Energy efficiency upgrades aren’t going to win the home improvement popularity contest it seems.
That’s according to CNET Money’s most recent survey, which found 57% of US adults don’t know how to make their home energy efficient, think upgrades are too costly or believe it won’t help them save money.
That’s three big barriers to adoption in a world where our energy costs continue to rise faster than inflation. The latest CPI report from the Bureau of Labor and Statistics shows electricity costs are up 4.4% over the last 12 months while inflation is up 3% in the same time frame.
We asked a few energy experts for their reaction to what this survey uncovered and they found it tracks with their experience in the field.
Very few people have good visibility into how much energy they’re using at home, and how they might reduce it, said Rebecca Foster, chief executive at VEIC, a nonprofit that helps administer energy efficiency programs across the country.
“We don’t have good answers to those questions,” she said, referring to monthly utility bills that don’t break down which appliances, for example, are driving energy use. That makes it hard to prioritize upgrades that will have the biggest impact.
DR Richardson, co-founder of energy efficiency company Elephant Energy, said he also hears this uncertainty from customers all the time. People don’t know where to start, how to spend their limited budgets, or which financial rebates they qualify for.
Those worries don’t have to stop you in your tracks. Each home is unique, and each person has different goals, but there are answers and solutions to be found. Here’s how you can navigate uncertainty around home energy upgrades, and get the information you need to make the right decision.
What concerns Americans have about energy efficiency projects
When CNET asked survey respondents about what is stopping them from making their home more energy efficient, this is what we found.
- 32% were concerned about the overall cost of energy efficiency upgrades
- 29% of respondents said they weren’t sure if making certain upgrades would save them money
- 13% said they didn’t understand the best way to make a energy efficient
- Because survey respondents could select multiple answers, 57% of them answered the three above questions combined.
Energy efficiency: Why pricing and cost savings are hard to understand
At the end of the day, most residents who are pursuing home energy upgrades are motivated by two things: Making their homes more comfortable and saving money on their utility bills. “Very few homeowners are doing this just because they want to do good for the world,” Richardson said.
But it’s not always so easy to figure out which improvements will save you the most money. That’s because every home is different, and each resident has different goals. “Unfortunately there just is no one-size-fits-all,” Foster said. A heating upgrade in one home might cost $5,000, while the same project in a bigger home might be double or triple the cost. It all depends on the specifics of each project, where you live and which contractor you’re using.
How to get started with energy efficient upgrades
Don’t try to figure this out on your own: The avalanche of information about home energy improvements is too much for any one person to sort through. Your first step is to search for free or low-cost energy audits. Start with calling your existing utility company and ask what programs they offer.
During a home energy audit, you’ll get a better idea of how much energy you can save, what projects to prioritize and how much money you might save. This information will help you get estimates for the payoff of various projects like insulation, windows and doors, appliances, programmable smart thermostats, water heater, solar panels or an electric heat pump system.
“It’s incredibly valuable to get an [energy] audit done,” Richardson said. “Get an audit. Make a plan. Figure out how old your appliances are. Figure out what’s highest value to you in terms of the comfort problems in your home.”
To find a reliable energy auditor, you’ll want to use one that is certified by organizations on the Department of Energy’s list of qualified certification programs — all of which are eligible for the IRA tax credit. Foster recommends an energy auditor from the Building Performance Institute.
You can also check the Association of Energy Engineers, ASHRAE and the Residential Energy Services Network.
“Working with a professional is a really important step,” said Foster.
What tax credits and rebates are available?
Once you go through the audit process you’ll have a better idea of what home energy projects are worthwhile for you and how much they will cost you. Federal, state and local programs are giving away lots of money right now for energy efficiency projects.
It can get complicated though. “It’s just a nightmare for your average homeowner to try to navigate it all,” Richardson said.
Start with your local or state energy office, where experts can help you understand and apply for all types of grants.
One big pot of money available right now is through the federal Inflation Reduction Act, which offers generous tax credits for solar, heat pumps and other big ticket items.
But that’s just the tip of the iceberg. “Even without the IRA, there is so much support and resources available across the country,” Foster said, through those state and local programs.
The three best places to start researching are:
1. The Department of Energy’s energy efficiency rebate hub
2. The IRS’s energy efficient home improvement tax credit info-page
3. CNET’s list of available tax credits, rebates and incentives
Other energy-savings resources
CNET has a host of energy-saving advice. Check out these resources.
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