There are countless reasons you should be interested in improving the energy efficiency of your house. Two big reasons that come to mind for me are that having a more energy efficient home could make it a more comfortable place to live, and it could mean more money in your pocket.
“There are two main reasons a homeowner should care about energy efficiency,” Christopher DeSchamp, HomeServe Vice President of Product, said. “One, their monthly energy bill will likely be less, and two, it means less energy used, which means less negative impact to the environment.”
If you’re a homeowner and you invest in energy efficiency, EnergyStar suggests you can expect to save, on average, 20% on your utility bills. Plus, if you’re looking to put your house on the market, homes with high efficiency ratings can sell for 2% to 8% more and sell faster than comparable homes.
On top of saving money on utilities and making more money on a sale, energy-efficient homes are just more comfortable to live in. In the National Association of Home Builder’s “What Home Buyers Really Want” study, features related to energy-efficiency are among the things buyers want most.
“These enhancements … translate directly into cost savings through their efficiency – less energy drawn, less water wasted and less heat/cool air lost make for lower utility bills. Reduced maintenance costs also contribute to overall savings,” according to CenterPoint Energy.
Homes are getting smarter and smarter thanks to continued advancements in technology. Smart thermostats are a key component of energy-efficient HVAC systems, helping homeowners save money and ensuring a consistent, comfortable temperature. An energy-efficient building envelope, with properly rated insulation and windows, minimizes drafts. High-efficiency HVAC systems with premium filters can improve in-home air quality and allow control over humidity levels.
“The benefits of an energy-efficient HVAC system, from a health and safety standpoint, are numerous,” Robert Young, a General Manager at UGI Heating Cooling and Plumbing by HomeServe in Exton, Pa, said. “No matter what kind of HVAC system is in a home, it needs to be well maintained. Unfortunately, maintenance is often neglected – parts aren’t lubricated, filters aren’t replaced, you name it, and that impacts the efficiency of the unit. Let it go long enough, your HVAC system is working harder than it needs to, using up more fuel and it can result in paying a lot more to heat and cool a home than it should, at best, or the breakdown of the unit at worst. In the meantime, the air quality isn’t where it could be and there can be temperature fluctuations.”
Besides HVAC systems, energy-efficient features can range from insulation to LED lighting to appliances. However, if you’re looking for the best methods to significantly improve your home’s energy efficiency, there are three must-haves: a heat pump, an energy efficient water heater and a smart thermostat.
“Heat pumps have some advantages over furnaces,” Christopher said. “Critically, they can both heat and cool your home. A heat pump is like an air conditioner that runs both ways. If your air conditioning breaks down, replacing it with a heat pump is a super cost-effective way to get a more efficient heating and cooling system all in one. And with the IRA (2022 Inflation Reduction Act), there are many more incentives, such as utility rebates and tax credits, to purchasing heat pumps.”
Heat pumps can reduce CO emissions by, on average, 40%, and cost, on average, $5,500 to install. On top of that, you’ll save an average of $500 per year in utility costs, although it could be as high as $1,000 per year. Advances in technology mean that heat pumps continue operating efficiently at sub-freezing temperatures and typically can effectively heat your home down to 5 to 0 degrees Fahrenheit.
“If you have electric heat, a heat pump is the way to go for energy savings,” said Sean Simmons, Manager at Crawford Services, which provides plumbing and HVAC services to the Dallas-Fort Worth area.
What makes a heat pump more efficient is that it isn’t generating heat, but, instead, is transferring it. With a heat pump, the amount of energy, as heat, that is put out is generally four times as much as what is required to operate it, making it three to five times more efficient than ordinary HVAC units.
“Heat pumps basically work by transferring heat from the outside and bringing it into a home’s living areas during the winter and transferring heat from the inside of the home to the outside during the summer. It’s all about moving heat,” Mark Crook, HomeServe Senior Vice President of Energy Services, said. “It works like a refrigerator, but in reverse, and has some of the same parts – a compressor, refrigerant, condenser and an evaporator. It’s all thermodynamics. When people hear ‘heat pump,’ they often don’t realize that there’s something they’re using in their home every day that works off the same principle.”
To go along with your energy efficient heat pump, you’ll want to install a smart thermostat. A smart thermostat can do a lot of things for you, including allowing you to set a schedule to use less energy at night or when you’re not at home. A smart thermostat can learn the rhythm of your usage, adjusting the temperature to ensure comfort and utility bill savings. It can also allow you to make adjustments to the temperature in your home remotely. Some models will even give you a monthly energy usage report.
“A smart thermostat is great for people who are on a regular schedule, so they can schedule around when they’ll be home,” Sean said. “One of the most important things you should do before purchasing a smart thermostat is your research. It’s a major purchase — the higher end equipment can be very expensive and the flagship models of each manufacturer include a lot of features.”
