I have come around to the view that “deep energy retrofits” in the residential sector are a pipe dream, at least at any sort of scale that is significant. Why? Well, they’re expensive, and utilities just don’t hurt most homeowners enough. The “pain” of most folks monthly bills isn’t large enough for them to justify spending many thousands of dollars on upgrades.

From Planet Money, the average household spends $3,660 a year on utility bills. That’s a pretty big number for many, but it is only ~8.6% of yearly expenditures. Is 8% enough of a burden to push people to investing significantly in their homes, even if those investments are cost effective in the long-run? I remain a skeptic.