Key Points
- Smart thermostats, insulation, and air sealing are quick wins that save energy and lower energy bills right away.
- Major upgrades like heat pumps, heat pump water heaters, and solar panels provide long-term energy savings and add value to your energy-efficient home.
- Appliances, lighting, windows, and doors are everyday upgrades that reduce energy waste and deliver lasting comfort.
Power Moves for Your Home’s Energy Future
What if your home could stay cozier in winter and cooler in summer while cutting your bills at the same time? What if simple upgrades could make your house more comfortable and boost its value?
In this post, you’ll discover the top energy-efficient upgrades worth considering, from smart thermostats to solar panels, plus which parts of your home waste the most energy.
By the end, you’ll know how to make practical changes that save money, increase comfort, and create a home that works better for your family.
Home Energy-Efficiency Upgrades
- Install a Smart Thermostat
- Add Insulation and Air Sealing
- Replace Old HVAC with Heat Pump
- Upgrade to a Heat Pump Water Heater
- Replace Windows with Energy-Efficient Models
- Install Energy-Efficient Doors and Skylights
- Add Solar Panels for Clean Energy
- Install Battery Storage System
- Replace Appliances with Energy Star Models
- Switch All Bulbs to LED Lighting
Which Upgrade Do Homeowners Ask Us For Most?
In the Northwest, heat pumps top the list of requests. They’re valued not only for their greater energy efficiency but also because they handle both heating and cooling in a single system—eliminating the need to buy and maintain a separate furnace and AC unit.
Which Upgrades Do We Recommend?
Attic insulation continues to be one of the most cost-effective ways to improve energy efficiency, sealing in comfort and cutting wasted energy.
A new water heater is another smart move, since today’s models run more efficiently, deliver consistent hot water, and cost less to operate.
Heat pumps may come with a higher upfront investment, but they pay for themselves over time by reducing energy use and adding cooling capacity—a feature more and more Northwest homeowners want as summer temperatures climb.
When you combine these upgrades with our region’s high need for extra energy credits, they shift from being nice-to-have improvements to essential features with larger remodels.
How Energy Efficient Upgrades Can Impact Your Home
| Upgrade | Why It Matters to You | Potential Savings/Value | Cost Range (Typical) | Incentives/ROI |
|---|---|---|---|---|
| Install a Smart Thermostat | Reduces energy waste by managing heating and cooling efficiently | 10–12% off heating, 15% off cooling; ~$900/yr systems | $150–$400 | Pays for itself in ~2 years |
| Add Insulation and Air Sealing | Prevents air leaks and keeps warm air inside, outside air out | Cuts heating/cooling costs up to 20% | $1,500–$5,000+ (varies widely) | ROI of 83–107% on attic insulation |
| Replace Old HVAC with Heat Pump | Heat pumps deliver 300–500% efficiency vs. 60–80% for old furnaces | Homes with heat pumps sell for 4–7% more | $7,000–$20,000+ | 35–71% cost recouped; incentives available |
| Upgrade to a Heat Pump Water Heater | 3–5x more efficient than standard tanks | $350–$550/year savings for a family of four | $1,500–$3,500 | Up to $2,000 federal tax credit |
| Replace Windows with Energy-Efficient Models | Stops heat loss and drafts; improves comfort | 12% lower energy bills; $101–$583/yr savings | $15,000–$25,000+ | 30% tax credit up to $600/yr; ~68% ROI resale |
| Install Energy-Efficient Doors and Skylights | Eliminates drafts and reduces heat loss | Exterior doors and skylights are designed to limit air leaks | $500–$5,000+ per door/skylight | Contributes to a 30% reduction in energy loss |
| Add Solar Panels for Clean Energy | Cuts reliance on fossil fuels; lowers long-term utility bills | Increases home value by ~4% ($12k on $300k home) | $15,000–$30,000+ | Pays back in 6–10 years; tax credits available |
| Install Battery Storage System | Provides backup power, reduces grid dependence | Savings depend on solar system size and use | $8,000–$16,000+ | Eligible under Clean Energy Credit (25D) |
| Replace Appliances with Energy Star Models | Use less energy and water; lower long-term costs | Old fridge $200/yr vs. new $67/yr; 60–80% ROI appliances | $500–$2,500 each | Incentives may apply depending on appliance type |
| Switch All Bulbs to LED Lighting | Refrigerators, washers, and dryers that meet ENERGY STAR standards | Immediate energy savings, lower cooling costs | $2–$10 per bulb | Quickest payback, often less than 1 year |
1. Install a Smart Thermostat
A smart thermostat is one of the simplest energy-efficient upgrades you can make, and it has an immediate impact on your utility bill.
