is brought to you by atHome Colorado , your weekly insight into real estate, design, and community trends, published weekly by the advertising and marketing department in the Boulder Daily Camera, Loveland Reporter-Herald, Greeley Tribune, and Longmont Times-Call.
