FHB Logo Facebook LinkedIn Email Pinterest Twitter X Instagram Tiktok YouTube Plus Icon Close Icon Navigation Search Icon Navigation Search Icon Arrow Down Icon Video Guide Icon Article Guide Icon Modal Close Icon Guide Search Icon Skip to content
Subscribe
Log In
  • How-To
  • Design
  • Tools & Materials
  • Restoration
  • Videos
  • Blogs
  • Forum
  • Magazine
  • Members
  • FHB House
  • Podcast
Log In

Fine Homebuilding Project Guides

Energy Retrofit

Guide Home
  • Energy Efficiency
  • HVAC Systems and Water Heaters
  • Air-Sealing and Insulation
  • Solar Power and Electrification
  • Deep Energy Retrofits
  • Energy-Efficient Houses
The Deans of Green

10 Ways to Cut Utility Bills

Energy nerd Martin Holladay presents a ten-step program that's guaranteed to reduce your electricity and heating fuel costs.

By Martin Holladay
  • X
  • facebook
  • linkedin
  • pinterest
  • email
  • add to favorites Log in or Sign up to save your favorite articles

The ten steps are not set in stone; every house is different, and different climates may dictate different strategies, which will be determined as soon as you take the first step.

1. Get a Home Energy Audit

Before beginning any energy retrofit work, have a home energy audit done to identify and prioritize problem areas.

A good home energy audit always includes a blower-door test. To be sure your auditor is well trained, choose one certified by RESNET or BPI.

The audit can cost as much as $600. Subsidies are available from some utilities and local governments, so check there first. Why spend money on an energy audit?

  • When considering energy retrofit work, most homeowners prioritize the wrong steps. An energy audit provides valuable information to counterbalance misleading advertising pitches for worthless products.
  • Your audit is likely to reveal unseen defects in your home — for example, thermal bypasses (air leaks) through convoluted, hidden chases, or insulation gaps revealed by an infrared camera.
  • At the end of your audit, you’ll receive a customized list of the most important energy retrofit steps for your house — a list that may differ from your assumptions (or even from the recommendations of the energy conservation pyramid).
  • By identifying the most important retrofit tasks for your specific house, a good audit can save you hundreds of dollars that might have been wasted on inappropriate work.

2. Unplug and Turn Off

This step, though obvious, is often neglected: turn things off.

Inattention and laziness are responsible for a significant amount of energy waste; this step off can yield significant savings for a very small investment. To lower your electric bill:

  • Turn off the lights when you leave a room.
  • Turn off appliances that aren’t being used.
  • When not in use, unplug chargers for cell phones and similar battery-operated gadgets.
  • Put televisions and other “instant on” appliances on a plug strip — and remember to turn off the plug strip when the appliance isn’t in use, because these appliances use power even when not turned on.

3. Use Efficient Light Bulbs

The next step is very cost-effective: make sure your house is incandescent-free. LED bulbs use a fraction of the energy that an incandescent does. LEDs have been around long enough that most incandescents—even in older homes—have probably been replaced by now, but you still may have some old inefficient bulbs knocking around, so check your fixtures.

4. Seal Air Leaks

Air-sealing work is best done by an experienced home-performance contractor equipped with a blower door. Although this step usually costs hundreds of dollars, it will usually yield a quick payback in energy savings.

Air sealing work is not the same as caulking. Many homeowners have spent hours wandering around their house with a caulk gun — on the interior, filling cracks between window trim and plaster, or on the exterior, filling cracks between clapboards. Most of this caulking is a total waste of time. In fact, by trapping water, most exterior caulking does more harm than good.

Blower-door directed air sealing work is usually concentrated in a home’s basement (especially at the rim-joist area) and attic (where huge thermal bypasses are often hidden under a layer of fiberglass batts). Most air leaks are best addressed with two-component spray polyurethane foam.

5. Replace Inefficient Appliances

Once you’ve paid for blower-door-directed air sealing, it’s time to take a close look at your appliances. If some of your major appliances—your refrigerator, clothes washer, or dishwasher—are more than ten years old, you may want to replace them with more efficient models.

Don’t be tempted to buy a bigger refrigerator; small is good. Pay close attention to the yellow EnergyGuide labels — especially the annual kWh number — when you go appliance shopping.

6. Improve the Insulation

Ideally, your home has plenty of insulation in the attic, above-grade walls, and basement walls. But if you’re insulation isn’t up to snuff, it’s well worth improving it.

In colder climates, it makes sense to install R-60 insulation in your attic — as long as the attic is accessible and roomy enough to accommodate the insulation depth.

If your stud bays are empty, they can be filled with dense-packed cellulose insulation installed through holes drilled from the exterior.

Basement walls can be insulated on the interior with rigid foam insulation or closed-cell spray polyurethane foam.

7. Replace an Inefficient Water Heater

If the configuration of your home’s plumbing pipes permits, you should install a drainwater heat-recovery device — especially if members of your family prefer showers to baths.

