Energy Efficient Home Upgrades to Save You Money

Whether you’re planning a major home renovation or a few simple DIY updates, consider your home’s energy usage and how you can improve it to save money.
 

Whether you’re planning a major home renovation or a few simple DIY updates, thinking about your home’s energy usage and how you can improve it is crucial.
 
Working towards a more energy efficient home will save you money and improve the attractiveness of your home.
 
Some upgrades will be more time and money-intensive than others, but there are plenty of ways, big and small, to add energy efficient renovations to your home remodel or improvement.

Why make your home more energy efficient?

Environmental benefits

Caring for our environment is important, and making your home more energy efficient can go a long way to supporting this. 

Lowering greenhouse gas emissions (GHC) and other pollutants generated by your heating or water system is one of the most significant environmental benefits of making more energy efficient changes. 

Decreasing overall water use can also lower your water bills and save you money.

Energy efficient tax breaks

The IRS offers incentives to homeowners through energy-efficient home improvement credits (EEHIC). If qualified, you may be eligible for up to $1,200 in tax credits for the year if improvements were made to your property in 2023 through 2031.

Energy efficient windows, doors, or insulation installed in homes may qualify through the Homeowner and Occupant Monetary Encouragement and Stability (HOMES) rebate program as part of the Inflation Reduction Act (IRA) rebates. For low-to-moderate income families, the rebate amount can be as much as $8,000 or 80% of total improvement costs. 

If applying through the High-Efficiency Electric Home Rebate Act (HEEHRA), low-to-moderate income families may also get tax credits totaling up to $14,000 for electrical system and appliance upgrades. This could include items like new heat pumps, electric stoves, or updated wiring.

Energy efficient home upgrades to make this year

Appliances

Appliances are a top priority for home renovation projects like a new kitchen. Look for refrigerators, stoves, washers, and dryers that meet the Energy Start standard—this will be clearly labeled in product descriptions and on boxes.

Windows

You should be checking your windows every winter, but there will come a point where you’ll likely need to consider replacing them. As your home ages, so too will your windows. 

If you can feel a draft coming in around the edges of the seal or if your energy bills have suddenly skyrocketed, that’s often a sign that your windows are leaking air. Frequent moisture, condensation, and difficulty opening or closing the panes means that it’s time to consider an upgrade with something more energy efficient.
Insulation

Whether you’re a first-time homeowner or a longtime owner, you may never have had to think about your home’s insulation before. You may not even be familiar with how exactly insulation works.

The basics of insulation come down to conduction, convection, and radiation. Conduction is how heat moves through materials, while convection is how heat circulates through liquid or gas (like the air—that’s why warm air rises). Radiation heats anything solid that it encounters when traveling in a straight line. 

When it comes to insulation, all three of these are important. Most insulation materials slow conduction and convection to help heat flow into living spaces in the winter while redirecting them in the summer.

There are simple ways to better insulate your home, like adding thick curtains to your windows to keep heat inside during the winter and to block out the sun during summer. This can help the heat and cooling that you’re paying for stay in the right places!

For more extensive insulation upgrades, it’s best to work with a professional who can assess where your home leaks energy and can advise on the most effective materials to prevent or fix leaks.

Hot water heaters and pumps

Most water heaters and pumps have a lifetime of around 8-10 years, but you may need to replace the heater before or after this, depending on how much water your household uses. If you’re seeing signs of rust, leaks, or hearing noises from the pump, it’s time to consider a replacement.

Switching to a new, energy-efficient heat pump can save significant energy and money, with many newer systems using 70% less energy than older models. As with other appliances, look for Energy Star rated pumps to maximize your energy savings.

HVAC

Most new heating and air conditioning systems are more energy efficient than their predecessors. Always look for Seasonal Energy Efficiency Ratio, or SEER, ratings for new systems to gauge their effectiveness. Anything above 10 is now standard, while those sold after 2005 must be a minimum of 14 in the North, including Wisconsin and Illinois.

Adding solar panels to your home is also another option for saving money on energy. While these can be costly upfront, many will recoup those costs within ten years. In Wisconsin, the average 5kW system costs owners between $13,000 and $17,500 to install, with net 20-year savings up to $21,500.

Many solar systems are virtually maintenance-free and can last up to 30 years, making savings across time even more significant. A 2022 Federal Tax Credit offers up to 26% rebate on new solar panel installations, and Wisconsin offers a number of rebates like the Focus on Energy renewable rewards of $500. In addition to all that, extra energy can also be sold back to the grid for credits on your next energy bill.

Smart devices

Installing smart devices like thermostats and bulbs in your home is a small change that can make a big impact. Smart thermostats can save around $50 a year on energy bills, or more if you have a high energy-use household. 

Connecting your thermostat to your smartphone means you can auto-adjust the temperature of your home on a set schedule, or whenever you’re away from the house. 

For instance, you can reduce your heating or cooling temperature for when you’re at work, then set the system to increase 30 minutes before your anticipated arrival. You won’t notice a difference once you’re home, but you’ll benefit from hours of energy savings while you’re gone.

Smart lightbulbs can also save you money. Switching to LED bulbs throughout your home gives you longer-lasting light while being more energy efficient, and using LED smart bulbs means you can set lights on a schedule or use motion detection to keep lights off when not needed.

Make a plan for your home upgrades

 You could make hundreds of upgrades to your home to make it more energy efficient. Even if you’re just making small changes, always plan and make a budget for your anticipated costs.

Looking into financing options can be beneficial if you’re making a larger or more complex upgrade or renovation. Using your savings or a credit card for small upgrades or taking out a home equity loan, line of credit (HELOC), or even a mortgage refinance can help you fund bigger changes you want to make.

Always look for national or state-specific rebates for the types of changes you want to make, as these could save you money on more extensive upgrades.

FNBT is always here to help you find the financing options that work best for your situation. We have everything you need, right here in the local community, to help your family get the best and most reliable banking products for your next home project. Contact us today. You can also visit one of our branches in Southern Wisconsin or Northern Illinois to talk to a banker.