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The cheapest kilowatt-hour is the one you never use. Energy efficiency investments — from simple behavioral changes to low-cost hardware upgrades — consistently deliver some of the highest returns available to households.
Efficiency Is the Cheapest Form of Energy
Most energy efficiency measures recoup their cost in months and then deliver savings for years. This guide covers practical improvements organized by cost and impact — starting with free behavioral changes and working up through modest investments with clear payback periods.
Free: Behavioral Changes With Real Impact
Unplugging electronics and chargers when not in use eliminates phantom load — the electricity drawn by devices in standby mode — which can account for 5 to 10 percent of a home’s electricity bill. Running the dishwasher and washing machine during off-peak hours reduces electricity costs in time-of-use rate markets. Washing clothes in cold water instead of hot reduces energy per load by up to 90 percent with no change in cleaning effectiveness for most laundry.
Adjusting the refrigerator to 37 to 40 degrees Fahrenheit and the freezer to 0 to 5 degrees — rather than the colder defaults many people use — can reduce refrigerator energy consumption by 10 to 15 percent with no food safety impact.
Under $50: Low-Cost Upgrades
Programmable thermostat ($25 to $50): Setting it to reduce heating or cooling by 7 to 10 degrees during sleep and work hours saves about 10 percent annually on HVAC costs. For a household spending $150 per month on climate control, that is $180 per year from a $30 investment.
LED bulbs ($2 to $5 each): Prioritize the lights used most — kitchen and living room first. Each incandescent bulb replaced saves $6 to $8 per year in electricity alone.
Low-flow showerheads ($20 to $40): Modern low-flow heads deliver full pressure while using 1.5 to 1.8 gallons per minute instead of the 2.5 GPM standard, saving thousands of gallons of hot water per year.
Weatherstripping and door sweeps ($10 to $30): A complete weatherstripping job for all exterior doors costs under $50 in materials and can save over $150 per year in energy.
$100 to $500: Medium Investments With Clear Payback
Smart thermostat ($100 to $200): Devices like the Google Nest or Ecobee learn your schedule and optimize for weather. Many utilities offer rebates of $25 to $100, reducing your net cost. Average annual savings: $100 to $145 per year.
Attic insulation: If your home was built before 1990, additional attic insulation almost certainly has a positive ROI. Weatherization assistance programs fund this upgrade at no cost for qualifying households.
Free Programs That Fund Efficiency Upgrades
Before spending your own money on larger efficiency upgrades, check for utility rebate programs and state weatherization assistance. Most states have programs that fund insulation, windows, HVAC tune-ups, and appliance upgrades at reduced or zero cost for qualifying households. The Database of State Incentives for Renewables and Efficiency (dsireusa.org) is the most comprehensive national resource for rebates and incentives by state and utility.
Disclosure: This site may receive compensation when you click on links or complete offers through our partners. Content is for informational purposes only and does not constitute financial advice.