Traditional thermostats can only be adjusted manually, but smart versions learn your daily patterns and make automatic changes that reduce wasted energy.
They lower the temperature when you leave for work, warm the house before you wake up, and can even be controlled from your phone.
Studies show that heating and cooling can take up almost half of what the average American spends on energy bills each year, often more than $900.
With a smart thermostat, you can cut those costs by 10% to 12% on heating and about 15% on cooling. That means less energy waste, fewer surprises on your utility bill, and a much more comfortable home.
Most families find that this upgrade pays for itself in about two years, which makes it one of the most cost-effective ways to save energy and save money without giving up comfort. This is especially appealing during the colder stretches around Mukilteo Lighthouse Park when heating demand spikes.
2. Add Insulation and Air Sealing
One of the largest sources of energy loss in an existing home comes from poor insulation and air leaks.
Homes across the country are under-insulated, with estimates showing about 90% need more. Without proper insulation, your HVAC system works overtime, leading to rising energy costs and more energy consumption.
When warm air escapes in winter or outside air sneaks in during the summer, your heating and cooling systems are forced to work harder.
An energy audit can reveal just how much of your energy usage is being wasted in this way.
Experts estimate that 25% to 40% of heating and cooling energy is lost through cracks, gaps, and unsealed spaces. Crawl space areas, attics, and rim joists are some of the most common problem spots.
Upgrading with spray foam insulation or blown-in cellulose and getting your home professionally air sealed can cut those losses dramatically. In fact, adding attic insulation alone often provides an 83% to 107% return on investment.
This type of work helps reduce energy waste, lowers your utility bill, and creates a more comfortable, draft-free home during damp winters around Puget Sound.
ROI and Savings
Insulation upgrades paired with air sealing can reduce energy waste by up to 45%. That means lower energy bills, better indoor comfort, and less strain on your heating and cooling equipment.
3. Replace Old HVAC with Heat Pump
Heat pumps have become the gold standard for heating and cooling systems because they move heat rather than creating it.
An air source heat pump pulls warm air from outside, even in cold weather, and transfers it indoors.
In summer, it reverses direction to keep your home cool.
Because they transfer energy instead of burning fossil fuels, heat pumps operate at 300% to 500% efficiency, compared to older furnaces that may run at only 60% to 80%.
That means you get more energy savings for every dollar spent on electricity, which is especially valuable for families facing higher bills during the summer outdoor festival season in Kirkland.
Homes that upgrade to heat pumps often sell for a 4% to 7% premium, and you can recoup up to 71% of the cost of heat pump installation when selling. Studies show that homes with air source heat pumps can command $10,000 to $17,000 more at resale.
A new HVAC system with modern heat pumps can be a major step toward clean energy, reducing energy waste and cutting climate change emissions at the same time.
4. Upgrade to a Heat Pump Water Heater
Water heating is the second-largest energy use in most homes, often accounting for 15% to 20% of utility bills.
Standard water heaters constantly work to keep hot water ready, even when you are not using it.
Switching to a heat pump water heater changes that equation.
These units use the same technology as heat pumps for heating and cooling, pulling heat from the surrounding air and transferring it into the water tank. They are 3 to 5 times more efficient than traditional water heaters and can save a family of four between $350 and $550 per year.
On top of that, many models qualify for up to $2,000 in tax credit incentives, making them even more affordable.
Tankless Water Heaters
Although tankless models are often marketed as efficient, the energy savings are minimal compared to heat pump water heaters. On average, a tankless unit only saves about $20 annually, making it less effective for lowering overall energy consumption.
5. Replace Windows with Energy-Efficient Models
Old windows can be a major source of heat loss and energy waste, especially in older homes.
New energy-efficient windows prevent outside air from seeping in and keep warm air inside during colder months.
Replacing them with Energy Star-certified models or adding storm windows can reduce energy costs by about 12%, which often means saving $101 to $583 each year if you are upgrading from single-pane glass.
The improvements are less dramatic but still valuable for double-pane upgrades, where annual savings range from $27 to $197.
ROI and Costs
Window replacements are expensive, with the average job costing around $20,000.
While you may recoup about 68% percent of the investment when selling, it can take 34 years to recover the costs through energy savings alone.
The ROI of different home projects in and around Seattle.
Tax Credits
Tax credit incentives are available for window upgrades, with up to $600 available each year. Skylights and storm windows may also qualify as eligible improvements.
6. Install Energy-Efficient Doors and Skylights
Exterior doors and skylights can be just as important as windows when it comes to home energy.
