Best Energy Efficient Home Improvements: From $20 LED Bulbs to Heat Pumps
With prices up across the board, and fossil fuel prices more volatile than ever, moving more of your energy consumption to electricity is not only a healthier choice, it can save you serious money.
Where to start? With so many options, some of which can feel like pretty big projects, it’s easy to get caught up in — as my mom says when trying to pick an entree at lunch — “analysis paralysis”.
But, it doesn’t have to be difficult, or even a big project. Let’s take a look at 6 things you can do to get started right now, half of which can be done with under $100.
To get more information on electrifying your home, including details on the benefits, what’s involved, and even a home electrification checklist, check out our guide: How whole home electrification can save you money.
In this article:
- LED lighting
- Smart thermostats
- Insulation
- Stove, oven, cooktop & clothes dryers
- Heat pump hot water heaters
- Heat pumps (HVAC)
- Bonus: Solar!
- Frequently asked questions
LED lighting
Cost: $
Potential savings: $225 per year for an average household
Um, but, light bulbs are already electric. FACTS. But, the difference in electricity used and lifespan between normal incandescent bulbs and LED lighting is borderline unbelievable: LEDs last up to 25 times longer than incandescent lighting, and also use 90% less energy.
Remember how your parents used to always say, “Turn the lights off!” Well, now you don’t have to worry about it. (Note: We fully endorse saving electricity by turning lights off when you leave a room, we’re just making a point.) It’s no wonder LEDs are becoming increasingly common in the U.S., and around the world.
All this means that LED lighting can be a great way to dip your toe into the whole home electrification waters. And, many LED bulbs have options for party lighting, TV watching, plant growth, and more. So, get your electrification party started with some LEDs.
Smart thermostats
Cost: $$ ($100-$300)
Potential savings: $250 per year (Up to 26% of your heating and cooling bill)
Smart thermostats automatically adjust heating and cooling settings based on your activity patterns, the time of day, and your preferences. Not only does this make you more comfortable without having to constantly adjust the settings, it can save energy by managing these changes more efficiently.
Even better, smart thermostats can optimize for energy use, maintaining your preferred temperatures while helping to minimize how much energy you use. And since many smart thermostats connect to your network, you can monitor and change the temperature from your phone and even track your energy use over time.
Insulation
Cost: $$
Potential savings: 15% of your heating and cooling costs
Another one that might not impress the neighbors, but making sure your home is properly insulated can save a bunch of cash. Some older homes literally have shredded newspaper in the walls for insulation [raises hand]. Not only does that settle over time, leaving a gap at the top, but insulation technology has improved exponentially over the years.
Many states will even provide a free home energy audit to give you an idea of what you can do to seal your home up. And the rebates and incentives for insulation projects can make this a very low (or no) cost improvement.
Stove, oven, cooktop + clothes dryers
Cost: $$$
Potential savings: $380 per year (according to one California study)
OK, now we’re taking a little step up. These appliances are a bit more of an investment, and may make sense to replace as they get towards the end of their useful life. This highlights one of the great things about going all electric: You don’t have to do it all at once.
There’s no “right way” to electrify your home. You can start small like we do on this list, or you can jump in all at once. It’s up to you.
Appliances like stoves and clothes dryers can be a big part of your monthly utility bill — especially when they’re older gas-powered models.
But, efficient electric appliances won’t just save you money — and save you even more when combined with solar and storage — they’re also way better for you. Gas-powered appliances emit fumes and chemicals inside your house — including nitrous dioxide. No thanks!
So, make the switch! (When you’re ready, of course.)
Here are some links to popular electric appliances and how much energy they use:
How many watts does a space heater use?
How many watts does an air conditioner use?
How many watts does a fridge use?
How many watts does it take to run a house?
Want to see all the benefits of switching to electric appliances? Check out our guide.
Heat pump hot water heaters
Cost: $$$
Potential savings: $150 or more per year (60% savings from traditional hot water heater)
Hot water heaters are one of the sneaky bill killers in your house. Whether you have a traditional electric one, or an oil or natural gas fired model, hot water heaters use a lot of energy. But, heat pump hot water heaters can help — and are three to four times more energy-efficient than traditional water heaters!
Like regular heat pumps (see below), heat pump hot water heaters use electricity to move heat from one location to another. This is another upgrade that makes sense to make when your current hot water heater reaches the end of its useful time. (And considering a typical hot water heater has a lifespan of about 10 years, that could be sooner than you think.)
Heat pumps (i.e. Heating and cooling / HVAC)
Cost: $$$$
Potential savings: more than $1,000 per year!
Heat pumps are like reversible air conditioners. They air condition your home in the summer. Then in the winter, they “air condition” the outside, and blow the heat into your home. (Stand outside in front of a heat pump in the winter and you’ll see what we mean.)
And it’s more than just bill savings — which are significant. Heat pumps can cut your home’s carbon dioxide emissions by more than 40%. In fact, heat pump adoption is a big reason carbon emissions from the are expected to fall as clean energy resources grow.
Bonus: Solar!
Switching away from fossil fuels and towards electricity will, of course, make your electric bills higher — even though your overall utility costs will be lower. But, there’s even a way around that.
Combining home electrification with a solar installation can then make it so a lot of the electricity you use is free (especially if you pair it with a home battery). You generate electricity, use it to power your home, and sell the excess back to the electric company (or save it in a battery to use later).
→ See how much you can save on solar
See? It doesn’t have to be time consuming, expensive, or confusing to go electric. And it sure beats constantly eyeing those natural gas prices.
Looking for more? Check out our guide: How whole home electrification can save you money.
Frequently asked questions
Q: What is the most cost-effective energy efficient home improvement?
LED lighting offers the fastest return on investment of any home energy upgrade — bulbs cost as little as $2–5 each, last up to 25 times longer than incandescent bulbs, and use 90% less energy. The DOE estimates the average household can save around $225 per year just by switching to LEDs throughout the home.
Q: What home improvements save the most energy?
Heat pumps deliver the largest energy savings of any home upgrade — potentially more than $1,000 per year — by replacing both your heating and cooling systems with a single highly efficient electric unit. Heat pump hot water heaters are a close second, offering savings of around 60% compared to traditional water heaters. Both require a larger upfront investment but offer significant long-term returns, especially when combined with solar.
Q: Are there rebates available for energy efficient home improvements?
Yes — rebates and incentives are available for most major energy efficient upgrades including LED lighting, smart thermostats, insulation, heat pumps, and heat pump water heaters. The federal government’s energy.gov/save portal is a good starting point, and many states and utilities offer additional rebates on top of federal programs. The availability and amount of rebates varies by location and can change, so it’s worth checking current offerings before making a purchase.
Q: Should I electrify my home before or after going solar?
There’s no single right answer, but many homeowners find it makes sense to electrify gradually — replacing gas appliances with electric ones as they reach end of life — and time a solar installation to coincide with a significant increase in their home’s electricity consumption. That way the solar system is sized to offset the full electric load rather than just the current one. Aurora’s free solar estimate tool can help you model different scenarios based on your home’s current and projected energy use.
Q: Does home electrification really save money if it raises my electric bill?
Yes — because the savings on gas, oil, and other fuel costs typically outweigh the increase in your electricity bill. Electric appliances are significantly more efficient than their gas counterparts, so even though you’re using more electricity, your total energy spend goes down. Adding solar amplifies this effect further by reducing how much of that electricity you’re buying from the grid.
