Energy-efficient home improvements: Projects for every budget

Creating an energy-efficient home means optimizing your living space to minimize energy consumption without compromising comfort. Thankfully, reducing your utility bills doesn't mean you have to opt for new construction.

Whether you start with simple DIY projects or tackle larger home improvements, there are opportunities for every budget. Let's explore ways to make your home more energy efficient and learn how it saves you money while helping the environment.

Benefits of making energy-efficient home improvements

Home improvements that are energy efficient have advantages beyond lowering utility bills — although that's an important benefit. They can also increase your home's value. Many homebuyers seek out and will pay more for homes that are more energy efficient.

Investing in energy-efficient upgrades may qualify you for a tax credit. Unlike tax deductions, tax credits allow you a dollar-for-dollar reduction on your tax bill. For example, if you qualify for a $500 tax credit, you'll owe $500 less in taxes. The Energy Efficient Home Improvement Credit and Residential Clean Energy Credit both offer opportunities to lower your tax bill for qualified expenses.

An energy-efficient home also helps the environment by conserving natural resources. Energy-efficient upgrades benefit you as well as the world around you.

Smaller energy-efficient home improvements

Some of the most effective energy-efficient upgrades are also the most affordable. Don't underestimate their impact because of the low cost — they can lead to significant savings. You can see quick results and tackle some of these small projects over a weekend.

• Adding caulk and weather stripping: Sealing air leaks around doors and windows helps prevent drafts, which reduces heat loss in the winter and heat gain in the summer. This reduces the workload of your HVAC system.
• Upgrading light bulbs: Switching from incandescent to LED bulbs may reduce your energy consumption for lighting by as much as 90%. Modern LED bulbs also last significantly longer.
• Installing blinds and drapes: Thermal curtains help rooms retain heat in the winter and stay cooler in the summer. Blinds can also be used to block sunlight.
• Insulating your hot water heater: Water heater blankets reduce the energy needed to keep water hot. This upgrade is especially beneficial for water heaters located in unheated spaces, like garages or basements.
• Installing a smart thermostat: A smart thermostat automatically adjusts your home's temperature based on your schedule to maximize energy efficiency. For example, it could lower the heat in your home in the winter while you are at work and increase the temperature to a comfortable level shortly before you return home.
• Adjusting your water heater temperature: Water heaters typically come with a factory setting of 140 degrees Fahrenheit. Lowering the temperature to 120 degrees saves energy and provides water hot enough for most needs.
• Installing low-flow showerheads: Efficient shower fixtures minimize hot water use, which reduces the workload on your water heater.

New appliances for a more energy-efficient home

Upgrading to modern, energy-efficient appliances can make a significant impact on your utility bills. Although the upfront costs will be higher than upgrades, like weather stripping and LED bulbs, they typically pay for themselves over time from the energy savings.

Appliances that are ENERGY STAR® certified use significantly less energy than older models without sacrificing performance. Certain types of appliances are also more efficient. For example, induction stoves convert 85-90% of energy into heat. In comparison, traditional electrical stoves convert 70-75% of their energy into heat, while gas stoves only achieve 40-60% efficiency.

Installing a new water heater is another option if your current unit is an older model. The type of water heater you select can also make a difference. Heat pump water heaters use up to 70% less energy than standard electric models by extracting heat from the surrounding air instead of generating it directly. Tankless water heaters also use less energy because they only heat water as it's being used.

Larger energy-efficient home improvements

Larger improvements typically have the greatest impact on your utility bills. Unlike smaller upgrades that you can do yourself, larger projects often require professional installation and higher upfront costs. However, the expense can often be recouped from long-term energy savings.

• Windows: Upgrading the windows in your home minimizes the transfer of heat. Modern energy-efficient windows have double- or triple-pane glass with an insulating gas between the panes. This upgrade is especially beneficial for older homes with single-pane windows that allow for significant energy loss. Consider installing skylights as well.
• Insulation: Ensuring your home is properly insulated is one of the most effective ways to reduce your energy consumption. Adding insulation to your attic, walls and crawl spaces creates a thermal barrier that keeps heated and cooled air in place, reducing the strain on your HVAC system.
• HVAC: If your HVAC system is old, upgrading to a modern unit can dramatically reduce your energy usage and improve comfort. For additional savings, make sure all of your ducts are properly sealed, so the air is evenly distributed throughout your home. Annual inspections by an HVAC technician also ensure your unit operates at peak efficiency.
• Solar panels: Solar panel installation is one of the most effective energy improvements you can make. Depending on the size of the installation, you may be able to offset the majority or all of your home's electricity usage. Additionally, many utilities pay homeowners for the excess power their solar panels generate through net metering or solar buyback programs. Tax incentives further reduce the cost. Through the federal Residential Clean Energy Credit, homeowners can claim 30% of the total system cost as a tax credit through 2032. Many states and local utilities also offer additional tax breaks and incentives.

Financing energy-efficient home improvements

If you are thinking about a home improvement project to maximize your energy savings, a home equity line of credit (HELOC) is an affordable financing solution. A HELOC allows you to tap into the equity in your home — usually with a lower interest rate than other financing options, like personal loans.

A HELOC is a line of credit that lets you borrow funds as needed, which can be helpful if you don't know the project's full cost upfront. Similar to a credit card, you can borrow funds as needed up to your credit limit, and your available credit is replenished when you repay the money you borrow.

A HELOC also allows you to make interest-only payments during the draw period. This can help you keep your payments low during the project, which gives you greater financial flexibility. After the draw period ends, you transition into the repayment phase where you repay both the principal and interest with fixed monthly payments.

Apply for a HELOC through Citizens FastLine

Energy-efficient home upgrades can dramatically slash your utility bills and reduce your environmental footprint. They could also increase your home's value. Some upgrades also qualify for significant tax credits and incentives, making them even more affordable. With so many advantages, investing in energy efficiency is a smart choice that delivers long-term savings for years to come.

Ready to make your home more energy efficient? A HELOC with Citizens FastLine® makes it easy to manage costs with competitive interest rates and the ability to draw funds as needed. Apply today to make your home a more efficient and comfortable space.

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