How to Lower Your Heating Costs This Winter

As winter approaches, it’s time to start looking at ways to prevent that seasonal spike in heating expenses. This year, there are several methods to lessen your energy consumption and get the most out of your home heating system. Stay warm for less with these simple suggestions:

A home energy audit is a simple assessment of where your house is losing or wasting energy. An energy auditor’s job is to give you suggestions on how you can save money through energy efficiency. The audit typically involves inspections of insulation, heating and duct systems, and electrical appliances. Then create a plan on what items to upgrade, fix, or replace, to lower monthly energy bills up to 30 percent.

The IRS also now offers credits for home energy audits under the Inflation Reduction Act. You can have one done for your home and qualify for up to $150 in tax credit. Audits are a great starting point to put your home energy improvement in the right direction.

Bad air sealing can be a major source of energy loss in a home. Improperly sealed windows, electrical outlets, ceiling fixtures, and poor insulation can all let heat escape. A professional energy auditor will inspect your home's sealing during their inspection. They use infrared cameras and blower door tests to depressurize the house and detect air leaks.

Fixing leaks yourself is simple with some caulk or weather stripping, but for tougher spots, a professional audit and repair will be more thorough. Sealing air leaks can save you up to 20 percent on your heating bill.

Attics and basements are the two most common places where heat losses occur, mainly because of poor insulation. Since heat rises, it tends to escape through openings in attics and roofs. Changes in moisture and air quality in basements can cause leaks there, too. Putting in the effort to properly seal your attic and basement will keep more heat in your home and prevent your heater from overworking.

Adjusting how you use your thermostat can have a huge impact on your utility bill. Lowering your thermostat by 7-10 degrees for eight hours a day can save you as much as 10 percent a year.

Investing in a smart thermostat can also automate energy-saving temperature changes for you. Smart thermostats use machine learning to analyze temperature patterns outside and inside the house. They use this data to create patterns that optimize when your heating and cooling systems turn on. Switching to a smart thermostat can lower your expenses by 8 percent, and may qualify for an energy rebate.

Most homes equipped with natural gas heaters waste a lot of heat and energy burning fossil fuels. Furnaces are no longer the top choice for heating systems, with heat pumps surpassing them in sales for the first time last year. Heat pumps and heat pump water heaters run on electricity, meaning they give off far less carbon emissions. Their energy efficiency lowers water and electric bills and provides better, more consistent heat during colder months.

If you feel it's time to move on from your old furnace, consider upgrading to an air source or geothermal heat pump. While their installation costs are not cheap, the money they save in the long run is significant. If it's still not in your budget, heat pump rebates are also available under the Inflation Reduction Act. Making the energy efficient upgrade can qualify you for a credit up to $2,000.

Low and moderate income households suffer the most from inflated energy costs in the winter. And the cost of high efficiency electric home appliances like heating systems and solar panels is still comparably high.

But, there are tax credits and rebates available to make upgrading more accessible. On top of the products themselves, there are also credits for installation and labor fees. For more information about specific criteria, visit the IRA's information page.

Some states also offer energy savings assistance programs. Lower income households that may not be able to afford efficiency upgrades can qualify and receive aid. These incentives exist to improve individual financial situations as well as the environment at large. The goal is to make energy efficient homes accessible to all, regardless of cost.

You can also implement other small things around your home to weatherize and prepare it for winter. Using LED bulbs instead of CFL and incandescent will save on energy usage and replacement costs. Laying down rugs on hardwood floors helps with insulation, and making sure there is no furniture or drapes blocking air vents prevents heat trapping. While larger home improvements are great, paying attention to the little things can bring those energy bills down, too.