If you have an old, inefficient water heater, you may wish to replace it. Options include:

  • A high-efficiency gas-fired water heater
  • A high-efficiency electric resistance water heater
  • A heat-pump water heater
  • An instantaneous gas-fired water heater
  • An indirect water heater connected to a boiler
  • Any of the above, supplemented by a solar water heater

Of all of the options listed in this section, the fastest payback will probably come from the drainwater heat-recovery device. Although a new water heater can lower your energy bills, you shouldn’t expect a fast payback on the investment.

8. Improve on Space Heating and Cooling Equipment

When inefficient heating and cooling equipment gets old enough to replace, be sure to invest in the most efficient available equipment. If you’re shopping for a new furnace, look for a high AFUE (in the 90s). If you are shopping for a new air conditioner, look for  high SEER (14 or higher).

There’s an important reason why energy-efficiency experts recommend holding back on the purchase of new heating and cooling equipment until air sealing and insulation work is complete: envelope improvements may permit heating and cooling equipment to be downsized. If you replace your heating and cooling equipment before finishing necessary air-sealing work or insulation upgrades, you’ll waste money on oversized equipment.

9. Insulate or Replace Windows

We’ve now reached the top of the pyramid. Further measures will probably reduce your home’s energy consumption, but they are unlikely to be cost-effective. The reason these measures are at the top of the pyramid is that few homeowners want to spend more on retrofit work than they will ever see in savings.

In a heating climate, the installation of low-e storm windows is more cost-effective than installing new replacement windows.

If, for reasons unrelated to saving money, you insist on new windows, be sure to choose windows with low-e glazing. Glazing with a low U-factor is desirable in all climates. In climates with cold winters, south-facing windows should have a high solar heat-gain coefficient (SHGC); in climates where air-conditioning bills are high, windows should have a low SHGC.

10. Invest in Wind or Photovoltaic Systems

At the top of the pyramid is the category of work least likely to provide a payback: the installation of a photovoltaic system or a wind turbine. There are many reasons you may want to have PV panels or a wind turbine, but saving money isn’t one of them.

Remember, it makes no sense to invest in an expensive PV system until after you have invested in all of the other measures listed on the pyramid.

No Silver Bullet

One of the Minnesota Power representatives who makes regular use of the conservation pyramid is Dean Talbott, a program manager for the utility.

“I handle a lot of customer calls, and lately I’ve seen a growing interest in renewable energy,” Talbott told me. “A lot of callers are looking for the silver bullet. I just got a call this week from a residential customer who’s spending $200 a month on electricity, and he told me he wants to install solar and wind. I told him he’d be better off to start with efficiency upgrades first.”

 

Fine Homebuilding Recommended Products

Fine Homebuilding receives a commission for items purchased through links on this site, including Amazon Associates and other affiliate advertising programs.

Code Check 10th Edition: An Illustrated Guide to Building a Safe House

It would be great if this book didn’t need to exist, but it's definitely a must-have. It's a one-size-fits-all code book that's easy to understand and will help you sail through your inspections.
Buy at Amazon

All New Kitchen Ideas that Work

Kitchens are one of the most important rooms in the house. It's where we pack in the most function and spend the most money, so you want something that's convenient and inspiring — this book will help you get there.
Buy at Amazon

Not So Big House

This book earned author Sarah Susanka a reputation as a small house guru, yet, that wasn’t exactly her goal. This book isn’t about building a small house, it’s about building a smart house, one that matches how we live, and prioritizing beauty and comfort over size.
Buy at Amazon

The energy-saving measures at the base of the pyramid give you the biggest bang for your buck. Click to enlarge.

Previous: How to Calculate Energy Costs Next: Home Energy-Efficiency Upgrades for Beginners

Guide

Energy Retrofit

Chapter

Energy Efficiency

Sign up for eletters today and get the latest how-to from Fine Homebuilding, plus special offers.

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

View Comments

  1. armature | Oct 17, 2011 08:37am | #1

    I was surprised not to see anything about using a programmable thermostat. Because you can get it to start heating your house early enough so it’s already comfortable when you get up, you can afford to set the overnight temperature way back, saving lots of energy. A 7-day programmable thermostat can accommodate odd schedules such as 3-day work weeks and so on; other simpler-to-program ones allow you one schedule for weekdays and another for weekend days. The myth that if you set a thermostat too low you’ll use more energy reheating the house than you’ve saved, is false both in scientific theory and reality.

Log in or create an account to post a comment.

Sign up Log in

Become a member and get full access to FineHomebuilding.com

Energy Retrofit

Energy Retrofit

Trusted, comprehensive guidance from the pros for making energy-efficient updates to any home

View Project Guide

View All Project Guides »

Become a member and get unlimited site access, including the Energy Retrofit Project Guide.

Start Free Trial

Energy Efficiency
  • Understanding Energy Efficiency
  • Net-Zero & Passive Houses
HVAC Systems and Water Heaters
  • Heating and Cooling Systems
  • Ventilation and Dehumidification for Good Air Quality
  • Water Heaters
  • Heat Pump HVAC
  • Minisplits
Air-Sealing and Insulation
  • Air-Sealing
  • Insulation
Solar Power and Electrification
  • Solar Power
  • Energy Storage Options
  • All-Electric Homes
Deep Energy Retrofits
  • Deep Energy Retrofits 101
  • Featured Deep Energy Retrofits
Energy-Efficient Houses
  • Energy-Efficient Houses

Fine Home Building

Newsletter Sign-up

  • Fine Homebuilding

    Home building tips, offers, and expert advice in your inbox.

