Updated 3 weeks ago
What is Energy Efficiency? 7 Ways to Conserve Energy at Home
Written by Dan Simms Dan SimmsDan has been a solar proponent for more than a decade now, and he has been researching and writing about solar and renewable energy for the past five ...Learn more , Edited by Catherine Lane Catherine LaneCatherine has been researching and reporting on the solar industry for five years and is the Written Content Manager at SolarReviews. She leads a dyna...Learn more
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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.
Key takeaways
Energy efficiency not only reduces strain on the environment but also saves you money on utility bills.
Going solar is the best way to reduce your electric bills, but there are much more affordable options, like unplugging appliances when not in use.
The goal of energy efficiency is to reduce the input of energy for the same outcome, so it doesn’t have to mean changing your lifestyle.
Federal and state governments and utility companies often have rebates and incentives for homeowners who improve their energy efficiency.
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.
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.
1. Use natural light
One of the easiest ways to conserve energy and reduce the amount of electricity you use is to rely on sunlight coming through your windows instead of turning on the lights. This is as simple as opening your shades or curtains during the day, so it requires no upfront investment.
In a room with five 40-watt bulbs, keeping the lights off and relying on natural light instead will conserve 0.2 kilowatt-hours (kWh) per hour. Keeping them off for just four hours a day for an entire year would conserve 292 kWh, the equivalent of offsetting 186 pounds of coal burned.
2. Unplug appliances when not in use
Another easy and affordable way to improve energy efficiency is to unplug small appliances when you’re not using them. Unplugging your oven or refrigerator isn’t realistic, but your coffee maker, toaster, blender, phone charger, and other appliances all pull some power, even when they’re not being used.
3. Upgrade to energy-efficient appliances
For those larger appliances that you can’t simply unplug, you can reduce your electricity consumption significantly by choosing ENERGY STAR-rated products. These use less electricity or gas during regular operation than non-certified appliances, which means annual running costs and energy use will be lower.
Upgrading just your domestic hot water heater to an ENERGY STAR-certified one can reduce energy consumption by around 70%. These certified products are usually more expensive upfront, but according to ENERGY STAR, a certified water heater will save an average of $3,500 on energy bills over its lifespan, which more than makes up for the average $700 more you’d pay upfront.
Replacing appliances is an expensive way to boost home energy efficiency, but if you plan on replacing those items anyway, upgrading to an ENERGY STAR product should pay for itself over time.
4. Change to LED lightbulbs
According to the Department of Energy, LED lightbulbs use 75% less energy than standard incandescent bulbs for the same light output, so upgrading to energy-efficient lightbulbs is an easy and affordable way to improve efficiency. LED bulbs are more expensive than standard ones, but they last 25 times as long and will save you money on electric bills, making them a worthwhile investment.
Best of all, replacing lightbulbs doesn’t require hiring a professional. Most existing fixtures will accept LED bulbs, so all you need to do is buy the bulbs and screw them in. For fluorescent light fixtures, you may need to hire an electrician to convert them to LED or replace the fixture altogether.
5. Properly insulate your home
According to the U.S. Energy Information Administration (EIA), more than 50% of a home’s energy consumption goes toward heating and cooling. If you live in an extreme climate or an older home with failing insulation, that number could be much higher.
Upgrading your insulation is one of the best ways to reduce that consumption, especially if you have an energy audit done to identify problem areas. You can add new fiberglass insulation or foam insulation during renovations, but even just adding blown-in insulation to your attic and sealing air gaps is an effective and non-invasive way to boost efficiency. ENERGY STAR maintains that sealing air gaps in your home can reduce heating and cooling costs by up to 10%.
Upgrading insulation has the added benefit of putting less strain on your heating and cooling equipment, which means a lower risk of losing heat in the dead of winter, reduced maintenance costs, and longer equipment lifespans.
6. Use a smart thermostat
Speaking of heating and cooling, there’s no sense in keeping your living space perfectly conditioned while no one’s home — and that’s where a smart thermostat comes in. Smart thermostats let you set temperatures for specific times and automate control over heating and cooling equipment. Ultimately, that means you can save money while still keeping your home comfortable.
Some smart thermostats let you interact with them via an app, which means you can control your temperature remotely from your phone. Similarly to upgrading insulation, this will reduce the wear and tear on your heating and cooling equipment, which should provide additional effective savings in the form of reduced maintenance and longer-lasting systems.
7. Air-dry your clothes
According to a study done by the National Resources Defense Council, electric dryers consume an average of 800 kWh per year, and gas dryers use 30 therms of natural gas per year.
Using the Environmental Protection Agency’s (EPA) conversion calculator, that’s the equivalent of between 176 and 559 pounds of coal burned annually.
Air-drying your clothes could significantly reduce your carbon footprint, not to mention saving an average of between $50 and $140 per year on your utility bills.
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.
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.
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.
Dan has been a solar proponent for more than a decade now, and he has been researching and writing about solar and renewable energy for the past five years. He has first-hand experience with solar conversion, and he uses that and his research to help homeowners lower their electric bills and reduce their carbon footprint through solar education and adoption. He has written for major publications, including CNN, USA Today, and EcoWatch, and he has...
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