Completing these sustainable home improvements could save you $2,500 on your yearly energy bill
By David Steckel, Home Expert at Thumbtack•Last updated Apr 25, 2023
Last updated Apr 25, 2023
Table of Contents
- Consumers want to make sustainable home improvements — but they need help getting started.
- Switching to electric energy sources is a win-win with short-term paybacks and long-term benefits.
- If you’re looking to make a medium investment.
- If you’re ready to make a significant investment.
- Ready to get started? Let us help you find the right pro.
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Ask most homeowners if they’d like to make their homes more energy efficient, and the answer is a resounding yes. Saving money on energy bills while conserving precious resources just makes sense. But, it’s the “what,” “when,” and “how much” of actually implementing sustainable home projects that stops most people in their tracks.
To get a better read on the barriers to energy-efficient upgrades, we surveyed 1,000 American homeowners* about their home improvement plans. While 71% said sustainability is an absolute priority for this year’s home projects, nearly one-third (32%) still consider sustainable, energy-efficient home projects too expensive or feel unsure about where to begin (31%).
Our survey findings resonated with Rewiring America, the country’s leading electrification nonprofit, with whom we partnered to help homeowners take the next step toward a more sustainable and energy-efficient home this year.
Consumers want to make sustainable home improvements — but they need help getting started.
From wanting to lower their energy bill (55%) to helping the planet (41%) to feeling neighborly pressure (70%), Americans told us they have a variety of reasons for wanting to make their homes more efficient.
And the projects they want to complete vary widely. They range from small projects like installing energy-efficient lighting (46%) and smart thermostats (42%) to medium and larger projects that require the help of a licensed professional, like upgrading to energy-efficient insulation (41%), adding double-pane windows (33%), and installing solar panels (36%), heat pumps (29%), and EV charger ports (26%).
However, confusion about which projects will have the biggest impact (18%) and uncertainty about how to navigate state and federal tax incentives and rebates (14%) are what keep consumers from taking the next step.
“The number one question we hear from consumers is where to start,” says Nicole Staple, Head of Market Partnerships at Rewiring America. “Few people can afford to make these upgrades all at once, so the best first step is to take inventory of the age of your appliances and then arrange for an energy audit of your home. From there, you can start to make a plan to switch to more efficient electric machines before your old appliances reach the end of their useful lives.”
Switching to electric energy sources is a win-win with short-term paybacks and long-term benefits.
Whether you’re looking to spend less than $5,000 like a majority (51%) of people to make your home more environmentally friendly or you’re among the more than 1 in 5 people who are willing to spend $20,000+ to make your home more sustainable, there are a variety of projects you can take on this year to lower your energy bill and help the planet.
At Thumbtack, we help homeowners get their home goals done — including sustainable projects. Knowing what to do, who to hire, and when can be big hurdles, so we set out to make the process easier. To help consumers figure out which sustainable projects yield the most long-term savings and fit into their budget, we crunched the numbers by pulling data on average cost savings and total homeowner cost, while factoring in government incentives, tax credits, and rebates. Here’s what we found:
If you’re looking to start small.
If you’re looking to spend under $500 to make your home more eco-friendly, small projects like installing energy-efficient lighting or smart thermostats are relatively inexpensive — ringing in at $240.56 and $239.53, respectively, according to Thumbtack’s database. And they begin to pay for themselves within just a few months, as they help reduce yearly energy bills by $200 and $100, respectively. Smart energy monitors are another easy and affordable way to track your usage, identify sources of waste or vampire energy usage, and set goals to reduce usage now that you know which devices are drawing the most power or are simply “always on.”
For those planning to spend $1,000-$5,000, a clear win-win for homeowners considering electric cars is installing an EV charger. The cost is roughly $2,230, depending on the shape of your current circuit breaker. Homeowners in low-income or rural communities can save up to $1,000 through a 30% tax credit. Additionally, installing new double-pane windows can cost homeowners roughly $1,569 per 5-8 windows. Homeowners can save up to $600 per year with a 30% tax credit and $308 in average yearly energy bill savings when they upgrade their home’s windows and doors.
