Just Listed: Solar-Powered Golden Home in Village at Mountain Ridge with Walkout Basement

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This solar-powered home at 359 Canyon Point Circle was a model home for the Village at Mountain Ridge, the subdivision west of Highway 93 backing to the Mt. Galbraith Park. (There’s a trailhead to the park’s 5 miles of hiking trails within the subdivision.) It was just listed for $1,595,000. The seller has made many improvements to the home since buying it in 2002, including a total renovation of the gourmet kitchen and master bathroom, plus adding 11.5 kW of solar panels which meet all the electrical needs of the home. The main-floor deck was also completely rebuilt with composite decking, metal railings and a breakfast bar for enjoying the sunrises over South Table Mountain and the City of Golden, which are visible even from the walk-out basement. A walking path near this home allows children to walk safely to Mitchell Elementary School via a pedestrian bridge that crosses the highway. To appreciate all the features of this 5-BR/4½-bath home, take the narrated video tour (with drone video) at www.MountainRidgeHome.com, then come to the open house this Saturday, March 11, 11 am to 1 pm.

Here’s a Guide to the Tax Credits and Rebates Available for Making Your Home More Energy Efficient

Inspired by a recent article in The Washington Post, I’m able to provide you with a simplified guide to the improvements you can make to your home that might earn you a tax credit or other benefit under the Inflation Reduction Act (IRA).

If you are wealthy, some of those IRA benefits may not be available to you, so check with your tax advisor. Even if you don’t qualify for the tax credits or rebates, almost all of the following investments will produce savings down the road as well as being “the right thing to do.”

Heat pumps to replace your HVAC system and water heater are the first and greatest improvement you can make. Unlike gas and resistance-based electric devices, heat pumps move heat, they don’t generate heat. And a heat pump HVAC system uses far less electricity that a baseboard or other electric HVAC system does. The IRA provides for up to $2,000 tax credit for heat pump purchases, with extra benefits for low- and middle-income homeowners. I haven’t used this company yet myself, but you might contact Sensible Heating and Cooling, 720-876-7166, www.SensibleHeat.net, one of those rare vendors who will talk you into a heat pump HVAC system over a traditional one.

Many heat pump systems, including water heaters, are “hybrid,” meaning they have backup gas or electric resistance functions that kick in or can be activated when the heat pump can’t produce the needed heat. For example, a water heater in heat pump mode has a slower recovery than in conventional electric mode, so if you have a big family (or a teenager) you may find that you run out of hot water quickly and it takes longer than you want to reheat the water in the tank. In electric mode, you’ll get the quick hot water recovery you’re used to.

A heat pump HVAC system will probably work just fine without backup so long as you don’t turn down the thermostat too much overnight. Our office is heated solely by heat pump, and we leave it on 70 degrees 24/7, and it’s still way more affordable than the gas forced air furnace it replaced.

Xcel Energy charges commercial customers about $50 per month (that’s $600 per year!) just to have a gas meter before you burn any gas, which contributes greatly to making gas forced air more expensive than heat pump heating. Note: you need to have the gas meter removed, not just stop using gas, to save that $50 per month. Even in a residential application where the monthly meter fee is less, consider replacing all your natural gas appliances (including your fireplace and grill) so you can have the gas meter removed and save that facility charge plus those other gas-related fees that have exploded of late. There are great electric fireplaces on the market, and Rita & I love our electric grill!

Here’s food for thought: If you get rid of gas in your home and have only electric cars in your garage, you’ll never have to worry about your family being killed by carbon monoxide poisoning. In addition to spending less on home energy and fuel for your car(s), the IRA will reward you for every aspect of that conversion! And with enough solar panels on your roof, your home energy bill will be under $10 per month (to remain on the electrical grid), and you’ll pay nothing to fuel your transportation!

Induction stoves to replace gas ranges not only save you money (including an $840 rebate if you qualify based on income) but can improve you family’s health. Despite right-wing raging about this topic, it has been proven statistically that gas cooking has increased asthma cases in children and some adults. (Click here to read a study on this topic.) The rebate is available on non-induction electric stoves, but induction cooking costs less to operate and heats food and water faster. You can dip your toe in this technology by buying a single countertop induction burner for $50 to $70, as I did. You’ll be amazed. Click here to read an article about how chefs have come to prefer induction cooking. As they say, “try it, you’ll like it!”

