Utilities typically rank among the top recurring expenses homeowners juggle every month. Running an energy-efficient home can reduce these expenses and put more money back in your pocket.
We analyzed data from the U.S. Department of Energy, U.S. Energy Information Administration (EIA), Freddie Mac, and Energy Star to discover key home energy-efficiency statistics. Our analysis offers valuable insight into energy-efficient upgrades you can make to reduce your energy bills without sacrificing basic comforts.
Installing and maintaining energy-efficient windows improves your home’s energy efficiency rating, lowering your energy bills. We encourage you to explore how much energy-efficient windows cost—and their associated return on investment—to determine if they’re a viable option.
Key Statistics
- The residential sector made up 20% of all U.S. energy consumption, and the average monthly bill cost Americans $136.84 in 2023.
- Energy-efficient rated homes sold for 2.7% more, according to Freddie Mac.
- Energy-efficient windows can save your household an average of 13% on your energy bills.
- LED lights use at least 75% less energy than incandescent lighting.
- Lowering your home’s temperature to between 68 and 70, taking advantage of natural heat from the sun, and finding and sealing leaks are a few ways you can be more energy efficient this winter.
Energy-Efficient Homes Statistics
The residential sector accounted for one-fifth (20%) of the country’s total energy consumption in 2023, according to the U.S. EIA. From 2018 to 2022, energy use fell and rose across the residential, commercial, industrial, and transportation sectors. Despite dipping to its lowest in all sectors in 2020, energy use is on the rise, nearly reaching pre-pandemic levels in 2022.
The national average residential property’s monthly energy bill in 2023 totaled $136.84, according to the U.S. EIA. Average monthly energy bill amounts in the Pacific Noncontiguous area—Alaska and Hawaii—were the highest at $183.17, while energy bills in the East North Central area came in lowest at $116.29 monthly. The following table includes the mean residential property monthly energy bills for geographical regions across the nation:
| Geographical Region | Average Monthly Energy Bill |
|---|---|
| New England | $169.80 |
| Middle Atlantic | $128.74 |
| East North Central | $116.29 |
| West North Central | $117.48 |
| South Atlantic | $148.31 |
| East South Central | $143.02 |
| West South Central | $156.13 |
| Mountain | $116.57 |
| Pacific Contiguous | $135.74 |
| Pacific Noncontiguous | $183.17 |
Americans spend an average of $2,000 annually on home energy, according to the U.S. Department of Energy. Anywhere from $200–$400 of that amount is wasted due to aging HVAC systems and air leaks. The remaining utility bill costs can be roughly broken down into the following categories:
- Heating and cooling: 43%
- Appliances: 15%
- Water heating: 12%
- Lighting: 11%
Upgrading and maintaining your heating and cooling systems can reduce your energy use by 20–50%, according to the U.S. Department of Energy. Programmable thermostats further cut energy costs by 10% annually. Sealing drafts can result in 5–30% savings annually, installing storm windows can minimize heat loss by 25–50%, and using LED lighting decreases your home’s energy use by up to 75%.
Energy-efficient rated homes sold for 2.7% more than unrated homes, per Freddie Mac. In addition, homes with better ratings sold for up to 5% more than lower-rated homes. Homebuyers are often willing to trade a higher mortgage for long-term energy cost savings.
“Homebuyers should invest in energy-efficient residential structures,” says Ming Hu, Ph.D., associate professor at the University of Notre Dame. “These homes offer long-term financial benefits through lower energy bills, reduced maintenance costs, and increased property value. Additionally, they provide improved indoor comfort [and] better air quality and contribute to environmental sustainability.”
Energy-Efficient Upgrades
Installing brand-new, energy-efficient windows, LED lights, and solar panels can increase your home’s efficiency and reduce your monthly and annual energy bills. Heating and cooling your home efficiently can also contribute to your savings.
Soolyeon Cho, Ph.D., associate dean of research at NC State University, says, “A common misconception is that energy-efficient upgrades are too expensive and take decades to pay off. While some upgrades, like solar panels or geothermal heating, require significant upfront investment, many improvements—such as LED lighting, smart thermostats, and air sealing—are relatively affordable and provide immediate savings.”
Explore how you can save money with the following upgrades and discover helpful tips for maximizing your investment.
Windows
Nationwide, replacing aging single-pane windows with Energy Star-certified units can reduce a household’s energy bills by up to 13% on average, according to Energy Star. Savings are based on the type of window you replace (single- or double-pane) and your corresponding Energy Star Climate Zone:
- Homeowners in the North-Central Zone who replace their single-pane windows save an average of $493 (11%) annually on heating and cooling, while those in the Northern Zone realize an average of $568 (12%) in savings.
- Savings on double-pane windows range from an average of $253 (6%) in the North-Central Zone to $373 (8%) in the Southern Zone.
When shopping for new, energy-efficient windows, look for the National Fenestration Rating Council’s (NFRC) label to determine which energy ratings best suit your home. These labels include the following features:
- Air leakage: While less air leakage is always better, this rating depends heavily upon proper installation.
- Solar heat gain coefficient (SHGC): A lower amount of solar radiation penetrating through your windows translates to less heat gain from the sun, while higher ratings indicate windows collect more heat during the colder months.
- U-factor: Windows with lower U-factors (on the 0.20–1.20 spectrum) transmit less heat and result in a lower loss of heat.
- Visible transmittance (VT): This measurement of how much light is transmitted ranges from 0 to 1, with more light coming through windows with a VT closer to 1.
