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How to Make Your House Use Less Energy

Written by Arbitrage2025-06-17 00:00:00

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As climate concerns rise and energy costs fluctuate, homeowners are seeking ways to reduce their energy consumption. Making your home more energy-efficient doesn't just benefit the environment; it can also lead to substantial savings on your monthly utility bill. According to the United States Energy Information Administration (EIA), the average U.S. household spends over $2,000 per year on energy bills (heating, cooling, and water heating accounting for the bulk of that expense). Fortunately, there are strategies that can significantly reduce energy usage at home.

Outdated appliances often consume significantly more energy than newer models. ENERGY STAR, a program backed by the United States Environmental Protection Agency (EPA), reports that certified appliances use less energy than their conventional counterparts. For example, ENERGY STAR refrigerators use 15% less energy than non-certified models, while clothes washers with the label use 25% less energy and 33% less water than non-certified models. When replacing old appliances, look for the ENERGY STAR label and check the yellow EnergyGuide tag to compare estimated yearly energy use.

Lighting accounts for roughly 10% of home electricity use. Swapping incandescent bulbs with LED bulbs can cut your lighting energy use by up to 75%. While LEDs have a higher upfront cost, they last up to 25 times longer and pay for themselves quickly through savings. Replacing your five most-used light fixtures in your house with LEDs can save up to $75 per year.

Window treatments aren't just for aesthetics; they can also help regulate your home's temperature. The United States Department of Energy (DOE) notes that closing curtains at night in winter reduces heat loss by up to 10%. Similarly, keeping blinds closed during hot summer days blocks solar heat gain and reduces cooling needs.

Many electronics draw power even when turned off, an effect known as "phantom load." The Lawrence Berkeley National Laboratory estimates that standby power accounts for 5% to 10% of residential electricity use. One easy solution is to use an advanced power strip that cuts power to devices when they are not in use. These are particularly useful for entertainment centers, computer setups, and some kitchen appliances.

Heating and cooling accounts for nearly half of the average household's energy use. Smart thermostats like Nest or Ecobee can automatically adjust your home's temperature based on your schedule and habits, thus maximizing efficiency. According to a study by Nest, smart thermostats can save users 10%-12% on heating and up to 15% on cooling, which can total $130-$145 annually. Even if you only have a programmable thermostat, you can set the thermostat to 68 degrees in winter and 78 degrees in summer when you're home. It is estimated that you can save about 1% on your heating or cooling bill for each degree you adjust your thermostat for an 8-hour period. For example, raising your thermostat by 7-10 degrees for 8 hours a day in the summer while you are at work can save up to 10% per year on cooling costs.

Water heating is the second-largest energy expense in many homes. Reducing hot water use can significantly cut your energy consumption. Some strategies include installing low-flow showerheads and faucets, washing clothes in cold water when possible, and setting your water heater thermostat to 120 degrees instead of the default 140 degrees.

A poorly insulated or drafty home leaks warm air in the winter and cool air in the summer, forcing HVAC systems to work harder. Some common fixes include using weather stripping or caulk around doors and windows, insulating attic hatches and recessed lighting fixtures, and sealing gaps in ductwork using mastic or foil tape. The U.S. DOE estimates that homeowners can save an average of 11% on total energy costs by air sealing and adding insulation. 

For a long-term investment, solar power can dramatically reduce your reliance on the grid. According to the National Renewable Energy Laboratory (NREL), homeowners who install solar panels typically save between $10,000 and $30,000 over the lifetime of the system, depending on location and incentives. If rooftop solar isn't feasible, some communities have solar programs that allow you to subscribe to a shared solar array and get credits on your electricity bill.

Reducing your home's energy consumption doesn't require a full renovation. Even small changes can lead to meaningful savings over time. Beyond lowering utility bills, energy efficiency increases your home's comfort, supports grid reliability, and reduces greenhouse gas emissions. By implementing some of the strategies above, you can make a smart investment in both your wallet and the planet.

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