Looking for home improvements that pay for themselves?
We’ve all thought about home upgrades that will increase comfort and decrease spending. The truth is, not all home improvements are created equal.
Some waste your hard-earned money quicker than a bad faucet. While others can pay for themselves.
Here’s the good news…
Making your home more energy-efficient can cut your energy bills and add value to your home at the same time. But which ones pay for themselves? Let’s look at the facts.
What you’ll learn:
- Which home improvements give you real ROI
- Why upgrading your HVAC system is worth the money
- Energy-efficient improvements that save you money quickly
- Tax Credits you can take to lower your costs
Which Home Improvements Give You Real ROI?
Believe it or not, not all home improvements are created equal.
While garage door replacement is number 1 on the list with a 194% return on your investment, according to the 2024 Cost vs. Value Report, other projects can also offer significant savings.
Replacing your Steel entry door returns 188% of your investment back to you.
Exterior projects seem to yield a high return because they add curb appeal while helping with energy efficiency.
But there’s one thing most people forget…
On the interior of homes, insulation can also provide you with well over 100% ROI while decreasing heating and cooling costs for years to come. Energy efficient upgrades that stop energy waste are the ones you should be looking for.
Why Upgrading Your HVAC System is Worth the Money
Your HVAC system uses the most energy in your home.
As air conditioners and furnaces get older, they have to work harder to heat and cool your home. Larger energy bills are soon to follow.
When homeowners are looking at the cost to replace air conditioner units, they should consider ways to save money in the long run too.
Did you know?
Upgrading your HVAC system could lower your monthly utility bills by 20-40%, according to the U.S. Department of Energy. We’re talking hundreds of dollars back every year.
If you live in the south, you know air conditioning can account for 40-50% of your energy bills each summer. Older air conditioners with a low SEER rating eat up electricity.
Newer systems are made to use less energy and still cool your home. Saving you money!
Systems that were installed before 2010 can have SEER ratings as low as 8 or 10. Today’s minimum ratings are much higher than that. Simply upgrading your AC from a 10 SEER to a 15 SEER system can save you up to 33% on heating and cooling costs each year.
With the average HVAC system dying around 15 years, those yearly savings can add up.
Energy Efficient Improvements that Save You Money Fast
Heating and cooling aren’t the only home upgrades you should be thinking about. Any upgrade that stops energy waste is an upgrade you should look into.
Windows and Doors
Old windows and doors can cause drafts throughout your home. Making your HVAC system work harder than it needs to.
Window replacement can net you a 75-80% return on your investment. While also increasing comfort and reducing noise. Replacing doors not only help with thermal performance but increase security!
Both of these upgrades may even qualify for tax credits!
Insulation
Most homes don’t come with insulation after it’s built. But if your home was built more than a decade ago, your insulation probably isn’t as efficient as it could be.
When you upgrade your insulation, you’re sealing any holes and cracks your home may have.
Places to look for areas that can use insulating:
- Attics and ceilings
- Crawl spaces and basement walls
- Around windows and doors
- Under stairways
Heat tends to rise so insulating your attics and ceilings can help prevent warm air from escaping during the winter.
Smart Thermostats
Saving you money doesn’t always mean spending a lot of money.
Smart thermostats are a great and inexpensive way to start making your home more efficient.
Programmable thermostats allow you to control the temperature of your home right from your phone. Automatically adjusting the temperature based on the time of day and your preferences.
This helps you waste less energy heating and cooling an empty house. Many utility companies even offer their customers a discount if they purchase a smart thermostat.
Tax Credits that can Lower your Upgrade Costs
The federal government would like you to go green. That’s why tax credits were created!
As of 2023, homeowners can take a tax credit of 30% for qualifying home improvements.
Heat pumps, insulation, windows are some of the biggest home improvement projects that qualify.
Tax Credits break down like this:
- You can claim $1,200 for costs of energy efficient property.
- You can claim $2,000 for qualified heat pumps and water heaters.
- You can claim $150 for home energy audits
There is no lifetime dollar limit to these tax credits. Meaning you can claim $1,200 every year you make qualifying energy efficient improvements until 2025.
Heat pumps are the biggest tax credit you can receive when it comes to energy efficient home improvements. If you’re looking to make major improvements to your home, they’re definitely something to consider.
Make sure you’re not leaving money on the table. Double check what tax credits you qualify for before you jump into your efficiency project.
Make Smart Decisions for YOU
Every homeowner has different situations when it comes to home improvements.
If you’re looking to sell in the near future, you’re probably not wanting to spend a lot of money on your house. Improvements to the exterior of your home like doors and siding have the quickest turnaround for getting that money back. Not to mention they help with curb appeal immediately.
If you plan on staying in your home awhile, look more into energy efficient improvements. Upgrading your HVAC system, Insulation, and windows can provide you savings for years down the road.
Here are some things to think about when deciding what home improvements are right for you.
- How long will you be living in your home?
- What are your current energy bills like?
- How old are your major appliances?
- What tax credits and/or rebates are available to you?
Start with getting a home energy audit. This will help you decide what will save you the most money.
Wrapping It Up
Home improvements do NOT have to be a money pit.
If you do the right things to your home, they will pay for themselves. Not only can energy efficient home improvements decrease your energy bills, but they can also add value to your home. That is a win-win!
Here’s a quick recap:
- Garage doors and steel entry doors are the highest.
- You can save 20-40% on your energy bills by upgrading your HVAC.
- Insulation can provide you with a 100%+ ROI.
- You can take tax credits of up to 30% of your costs.
- Smart thermostats are a great and inexpensive way to boost your homes efficiency.
Start with improvements that stop energy waste. They will always provide you with the biggest comfort, savings, and ROI.
You don’t want to wait till your systems quit on you to start making improvements. Plan ahead and you’ll be able to choose what’s best for your home and take advantage of the best rebates and tax credits!
Get your home energy audit done today and start saving!
With a Master’s in Architecture from the University of California, Berkeley, Mitchell Green has spent over two decades dedicated to the study and practical application of home fixture design. His career started in an architectural firm, providing him a strong foundation in the structural and aesthetic aspects of home interiors. Mitchell brought his comprehensive knowledge to our platform, where he has been an influential voice in our home fixtures and fittings section. Since 2018, he has been guiding our readers through the intricacies of selecting and installing fixtures, combining technical know-how with design flair. In his spare time, Mitchell is a keen photographer, capturing architectural details and design elements, an interest that complements his professional focus.