  • Green Building Advisor

    Building science and energy efficiency advice, plus special offers, in your inbox.

  • Old House Journal

    Repair, renovation, and restoration tips, plus special offers, in your inbox.

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters

Follow

  • Fine Homebuilding

    Dig into cutting-edge approaches and decades of proven solutions with total access to our experts and tradespeople.

    Start Free Trial Now
    • Facebook
    • Instagram
    • X
    • LinkedIn
  • GBA Prime

    Get instant access to the latest developments in green building, research, and reports from the field.

    Start Free Trial Now
    • Facebook
    • YouTube
  • Old House Journal

    Learn how to restore, repair, update, and decorate your home.

    Subscribe Now
    • Facebook
    • Instagram
    • X
  • Fine Homebuilding

    Dig into cutting-edge approaches and decades of proven solutions with total access to our experts and tradespeople.

    Start Free Trial Now
    • Facebook
    • Instagram
    • X
    • LinkedIn
  • GBA Prime

    Get instant access to the latest developments in green building, research, and reports from the field.

    Start Free Trial Now
    • Facebook
    • YouTube
  • Old House Journal

    Learn how to restore, repair, update, and decorate your home.

    Subscribe Now
    • Facebook
    • Instagram
    • X

Membership & Magazine

  • Online Archive
  • Start Free Trial
  • Magazine Subscription
  • Magazine Renewal
  • Gift a Subscription
  • Customer Support
  • Privacy Preferences
  • About
  • Contact
  • Advertise
  • Careers
  • Terms of Use
  • Site Map
  • Do not sell or share my information
  • Privacy Policy
  • Accessibility
  • California Privacy Rights

© 2025 Active Interest Media. All rights reserved.

Fine Homebuilding receives a commission for items purchased through links on this site, including Amazon Associates and other affiliate advertising programs.

  • Home Group
  • Antique Trader
  • Arts & Crafts Homes
  • Bank Note Reporter
  • Cabin Life
  • Cuisine at Home
  • Fine Gardening
  • Fine Woodworking
  • Green Building Advisor
  • Garden Gate
  • Horticulture
  • Keep Craft Alive
  • Log Home Living
  • Military Trader/Vehicles
  • Numismatic News
  • Numismaster
  • Old Cars Weekly
  • Old House Journal
  • Period Homes
  • Popular Woodworking
  • Script
  • ShopNotes
  • Sports Collectors Digest
  • Threads
  • Timber Home Living
  • Traditional Building
  • Woodsmith
  • World Coin News
  • Writer's Digest
Active Interest Media logo
X
X
This is a dialog window which overlays the main content of the page. The modal window is a 'site map' of the most critical areas of the site. Pressing the Escape (ESC) button will close the modal and bring you back to where you were on the page.

Main Menu

  • How-To
  • Design
  • Tools & Materials
  • Video
  • Blogs
  • Forum
  • Project Guides
  • Reader Projects
  • Magazine
  • Members
  • FHB House

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Popular Topics

  • Kitchens
  • Business
  • Bedrooms
  • Roofs
  • Architecture and Design
  • Green Building
  • Decks
  • Framing
  • Safety
  • Remodeling
  • Bathrooms
  • Windows
  • Tilework
  • Ceilings
  • HVAC

Magazine

  • Current Issue
  • Past Issues
  • Magazine Index
  • Subscribe
  • Online Archive
  • Author Guidelines

All Access

  • Member Home
  • Start Free Trial
  • Gift Membership

Online Learning

  • Courses
  • Project Guides
  • Reader Projects
  • Podcast

More

  • FHB Ambassadors
  • FHB House
  • Customer Support

Account

  • Log In
  • Join

Newsletter

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Follow

  • X
  • YouTube
  • instagram
  • facebook
  • pinterest
  • Tiktok

Join All Access

Become a member and get instant access to thousands of videos, how-tos, tool reviews, and design features.

Start Your Free Trial

Subscribe

FHB Magazine

Start your subscription today and save up to 81%

Subscribe

We hope you’ve enjoyed your free articles. To keep reading, become a member today.

Get complete site access to expert advice, how-to videos, Code Check, and more, plus the print magazine.

Start your FREE trial

Already a member? Log in

Privacy Policy Update

We use cookies, pixels, script and other tracking technologies to analyze and improve our service, to improve and personalize content, and for advertising to you. We also share information about your use of our site with third-party social media, advertising and analytics partners. You can view our Privacy Policy here and our Terms of Use here.

Cookies

Analytics

These cookies help us track site metrics to improve our sites and provide a better user experience.

Advertising/Social Media

These cookies are used to serve advertisements aligned with your interests.

Essential

These cookies are required to provide basic functions like page navigation and access to secure areas of the website.

Delete My Data

Delete all cookies and associated data