How to Wire Your Home for Higher Efficiency Without Breaking the Bank

Improving the efficiency of your home's electrical system can save you money on utility bills and reduce your environmental impact. However, rewiring projects can be expensive. Here is how to update your home's wiring for energy efficiency without spending a fortune.

Audit Your Current Electrical Usage

The first step is understanding where and how you use electricity in your home.

Track your monthly electric bills to see your baseline usage over time. Are there months when usage spikes? What appliances or behaviors drive that increase?
Conduct an energy audit to identify the biggest users of electricity. The audit will pinpoint appliances, electronics, and systems to target first for efficiency upgrades.
Use a smart energy monitor to see real-time data on your electrical usage. This can identify problem areas and show the impact of any changes you make.
Pay attention to when and how you use high-draw devices like air conditioners, electric water heaters, and kitchen appliances. Simple behavioral changes can reduce wasted energy.

Upgrade Inefficient Lighting

Lighting accounts for around 15% of an average home's electricity use. Swapping out incandescent bulbs for efficient LEDs is one of the fastest payback efficiency projects.

Replace any remaining incandescent lights with LED bulbs. The Energy Department says this can reduce lighting costs by 75%.
Install dimmers, motion sensors, and timers on outdoor lighting and in infrequently used rooms. This eliminates waste from lights being left on unnecessarily.
Consider wiring additions like under cabinet lighting in kitchens and task lighting in living spaces. This allows you to turn off overhead fixtures and focus light where needed.

Improve Major Appliance Efficiency

Kitchen and laundry appliances account for 20-30% of household energy bills. Older, inefficient models can be major power drains.

Check the EnergyGuide and Energy Star ratings when shopping for new appliances. Focus on upgrading refrigerators, dishwashers, and clothes washers first.
Unplug appliances like extra freezers when not in use regularly. Older "energy vampires" draw power even while switched off.
Run full loads in clothes washers, dishwashers, and ovens. This maximizes efficiency. Air dry dishes instead of using heated dry cycles.
Clean coils annually on refrigerators and check refrigerator door seals for leaks. This improves efficiency.

Upgrade Heating and Cooling Systems

HVAC systems are usually the largest single energy user in homes. Old, inefficient air conditioners, furnaces, and heat pumps can cost hundreds per year in wasted energy.

Replace AC units older than 10 years with Energy Star heat pumps and AC units. Newer systems are 30% more efficient. Installing a smart thermostat can save an additional 10%.
Switch from an electric to a natural gas furnace. Gas costs less per BTU of heat than electricity. Make sure to have gas lines professionally installed.
Insulate air ducts and seal leaks with mastic sealant. Ductwork losses account for 20-30% of HVAC energy use. Prioritize sealing ducts running through unheated attics and crawlspaces.
Clean or change filters monthly on HVAC systems. Dirty filters cause units to work harder and use more power.

Weatherize the Building Envelope

Air leaks account for 25-40% of home heating and cooling costs according to the Department of Energy. Plugging these with caulk and insulation reduces waste:

Add weatherstripping on doors and windows and use foam gaskets behind outlet covers. This seals small leaks around frames.
Use spray foam to insulate rim joists in basements and attics. This stops air infiltration in overlooked gaps.
Caulk and seal cracks around plumbing, wiring, vents, and pipes that penetrate exterior walls. These let conditioned air escape.
Wrap older ductwork running through unheated spaces with duct insulation. This muffles conduction losses.
Increase attic insulation to R-49 and wall insulation to R-13. This slows heat transfer through building materials.

Take Advantage of Rebates and Tax Credits

Utility companies and governments offer rebates and tax credits to promote efficiency upgrades. Take advantage of these to offset costs:

Check Energy Star and utility company websites for rebates on appliances, lighting, thermostats, insulation and air sealing. Rebates can cover 25-50% of project costs.
Research federal tax credits for upgrades like insulation, windows, doors, water heaters and HVAC systems. Credits cover 10-30% of costs.
Some utilities offer free or low-cost energy audits and weatherization assistance programs for lower income households. Call your provider to learn about programs you qualify for.

With strategic upgrades and cost assistance programs, you can cut your home's energy use significantly without overloading your budget. Prioritize the most cost-effective fixes first to start saving wasted energy and money.