Electric cars that cost under $55,000 and trucks or SUVs under $80,000 that are assembled in North America qualify for a federal tax credit of up to $7,500 and a Colorado tax credit of $2,000 (without those federal restrictions, which include an income cap of $150,000 single or $300,000 filing jointly). Even the Tesla Model Y’s base price is now below those price limits.

What’s new with the IRA is that you can get a federal tax credit of $4,000 or 30% of the purchase price (whichever is less) of a used EV that is at least 2 years old, has a purchase price under $25,000, and is purchased from a dealer. I have always advised that a used EV is your best buy, because a used EV is as good as a new EV since it has none of those components of a gas-powered car (such as transmission or engine) which may be about to fail. Google “used electric cars” and you’ll see many for sale by dealers. I just ran that search and found 72 EVs under $25,000 on autolist.com alone!

The IRA increased the tax credit on solar panels to 30% for the next 10 years, and, given the steady reduction in the cost of solar over the past two decades, this investment is a no-brainer, assuming you have a roof that’s not shaded by trees. (Ground mounted solar panels is an option if you have a large unshaded backyard area. Otherwise, consider buying solar panels in a “solar garden.”) Xcel Energy allows you to install enough panels to provide up to twice your average usage over the last 12 months, which is great, because that could provide all the electricity you will need for a not-yet-purchased EV or not-yet-electrified heating system.

My advice is to purchase your solar photovoltaic system outright, not lease it or sign up for a Power Purchase Agreement (PPA). When it comes to selling your house, anything other than a system that is seller-owned could complicate the sale. I’m a repeat customer of Golden Solar (303-955-6332), but also like Buglet Solar (303-903-9119). What these companies have in common, and which I think is important, is that they are local family-owned businesses, which I much prefer over a national firm such a Tesla or Sunrun Solar.

One situation in which a Power Purchase Agreement or lease works better is if the customer is a tax-exempt non-profit (which can’t benefit from tax credits).  Golden Solar put a solar array on the roof of a Golden museum doing a PPA that Golden Solar financed, taking the tax credit for it.  The museum pays no more than they were paying Xcel Energy to Golden Solar but will own the system after a few years. If you know of a non-profit that would like to go solar, have them contact Don at Golden Solar.

Improving your home’s insulation should always be the first step in saving money on energy. The IRA provides a 30% tax credit, up to $1,200 annually, for such improvements, specifying $600 for windows and $500 for doors. The gold standard in windows and doors is Alpen High-Performance Products, a Louisville CO company, which made the triple-pane windows we purchased for our South Golden Road office — expensive but worth it in terms of comfort and energy savings. Contact Todd Collins of AE Building Systems, 720-287-4290.

Whole-house energy efficiency retrofits are eligible for a rebate under the IRA, based on proven reduction in your home’s energy costs. Speak with someone from a company like Helio Home, Inc.  (720-460-1260) which covers most aspects of reducing home energy use covered by the IRA, from solar to insulation to appliances. The IRA also provides a $150 rebate on a home energy audit, which is an essential first-step to figuring out the best and most cost-effective efficiency improvements you can make. You can learn more about energy audits at www.REenergizeCO.com.

Buy a new washer and dryer! The new top-loading high-efficiency washers are the best, speaking from personal experience. The washer automatically reduces water consumption based on the size of the load; and a heat-pump electric dryer saves on electricity.

Landscaping, done right, can save on energy and water. Think shade trees and xeriscaping, or installing buffalo grass, which requires little watering or mowing. Call Darwin at Maple Leaf Landscaping, Inc. (720-290-8292), a client of mine, to discuss the possibilities at your house.

If your house doesn’t already have one, a whole-house fan is a great energy saver, allowing you to flush hot daytime air out of your house before activating the A/C when you come home. It can also allow you to leave the A/C off overnight by bringing in cool nighttime air on a quiet, low-speed setting. Whole-house fans cost between $500 and $2,000 installed. They don’t earn their own IRA benefit, but would contribute to the benefit you earn with the whole-house retrofit mentioned above. I am a happy repeat customer of Colorado Home Cooling, now part of Colorado Home Services, 303-986-5764.

Not mentioned in that Washington Post article was daylighting of your home, which is one of my favorite ways to reduce electricity consumption by drawing sunlight into dark interior spaces. I installed Velux sun tunnels in two of my past homes, including in a windowless garage, and in our former office on South Golden Road. For that, I used Mark Lundquist, owner of Design Skylights (303-674-7147).

