In winter months, the sun's direct rays are a boon to homeowners, helping to warm the home. But in the long, hot days of late spring, summer, and early fall, those direct rays overheat a home's interiors and require high energy costs to cool the space. One way homeowners are discovering to minimize energy costs is to install retractable awnings.

Retractable Awnings claims that "retractable awnings, by shading the exterior windows and doors, cut sunlight before it enters the room, which can reduce interior heat by 77% (the American Society of Heating and Air Conditioning Engineers or ASHRAE). Reducing the heat in a room with retractable awnings can reduce air conditioning use – and energy bills – by almost 25%."

In an ASHRAE article called "Keeping Cool and Saving Money," the recommendations for cutting down on high energy costs in hot weather include this advice: "Shading from overhangs, awnings, exterior shades, shade screens, and bushes and trees can reduce heat gain to the house, especially on east and west windows."

SunSetter Awnings, another company that manufactures retractable awnings, provides educational information for consumers in a feature called "Retractable Patio and Window Awnings Save Energy and Cut Energy Costs." Referencing a study conducted by ASHRAE, the article says "solar radiation through glass is responsible for approximately 20% of the load on an air conditioner. Outside shade products like awnings prevent the solar radiation from penetrating through the glass and substantially increase energy saved when compared to film and tinted glass alternatives. According to the American Society of Heating and Air Conditioning Engineers, a fabric awning reduces heat gain by 55-65% during the period of the day when the sun shines directly on southern facing windows/glass doors. For western exposure, the reduction in heat gain is 72-77%. That's a substantial savings, both in energy usage and costs."

A 2007 study funded by the Professional Awning Manufacturers Association (PAMA) and conducted by the Center for Sustainable Building Research at the University of Minnesota showed the energy-saving impact of awnings in seven U.S. cities across various climates, including Minneapolis, Boston, Seattle, Albuquerque, Phoenix, St. Louis, and Sacramento. The study revealed that in all cities, for all window orientations tested, there were significant energy savings in cooling costs and peak electricity demand as a result of using awnings.

The energy savings benefit of retractable awnings extends beyond the summer season. PAMA's findings include cold weather benefits as well, as a result of being able to retract awnings to allow the solar radiation to penetrate through windows and glass doors, contributing to the heating of the house and reducing heating costs and energy. The organization says, "In Europe, retractable awnings have been used for many years to significantly reduce air-conditioning use in the summer. In the US, the demand for retractable awnings has grown significantly in the last decade and is expected to continue and grow as energy costs soar and as the awareness for the negative impacts of global warming increases."