Of course, one of the biggest benefits to homeowners is the money a smart thermostat can save them. EnergyStar estimates that a homeowner can save up to 8%of their annual heating bill with a smart thermostat – which can be a significant energy bill savings, given that home heating and cooling typically accounts for the biggest consumption of energy in a home. And that’s not the only savings that a smart thermostat can bring homeowners.
“Utilities have programs, such as demand response and time of use, where they will pay you to lower your thermostat usage,” Christopher said. “Almost all utilities offer rebates for installing a smart thermostat.”
When choosing a smart thermostat, it’s important to choose one that compliments your HVAC system – that research that Sean talked about. Smart thermostats offer a lot of different features, including communicating, or those thermostats that can “talk” with your HVAC system by exchanging data, and wifi-enabled systems that can connect to the internet.
“This new equipment, when it’s paired with each other, it can communicate,” said Sean. “So, if there’s an issue with your heat pump, you can set it up so that it emails you. And (your HVAC technician) can get an email at the same time. So, we know that there’s an issue, sometimes, before you do. And we can call you to set up a service call before you even knew you needed one. You also can set up reminders for maintenance.”
Rounding out the third upgrade you should make to your home is switching out your water heater for a tankless model or a heat pump water heater, according to Luis Quiroga, HomeServe Senior Vice President of Strategy and Growth. In U.S. homes, the water heater is second only to the HVAC system for energy consumption, using an average of 18% of the energy in your home, according to the Department of Energy.
“The U.S. Department of Energy reports that a tankless water heater is 24% to 34% more energy efficient than a storage tank water heater,” Luis said.
What makes a tankless water heater so much more efficient than a traditional water heater is because it is not heating water until the hot water tap is opened and it is scaling up the amount of water heated to meet demand.
“The advantage of a tankless water heater is endless hot water on demand and energy efficiency,” said Doug Burris, Crawford Services Plumbing Officer. “It’s efficient because it’s on standby, waiting for you to open the tap.”
In essence, a tankless water heater only works as hard as it needs to, whether that means heating enough water to run the dishwasher or heating enough to do the dishes, laundry and taking a shower.
“That’s where the efficiency comes in,” Doug said. “If you’re washing your hands and your spouse gets in the shower, (the water heater) will read that it’s going from 1 gallon per minute to another two and a half gallons per minute in the shower, so it’s going to ramp up.”
In contrast, a traditional water heater will heat an entire tank of water between four to six times a day. The tank is insulated, but the water will eventually cool and the rate of the cooling depends on the weather and ambient temperature.
“After about five minutes of running hot water, that (traditional) water heater is going to fire up,” Doug said. “It will not keep up with demand. Cold water will be coming in faster than the water heater can keep up. That’s why after Mom and the kids take a shower one after another, Dad ends up with a cold shower.”
However, when installing a tankless water heater, you should keep in mind that your home may need some retrofits to accommodate it. Depending on the configuration, a tankless water heater will require an electrical outlet and possibly vents, flues or drains. If you’re considering an installation, you can consult with a local plumber on what changes may need to be made. Homeowners should also have their water heater serviced once a year, primarily to remove the mineral scale caused by the flash heating.
“(Maintenance is) truly the lifeblood of your water heater,” Doug said. “It’s like changing the oil in your car. You might even have a problem with your warranty if you can’t prove that maintenance has been done.”
Luis noted that a tankless water heater will last longer than a traditional water heater’s 10 years, staying in service for 20 to 25 years. Additionally, some natural gas utilities will offer homeowners rebates for installing a tankless water heater.
“Think about going on a two-week vacation,” Christopher said. “A traditional water heater will cost you money over those two weeks, while a tankless water heater will cost you practically zero dollars because it’s not running if you’re not using hot water.”
“Compared to a standard water heater, a heat pump water heater can save a family of four an estimated $550 a year on their energy bill,” Luis said.
Switching to a heat pump, smart thermostat and high-efficiency water heater will help you reduce not only your carbon footprint, but also will pay for themselves through your utility savings. And the bigger the change, the bigger the savings over time, so, naturally, you will see the biggest savings from a whole home system like a heat pump.
“One of the most important systems in any home is the heating and air conditioning system. If that isn’t working properly, it can make your home uncomfortable and break down just when you need it the most,” John Kitzie, HomeServe President of HVAC, said. “It’s also one of the most expensive pieces of equipment in your house. So, when a homeowner is considering the replacement of an HVAC system, they need to take the time to consider their options carefully. A heat pump would be a good bet for many homes, given its ability to both heat and cool and its overall efficiency. I’d recommend that anyone considering replacing their HVAC system consult with a home comfort advisor to learn more about what would be appropriate for them and get a range of quotes.”
Switching to energy efficient home systems isn’t just good for the environment, it’s great for your wallet.
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