When it comes to boosting your home’s value, major kitchen or bathroom remodels often steal the spotlight. But there’s another kind of upgrade that’s both practical and profitable: improving your home’s energy efficiency.
With energy costs putting pressure on household budgets across the country, smart homeowners are thinking beyond cosmetic fixes and focusing on upgrades that deliver real, long-term returns. The best part? Energy-efficient improvements can shrink your monthly utility bills and make your home far more attractive to buyers.
“Homeowners often think they have to choose between saving money now or adding value later, but the smartest energy upgrades do both,” says Corey Gilgan, owner of Oregon Generators, a company specializing in generator installation, EV charging setups, and electrical panel upgrades. “We’re seeing buyers willing to pay premium prices for homes that already have these efficiency features installed.”
The key is choosing the upgrades that offer the best bang for your buck. Here’s six smart, energy-efficient upgrades that save you money and have a nice ROI when it comes time to put up a “for sale” sign.
1. Smart Thermostats
Smart thermostats are an easy upgrade that can trim down your utility bills.
As perhaps the easiest entry point into energy savings, smart thermostats learn your schedule and adjust temperatures automatically. These devices can reduce heating and cooling costs on an annual basis.
“A smart thermostat is like having a personal energy manager that never takes a day off,” Gilgan says. “It’s constantly optimizing your home’s temperature based on when you’re actually there.”
Cost: $200-$500 factoring in installation
Annual Savings: $150-$300
Property Value Boost: Could add up to $500-$1,000
2. Energy-Efficient Windows
Energy-efficient windows can reduce heating and cooling costs.
Old windows are often the biggest energy drains in a home, letting air leak in. Upgrading to double or triple-pane windows with low-E coatings dramatically improves insulation. Low-E, short for low emissivity, refers to windows with glass coated in invisible layers of metallic oxide. This special coating lets natural light into the home while reflecting ultraviolet (UV) rays and infrared (IR) light back outside, helping to regulate indoor temperatures and protect interiors from sun damage.
“Windows are like the eyes of your home, so if they’re old and inefficient, you’ll be watching your money fly out of them,” says Gilgan. “We tell homeowners to think of window upgrades as plugging the biggest leaks in their energy budget.”
Cost: $400-$3,000 per window
Annual Savings: $200-$500
Property Value Boost: Could add up to 70% of installation cost
3. LED Lighting Conversion
Switching to LED lights can trim your energy bills.
Swapping out incandescent and CFL bulbs for LEDs throughout your home cuts lighting costs substantially while lasting around 25 times longer.
“LED conversion is the lowest-hanging fruit in energy efficiency,” notes Gilgan. “The upfront cost pays for itself in under two years, and buyers love knowing they won’t need to replace bulbs for decades.”
Cost: $200–$600 per fixture, installed
Annual Savings: $100-$200
Property Value Boost: Could add up to $300-$600
4. Upgraded Insulation
Proper attic and wall insulation can cut heating and cooling costs. Many older homes have insufficient or deteriorated insulation that causes energy bills to skyrocket.
“Having poor insulation is like trying to fill a bucket with holes in it, since your heating and cooling system works overtime but never gets ahead,” explains Gilgan. “Proper insulation is the foundation that makes every other energy upgrade work better.”
Cost: $1,600-$8,000 for house insulation
Annual Savings: $300-$700
Property Value Boost: Could add up to $1,200-$2,000
5. Solar Panel Installation
Solar panels can majorly reduce your energy bills and may appeal to buyers in some areas, but panel leases can be a sticking point.
Solar panels offer the biggest long-term savings potential. Also, federal tax credits currently cover part of installation costs. But whether they boost property value comes with a caveat.
A 2025 study from Redfin found that, on average, homes with solar panels sell for 6.9% more. However, how much value solar actually adds can depend on several factors, including the location of the home, the age of the system, and whether the panels are fully owned or leased. Buyers may be hesitant to take on the lease payments of the solar panels and some are concerned about the maintenance or older solar panels reach the end of their warranties.
Still, solar seems to be the ultimate upgrade for both savings and home value, Gilgan says.
“We’re seeing homes with solar systems sell faster and for higher prices, especially as utility rates keep climbing,” he says.
Cost: $15,000-$40,000 (before tax credits) for full solar installation
Annual Savings: $1,000-$2,500
Property Value Boost: Could add up to $15,000-$20,000
6. High-Efficiency HVAC Systems
Modern heat pumps and high-efficiency furnaces use significantly less energy than older systems. In addition, Energy Star certified units can reduce heating and cooling costs.
“An old HVAC system is like driving a gas-guzzling car from the 1990s: it gets you where you need to go, but at what cost?” notes Gilgan. “Modern systems are so much smarter about when and how they use energy, plus they keep your home more comfortable year-round.”
Cost: $10,000-$15,000 (over $20,000 for large homes or premium energy-efficient models)
Annual Savings: $400-$800
Property Value Boost: Recoup on average 66% of cost