What is Energy Efficiency? 7 Ways to Conserve Energy at Home

Serious concerns about climate change, greenhouse gas emissions, and electricity bills have homeowners across the globe thinking about making their homes more efficient. But what is energy efficiency? What are the benefits of energy conservation, and what are some ways to save energy and become more efficient? We’ll discuss all of that and more to help you understand and implement energy conservation techniques that can create a more efficient home.

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What is energy efficiency?

Simply put, energy efficiency means using less energy to complete a task. It could mean anything from insulating your home so your HVAC system doesn’t kick on as often to installing energy-efficient appliances that use less electricity without sacrificing performance. 

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7 ways to conserve energy at home

There are countless ways to improve your home’s energy efficiency, but here are seven approachable options that you can implement at relatively low costs today or in the near future.

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What are the benefits of energy efficiency?

Energy efficiency provides three key benefits that make related upgrades well worth the investment.

Energy efficiency can lower electricity bills

First, and perhaps most importantly for many homeowners, improving energy efficiency in your home will save you money on your electric bills. The exact savings you’ll see will depend on the upgrades you make and how efficient — or inefficient — the current products in your home are.

Using ENERGY STAR’s savings calculator, simply updating an old HVAC system in a 1,500-square-foot house can save up to $400 per year on utility bills and $6,000 over the life of the new equipment.

Energy efficiency is good for the environment

For eco-conscious homeowners, the benefits of conservation to the environment could be even more important. If you know how to save electricity and reduce how much natural gas and oil you use to heat, cool, and power your home, you can reduce your carbon footprint, have a major positive impact on the environment, and reduce your contribution to climate change.

The Department of Energy reports that updated efficiency technology and standards over the last 30 years are responsible for eliminating 134 million metric tons of carbon dioxide emissions. Upgrading to more efficient appliances, lighting options, and heating and cooling equipment can contribute to that positive effect.

Energy efficiency can increase property value

Finally, more and more homebuyers are looking for energy-efficient products in homes, including appliances and heating and cooling equipment. Not only is it important for people who want to lower their environmental impact, but savvy buyers know that an energy-efficient home is less expensive to run and will provide long-term energy savings and cost savings that are worth paying more for.

The experts at SolarReviews did a study on the impact of solar arrays on home value and found that homes with solar panels installed sold for 6.8% more. This alone is clear proof that buyers are prioritizing efficiency and savings in the long run.

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Energy efficiency rebates can help you save even more money

Upgrading HVAC equipment and major appliances can quickly get expensive, but there are many energy efficiency rebates you can take advantage of to help you save on those efficiency improvements. The federal government has offered rebates and tax credits through the Inflation Reduction Act (IRA) since 2022, some state governments have similar programs, and even local utility companies may provide rebates, credits, and other incentives for making efficiency upgrades.

The IRA offers tax credits to your federal income taxes owed in the amount of 30% of the cost of the upgrade, up to a maximum of $3,200 per year. This applies to the cost of installing heat pumps, windows and doors, new insulation, boilers, furnaces, central air conditioner systems, and more. You can also get a credit of 30% of the upgrade cost with no limit for major improvements, like installing solar panels or geothermal heat pumps.

For information on local and state incentives, you can check the Database of State Incentives for Renewables and Efficiency (DSIRE). You can also look for rebates and tax credits for specific ENERGY STAR-certified products using the ENERGY STAR Rebate Finder.

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Solar panels are the best way to save on electricity costs

One of the best ways to save money and reduce your energy costs and carbon footprint is to install solar panels. Solar energy systems use sunlight — a renewable and clean energy source — to provide electricity generation for your home, which reduces your reliance on fossil fuels — non-renewable energy sources.

In addition to having a major positive impact on the environment, solar panels can save an average of $1,820 per year if you install a large enough system to cover your electricity consumption. Over the minimum 25-year panel lifespan, that equates to an average savings of $45,500. While there’s often a significant upfront cost to going solar — an average of $12,600 after the federal investment tax credit (ITC) — panels usually pay for themselves and then provide significant net savings on top of that.