A methodology is developed to evaluate residential energy cost reduction options in response to increasing concern over rising fuel costs and diminishing energy reserves. Energy use factors such as climate and local geographic features are identified and energy monitoring techniques are proposed.

A flexible, computer-based decision and risk analysis tool is developed as a tool for the economic comparison of energy saving options. Single- and multi-variable sensitivity analysis is performed. A multi-criteria optimization method is presented which includes performance and cost factors. An efficient HV AC control program is developed using multiple sensors and fully automatic control.

Finally, a case study of two energy saving alternatives is conducted for two cities in different climatic regions. The results show that the desirability of various energy saving options is a function of local climate conditions, rate of energy cost increase and predicted savings attributable to the options.