Bess Krietemeyer, associate professor at Syracuse University, explains, “The building envelope is everything that touches the outside, like your exterior walls, windows, doors, roof, and floor slabs. Focusing on air-sealing at joints and corners and upgrading to double- or triple-paned windows can make a huge difference in reducing energy loss.”
Homeowners who invest in Energy Star-certified windows recuperate roughly 78% of their investment when their home sells, according to the U.S. Department of Energy.
HVAC
Investing in higher-efficiency heating, ventilation, and air conditioning (HVAC) equipment can cut your heating and cooling energy use in half and reduce your gas furnace heating system use by up to 10%, according to the Office of Energy Efficiency and Renewable Energy (EERE). Energy Star-certified HVAC products can save you between 10–30% annually, according to EERE. You can further reduce your energy bills by roughly $100 after installing a smart thermostat, according to Energy Star.
Energy Star also recommends checking your HVAC system air filters once every 30 days and changing them every three months. Dirty filters can easily result in energy inefficiency, as can inaccurate settings, loose connections, and low chemical levels. You can realize further savings by verifying your HVAC system’s performance post-installation to ensure it’s functioning in tip-top shape.
LED Lights
Upgrading your home’s lighting with light-emitting diode (LED) bulbs can positively impact your home energy and maintenance budget. LEDs use 75% less energy and last up to 25 times longer than incandescent lighting, according to the U.S. Department of Energy. LEDs also offer the following benefits:
- Are available in a range of colors
- Are ideal for directional lighting
- Have a minimal physical footprint
- Release significantly less heat than incandescent or compact fluorescent lamp (CFL) lights
LED lighting is also ideal for the holiday season. Daisy-chaining up to 25 strings of LED lights won’t overload your wall socket. You can also power up your LED light strings for practically the next 40 years without having to worry about replacement costs.
Solar Panels
Satisfying a home’s energy needs with solar power can reduce its dependency on electricity and result in lower energy costs. According to the Solar Energy Industries Association (SEIA), the U.S. has over 219 gigawatts of solar capacity, capable of powering more than 37 million homes. Solar deployments have grown in the last decade, averaging 26% annually. Installing solar is not as cost-prohibitive as it was in 2010, as similar systems available then—at $40,000—now cost around $25,000 in 2024.
Relying solely on solar power may not yet be feasible for most homeowners. However, the U.S. Department of Energy reports that more than 360,000 Americans—primarily employees in the construction sector—spent time on solar in 2023, a 5.3% year-over-year growth.
What are the key areas in a home to prioritize for energy efficiency improvements?
How To Make Your Home More Energy-Efficient This Winter
Setting your home’s thermostat to 68–70 degrees Fahrenheit when you’re home—and lower while you’re asleep or away—can help you save energy, per the U.S. Department of Energy. Lowering your water heater’s temperature to 120 degrees Fahrenheit can also reduce your energy use, according to the U.S. Department of Energy. Run your dishwasher and clothes washer with full loads to optimize their energy usage, washing your clothes in cold to minimize any draw on your water heater, per the National Association of Realtors (NAR).
Payam Bakhshi, Ph.D., associate professor at Wentworth Institute of Technology, says, “Climate, building orientation and design, building materials, insulation and air sealing, windows and glazing, ventilation systems, appliances and lighting, and occupant behavior all significantly impact energy use. Smart home technologies, like smart thermostats, help monitor and adjust consumption patterns for optimal efficiency.”
Routine maintenance of your home’s HVAC system can help ensure each component is in working order. Many homeowners opt to conduct an energy assessment or home energy audit themselves or call in a professional. These audits enable you to identify and address energy inefficiencies to maximize your energy bill savings.
Control Interior Temperatures
Creating a comfortable and energy-efficient ambiance in your home can be as easy as adjusting your ceiling fan to blow clockwise, pushing warm air down, per the NAR. Select building materials can also soak up natural heat from the sun, releasing any lingering heat at night. By finding and sealing air leaks around doors and windows, you can also reduce any energy wasted.
Insulate Windows
Insulative curtains act as a physical barrier that maintains the temperature differential between the outdoors and your home’s interior. However, opening these curtains during the day can help heat your home, even as you close the curtains once the sun goes down to maintain that heat inside. Covering drafty windows with plastic to keep out the cold can also help contribute to your home’s energy efficiency, according to the U.S. Department of Energy.
Seal Your Fireplace
Unless you use your fireplace during the winter months, keep the damper closed and ensure the flue is completely sealed, per the U.S. Department of Energy. If you don’t plan to use the fireplace at all, seal and plug the flue completely. Caulking around the edges of the hearth also ensures minimal heat loss.
What factors affect energy use, and what are some measures homeowners can use to monitor it effectively?
Homes designed with passive environmental principles in mind—such as utilizing solar heating or natural ventilation—can automatically reduce the need for mechanical heating, cooling, and lighting.”
Utility usage reports: Most utility companies offer detailed monthly breakdowns of energy use, which help homeowners identify inefficiencies.
Home automation: Smart thermostats automatically adjust settings based on occupancy and weather, optimizing energy use. Smart lighting and appliance management systems reduce unnecessary energy consumption by allowing scheduled operations or remote control.”
“Devices like Nest or Ecobee allow homeowners to track and optimize heating and cooling schedules, reducing energy waste. Many utility companies provide smart meters that track real-time energy consumption.”