Old, drafty doors or outdated skylights let heat escape and increase energy usage.
Replacing them with energy-efficient versions improves comfort and lowers heating and cooling bills.
- Exterior doors can qualify for a tax credit worth 30% of the cost, up to $250 per door and a maximum of $500 annually.
- Skylights, when replaced with energy-efficient models, are also eligible for credits of up to $600 annually.
- Combined envelope upgrades that include windows, doors, skylights, insulation, and electrical work are capped at $1,200 each year.
7. Install Solar Panels
Installing solar panels is one of the most visible ways to reduce energy consumption and move toward clean energy.
In the Pacific Northwest, where homeowners are conscious of both utility bills and sustainability, installing solar panels can add more than 4% to your home’s value.
On a $300,000 home, that’s an increase of $12,000.
Solar panels help you save energy, offsetting a portion of your electricity use every month and providing long-term protection against rising energy costs.
8. Install Battery Storage System
Battery storage systems allow you to store electricity generated by solar panels for use at night or during outages.
As of 2023, battery storage qualifies under the Residential Clean Energy Credit, making it easier to invest in this technology.
While it requires a high upfront cost, it reduces reliance on the grid and can pair with clean energy systems for maximum energy savings. Battery storage is an emerging solution, but it represents the future of energy-efficient home upgrades, especially as more families move toward electric heating and electric vehicles.
9. Replace Appliances with Energy Star Models
Outdated appliances are another hidden source of energy waste.
A refrigerator that is more than 15 years old may cost $200 or more per year to run, while a new Energy Star model can use as little as $67 annually.
Clothes dryers and clothes washers also contribute significantly to energy usage, especially if they are older or not energy-efficient. Upgrading to modern energy-efficient appliances cuts energy consumption, reduces energy waste, and provides ongoing savings that add up quickly.
Appliance upgrades typically deliver a 60% to 80% return on investment, making them one of the smartest choices for long-term energy efficiency improvements.
10. Switch Bulbs to LEDs
Lighting is often overlooked, but switching to LEDs is one of the most cost-effective ways to save energy.
Incandescent and halogen bulbs use up to 75% more energy than LEDs and burn out faster.
By replacing every bulb in your home, you can immediately reduce energy usage and cut cooling costs, since incandescent bulbs give off excess warm air.
This simple upgrade lowers your utility bill and requires little effort, making it one of the easiest energy-efficient home improvements to complete.
Upgrades your kitchen wants for you.
The Worst Energy Wasters in Your Home
Poor Insulation and Crawl Space Air Sealing
When insulation is thin or missing and crawl space areas are unsealed, heat escapes in winter and hot air seeps in during summer. This constant energy loss forces your heating and cooling systems to run longer, driving up energy bills and leaving your home uncomfortable.
Aging HVAC, Heat Pumps, and Boilers
Outdated heating and cooling systems work harder than they should while delivering less comfort. With efficiency as low as 60%, these old units burn through energy and money while failing to keep your home evenly comfortable.
Old Windows, Exterior Doors, and Skylights
Drafty windows and doors let outside air pour in and conditioned air leak out. The result is more energy waste, higher heating and cooling costs, and rooms that never feel quite right.
Inefficient Water Heating
Traditional water heaters constantly run to keep hot water ready, which means wasted energy every hour of the day. This steady drain makes water heating one of the largest contributors to high energy bills.
Traditional Energy Systems
Homes without modern solutions like battery storage or clean energy generation are stuck relying on fossil fuels. This dependence creates more energy waste and leaves homeowners exposed to rising energy costs.
Plug Leaks In Your Home and Your Wallet with Home Run Solutions
Your home’s energy efficiency upgrades can be designed and installed with care by Home Run Solutions. Our remodeling expertise makes it simple to choose the right projects that bring real comfort and energy savings.
With the right partner, even big decisions about energy-efficient home improvements feel easy. Fill out our contact form today or give us a call to get started.
FAQs
How long do heat pump water heaters typically last compared to conventional water heaters?
Heat pump water heaters last 10–15 years with proper maintenance. Conventional electric or gas tank water heaters last 8–12 years. Heat pumps generally offer a longer lifespan due to higher energy efficiency and reduced wear.
What is the average payback period for installing solar panels?
The average payback period for installing solar panels in the U.S. is 6–10 years. The exact timeline depends on electricity rates, available incentives, local climate, and system cost. Federal tax credits and net metering significantly reduce the payback time.
How do I know if my home has enough insulation?
Check attic insulation height; if it’s level with or below the joists, you likely need more. Uneven insulation, cold walls or ceilings, and temperature differences between rooms also signal insufficient insulation.