For Sale: Golden Real Estate’s Former Office Building on South Golden Road

Currently vacant, this unique 1,318-square-foot office building at 17695 S. Golden Road (originally a restaurant) is powered by 20 kilowatts of solar power, which more than meets the energy needs of the building in addition to charging up to three electric vehicles at three Level 2 charging stations. The monthly bill from Xcel Energy is only $12.56.  There is no natural gas service, because the building is heated and cooled by a state-of-the-art heat pump/mini-split system powered by those solar panels. This is a true “net zero energy” building and was planned to be “The Net Zero Store,” but we decided to stick to real estate and sell the building. For a showing, call Jim Smith at 303-525-1851. You can take a narrated video tour and view interior and exterior photos at www.SouthGoldenBuilding.online.

Note the 5 kilowatts of solar panels on the building roof.

View of parking lots and 15 kilowatts of ground-mounted solar panels.

One of three wall-mounted mini-splits driven by a heat pump on roof, provides both heating and cooling at no cost thanks to solar panels.

Four Velux sun tunnels (similar to Solatube brand) provide natural light

Golden Real Estate wants to rent back this secondary parking lot plus the two sheds and Styrofoam Corral behind the building for $200/month.

Two ChargePoint charging stations earn average $50/month at no cost to building owner because of solar power.

This Tesla charging station earns $75/month from an Uber driver.

Price Reduced on Solar-Powered Lakewood Home

You’ll enjoy an Xcel Energy bill of $45 per month, including gas, during the summer and still under $100 per month in the winter thanks to this home’s roof-mounted solar photovoltaic system. The address is 14165 W. Bates Ave., in Hutchinson’s Green Mountain Village, which is south of Yale Avenue and north of Bear Creek Lake Park in Lakewood. It has 3 bedrooms, 3½ baths, plus a 14’x16’ loft that could be converted into a 4th bedroom with en suite bathroom. It has 2,957 finished square feet plus a basement ready to finish. This home is beautifully landscaped and updated, with hardwood floors on both levels (and even the stairs), a gourmet kitchen, and a fabulous backyard with a  free-standing Sunsetter retractable awning!  The walk-in closet in the master suite is a gem, which you’ll get to see in the narrated video tour at www.JeffcoSolarHomes.com. I’ll hold it open Saturday, Jan. 7, 11 to 1.

KB Home Is Building All-Electric Homes – But Not in Colorado

I have expressed dismay in the past that builders of new homes in our area are not getting “with it” when it comes to incorporating the latest thinking and technology regarding energy efficiency.

Builders boast their Energy Star appliances and lower HERS scores, but they are still, for example, installing gas forced-air furnaces instead of heat pumps, gas water heaters instead of heat pump water heaters, and gas cooktops or ranges instead of induction cooktops.

The Geos Community in Arvada provided proof of concept for the  all-electric solar-powered, net zero energy home, and homes in that small, privately developed neighborhood have been featured for several years on the annual tour of “green homes.” But no production builder here has picked up on that concept, and when another builder acquired the undeveloped parcels at Geos last year, the first thing they did was bring a natural gas pipeline into the community to serve their new homes, greatly upsetting the happy homeowners of the original net zero energy Geos homes, which purposely have no natural gas lines.

Above is one of KB Home’s all-electric homes in Menifee CA, a smaller city south of Riverside. Not only is every home in that subdivision “net zero energy ready,” but they are tied together in an electric “microgrid,” designed to power itself cooperatively should there be an outage in the larger electric grid.

In the garage you can see both an EV charger and a wall-mounted battery backup system. The small print on the sign reads: “This all-electric, solar-powered home is equipped with smart technologies and a backup battery, plus community microgrid connectivity designed to help maximize home energy efficiency and comfort.”

Meanwhile, here in Colorado, neither KB nor any other builder, to my knowledge, is even offering heat pump HVAC units or heat pump water heaters as upgrades.

Looked at Correctly, It Costs No More to Build (or Buy) a Sustainable Home

“Conventional wisdom” says that it costs more to build a solar powered, highly sustainable or net zero energy home, but that’s not really true if you look at the issue a little differently.

As you surely know, such improvements reduce the operating cost of a home. Solar panels, for example, can virtually eliminate your electrical bill, if your system is sized correctly. They can even provide free fuel for your cars — if they are powered by electricity.

