Did you know that heating and cooling account for over 40% of the average house’s energy use?
For homeowners and businesses in Michigan, where winters are long, energy costs can spike. Improving efficiency will save money and provide long-term comfort.
Some improvements, like modern HVAC systems and electrical panel upgrades, can significantly cut energy bills while reducing your carbon footprint.
This guide highlights key upgrades and smart strategies that make it easier to choose what’s right for your home and maximize long-term savings.
Benefits of Upgrading Your Home Heating System
Upgrading an older heating system is one of the most effective strategies to save energy and lower monthly utility costs. There are also other benefits you can enjoy if you decide to upgrade it:
- Increased reliability and performance
- No cold spots or drafts
- No worrying about breakdowns
- A reduced carbon footprint
Boost Efficiency with Modern Heating Solutions
Modern furnaces and boilers are designed with higher efficiency ratings, which means they convert more of the fuel and electricity they consume into actual heat, cutting losses in half. Over time, this translates into noticeable savings.
On top of that, for eco-conscious homeowners, such an upgrade can significantly reduce their house’s carbon footprint. By using less energy to produce the same heating performance, they’ll be enjoying a more sustainable heating system.
Central Heating Upgrades for Reliable Performance
Another benefit of upgrading an older heating system is comfort. Modern heating systems are better at distributing heat, doing so more evenly to prevent cold spots that are common with older units.
Modern units also operate more quietly and reliably, so you can count on steady warmth throughout Michigan’s long winters without constant adjustments.
In regions like Metro Detroit and across Michigan, where winters can be demanding, working with a trusted HVAC provider such as Elite Degrees ensures your system is upgraded and properly sized.
Top Energy-Efficient Home Improvements
When it comes to cutting energy costs and making your home more sustainable, upgrading your heating system is just the beginning. There are plenty of other improvements that you can use for a more efficient house and reduced monthly bills.
Insulation and Air Sealing
A well-insulated home will keep the heat in during Michigan winters and out during the summer months. According to Energy Star, you can save an average of 15% on heating and cooling costs by adding insulation in your basements, crawl spaces, and attics. This translates to about 11% of total energy bills.
So, in a way, these upgrades will pay for themselves in a few years through energy savings.
High Efficiency Windows and Doors
What most people don’t realize is that old, single-pane windows are a major source of heat loss. Energy Star-certified windows can lower your house’s energy bills by a significant amount.
Aside from saving energy, these windows prevent drafts and reduce outside noise, making them more comfortable in urban and suburban areas.
You can also combine your efficiency upgrades with a full remodelling project—opening walls for replacing old windows is a nice opportunity to refresh the look of your house.
Smart Thermostats
Investing in a programmable or smart thermostat is one of the simplest yet most cost-effective upgrades you can do for your house. Such devices automatically adjust your home’s temperature based on your schedule, making sure you don’t waste energy heating when your house is empty.
According to Energy Star, a certified smart thermostat can save up to 8% of heating and cooling costs in the typical US household. Savings may be higher depending on your HVAC equipment and climate in your area.
Upgraded HVAC Equipment
Upgrading your HVAC equipment can substantially reduce your utility bills. Here are the appliances that make the biggest difference:
- Furnaces: If you replace an outdated furnace with a modern, high-efficiency model, you can reduce heating costs significantly because of modern, energy-efficient heating concepts.
- Water heaters: If you upgrade your water heater to an Energy-Star-certified one, you can cut water heating costs by up to 30%, depending on the type you choose and your usage. Regular septic care also ensures these systems stay efficient.
- Air conditioners: High-efficiency AC units will save on cooling and reduce strain on the power grid, reducing your carbon footprint.
LED Light Fixtures
LED lighting uses at least 75% less energy than traditional bulbs, going up to 90% in some cases. These lights convert a much higher percentage of used electrical energy into light, which reduces losses and accounts for a higher efficiency.
In traditional bulbs, most energy is lost as heat.
