With energy prices on the rise, outpacing even inflation last year,[1] it’s important to find ways to cut down on energy use. The simple truth is that to avoid paying more, you need to use less. But how do you do that without giving up comfort or convenience? Let’s explore some easy ways to save energy and money.
Start with the basics: Efficient appliances and bulbs.
Switching to energy-efficient appliances and LED light bulbs is a great first step. Energy Star appliances use up to 50% less energy than older models,[2] and LED bulbs last much longer than traditional incandescent ones. These changes are a good start, and there’s even more you can do beyond the basics to really make a difference in your bills.
Take advantage of utility and assistance programs.
Many utility companies offer special programs to help you save energy and money. For example, some offer time-of-use plans, where you can pay lower rates for using energy during off-peak hours. Doing things like laundry or dishwashing at night or early in the morning could bring you some savings.
Another option to explore is your local Weatherization Assistance Program (WAP), which reduces energy costs for low-income households by improving the energy efficiency of their homes. These households average $372 of savings per year.[3]
Change your habits for big savings.
Small changes in your daily habits can lead to significant energy savings. Try these simple adjustments:
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Unplug electronics when not in use: Devices like TVs, laptops, and phone chargers can still draw power even when you aren’t using them. Unplug them or use a power strip with an off switch to help cut down on “phantom” energy use.
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Adjust your thermostat: Set your thermostat to the optimal temperature depending on the time of year and situation.
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Wash clothes in cold water: Most of the energy used by washing machines is to heat the water. Washing in cold water can work just as well and save energy.
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Use natural light: Try to utilize natural light during the day by opening curtains and letting in the sunlight. It’s free and can enhance your mood.
Explore green tax credits and home energy rebates.
The federal government offers tax benefits to homeowners who make energy-efficient upgrades, like installing solar panels, upgrading insulation, or replacing old windows. Even smaller projects can qualify for up to $3,200 in home efficiency tax credits through 2032.[4]
Additionally, in August 2024, over $1 billion was awarded for home energy rebate programs funded by the Inflation Reduction Act.[5] This gives homeowners the opportunity to receive thousands of dollars in rebates for select home improvement projects and appliance purchases. Check here to see if your state has rebates available.
Seal and insulate your home.
One of the most effective ways to save energy is to properly seal and insulate your home. Air leaks around windows, doors, and in your attic cause your HVAC system to work harder. The Environmental Protection Agency (EPA) estimates you can save 15% on your heating and cooling costs by properly sealing and insulating your home. Whether or not you qualify for a home insulation tax credit, you’ll continue to see the long-term benefits in your energy bills.
Not only will these steps help you save money, but they’ll also make your home more comfortable and environmentally friendly. Start with these tips today and see the difference they can make in your energy bills. If you find you need to invest in home repairs, we can help! Let us find out if you’re eligible to tap in to your home equity to fund the needed renovations. Contact one of our Mortgage Specialists or call us at 1-888-254-9500 to discuss more options and get your questions answered.
Sources:
[1] U.S. Energy Information Administration, “Increases in U.S. residential electricity in 2023 were outpaced by inflation,” April 22, 2024.
[2] U.S. Environmental Protection Agency and U.S. Department of Energy, Appliances, December 2003.
[3] U.S. Department of Energy, Weather Assistance Program, August 2024.
[4] International Revenue Service, “Energy Efficient Home Improvement Credit,” July 18, 2024.
[5] U.S. Department of Energy, “Over $1 Billion Awarded for Home Energy Rebate Programs,” August 8, 2024.
This article was repurposed with permission from Ellie Mae, Inc. - Encompass© in the September Waypoints Newsletter Issue 2024.