Super insulating your home can reduce the cost of heating it, whether by natural gas or electricity (using a heat pump system). Ditto for installing triple-pane Alpen windows and doors.

If you go all-electric, you not only save on the natural gas or propane you consume, you can have your gas meter removed, saving on the base cost of being connected to the gas distribution network. As a commercial customer, Golden Real Estate, saves over $600 per year from having removed our gas meter, since that’s what Xcel Energy charges before a business uses a single cubic foot of natural gas.  The savings is lower for residential customers.

So, yes, it may cost more to go all-electric, but the return on investment is substantial over a pretty short period of time.

But consider the following. Whether you build or buy a home with these cost saving features, and whether or not you pay a premium for them, you will likely be financing your home with a mortgage.

Let’s say, conservatively, that you pay an extra $50,000 or even $100,000 for those features, and it adds that amount to the principal of your mortgage. Your monthly savings from those solar panels or that heat pump system or those Alpen windows and extra insulation will be far in excess of the increased monthly payment for your mortgage.

And if you make those improvements in a home you already own, you can take out a Home Equity Line of Credit (or HELOC) to pay for them, and the monthly payments will again be less than your monthly savings.

Looked at it this way, does it make any sense at all to build a home powered by fossil fuels, that is not solar powered or that has “normal” insulation and have higher monthly cost of ownership, starting from day one?  Of course not.

You can apply the same reasoning to the purchase of an electric car. You could go with the conventional wisdom that electric cars are more expensive and you should wait until the price comes down, but that thinking substantially misrepresents the cost of ownership.

I haven’t purchased gasoline for my electric cars since 2014, during which time I have saved tens of thousands of dollars on gasoline as well as on repairs on components that don’t exist on an EV, such as transmission, engine, fuel pumps, water pumps, timing belts and so much more.

And I have never had a catalytic converter stolen — or lost any sleep after reading about the epidemic of such thefts in my city.

Forgetting for the moment that there are indeed EVs which cost no more than their gasoline-powered equivalents, even if you paid $10,000 more for an EV than you might for a gas powered car, the cost of financing that difference is far less than what you’ll save on fuel and repairs.

If I have changed your thinking about making your home (or transportation) more sustainable, here’s what you can do.  First, attend this year’s Metro Denver Green Homes Tour on October 1st. You’ll be able to visit a dozen or so homes whose owners have taken steps to make their homes more energy efficient or even net zero energy. You’ll also visit a home builder who is building net zero energy homes. If you can’t visit some of these homes in person, you can view the narrated video tours which I have created for most of them.

(You can also — right now — take video tours of 16 homes that were on this tour in previous years!)

You can register for the tour — and see those videos — at www. NewEnergyColorado.com.

And if I have changed your thinking about the cost of buying or owning an electric vehicle, plan on coming to the Electric Vehicle Roundup (mentioned below) which occurs the same day, October 1st, as the Metro Denver Green Homes Tour.  If that date doesn’t work for you, there are many other EV roundups in October around Colorado. Find those other events online at www.DriveElectricWeek.org.

Zillow Has Published a Primer on Home Solar — Here Are My Reflections on It  

On April 27, Zillow published an article, “6 Questions to Ask as You Consider Home Solar.” I thought it was pretty comprehensive, but it was written for a national audience, and some of the questions are readily answered for us here in Colorado.

The article begins by asserting that, according to Zillow’s research, homes which highlight eco-friendly features like solar sell up to 10 days quicker and for 1.4% more than homes that don’t. That statistic, however, fails to distinguish between homes which have fully-owned solar installations, and homes that have leased systems or “power purchase agreements.” Those alternative arrangements basically create a situation in which the homeowner purchases electricity from two companies instead of one — still a good deal, since the solar power typically costs less than the power purchased from the utility.

Zillow’s question #1 is whether your home is suitable for solar. We all know, of course, that a south-facing roof without shading is best, but there are other considerations, such as the condition of your roof. If your roof needs replacing before you put solar panels on it, you may want to include Roper Roofing & Solar in Golden among the solar companies you interview. It’s the only solar company I know which is also a roofing company.

One question posed by Zillow is whether your HOA (if you have one) will allow solar. Fortunately, Colorado passed a law over a decade ago (C.R.S. 38-30-168) which requires HOAs to allow solar and other sustainable improvements. HOAs can regulate appearance but not prohibit solar. For example, it could require that solar panels be flush with your roof rather than angled out from it.

