There are many reasons a homeowner might want to make their home more energy efficient. Probably the most popular one is to save money. An energy-efficient house uses less energy for heating, cooling, and running appliances and electronics, which, according to the Department of Energy, typically means a homeowner can reduce their utility bills by as much as 25%. But beyond the potential cost savings, there are many other benefits to having a house that uses less energy. It generally delivers a more comfortable climate and better air quality year-round, is less likely to experience power outages, and may even have a higher market value compared to similar homes without these upgrades. Need further incentive to try to make your home more energy efficient? Through 2032, federal income tax credits are available to homeowners who invest in certain energy-efficient home upgrades.
While the advantages are clear, what may not be as obvious is where to make changes in your house. The team at Fred C. Church is here to help by sharing eight smart energy-efficiency home improvements you may want to consider. Many of these projects not only may reduce your household’s energy consumption but could also increase your home’s value, qualify you for an IRS energy efficient home improvement credit, or lower your home insurance premium—or all of the above.
8 High-Impact Energy-Efficiency Home Improvement Projects
1. Get your home professionally air sealed
This process involves locating all the gaps, cracks, and open seams around your home and then sealing them up. Even though many of these nooks and crannies might be very small—and not easy to spot with the naked eye—the air exchange they allow can add up to an enormous waste of energy. To get the best air sealing results, enlist an experienced home professional who will use specialized blower door tests, sealants, foam gaskets, and more to resolve your excess air flow problems.
2. Update your home’s insulation
Making sure your attic, roof, air ducts, walls, floors, garage, basement, crawl spaces, and more are properly insulated up to the standards set by the International Energy Conservation Code (IECC) may produce energy savings in the range of 10%–45% and qualify you for an insulation tax credit. In addition, insulating your home to meet IECC’s standards can reduce your home’s carbon footprint and even solve some of the most common property threats, like ice dams.
3. Upgrade to a smart thermostat
By replacing a traditional thermostat with a smart, Wi-Fi-enabled one, you can effectively manage two of the largest sources of energy usage in the average home—heating and air-conditioning. Smart thermostats can learn your household’s temperature preferences and patterns, automatically adjust heating and cooling temperature settings for optimal performance, enable you to control the thermostat from your smart devices, and even program themselves based on the local weather forecast.
4. Switch to a heat pump water heater (also known as a hybrid water heater)
This type of energy-efficient water heater operates on a combination of heat pump and electric resistance technology to move existing heat from one place to another instead of using energy to generate new heat. As a result, these water heaters can be up to three times more energy efficient than conventional electric resistance water heaters, be up to 50% more efficient than a natural gas water heater, and save you hundreds of dollars every year on energy costs. In fact, heat pump water heaters are so efficient at cutting energy waste that there are tax incentives for homeowners who purchase one.
5. Replace appliances with energy-efficient models
According to the US Environmental Protection Agency (EPA), energy-efficient appliances can save homeowners up to 50% on their monthly energy and water usage costs when compared to many conventional models. When shopping, look for the ENERGY STAR label on a product, which means it meets or exceeds strict energy-efficiency guidelines established by the EPA. If you only have the budget for one appliance upgrade right now, environmental experts recommend you start with your fridge. It is one of the highest energy-consuming products in your home because it’s on duty 24 hours a day, seven days a week.
6. Put on a new roof
The quality, efficiency, and technology of roofing materials have come a long way from just a decade ago. For example, many types of shingles can reflect solar energy instead of absorbing it and transferring it into your home, lower the surface temperature of your roof by up to 100 degrees, and withstand up to 130 mph winds. If your roof is nearing its 10-year milestone, replacing it with one that uses updated roofing materials and more efficient ventilation systems should help minimize energy loss and lower your monthly utility bills. In addition, a new roof with highly durable materials may qualify you for a lower home insurance premium.
7. Install solar panels
After facing volatile electricity costs over the past several years, millions of homeowners have made the move to a solar energy source. With rooftop solar panels, you essentially become your own power plant, greatly reducing your reliance on a local utility. As the popularity of solar has risen, the cost of installation has actually dropped significantly so that most homeowners expect to get a full return on their investment in about 8 to 12 years. In addition, many states now offer net metering programs that allow homeowners to get credits for unused energy—or the electricity they add to the community power grid from their panels. There is also a residential clean energy federal tax credit that homeowners may be eligible for when they add solar panels to their home.
8. Modernize your electrical panel
If you are thinking of incorporating one or more energy-efficient systems into your home, making improvements to or replacing an electrical panel can increase your safety, enhance your home’s electrical capacity, and support the installation and operation of energy-efficient products. Today’s electrical panels also include technology that enables homeowners to identify areas of high energy usage, allowing them to adjust their household’s habits and make more informed decisions about how to reduce energy consumption. There may also be federal tax credits for qualifying electrical panel upgrades and potential home insurance savings as well.
To help you focus in on the energy-efficiency home improvement project you want to begin with, we recommend getting a home energy audit by a Qualified Home Energy Auditor in your area. This expert will help you determine how much energy your home uses, where your home is inefficient, and which problem areas and fixes you should prioritize to save energy and improve the comfort of your home. Typically, an auditor leaves you with an inspection report that includes a wide range of recommendations, from simple, low-cost, DIY fixes to broader impact energy-saving initiatives like the ones we’ve outlined. Related energy and cost savings estimates generally accompany each audit recommendation so you can gauge the potential return on investment. In some states, like Massachusetts, homeowners can access an energy audit for free. However, if you do have to pay for this service, you may be able to claim a home energy audit tax credit for 30% of the inspection cost.
If you’re considering any energy-efficiency home improvement projects, please give Fred C. Church a call. Since many of these upgrades may increase your home’s value and may qualify you for insurance premium credits, it’s important to have your local insurance professional evaluate your current home insurance policy. We will help ensure you have the appropriate coverage, and access to all eligible cost savings, for your updated and energy-efficient house.