If you’re looking to make a medium investment.
For those looking to spend $5,000-$10,000, heat pump water heaters, which produce hot water instead of air, require a smaller investment than heat pumps but still provide big gains in efficiency. These are 2-3 times more efficient than traditional systems and cost, on average, $5,280 to install. Homeowners can save up to $1,750, depending on their income, in upfront costs and up to $2,000 through a 30% tax credit while benefiting from $120 in average yearly energy bill savings.
Weatherization improvements can also help to reduce your energy usage by improving ventilation and maintaining your home’s temperature. Upgrading or installing new insulation can cost, on average, $9,469 across the country. Homeowners can save up to $1,600 for income-eligible households in upfront costs, receive a 30% tax credit for up to $1,200 per year, and save roughly $400 in average national yearly energy bill savings when they upgrade their entire home’s insulation.
Rooftop solar panels are another great option, as they produce no carbon emissions and can save homeowners hundreds of dollars a year on their electric bill. Installing solar panels costs, on average, $9,640 across the country, though costs may vary based on the equipment selected and the home’s square footage. A local solar pro on Thumbtack can help you identify the best approach for your home. Homeowners can save 30% on upfront equipment and installation costs through government incentives ($2,892 on average) and $100 in average yearly energy bill savings, even after financing the upfront cost of the panels.
If you’re ready to make a significant investment.
Finally, for homeowners looking to spend $10,000-$20,000, heat pumps require a larger upfront investment at an average cost of $16,588, but they’re 3-5 times more energy efficient than traditional heating systems and work in all climates. They have a lifespan of 10-15 years and can replace both your traditional AC and home heating system. Homeowners can save up to $8,000, depending on their income, in upfront costs through government incentives, up to $2,000 in a 30% tax credit, and $330 in average yearly energy bill savings. Households that heat their home with electric resistance, fuel oil, or propane can save over $1,000 on their yearly energy bills.
If homeowners were to tackle all of these projects at once, they would be looking at an average total spend of $23,000 after incentives and rebates. Completing all of these projects would also save them roughly $2,500 per year on their energy bill, while reducing their home’s carbon footprint. And given the average energy bill in the U.S. is $4,268 per year, according to the Bureau of Labor Statistics, that’s a significant yearly saving of 59%.
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Ultimately, no matter your budget, you can get started, and you don’t have to begin with a massive project to make an impact on your energy bill or carbon footprint.
“Many of the tax credits in the Inflation Reduction Act are good for the next ten years, enabling homeowners to make the transition in a way that makes the most sense for their budgets,” says Staple.
Electrification projects like smart devices are an excellent option, as are window and insulation upgrades. And while bigger-ticket projects like high-quality solar panels may cost more upfront, they can yield meaningful long-term savings. Big or small, the investment you make will have a short-term payoff and long-term benefit for you and the environment.
To get started, connect with a local professional by downloading the Thumbtack app (available on iOS and Android) and visit Rewiring America to learn more about the IRA incentives, calculate your potential savings, and learn more about the benefits of electrification.
*Survey Methodology: This sample of 1,000 U.S. adults (aged 18-65) was surveyed on February 16 and 17, 2023. DKC Analytics conducted and analyzed this survey with a sample procured using the Pollfish survey delivery platform. Sampling was calibrated to accurately reflect U.S. population density by generational cohort. No post-stratification has been applied to the results. “Americans,” “respondents,” and “people” called out within this blog refer to those surveyed.
**All pricing data is based on national average cost estimates using data provided by Thumbtack service professionals and additional research; actual prices may vary based on city, equipment, home square footage, supply, and more. All savings data (rebates, tax credits, incentives) are provided by Rewiring America.
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