Energy Efficiency Statistics (2026): Savings, Tax Credits & Trends

Where home energy goes

• Heating and cooling account for roughly half of the energy used in a typical U.S. home — the largest share of any category. — Source: U.S. Department of Energy / EIA (2024)
• Water heating is typically the second-largest home energy use, around 15–20%. — Source: U.S. Energy Information Administration (2024)
• LED bulbs use at least 75% less energy than incandescents and last 25 times longer. — Source: U.S. Department of Energy (2024)

What upgrades save

• Air sealing plus attic insulation saves an average of about 15% on heating and cooling costs (roughly 11% of total energy use). — Source: EPA ENERGY STAR (2024)
• A smart or programmable thermostat saves roughly 8% on heating and cooling with typical use. — Source: EPA ENERGY STAR (2024)
• Heat pumps have outsold gas furnaces in the U.S. every year since 2022 — the clearest signal of the electrification shift in home comfort. — Source: Air-Conditioning, Heating, and Refrigeration Institute (AHRI) shipment data (2024)

Incentives

• The federal Energy Efficient Home Improvement Credit covers 30% of qualifying upgrades — insulation, windows, doors, audits — up to $1,200 per year. — Source: IRS, Inflation Reduction Act provisions (25C) (2025)
• Qualifying heat pumps earn a separate federal credit of up to $2,000 per year, stackable with the $1,200 general cap. — Source: IRS, Inflation Reduction Act provisions (25C) (2025)
• DC, Maryland, and Virginia utilities layer their own rebates on top of federal credits for insulation, HVAC, and appliance upgrades — always check both before pricing a project. — Source: DC SEU / EmPOWER Maryland / Dominion Energy programs (2026)

Common questions

What's the highest-ROI energy upgrade?

Air sealing and attic insulation, almost universally — around 15% savings on heating and cooling for one of the lowest upgrade costs, and it qualifies for the 30% federal credit. Do it before considering new windows, which cost far more per unit of savings.

Are there tax credits for home energy upgrades?

Yes — 30% of qualifying costs up to $1,200/year for improvements like insulation and windows, plus up to $2,000/year for heat pumps, under the federal 25C credit. DMV utility rebates (DC SEU, EmPOWER Maryland, Dominion) stack on top.