It feels like inflation is making everything more expensive these days—gas, groceries, and especially energy costs.
In California, electricity costs are actually rising at a faster rate than inflation.
You work hard to manage your household expenses. But no matter how careful you are with the thermostat or how often you turn off the lights, the numbers keep going up.
So what can you do?
Making energy efficiency improvements to your home is the best way to keep your bills low, even while inflation drives rates higher. Energy efficiency improvements help you use less energy without changing your habits, saving you money without interfering with your lifestyle.
1. Start with an Energy Audit
Before making any upgrades, it’s important to understand where your home is losing energy. A professional energy audit gives you a clear picture of how your home uses (and wastes) energy.
With diagnostic tools like blower doors and infrared cameras, energy auditors can pinpoint problem areas like:
- Leaky and drafty areas
- Missing insulation in attics, walls, or basements
- Inefficient and unsafe heating and cooling systems
Once you know what’s going on behind the scenes, you can prioritize the upgrades that will have the biggest impact.
Pro Tip: Many California utility companies offer free or discounted energy audits. Check with your utility to see if free energy audits are available in your service area.
2. Insulate & Air Seal
Insulation and air sealing are two of the lowest-cost, highest-impact home improvements you can make if you want to save money on your energy bills.
They work together to reduce the amount of heated or cooled air that escapes your home, so your HVAC system doesn’t have to work as hard to keep you comfortable, saving you money.
Plus, they’re long-lasting improvements. When installed correctly, insulation and air sealing can last for decades, providing long-term energy bill savings.
3. Install a Whole-House Fan
A whole-house fan can be a more affordable alternative to running your air conditioner, especially for California homeowners.
These fans work by pulling in cooler outdoor air during the evening and early morning and pushing the hot indoor air out through your attic.
Since temperatures in most parts of California drop at night, you can cool your home down quickly without relying on expensive AC. And if your home is well-insulated, it’ll stay cooler throughout the day.
4. Replace Your Old Water Heater with a Heat Pump Water Heater
Water heating is one of the biggest energy expenses in your home, second only to heating and cooling. If your current water heater is getting old, upgrading to an ENERGY STAR-certified heat pump water heater could cut your energy bills by around $550 per year (for a family of four).
Heat pump water heaters pull ambient heat out of the air instead of generating it directly, which makes them significantly more energy efficient.
Plus, you can save $2,000 with the heat pump tax credit. But don’t wait! A new proposal could eliminate this tax incentive at the end of the year. Install your new water heater now to lock in your tax credit savings.
5. Install Rooftop Solar Panels
One of the most powerful ways to protect yourself from rising energy costs is to stop relying on your utility altogether. By generating your own electricity with solar panels, you can lock in predictable energy costs and avoid rate increases for 25-30+ years.
With so much uncertainty happening in the world, solar is even more valuable. It offers:
- Immediate savings: With solar power, you save money on your electric bills from day one.
- Long-term stability: With a lifespan of 25+ years, solar panels provide decades of predictable energy costs.
- Return on investment: As long as the sun rises every day, you’ll see a guaranteed, tax-free return on your investment.
Don’t wait! When you go solar, you’ll get 30% of your investment back through the solar tax credit. But a new proposal could end the solar tax credit at the end of 2025. If you’ve been thinking about installing solar panels, now’s the time to act.
Find a Home Contractor You Can Trust in California
If you want to get the most out of your energy efficiency improvements, you need a contractor who will do the job right.
The Clean Energy Connection makes it easy. Our free directory connects you to the best clean energy contractors in California. Contractors can’t pay to be featured, and we have no financial stake in who you choose. Our only goal is to help you make energy-saving improvements that work.