Little improvements go a long way
By Peter Diekmeyer • Bankrate.com

Many homeowners have been rejoicing at the fact that the prices they will pay this winter for their home heating fuel may not be as high as some experts had predicted. Oil prices, which some said would soon hit $200 per barrel, have been recently trading at about half that level. Natural gas prices have come down significantly too.

That said, it may be a little early to break out the champagne.

That's because the 1.29 million Canadian homeowners who heat their residences with oil and the 5.7 million who opt for natural gas are still in for one heck of a sticker shock. Prices for the commodities are still significantly above last year's levels, and many experts believe that with the energy-starved Chinese and Indian economies growing by leaps and bounds, they will continue to rise.

The upshot is that now, more than ever, it pays for Canadians to invest in ways to make homes more energy efficient so that they can keep their heating bills to a minimum.

Little improvements can go a long way
One interesting fact regarding energy efficiency is how seemingly minor initiatives such as regularly changing furnace filters can, when added up, go a long way. For example, the cost of adding a programmable thermostat (between $20 and $80), which can lower home temperatures at night and at other times when no one is home, can typically be recovered from savings that the purchase generates in its first year alone.

Another excellent way of reducing energy costs is to find and plug air leaks in the house. When air escapes through foundation walls, attic doors, hatches and window and door frames, homeowners are basically paying to constantly reheat the same volume of air.

Simple initiatives, such as sealing joints between walls, windows and door frames and repairing leaky chimney flues, are a must for anyone who is thinking seriously about reducing energy costs. For fireplace owners, another more investment that can generate significant savings is to switch from a conventional model to an energy-efficient insert model.