Save Money with Smart Energy Tips

Understanding the Importance of Energy Efficiency

With concerns about fuel shortages this winter, fluctuating prices, and growing awareness of climate change, making homes more energy efficient has become increasingly important. Fortunately, there are several simple and affordable steps that can significantly reduce energy consumption. Additionally, new federal tax credits and rebates have been introduced to help offset the costs associated with these improvements.

According to Mallory Micetich, a home expert at Angi, the climate-related provisions in the Inflation Reduction Act (IRA) aim to decrease homeowners’ energy use and improve overall efficiency. However, it's important to note that many of the IRA’s benefits are based on income levels, which means higher-earning households may not qualify for all the available incentives.

Even if you don’t meet the criteria for the IRA, your state or local utility companies might offer similar programs. Sara Baldwin, director of electrification at Energy Innovation, advises homeowners to research and consult with contractors to explore different options. Regardless of income, investing in energy efficiency is a wise decision that can lead to long-term savings.

Key Steps to Improve Home Energy Efficiency

Conduct an Energy Audit

An energy audit can identify areas in your home that need improvement. The IRA offers up to $150 toward an energy audit, which typically costs between $200 and $600. These audits involve a room-by-room inspection of everything from door seals to appliance efficiency testing.

To find local energy audit services, reach out to your power company, state or local government energy office, or check out the U.S. Department of Energy’s Home Energy Score program and Home Performance with Energy Star.

Weatherize Your Home

Improving insulation and sealing leaks around windows and doors can significantly boost efficiency. Nate Burger of Eco Handyman in Boulder, Colorado, emphasizes that insulating attics, walls, crawlspaces, and basements, along with air sealing, should be the first step before replacing windows or switching to heat pumps and solar.

The IRA provides a $1,200 tax credit per year for weatherization, with an additional $1,600 rebate available later. The U.S. Department of Energy also offers a helpful guide on how to weatherize your home. Alternatively, you can hire a professional to handle the work.

Switch to LED Lighting

Replacing incandescent bulbs with LED lighting is one of the most cost-effective ways to save energy. According to Micetich, LED bulbs now come in a wide range of colors, brightness, and sizes, making them a practical choice. Many states and electric utilities offer financial incentives to help with the switch to LED.

Use Smart Controls

Smart apps and devices like Kasa Home and Nest can help manage electricity usage during peak times when it's more expensive. Panama Bartholomy, director of the Building Decarbonization Coalition, highlights that these tools allow users to pre-cool their homes before returning from work or heat water during off-peak hours.

Upgrade Cooking Appliances

Gas stoves are inefficient and can negatively impact indoor air quality. The IRA offers rebates for switching to electric ranges. If you're not ready to make the switch, consider using an induction hob or electric kettle to reduce gas usage. An induction hob typically costs around $200 and can provide a smoother transition to electric cooking.

Install Heat Pump Water Heaters

Rheem recently introduced the first 120-volt heat pump water heater, which can be plugged in without a dedicated circuit breaker. Starting in January, the IRA will offer a $2,000 tax credit for a heat pump water heater.

Consider Heat Pump HVAC Systems

Heat pump systems, while costly (ranging from $10,000 to $18,000), are a great investment for those looking to upgrade heating or add cooling capabilities. They are efficient, quiet, and work in all climates. They can cut energy costs by up to 50%, making them a valuable long-term investment.

Maintain HVAC and Water Heater Systems

Regular maintenance of your HVAC and water heater systems is essential. Baldwin recommends getting your AC and furnace checked annually and changing filters every three months. Adjusting your water heater thermostat can also lead to significant energy savings.

Check Electrical Panels and Service

Before installing energy-efficient appliances like heat pumps or induction cooktops, ensure your electrical panel can handle the additional load. Bartholomy advises understanding your electrical needs to avoid potential issues with utility upgrades.

The Ultimate Goal: All-Electric Homes

The ultimate goal for energy efficiency is to switch all appliances to electric. An all-electric home is beneficial for both the environment and your wallet. As the grid becomes cleaner over time, using electric appliances can lead to a more sustainable future.

Frequently Asked Questions

How Can I Improve My Home’s Energy Efficiency Without Major Renovations?

Scott MicGillivray, a renovation expert, suggests starting with small changes such as sealing drafts, upgrading to LED bulbs, using smart thermostats, and insulating water heaters. These simple adjustments can lead to significant energy savings without requiring major renovations.

About the Experts

Mallory Micetich is a home expert at Angi.
Sara Baldwin is the director of electrification at Energy Innovation.
Nate Burger works with Eco Handyman in Boulder, Colorado.
Panama Bartholomy is the director of the Building Decarbonization Coalition.
Scott MicGillivray is a TV host and triple-threat expert in real estate, renovation, and finance.