If you replace the traditional bulbs in your house with LEDs, you can cut lighting costs by a huge amount, and since lights account for approximately 15% of total energy use in your house, we’re talking a lot of savings over the years.
Practical Ways to Improve Home Energy Efficiency
You don’t always have to apply major renovations or buy costly equipment to improve your home’s energy performance. In some cases, small adjustments and regular maintenance are enough to have an impact on your monthly bills.
Here are practical ways to improve your home energy efficiency:
Regular HVAC Maintenance
A well-maintained heating and cooling system will run more efficiently and last much longer than a neglected system. You should change the air filters every 1–3 months and constantly check ducts to make sure they’re not leaking. That way, you can prevent wasted energy and make sure there’s no strain on your system.
If you have leaky ductwork, fixing it can improve your home’s efficiency by 20%, depending on the severity of the leak. That’s why it’s wise to keep an eye on your equipment and carry out regular maintenance.
Take Advantage of Nature
If there’s natural heat and light in your area, you should start taking advantage of it to cut unnecessary energy use. During the day, open the curtains and let the light in, so you don’t have to use bulbs.
Likewise, during sunny winter days, keep the curtains open to let the warmth inside.
You can also use the same tricks during the summer. If you use blinds or shades, you can reduce indoor heat, which prevents excessive air conditioner use.
Adjust Your Thermostat Settings
When everyone is at work or out of the house, you can lower your thermostat by a few degrees, around 7–10°F. Such a small adjustment can save up to 10% a year on heating costs, and you won’t feel any different because it’ll be while you’re out of the house.
If you have a smart thermostat, you can program it to adjust itself every day at a given hour instead of doing it manually.
Do Home Energy Audits
If you want to have a detailed plan for making your home more efficient, you can sign up for a professional home energy audit. It’ll provide a roadmap for saving energy and let you know where energy is most wasted in your house.
Professional auditors will use tools like infrared cameras to identify where energy is being wasted.
In Metro Detroit and some areas of Michigan, many utility companies, including Elite Degrees, offer these services, helping homeowners figure out the most cost-effective upgrades they need.
The Inflation Reduction Act and Electrical Panel Upgrades
The Inflation Reduction Act, developed in 2022, is a federal law that opened up meaningful financial support opportunities for homeowners who are after energy efficiency. Here’s how you can take advantage of it:
Take Advantage of Fully Funded Energy Improvements
One of the key provisions of the IRA is the Energy Efficient Home Improvement Credit, which allows you to claim 30% of qualifying expenses for improvements made between January 1, 2023, and December 31, 2025.
The term ‘qualifying improvement’ applies to insulation, air-sealing, changes to water heating systems, HVAC upgrades, and electrical panel upgrades. However, the upgrades have to be consistent with the National Electric Code.
The maximum you can claim for an electrical panel is 30% of the cost, capped at $600. Meanwhile, the total credit for energy efficiency home improvements is $1200 per year. The payment is usually through tax credits, offsetting what you owe rather than giving you a refund.
Benefits of an Electric Panel Upgrade Under the Inflation Reduction Act
When you upgrade your home’s electrical service panel, you unlock the IRA tax credit, which helps mitigate a portion of the upfront expenses. Aside from IRA benefits, by doing so, you enable more energy-efficient devices without overloading your infrastructure.
On top of that, having an upgraded panel allows for larger energy projects, like installing a heat pump or a solar-ready circuit.
Take the Next Step Toward Energy Efficiency
Small changes can add up to significant savings on your energy bills, making your home or business more sustainable in the process.
If you’re ready to explore the best options for your property, Elite Degrees offers reliable service throughout Metro Detroit.
Book a Free Consultation for Energy-Saving Upgrades
Contact us today to schedule your free consultation. Our team will walk you through the best options for your home or business, whether that means a new HVAC system, indoor air quality upgrades, or electrical improvements, so you can enjoy comfort, reliability, and long-term value.