The Best Electrical Upgrades to Make Your Home More Energy Efficient

You’ll be shocked by your new utility bill

Woman adjusting a smart house system
Photo: RgStudio / E+ / Getty Images
Woman adjusting a smart house system
Photo: RgStudio / E+ / Getty Images
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Whether you’re renovating your current house or moving into an older home, upgrading your electrical system is vital to keeping the power running smoothly, safely, and efficiently. Plus, adding electrical upgrades to a home can increase its resale value. Read on to learn the best types of electrical upgrades to power up your home’s energy efficiency.

1. Heat Pumps

Air conditioner and heat pump
Photo: Andrey Popov / Adobe Stock

Traditional electric furnaces need a lot of electricity to power the blower motor that pushes the heat through your home—which ultimately amounts to your furnace eating away at your energy usage. You can potentially reduce your electricity consumption for heating your home by up to 60% by switching from a furnace to a heat pump. Plus, the 2022 Inflation Reduction Act (IRA) offers incentives like rebates and tax credits for homeowners who upgrade their heat pumps.

2. Water Heaters

Heating the water in your home might not be the first thing that comes to mind when you think of upgrading your electrical appliances, but hot water heating accounts for approximately 12% of the electricity on your utility bill. Upgrading to an energy-efficient water heater, like an on-demand water heater, heat pump water heater, or solar water heater will save you energy and money overall.

3. Electrical System

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Photo: makistock / Adobe Stock

Old homes have old wires—and, like any wires, they can become frayed and corrode over time. When old electrical wire corrodes, this can lead to arc faults. These circuit interrupters cause annoying trips in your electricity, generate intense heat, and pose a fire hazard. Rewiring your house allows the electricity to run safely through them to power your home. It’s a good idea to upgrade any old electrical systems, including outdated electrical panels and circuit breaker boxes.

4. Smart Power Strips

Going around your home to frequently unplug and then replug devices that could be on standby power may feel like a chore. That’s where smart power strips come in to save you time and energy. These power strips monitor electricity and automatically disable devices that aren’t currently in use. 

5. Smart Home Automation

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Photo: kate_sept2004 / E+ / Getty Images

One way you can improve your home’s energy efficiency is by investing in smart home automation. This buzzword means that your home’s electrical devices, appliances, and systems connect to the internet where you can control their usage through apps. From being able to turn off lights that you forgot before rushing out the door to turning off the AC in your home from your office, home automation allows you to have more control over your home’s electrical usage.

6. LED Lighting

A simple electrical switch you can make is upgrading from incandescent light bulbs to LED lighting. LED light bulbs use as much as 85% less energy than incandescent lights and last 25 times as long. They cost a little more upfront but have a lifespan of between 11 and 17 years. The Consumer Federation of America estimates that over the course of a decade, homeowners can save about $1,000.

7. Thermostat

Modern house with smart automation system
Photo: imaginima / E+ / Getty Images

Upgrading your thermostat from an outdated manual thermostat to a programmable one allows you to have better control over the temperatures inside your home when you’re not around. Say goodbye to your HVAC system kicking on and zapping your home’s energy to the roof when you’re at work or going on vacation. Take it to the next level by installing a smart thermostat, which you can control the settings of with the simple touch of a few buttons on your smartphone.

8. Solar Panels

Having an energy-efficient electrical system doesn’t get any more possible than upgrading to solar panels. Solar energy is the most available and clean renewable energy around, so installing solar panels is a surefire way to increase your home’s energy efficiency. 

9. Solar Batteries

Couple installing solar panel on balcony
Photo: Erdark / E+ / Getty Images

If you already have solar panels installed on your property, you can make this electrical system even more efficient by having a solar battery backup on site. Solar batteries store solar energy so that you can make use of excess energy on days when your panels don’t produce enough electricity. 

10. Energy Consumption Monitors

After making all of the above electrical upgrades, knowing where the energy flows through individual circuits in your home can provide extra information on which appliances are consuming the most energy. Investing in a whole-home electricity monitor can help you find hidden energy vampires around the house. Once you’ve identified the biggest energy culprits, consider upgrading appliances or unplugging electronics.

Frequently Asked Questions

Rewiring an electric system in a house typically ranges between $2,000 and $9,000, but a simple project can cost as low as $1,500. More complex upgrades run $10,000 or higher. The price depends on the size of your home, how accessible the wiring is, the cost of materials, and local electrician fees.

To upgrade electrical systems in older homes, you might need to reroute new wires with lath and plaster walls. That’s because it’s more challenging to get inside the walls of an older home compared to a modern home, which usually uses drywall. But there are easier ways to level up your electrical game in an older home. For instance, you can swap out an old furnace for a new electric heat pump, or you could use a heat pump for water heating.

Upgrading your electrical system can save you money on your monthly utility bills by powering your home more efficiently. Electrification nonprofit Rewiring America estimates that a household could save $1,800 per year on energy bills by upgrading to a modern electric heat pump, switching to a heat pump for their water, installing solar panels on the roof, and converting to an electric vehicle.

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