The article points out that if your home is not suitable for solar, you should look into community solar, for which it provides a link. Community solar is also a good alternative for renters and condo owners.

The second question is how to find a reputable installer. Personally, I prefer to hire a small (and local) family-owned company over a national business with a local sales team. I recommend Golden Solar, which has installed five systems for me over the past two decades, and Buglet Solar Electric. The owners of those two companies, Don Parker and Whitney Painter, can answer question #3, which is what incentives and rebates are available on the federal, state, local and utility level. The current federal incentive is a 26% tax credit, which drops to 22% next year and expires the following year unless Congress extends it.

Question #4 is whether there’s net metering, which allows you to “bank” your daytime production for nighttime use and carry forward your surplus solar production to future months and years. In Colorado, the answer is a resounding yes.

Question #5 is about battery storage. Net metering, in my opinion, makes home battery backup/storage unnecessary unless you are worried about power outages. (If you have life-sustaining equipment that requires uninterrupted electricity, battery storage might be appropriate.)

Where battery storage is essential, of course, is in off-grid applications, such as in a mountain cabin without accessible electricity from a utility.  I have listed such homes with impressive battery systems.

The last question which Zillow poses is whether a solar installation is worth it, admitting that this is a very personal decision.

A solar installation nowadays costs between $10,000 and $20,000 for the typical home, and you can ask the companies you interview what the return on investment will be. I have never worried about ROI, because installing solar, to me, is simply the right thing to do, satisfied as I am that it does pay for itself, whether in five years or ten.

One piece of advice not in the Zillow article is to factor in the increased electricity you will need when you buy an electric vehicle — which you will at some point, since most manufacturers plan to phase out gas-powered vehicles. Xcel Energy lets you to carry forward surplus generation from year to year, and allows you to install solar panels equivalent to double your last 12 months’ usage. (Do NOT elect to receive a yearly check from Xcel Energy for your excess solar production, because they pay you a small fraction of that electricity’s retail value — carry it forward for future use at its full retail value.)

Home Builders Are Not ‘Getting It’ When It Comes to Building Sustainable Homes  

Last week I worked with a buyer looking at new homes. One community we visited was in central Arvada; the other was just north of Golden at the corner of Hwy. 93 and 58th Ave.

Neither builder was even offering upgrades such as solar panels, heat pump HVAC systems, or induction cooktops.

Yes, they were enhancing the insulation of their homes, but little else.

And, speaking of solar panels, neither builder was building into the design of their homes an orientation that would favor solar panels on the roof. One had unnecessary peaks or dormers on their roofs that would seriously inhibit the usefulness of the roof for installing a solar photovoltaic system.

The heating systems in both communities were gas forced air furnaces, which I consider obsolete. Such furnaces require the separate installation of an A/C compressor to provide cooling. I asked if an upgrade to a heat pump system was available, and it wasn’t.

These are silly and unnecessary design flaws in any new construction. A heat pump HVAC system provides both heating and cooling within one unit. It is the preferred choice in Europe and Asia, but our builders seem to know only gas forced air furnaces with a conventional A/C add-on.

New-build homes are typically equipped with conventional gas water heaters, while it would be just as easy and cost little more to install a highly efficient heat pump water heater, as I have done.

Geothermal heat pump systems are the “gold standard” when it comes to energy efficiency and sustainability in new home construction. Retrofitting an existing home with geothermal can be prohibitively expensive, but on a dirt-start build, it would be easy to drill geothermal wells in the middle of the basement or crawl space before installing the foundation and building the house. There’s even more efficiency in a dirt-start subdivision, because the drilling rig could go from one unit to the next, drilling 10, 20 or 100 geothermal wells in one area.

I have written in the past about the Geos Community west of Indiana Street and 68th Avenue in Arvada, where all the detached single-family homes have geothermal heat pump systems, and all the townhomes have air source heat pump systems. They also have heat pump water heaters and induction electric ranges, and all have south-facing roofs with solar panels providing all the electricity to run each of those systems. There is no need for natural gas service to the homes.

Geos was intended to showcase the cost effectiveness of all-electric homes using geothermal and air source heat pump systems and orienting the homes for maximum passive solar as well as active solar efficiency. But it seems that builders are slow learners. The developer who purchased the lots next to the previously built Geos Community felt it necessary to install natural gas service to all its new homes currently under construction “because buyers want gas,” much to the understandable dismay and anger of the Geos Community residents.

