Are you in the market to make some home improvements? Saving money is likely a priority, but if you focus on projects that also save energy, it’s a win for both your wallet and the environment. That’s because energy-efficient upgrades not only cut down on monthly bills but can also add value to your home. Here are seven energy-conserving upgrades with impressive returns on investment (ROI) for homeowners to consider.
1. Install Energy-Efficient Windows
A drafty home is not an energy-efficient one. In fact, the Department of Energy reports that old, drafty windows alone are responsible for 25 to 30% of energy use due to loss of hot or cool air, depending on the season. By installing energy-efficient windows, you can stop throwing your money out the window on high energy costs.Window replacement costs range between $450 to $1,400 per window, which includes labor. Homeowners could recoup an ROI between 60 and 80%, according to multiple sources. If your budget doesn’t have room to tackle all the windows in your home at the same time, you can start with the oldest windows or the spaces in your home that you use the most.
2. Replace Insulation
Insulation helps to maintain a comfortable temperature inside your home in any season. But if you’re feeling cold when you should be warm and vice versa, you’re likely adjusting the thermostat often, sending energy bills skyrocketing. Replacing old, worn-out insulation can help.
The cost to remove and replace insulation is between $2.50 and $8 per square foot. While new insulation might not be as exciting as, say, a new kitchen or bathroom, here’s something that is: New insulation results in a 100% cost recovery, according to the 2022 Remodeling Impact Report from the National Association of Realtors (NAR).
3. Install a Smart Thermostat
Smart technology allows our homes to run more efficiently. A smart thermostat not only makes it easier to control the HVAC system by smartphone or tablet but there are some “smarter” models that can analyze your home’s heating and cooling needs throughout the day. With this info, you’ll be able to optimize your heating and cooling schedules to increase your comfort while lowering energy bills.
There are many smart thermostats to choose from at various price points, but you can expect to pay between $100 and $200 for a quality one, plus around $200 for a pro to install it. According to the Environmental Protection Agency (EPA), smart thermostats can potentially lower utility bills by 8%. Depending on your current monthly energy costs, your smart thermostat could pay itself off fairly quickly.
4. Upgrade Appliances
Newer appliances aren’t just shiny—they work better, too, especially regarding energy efficiency. While a new washer and dryer might set you back a bit, you’ll save money on energy costs each month instead of the old clunkers you have that are one laundry load away from an expensive service call.New appliances can help boost your home’s value between 6% and 8%. That might not be great news for homeowners unless they time their purchase of a new dishwasher or fridge with a great sale. That said, homebuyers will likely feel better about putting an offer on a home with new(er), energy-efficient appliances that are years from needing to be replaced, so the bigger ROI of new appliances may come with a quicker home sale.
5. Design an Energy-Efficient Yard
A well-tended yard offers the necessary curb appeal to woo homebuyers, but the maintenance takes a lot of time and money, especially if you hire pros to do it for you. And that’s besides all the water that will be needed to keep the grass and flowers hydrated.
More and more energy-conscious homeowners are looking to xeriscaping, a type of landscaping that features slow-growing, drought-tolerant plants. Xeriscaping is an excellent option for more arid climates, but it’s also becoming more popular in other regions because it requires little maintenance and irrigation.
Converting from landscaping to xeriscaping varies in cost for homeowners depending on the size of the yard and the type of drought-tolerant foliate. But projects of any size can save money because they’ll require far less water and fertilizer. According to the 2023 Remodeling Impact Outdoor Features report from the National Association of REALTORS (NAR), a landscape upgrade can have a 100% cost recovery.
6. Consider Switching to Solar Power
One way to avoid high monthly energy bills is to stop relying on electricity, and one of the best ways to do that is by installing solar panels. By harnessing the power of the sun for your home’s energy needs, you’re not only saving money on electric bills, but you’re also reducing your carbon footprint.
Solar panels cost between $20,548 to $30,666, though the true cost of installing them in your home depends on your location, the type of solar panel and the size of the system your home will need. This makes it the most expensive option on our list, although solar panels will eventually recoup their investment over time by lowering your monthly utility bills and adding value to your home. Homes with solar panels tend to sell quicker and panels tend to boost your home value. In fact, the National Renewable Energy Laboratory reported that for every dollar saved on electricity bills through solar panel usage, you can account for a $20 increase in a home’s value.
Solar companies offer various financing and leasing options to make the upfront costs more palatable for energy-minded homeowners. A 30% federal tax credit (through 2032) and state and local incentives further reduce costs for homeowners making the switch to solar.
7. Schedule an Energy Audit
If you’re not sure where to start with energy-efficient upgrades for your home, you might consider setting up a professional home energy audit. This involves a home energy auditor analyzing the energy efficiency of your home in its current state. They will analyze previous energy bills and inspect your home to offer ways to improve its energy efficiency.
The auditor’s final report will include their inspection notes and any recommendations for improving the home’s energy efficiency—anything from sealing up cracks and air leaks to upgrading the HVAC system and other appliances with more energy-efficient models.
The average cost of a home energy audit is $425, although that cost might be lower or higher depending on the size of your home and the number of appliances and household systems involved. It could be well worth the money to see what your home needs to run more efficiently, and you can always make the improvements as your budget and DIY skills allow.