Completing these sustainable home improvements could save you $2,500 on your yearly energy bill.

To get a better pulse on the barriers to energy efficient upgrades, we surveyed 1,000 American homeowners* on their home improvement plans. While 71% said sustainability is absolutely a priority for this year’s home projects, nearly one-third (32%) still consider sustainable, energy efficient home projects too expensive or feel unsure about where to begin (31%).

Our survey findings resonated with Rewiring America, the country’s leading electrification nonprofit, who we partnered with to help homeowners take the next step in making their home more sustainable and energy efficient this coming year. 

Consumers want to make sustainable home improvements — but they need help getting started. 

From wanting to lower their energy bill (55%) to helping the planet (41%) to feeling neighborly pressure (70%), Americans told us they have a variety of reasons for wanting to make their homes more efficient.

And the projects they want to complete vary widely. From small projects like installing energy efficient lighting (46%) and smart thermostats (42%) to medium and larger lifts requiring the help of a licensed professional like upgrading to energy efficient insulation (41%), adding double pane windows (33%), as well as installing solar panels (36%), heat pumps (29%) and EV charger ports (26%). 

However, confusion about what projects will have the biggest impact (18%) and uncertainty on how to navigate state and federal tax incentives and rebates (14%) are what keep consumers from taking the next step to make these home upgrades a reality. 

“The number one question we hear from consumers is where to start,” says Nicole Staple, Head of Market Partnerships at Rewiring America. “Few people can afford to make these upgrades all at once, so the best first step is to take an inventory of the age of your appliances and then arrange for an energy audit of your home. From there, you can start to make a plan to switch to more efficient electric machines before your old appliances reach the end of their useful lives.”

Switching to electric energy sources is a win-win with short-term paybacks and long-term benefits.

Whether you’re looking to spend less than $5,000 like a majority (51%) of people to make your home more environmentally friendly or you’re among the more than 1 in 5 people who are willing to spend $20,000+ to make your home more sustainable, there are a variety of projects that you can take on this year to lower your energy bill, and help the planet.  

At Thumbtack, we help homeowners get their home goals done — including sustainable projects. Knowing what to do, who to hire, and when can be big hurdles, so we set out to make the process easier. To help consumers figure out which sustainable projects yield the most long-term savings and fit into their budget, we crunched the numbers — pulling data on the average cost savings as well as the total cost for homeowners (while factoring in government incentives, tax credits and rebates). Here’s what we found:**

If you’re looking to start small.

If you’re looking to spend under $500 to make your home more eco-friendly, small projects like installing energy efficient lighting or smart thermostats are relatively inexpensive — ringing in at $240.56 and $239.53, respectively, according to Thumbtack’s database. And they begin to pay for themselves within just a few months, as they help reduce yearly energy bills by $200 and $100 respectively. Smart energy monitors are another easy and affordable way to track your usage, identify sources of waste or vampire energy usage and also allow you to set goals to reduce your usage now that you know which devices are drawing the most power or are simply “always on.” 

For those planning to spend $1,000-$5,000, a clear win-win for homeowners considering electric cars is installing an EV charger. The cost is roughly $2,230 (dependent on the shape of your current circuit breaker). Homeowners in low-income or rural communities can save up to $1,000 through a 30% tax credit. Additionally, installing new double-pane windows can cost homeowners roughly $1,569 (per 5-8 windows). Homeowners can save up to $600 per year with a 30% tax credit and $308 in average yearly energy bill savings when they upgrade their home’s windows and doors.

If you’re looking to make a medium investment.

For those looking to spend $5,000-$10,000, heat pump water heaters, which produce hot water instead of air, require a smaller investment than heat pumps but still provide big gains in efficiency. These are 2-3 times more efficient than traditional systems and cost on average $5,280 to install. Homeowners can save up to $1,750 (depending on their income) in upfront costs and up to $2,000 through a 30% tax credit while benefiting from $120 in average yearly energy bill savings. 

Weatherization improvements can also help to reduce your energy usage by improving ventilation and maintaining your home’s temperature. Upgrading or installing new insulation can cost on average $9,469 across the country. Homeowners can save up to $1,600 (for income-eligible households) in upfront costs, receive a 30% tax credit for up to $1,200 per year, and roughly $400 in average national yearly energy bill savings when they upgrade their entire home’s insulation.

Rooftop solar panels are another great option, as they produce no carbon emissions and can save homeowners hundreds of dollars a year on their electric bill. Installing solar panels costs on average $9,640 across the country, though costs may vary based on the equipment selected and the home’s square footage. A local solar pro on Thumbtack will be able to help you identify the best approach for solar for your home specifically. Homeowners can save 30% on the upfront equipment and installation costs through government incentives ($2,892 on average) and $100 in average yearly energy bill savings, even after financing the upfront cost of the panels.

If you’re ready to make a significant investment. 

Finally, for homeowners looking to spend $10,000-$20,000, heat pumps require a larger up-front investment at an average cost of $16,588, but they’re 3-5 times more energy efficient than traditional heating systems and work in all climates. They have a lifespan of 10-15 years and can replace both your traditional AC and home heating system. Homeowners can save up to $8,000 (depending on their income) in upfront costs through government incentives, up to $2,000 in a 30%  tax credit, and $330 in average yearly energy bill savings. Households who heat their home with electric resistance, fuel oil, or propane can save over $1,000 on their yearly energy bills.

If homeowners were to tackle all of these projects at once, they would be looking at an average total spend of $23,000 after incentives and rebates. Completing all of these projects would also save them roughly $2,500 per year on their energy bill, all while reducing their home’s carbon footprint. And given the average energy bill in the U.S. is $4,268 per year, according to the Bureau of Labor Statistics – this is a significant yearly saving of 59%. 

Ready to get started? Let us help you find the right pro. 

Ultimately, no matter your budget, you can get started and you don’t have to start with a massive project to make an impact on your energy bill or carbon footprint.

“Many of the tax credits in the Inflation Reduction Act are good for the next ten years enabling homeowners to make the transition in a way that makes the most sense for their budgets,” says Staple.

Electrification projects like smart devices are an excellent option, as are window and insulation upgrades. And while bigger ticket projects like high-quality solar panels may cost more upfront, they can yield meaningful savings over the long-term. Big or small, the investment you make will have a short term payback and long term benefit for you and the environment. 

To get started, connect with a local professional by downloading the Thumbtack app (available on iOS and Android) and visit Rewiring America to learn more about the IRA incentives, calculate your potential savings, and learn more about the benefits of electrification. 

*Survey Methodology: This sample of 1000 US adults (aged 18-­65) was surveyed on February 16 and 17, 2023. DKC Analytics conducted and analyzed this survey with a sample procured using the Pollfish survey delivery platform. Sampling was calibrated to accurately reflect US population density by generational cohort. No post-­stratification has been applied to the results.  “Americans,” “respondents,” and “people” called out within this blog refer to those surveyed.

**All pricing data is based on national average cost estimates using data provided by Thumbtack service professionals and additional research, actual prices may vary based on city, equipment, home square footage, supply, and more. All savings data (rebates, tax credits, incentives) are provided by Rewiring America.