Your house requires energy every day of the year. From heating and cooling to lighting and appliances, these costs can really add up.
The good news is that strategic upgrades can save you money on those costs. Not to mention, make your home more comfortable along the way.
Here’s how to budget your time and money so you upgrade efficiently.
Perform a Home Energy Audit
You can’t upgrade what you don’t understand. Before you go picking out equipment, you need to identify where your home is losing energy. That’s where an energy audit comes in.
You can pay for a professional auditor to perform this service. They will use tools like blower door testing and infrared cameras. This tells them where your home is losing energy via air leaks, insulation gaps, and inefficient equipment. They will provide you with a priority list of what needs to be upgraded first.
If you don’t want to pay for a professional audit, there are other options. Many utility companies will provide a no-cost consultation. They likely won’t have special tools, but you can walk through yourself. You are also able to use Free Free Energy Calculators & Tools to analyse everything for you. (and no payment either).
Look for obvious signs of air leaks around windows and doors. Feel for drafts on walls and check your energy bills for the last 12 months.
Remember that an energy audit isn’t just free upfront. It will save you money in the future by preventing unnecessary upgrades.
Seal Drafts and Insulate
Where your home loses energy without you noticing is called air leakage. Luckily, this is an inexpensive problem to fix. Seal any gaps around windows, doors, electrical outlets, and pipes. Your attic should be your next stop. Heat rises out of your home in the winter and into your home during summer months. Proper attic insulation can save you up to 20 percent on heating and cooling costs, according to the U.S. Department of Energy.
Check with your auditor to see if your walls or crawl spaces need additional insulation too.
Replace your HVAC Equipment
Heating and cooling makes up the largest chunk of your energy bill. As your HVAC equipment ages it becomes less efficient.
When buying new equipment, look for air conditioners with high SEER2 ratings and furnaces with high AFUE ratings. The higher the rating, the better the equipment runs. If your HVAC equipment is more than 15 years old, replacing it will net you big improvements.
Ductwork leaks can account for 20-30% of air your HVAC pushes around your home. Sealing these with mastic sealant or metal tape is easy and has a great return.
A programmable or smart thermostat is another great investment. Not only can you control temperatures day-by-day, but you can create a schedule. There are even smart thermostats that learn your schedule automatically.
Replace Windows and Doors
Heat gain and loss through windows and doors account for a big percentage of energy inefficiency. Older, single-pane windows don’t hold in heat (or cool air) very well. Older door frames with gaps are another culprit.
Look for double or triple pane windows when upgrading. Between the two panes is usually an inert gas fill. This reduces heat transfer through the window. Look for windows with low U-factor and solar heat gain coefficient (SHGC) ratings. The lower these numbers are, the better your window will perform.
Depending on where you live, this may not be a necessary upgrade. But if you do find yourself replacing windows, do your research first. Energy efficient windows can help you gain resale value when it’s time to sell.
Upgrade Lighting and Appliances
Lighting is an inexpensive upgrade that you can do today. Swap out your old incandescent lightbulbs with LEDs. They provide just as much light while using 25-75% less energy. Not to mention they last much longer than traditional bulbs.
When shopping for appliances, look for ENERGY STAR appliances. ENERGY STAR is an EPA program that sets guidelines for energy efficiency. ENERGY STAR refrigerators, dishwashers, and washing machines use significantly less energy than their standard competitors.
Lastly, don’t forget about phantom loads. Phantom loads are what electronics draw when they are turned off but still plugged in. Smart power strips can help you cut down on these loads. As you can probably guess unplugging devices when not in use also helps.
Try Solar and Renewable Energy
After you’ve tackled the basics. It’s time to look into renewable energy. Solar panels are one of the most popular solutions for home owners.
Solar has become much more affordable in the last decade. Currently, you can take 30% off the installation cost with a federal tax credit. Many states also offer additional tax incentives and rebates. On average, you can expect a solar installation to pay for itself in 6-10 years.
Solar isn’t for everybody. If you want to skip solar panels, look into community solar. Community solar allows you to subscribe to a solar project and receive credits on your energy bill. No solar panels are required for this option.
Create Your Budget and Timeline
No one expects you to upgrade everything at once. Not only is this sort of overhaul expensive. But it will be tough on your budget.
In order of best practices. First, audit your home and discover where you lose energy. Next, you want to seal off any air leaks. From there, replace your HVAC equipment. Lastly, if you have windows that need replacing do that.
Windows and renovating usually are mid-tier costs. Lighting and appliances are easy changes you can do right away. Savings from these items will help you decide what you can tackle next. Solar always comes last for most people.
Take advantage of any rebates, or incentive programs your utility or state offers. DSIRE at dsireusa.org is a great resource for finding incentives in your state.
Create a budget for each stage of your project. Then monitor your monthly energy bills as you progress. You’ll start to see your savings build as you check off each item.
FAQs about Upgrading an Existing Home for Energy Efficiency
Which upgrades improve home energy efficiency first?
Begin with an energy audit of your home. An audit can pinpoint where heat loss or energy waste occurs before you invest any money.
Which home upgrades save homeowners the most money?
Typically, these three home upgrades save the most money:
- Insulation (loft/attic)
- Air sealing / draught-proofing
- Heating and cooling system upgrades
These improvements eliminate much of your energy waste from the source of the problem.
Are new windows worth it for energy efficiency?
Only sometimes. Double or triple glazed windows are great, but they may not be the best place to start. Roof and wall insulation and air sealing will often give you a quicker bang for your buck.
How long does it take to recoup costs for making your house more energy efficient?
Homeowners generally report paying back their investments in 2–7 years. Depending on the specific upgrades. LEDs and draught-proofing have the quickest return on investment, while solar and other renewables take longer.
Will smart thermostats really lower my energy bill?
Yes. By programming your heating and cooling to match your schedule, a smart thermostat can cut your monthly bill by 10–15%. It eliminates heating or cooling your home when you’re not there.
Should I make all these upgrades at once?
No. An energy upgrade should be done in stages.
- Step 1: Conduct a home energy audit
- Step 2: Seal air leaks and insulate
- Step 3: Install heating and cooling upgrades
- Step 4: Replace windows if needed.
- Step 5: Add renewable energy tech (if desired)
Will energy efficient upgrades pay off in the long run?
Yes. Besides lowering your monthly utility bills, they’ll make you more comfortable. And if you ever decide to sell, they can increase the value of your home.
Final Words
An energy-efficient home upgrade is one of the best investments you can make. You lower your bills, increase comfort, and raise your home’s value. Start small if you need to. Even the cheapest fixes, like weatherstripping and LED bulbs, make a real difference. Build from there, and your home will work for you instead of against you.