7 Energy Efficiency Home Upgrades That Pay for Themselves

Not every home upgrade is really an “upgrade” in the financial sense (some are just nice-to-haves). But a handful of them genuinely earn their keep, chipping away at your utility bills month after month until the upgrade has essentially paid for itself. After that, it’s pure savings for the rest of the equipment’s life.

The trick is knowing which upgrades actually deliver that payback. Let’s explore seven worthwhile efficiency upgrades (especially for homeowners in the Sacramento area).

1. LED Lighting

LED lighting uses roughly 90% less energy than old incandescent bulbs. These lights also last 15 times longer, which means you’re saving on electricity, bulb replacements, and the time it takes to switch them out. 

• Best candidates: High-use fixtures (kitchen, living areas, outdoor lighting) and hard-to-reach fixtures you don’t want to keep climbing a ladder for.
• Bonus: LEDs run cooler, which means less heat load on your AC in summer.
• Typical payback: A few months per bulb.

2. Low-Flow, WaterSense-Certified Fixtures

Older toilets can use up to four times more water per flush than a modern efficient model. Upgrading older toilets and standard showerheads to WaterSense-certified helps conserve water (and its monthly costs). By lowering usage of heated water, this upgrade also helps trim your energy bill.

• Through the Be Water Smart program, Sacramento-area water providers offer rebates up to $175 per toilet for qualifying replacements.
• WaterSense showerheads use 2.0 gallons per minute or less, versus the old 2.5 gpm standard.
• Typical payback: Depending on your existing fixtures and rebates, payback can be achieved in less than two years. 

3. A Smart Thermostat

A smart thermostat typically saves the average household about 8% on heating and cooling costs, and considerably more during extreme weather when your system is working hardest.

• At the time of publication, SMUD offers a $50 instant rebate on qualifying smart thermostats.
• Optional enrollment in programs like My Energy Optimizer® can add further annual savings.
• You can also get a $30 rebate for turning in old mercury thermostats.
• Typical payback: Often under a year, depending on your rebates, the unit you choose, and how you use it. 

4. Ceiling Fans

Ceiling fans don’t actually cool a room; rather, they cool you with the wind chill effect. That means you can raise your thermostat a few degrees and still feel just as comfortable, which takes real strain off your AC (and its cooling costs).

• Every degree you raise your thermostat setting in summer can shave a noticeable percentage off cooling costs.
• Fans cost far less to run than AC (pennies per day versus dollars).
• Great pairing with a smart thermostat’s “fan on” scheduling features.
• Typical payback: The return here varies substantially depending on how you balance your cooling costs and your fan usage. You can speak to an AC expert or a ceiling fan installation specialist for more insight. 

5. A Heat Pump Water Heater

If your gas or standard electric water heater is aging out, a new heat pump water heater is one of the biggest efficiency upgrades available for the plumbing side of your home. Rather than generating heat directly, it pulls ambient heat from the surrounding air, using roughly a third of the energy a standard electric water heater needs to do the same job.

• At the time of publication, SMUD offers up to $4,000 in rebates for heat pump water heater upgrades.
• These units typically last as long as or longer than standard tank water heaters, while using significantly less energy year after year.
• Typical payback: Depending on your rebate and the unit you choose, this can be repaid in the first few years of ownership.

6. A Tankless Water Heater

If you’re not ready to go the heat pump route, a tankless water heater is the other strong option, especially for households with moderate hot water use. Rather than keeping a full tank hot around the clock, it heats water only as you use it, eliminating standby energy loss.

• Tankless units often last close to twice as long as tank models (up to 20 years versus 10-13), saving you in the long run.
• Bonus: No more running out of hot water mid-shower.
• Typical payback: Households using less hot water on the moderate-to-lower end can see much better efficiency compared to a standard tank. However, tankless water heaters tend to pay for themselves over the course of their extended lifespan rather than upfront.

7. A Heat Pump HVAC System

A heat pump replaces both your furnace and AC with one system, and California’s mild climate makes it a particularly strong fit here.

• At the time of publication, SMUD offers up to $3,000 for gas-to-electric HVAC conversions, and $1,000 for electric-to-electric upgrades.
• Local homeowners making the switch have reported average savings of up to $500 a year.
• Typical payback: If you are already due for a new furnace and air conditioner, the payback can be nearly instant because you are buying and installing one new unit instead of two. Paired with rebates and energy savings, this investment can quickly pay for itself. Speak with a heat pump HVAC installation expert for more details. 

Bonney Energy Efficient Home Upgrades in Sacramento

Not sure which of these makes sense for your home? Bonney’s team can take a look at your current systems to help you understand which upgrades are worth prioritizing. We are a proud SMUD Participating Contractor, meaning we can help you take advantage of current rebates (alongside our coupons) to save you money. 

We invite you to give us a call or schedule online to get started today!