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To lower electricity use without making your home less comfortable, first find where it loses heat or cool air. Seal drafts and address insulation gaps before replacing major equipment; then maintain or upgrade heating and cooling systems based on your home, climate, and current equipment. A properly selected heat pump can substantially reduce electricity used for heating when it replaces electric resistance heat, but no single upgrade delivers the same result in every home.
Which upgrades should you do first?
Start with the home itself, not a shopping list. The right order depends on the existing heating system, insulation, air leaks, ducts, local climate, and equipment condition. An assessment can help distinguish a small DIY fix from a larger problem that needs professional attention.
- Assess drafts, insulation, ducts, and equipment. A home energy evaluation may include a walk-through, infrared camera, blower door, or other diagnostic methods. The U.S. Department of Energy (DOE) describes an evaluation as a wise first step because it can identify priorities specific to the home. Its interactive home tour also illustrates common places to look.
- Seal obvious leaks and correct insulation deficiencies. Address gaps around doors, windows, and other penetrations, then prioritize deficient insulation in places such as attics, crawl spaces, basements, and walls.
- Maintain the existing HVAC system and inspect ducts. Maintenance can help equipment operate as intended. Seal ducts where appropriate, particularly when leakage is part of the problem.
- Compare replacement equipment only after considering the home’s needs. Evaluate a heat pump or other option against the current system, climate, equipment sizing, installation quality, and operating costs.
- Choose compatible controls and efficient appliances as replacements come due. Check system compatibility before buying, especially for heat-pump thermostats.
DOE’s rebate guidance recommends an envelope-first approach: air sealing and insulation can improve comfort and may reduce the heating or cooling capacity a heat pump needs. That is a reason to assess the envelope before sizing new equipment, not a rule that every home must complete every insulation project first. See DOE’s home-performance guidance.
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Air leaks can bring in cold or hot outdoor air, creating drafts and uneven room temperatures. Sealing identifiable gaps can reduce those drafts; insulation slows heat transfer through the building envelope. Together, they can make temperatures feel more even and reduce how much heating or cooling work the equipment has to do.
#1 Best Overall
- ENERGY STAR certified smart thermostat for home that helps you save energy and stay comfortable.Connectivity : Wi-Fi - 802.11b/g/n 2.4 GHz, 802.11a/n 5 GHz Wi-Fi., Wireless interconnect : Bluetooth Low Energy Please refer to the product description section below for all applicable legal disclaimers.Product note: You can also check your system’s compatibility before purchasing a Nest thermostat with our online Nest Compatibility Checker on the Google Nest support page
- The Nest Thermostat is designed to work without a C wire in most homes, but for some systems, including heating only, cooling only, zone controlled, and heat pump systems, you’ll need a C wire or other compatible power accessory
- Nest Thermostat turns itself down when you leave, so you don’t waste energy heating or cooling an empty home. Lock feature: No
- Programmable thermostat that lets you create an energy efficient schedule in the Google Home app on your Android or iPhone
- Remote control lets family members change the thermostat temperature from anywhere on a phone, laptop, or tablet[1]
For small, visible gaps
Caulk, spray foam, or weatherstripping can address suitable leaks. Weatherstripping is commonly used around movable doors and windows; caulk is suited to smaller fixed gaps. Follow product directions and avoid sealing areas that need ventilation or have another safety function.
For concealed leaks or broad comfort problems
If drafts are widespread, rooms remain uncomfortable, or the source is not obvious, consider an energy assessment rather than sealing at random. An infrared thermometer or thermal camera may help reveal surface-temperature differences during preliminary checks, but it does not diagnose the whole home or replace a professional assessment.
Rank #2
- An Alexa thermostat - Amazon Smart Thermostat is an easy way to switch from a traditional thermostats for homes and help reduce energy usage.
- Create comfort zones throughout your home by connecting to select Alexa devices to automatically adjust heating and cooling based on temperature readings or presence detection.
- Save money and energy - After purchase, Amazon will send you an email with details about home thermostat rebates that may be available from energy providers in your area.
- Save energy - According to EPA estimates, ENERGY STAR certified thermostats save an average of $90 on yearly energy bills.
- Programmable thermostat and automatic control - Create your own home, away and sleep schedules, or have Alexa automatically control the temperature with Alexa+ advanced features.