There is similar inertia in the HVAC industry itself. It’s hard to find an HVAC company that even understands the advantages of heat pumps for heating and cooling homes. It is so much easier for them to do what they have learned to do, even though it represents an obsolete technology. I have heard countless stories of homeowners whose forced air furnace needed replacing and who were unable to get their HVAC vendor to sell them a heat pump system. Most HVAC vendors just want to keep doing what they already know how to do.

(I can recommend a couple vendors who specialize in heat pump systems and even geothermal drilling. Ask me.)

This is not unlike the problem with car dealerships and electric vehicles. If you go to a Chevy dealer and ask about the Chevy Bolt EV, the salesman will often bad-mouth the Bolt and try to sell you a non-electric model that he loves to sell and requires no learning on his part of new technology.

This guest speaker at the April meeting of the Denver Electric Vehicle Council was a man who, having bought a Chevy Volt in 2012, convinced a Texas Chevy dealership to let him be a salesman of EVs exclusively. Other salesmen started sending him buyers who expressed an interest in EVs, and he quickly became the number one seller of EVs in the state of Texas. It helped that hardly any other Texas car dealership had a salesman who was comfortable selling EVs. Their loss.

Getting back to home construction, we need and the planet needs home builders to be more educated about the wisdom and relative ease of building energy efficient, solar-powered, all-electric homes with a passive solar orientation and design. It’s not that hard to learn, but we need to overcome the inertia built into that industry just as with the automotive and other industries.

Realtor Magazine Features All-Electric Home Trend  

This week’s email from Realtor Magazine featured “13 Home Trends Stealing the Spotlight in 2022,” and I was pleased to see that trend number twelve was “All-Electric Homes.”

I could have written it myself! I can’t improve upon the wording, so here it is, verbatim:

     More homeowners understand the importance of “decarbonizing” everything from products to transportation, and especially their homes, says Chicago- and Boulder, Colo.-based architect Nate Kipnis of Kipnis Architecture + Planning. “The way we can best do this is by eliminating all fossil fuels use from houses and including induction cooktops rather than gas for cooking, which offers safer, faster, and more even cooking,” he says. Kipnis recommends using either an air-source heat pump (mini-split) for the HVAC system or a ground source system (geotherm-al). The big payoff, he says, is that renewable energy has become the cheapest form of electricity generation.

My Favorite Home Improvements When Purchasing a New-to-Me Home  

This column is adapted from my July 18, 2019, column on this topic.

Energy efficiency is very important to Rita and me, so the first thing we did when we purchased our current home was to pay for an energy audit to identify opportunities for making the home more air-tight. One result of that test was to blow additional cellulose insulation into walls and ceilings and to caulk around windows. We considered installing an energy recovery ventilator (ERV) to bring fresh air into the home using a heat exchanger that warms outside air in the winter and cools outside air in the summer. Instead we installed a fan in our powder room that runs 24/7 at a very low volume, but higher when occupied.

I love bringing sunlight into a home, with sun tunnels. Rita and I had Mark Lundquist of Design Skylights install a Velux sun tunnel in our garage and another one in our laundry room. (He installed four more at Golden Real Estate.)

Speaking of sunlight, we replaced every light bulb in our home with LEDs which are “daylight” color.

Installing solar photovoltaic panels is a no-brainer now that the cost has dropped so much. Your roof doesn’t have to face due south. Southeast and southwest are good enough. Since everyone will be driving an electric car eventually, install as much solar PV as Xcel Energy allows to cover that future load.

Don’t you hate climbing a curb to enter your driveway? Developers install mountable curbs the entire length of residential streets, because they can’t know where each driveway will be. One of the first things we did at our home was to remove the mountable curb in front of our driveway.  It cost about $2,000 for our 3-car-wide driveway, but we love it every time we enter from the street!

When your gas forced air furnace needs replacing, consider replacing it with a heat-pump or hybrid furnace. And when your gas water heater needs replacing, I recommend buying a heat-pump water heater. We bought a 50-gallon Rheem unit for $1,200, but it came with a $400 rebate. Once you’ve replaced both, you will have eliminated the most common sources of carbon monoxide poisoning in your home. 

Other improvements I’d recommend: Replacing any bathroom carpeting with ceramic or porcelain tile; replacing regular double-pane windows with Low-E windows on south-facing windows; replacing fluorescent fixtures (as we did in our garage) with flush-mount LED panels sold at Lowes for about $100.  Love ’em!