[Glossary](https://pecuvo.eu/en/glossary/) · Budgeting and saving # Home energy efficiency **In short:** Home energy efficiency means the same comfort with less energy — through insulation, windows, heating and habits — which lowers monthly bills. **Simply put:** A sustainable choice is often a cost choice too: an upfront cost against a smaller bill every month. Work out the cost per year and how many years it takes to pay back: payback period = upfront cost ÷ annual saving. The saving is an assumption — it depends on energy prices, habits and the building — so get an estimate from an independent specialist. Do not put money you may need at short notice into an improvement. **Example:** Insulation costing €6,000 that saves €600 a year pays for itself in 10 years. **Watch out:** A "green" loan is no guarantee of a lower price — check the APR, term, fees and collateral, as with any loan. Grants and cheaper loans for renovation exist at times, but their conditions change: check them only with the body that runs the programme. > **Example: Bulgaria** — see the Ministry of Regional Development and Public Works (https://www.mrrb.bg), https://www.eufunds.bg and the National Decarbonisation Fund (https://www.bgeef.com). > > **Check in your country** — look on the websites of your ministry for housing or energy and your national energy agency. **Source:** European Commission, energy-efficient buildings — https://energy.ec.europa.eu/topics/energy-efficiency/energy-efficient-buildings_en ## In depth in the modules - [Module 29](https://pecuvo.eu/en/modules/sustainable-finance/) - [Module 4](https://pecuvo.eu/en/modules/the-mechanics-of-money/) - [Module 27](https://pecuvo.eu/en/modules/taxes-and-public-spending/) ## Related terms - [Sustainable finance](https://pecuvo.eu/en/glossary/sustainable-finance/) - [Greenwashing](https://pecuvo.eu/en/glossary/greenwashing/) - [Personal budget](https://pecuvo.eu/en/glossary/personal-budget/) - [EU funds and programmes](https://pecuvo.eu/en/glossary/eu-funds-and-programmes/) - [Home insurance](https://pecuvo.eu/en/glossary/home-insurance/)