DOE’s Energy Saver page gives a potential annual savings range of 5% to 30% from reducing drafts. This is a broad estimate published in 2014, not a forecast for an individual household. The same page says a combined approach—equipment maintenance and upgrades, appropriate insulation and air sealing, and thermostat settings—may reduce heating and cooling energy use by 20% to 50%. That range applies to the combination, not to any one measure, and neither estimate guarantees a particular bill reduction. See DOE’s explanation of why energy efficiency matters.
When can a heat pump reduce electricity use?
A heat pump is especially worth comparing when the home currently uses electric resistance heating, such as baseboard heaters. DOE says modern heat pumps can use up to 75% less electricity for heating than electric resistance heating. The comparison is specifically against resistance heat; it is not a general estimate for replacing a gas or oil system, and actual results depend on climate, equipment, sizing, installation, and use. See DOE’s overview of heat pump systems.
Rank #3
- Save up to 23% every year on heating and cooling costs, adjusts to your set schedule to save energy when you’re gone and optimize comfort when you’re home. Compared to a hold of 72
- Compatible with 85% of systems, check your system’s compatibility with our online ecobee Compatibility Checker on the ecobee support page
- Change your temperature by easily tapping the color touchscreen or using the ecobee app. Plus, free software upgrades ensure you get the best out of your Smart Thermostat Essential, for years to come
- Automatically adjusts to your set schedule to save energy when you’re gone and optimize comfort when you’re home. Keep track of your energy consumption when you're on the go on the ecobee app
- Easy DIY install. No C Wire, no problem. Get the ecobee Power Extender Kit (PEK) for homes without a C-Wire and keep your walls looking nice with our trim kit – both sold separately
For a home switching from gas or oil, do not apply the 75% figure. Compare expected electricity use and total energy costs using local utility rates, the home’s heating demand, cold-weather equipment performance, and any other household priorities. A qualified assessment can help determine whether the home’s insulation, ducts, electrical service, and proposed system size fit the installation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should you compare upgrades?
There is no universal best first purchase. Use these factors to compare options for your home:
Rank #4
- EASY DIY INSTALLATION: Do it yourself fast with a built-in level and simple step-by-step instructions. Works with the HVAC equipment found in most homes
- COMMON WIRE REQUIREMENTS: Common wire(C-Wire) required for heat pump and heat/cool only systems. C-wire not required on most systems
- SAVE ABOUT 23% ON HVAC ENERGY: ENERGY STAR-certified and packed with features that help you save money, including flexible scheduling, geofencing, remote access and usage reports
- PRIVACY PROTECTION: Sensi won’t sell your personal information to third parties or leverage your thermostat activity data for targeting or advertising purposes
- CONTROL FROM ANYWHERE: The top-rated mobile app for Android and iOS devices makes it easy to control your comfort from a smartphone or tablet
- Existing system and fuel: Identify whether you have electric resistance, a heat pump, gas, oil, or another system; savings claims depend on what is being replaced.
- Climate and seasonal performance: Check how proposed equipment performs in local conditions, including cold weather where relevant.
- Envelope and ducts: Consider drafts, insulation gaps, and duct condition before deciding how much equipment capacity is needed.
- Comfort beyond the thermostat setting: Consider room-to-room temperature differences, drafts, humidity control, and equipment noise.
- Installed cost and operating cost: Compare the project price and expected electricity use against local energy rates and the cost of continuing with the current system.
- Sizing, installation, and compatibility: Confirm that the system is properly selected for the home and that controls and electrical service are compatible.
- Local incentives: Check current eligibility and funding in your jurisdiction before including a rebate in your budget.
Which controls and appliances are worth considering?
Programmable settings can help avoid heating or cooling an empty home unnecessarily, while efficient appliances can reduce electricity use when an older appliance is due for replacement. These choices should fit how the household uses the home and the equipment already installed; changing settings is not the only path to comfort or savings.
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With a heat pump, use a thermostat or control designed to work with the system. DOE warns that control compatibility matters; incorrect settings can unnecessarily activate electric resistance backup, increasing electricity use. Check the heat-pump manufacturer’s instructions and consult the installer if you are unsure. DOE’s Home Upgrades information includes guidance on upgrade choices.
How do home energy rebates fit into the decision?
DOE’s Home Energy Rebates page advertises potential amounts of up to $8,000 for the Home Efficiency Rebates (HOMES) program and up to $14,000 under the Home Electrification and Appliance Rebates (HEEHRA) program. These are program caps, not guaranteed payments: availability, eligibility, qualifying work, and actual amounts vary by jurisdiction. Participating states, territories, or Tribes administer program availability, and rules or funding can change. Check the DOE Home Energy Rebates Program page and your local program’s current requirements before relying on an incentive.
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