As energy prices continue to rise nationwide, investing in your home’s efficiency is one of the most effective ways to reduce long-term costs. Upgrades can help lower your energy consumption and lead to noticeable savings on monthly utility bills. Some improvements, like sealing air leaks, are simple and affordable. Others, such as installing solar systems, require a larger investment but deliver substantial results over time.
No matter the size of your project, taking steps now will help your home operate more efficiently and save you money. Here are four ways to make your home more energy efficient for years to come.
Invest in Smart Thermostats
Installing a programmable or smart thermostat is one of the easiest ways to reduce heating and cooling costs. These devices automatically adjust your home’s temperature based on your schedule, whether you’re home, asleep or away. According to the Department of Energy, home owners can save 10% per year on heating and cooling bills with a programmable thermostat. As such, it’s no surprise that 79% of buyers are looking for this feature in their home, according to NAHB analysis.
Seal Air Leaks to Cut Costs
Drafts around doors and windows can quickly drain your budget. The Department of Energy estimates that $200 to $400 of the average $2,000 annual energy bill is lost due to air leaks. Sealing cracks with caulk and adding weatherstripping to doors and windows is a simple, cost-effective fix that improves efficiency. These small upgrades can make a big difference, especially during the summer and winter months.
If, upon closer inspection, you need new doors or windows, now is the time to consider replacing them with ENERGY STAR products. Home owners can take advantage of a tax credit on exterior doors and windows purchased and installed through Dec. 31, 2025. Find your local home builders association HERE to find a local remodeler in your area who can explain how you can take advantage of this tax credit before it expires at the end of the year.
Solar-Powered Systems Require Up-front Costs for Large Savings
Installing a home solar-powered system is an effective way to save on your energy bills long term. A standard 6-kW system costs about $16,000 nationally on average, with larger systems being more expensive. While that’s a significant investment, many home owners recover the cost within 10 years. From there, the savings add up, as solar panels can reduce electricity expenses by thousands over their lifetime – and even more if you’re in an area with higher electrical costs. Home owners who purchase and install solar panels by Dec. 31, 2025 may be eligible for a 30% federal tax credit.
Reinforce Your Insulation
Insulation plays a critical role in maintaining comfort and reducing energy waste. Whether you’re upgrading existing insulation or installing it in needed areas like the attic, basement or walls, it helps reduce energy waste. Costs vary depending on the type of insulation needed and your location, but most home owners benefit from the investment within a few years. If your home energy bills are unusually high, adding insulation may be the solution. Home owners are eligible for a federal tax credit on insulation purchased and installed by Dec. 31, 2025.
By making even a few upgrades, you can reduce your home’s energy usage and cut utility costs. Need help getting started? Contact your local home builders association HERE to connect with trusted local professionals to get personalized advice about your home and how to take advantage of tax credits.