4 High-Impact Home Energy Upgrades

Where's the best place to start improving the energy efficiency of your home? These four upgrades will have a big impact on your monthly bills.

Energy-efficiency upgrades can save you money, but where's the best place to start? Space heating and cooling make up more than half of energy use in a typical home, according to the U.S. Department of Energy, while water heating is the second largest energy user.

So, if you're looking to improve your home's energy performance, focus on these areas. The following upgrades will significantly reduce your energy bills and make your home more comfortable.

1. High-efficiency space conditioning

If your furnace and air conditioner are older, air-source heat pumps provide an all-in-one replacement. Electric heat pumps move air in and out of your home to provide high-efficiency year-round comfort. They run quieter than conventional HVAC systems, require less maintenance and produce no onsite emissions.

Install ENERGY STAR^®-certified units. ENERGY STAR heat pumps are independently tested to use less energy than standard models while still providing great performance.

2. Smart thermostats

Programmable thermostats automatically adjust your home's temperature to save energy while maintaining comfort. Today's smart models offer advanced features such as self-programming, geofencing and remote control.

3. Well-insulated and sealed attic

A poorly insulated attic lets rising warm air escape during cold weather and allows unwelcome hot air to radiate into your home during summer. Contact a qualified insulation contractor to inspect your attic and ensure it is properly insulated.

Look for common locations of attic air leaks, including dropped soffits, under knee walls, wiring and piping holes, recessed lights, furnace flues and chimneys. Seal any gaps you find with caulk or expanding foam insulation, both readily available at your local DIY retailer.

4. Heat pump water heaters

Electric heat pump water heaters take heat from the air inside your home and transfer it to water inside a tank to produce high-efficiency hot water. Like other electric equipment, they produce no onsite emissions, making your home healthier, safer and more energy efficient. Look for ENERGY STAR-certified high-performance models.

While upgrades can be expensive, financial incentives can help. Federal tax credits are available that cover up to 30% qualifying expenses for certain home energy improvements. State and local incentives may also be available in your area.