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Home Renovations and Energy Upgrades

If you’re planning or undergoing a home renovation, incorporating energy upgrades can improve your project’s return on investment while creating a healthier, comfier living space. Modern, energy-efficient homes reduce your total cost of home ownership with lower energy bills and fewer maintenance requirements.

Here are some steps for homeowners to help prioritize energy efficiency and clean energy in their renovation project.

Get a No-Cost Home Energy Assessment

Before kicking off your home renovations, get a free professional home energy assessment, also known as an energy audit. An assessment will help you better understand your home’s energy performance and identify energy-saving improvements to incorporate in your renovation project. The assessment is performed by a professional energy auditor who analyzes where your home is operating efficiently vs. where it is wasting energy, whether systems are working properly, and which energy upgrades may be needed.

Make sure the auditor knows about your renovation plans so that recommendations align with the work you’ll be doing. Ask the auditor what upgrades will help you get the greatest return on investment out of your renovation—both in terms of lowering energy costs and increasing the property value for when it’s time to sell your home.

Incorporate Weatherization

If you are adding, removing, or altering floors, ceilings, or exterior walls as part of a renovation, this is a cost-effective and convenient time to incorporate insulation and air sealing to weatherize your home. Air sealing and insulation are two of the most cost-effective ways to save energy and improve indoor comfort in a home.

Other weatherization upgrades to consider include replacing existing windows, skylights, and doors with ENERGY STAR® certified models. You can also add insulated shades to retain heat in winter or exterior shading devices to keep cool in the summer. This can add up to significant energy savings, as heat gain and loss through windows is responsible for 25–30% of energy used for home heating and cooling.

The Comfort Home Program offers air sealing and insulation incentive packages for homeowners, while income-eligible New Yorkers can receive incentives to weatherize their home through EmPower+.

Switch to Clean Heating and Cooling

Depending on the type of renovation you are planning, it could be an advantageous time to consider upgrading your home’s heating and cooling and hot water systems. For example, a new addition will increase the demand on your heating and cooling systems. Similarly, adding more plumbing fixtures and appliances may increase your home’s hot water demand.

If your home heating and cooling equipment isn’t running efficiently or approaching the end of its useful life, consider installing a heat pump . Heat pumps are a safer, more efficient choice for your home heating and cooling. In fact, the zero-emission, dual heating and cooling technology outsold gas furnaces for a second consecutive year in 2023. Heat pump water heaters are also available to provide a clean energy option to meet your home’s hot water needs.

Heat pumps and heat pump water heaters are eligible for both New York State rebates and Inflation Reduction Act (IRA) tax credits.

Upgrade to Energy-Efficient Appliances and Lighting

Whether renovating your kitchen, bathroom, or laundry room, there are a variety of opportunities to upgrade to energy-efficient appliances. Any existing appliances that are old and inefficient are prime candidates for equipment replacement. ENERGY STAR® certified appliances are available for virtually every room that you may be remodeling or upgrading.

Income-eligible New Yorkers can receive rebates through the Appliance Upgrade Program to lower the upfront cost of a heat pump clothes dryer, plus any required electrical upgrades to install the equipment.

Renovations are also a great time to make lighting system upgrades, such as installing LEDs, timers, or smart switches. Energy-efficient light bulbs use less energy, cost less to operate, and can last up to 25 years longer than conventional lighting options.

Boost Energy Savings and Resilience With Solar and Storage

Installing on-site solar at your home can reduce or eliminate what you pay for electricity consumption. As more homes add electric equipment, such as heat pumps and electric vehicle chargers, going solar can help offset your energy use. While rooftop solar is the most common option, homeowners may choose to install a ground-mounted system if the roof condition, orientation, or shading are not suited for a solar array.

Pairing solar with energy storage can ensure your home has backup power during outages. Energy storage can also be leveraged to optimize energy use by charging with solar or during off-peak hours to power a home when electricity rates rise during periods of high demand.

Both energy storage and solar are eligible for IRA tax credits, and New York State offers incentives and financing for going solar.

Ride Into the Future With Electric Vehicle Charging

Between IRA electric vehicle tax credits and Drive Clean Rebates, New Yorkers can save up to $9,500 on the purchase or lease of select electric vehicles (EVs). Additionally, a growing market of used EVs are eligible for IRA tax credits of up to $4,000. These upfront discounts, combined with lower operation costs, are driving more New Yorkers toward EVs each year.

If you’re planning to drive an EV soon, installing an EV charger as part of your home renovation could be a wise decision, especially if you’ll be working on the garage or making electrical upgrades. New Yorkers could qualify for an IRA tax credit to cover 30% of the cost, up to $1,000, for installing a home EV charger.

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Home Renovations and Upgrades Questions & Answers

When you’re planning for or just starting a renovation or upgrade, you’ll likely have questions. Asking the right questions at the beginning of the project—especially when it comes to energy efficiency—will help you get the best return on investment. Here are some of the most important questions to ask your contractor.

Top Things to Ask a General Contractor

1. What certifications do your technicians hold? What training do you require of your staff?

Find out whether the contractors or subcontractors hold any designations from professional associations, such as the National Association of the Remodeling Industry. You should also ask if they hold any energy-specific designations, such as from the Building Performance Institute. Find out if they have invested in trainings for their staff related to energy efficiency.

Ask the contractors how they identify and work with subcontractors when the need arises—for example, if you need to replace your heating or cooling system. Can they help you find and work with a contractor who is properly trained to install heating and cooling equipment?

2. How do you incorporate energy performance into your work?

Ask the contractors how they include energy efficiency upgrades when they complete renovation and upgrade projects. Prospective contractors should be able to provide you with examples of projects in which they paired energy performance upgrades with a renovation. Ask for the name and contact information of past customers. Before you call those references, make sure you have prepared a list of specific questions to ask. For example, “If you were to take on another project, would you hire the contractor again?”

3. Is it better to make energy performance upgrades now or wait until later?

Although making additional upgrades will add to the total cost of your project, improving energy efficiency will most likely offer a better return on investment in the long run. For example, if you are already adding, removing, or altering floors, ceilings, or exterior walls, it will be more cost-effective and less disruptive to make weatherization upgrades during the renovation rather than later as a separate project. This also applies to purchasing new energy-efficient appliances if you are already thinking about buying new equipment and fixtures. Talk to your contractor or lender about including energy performance upgrades in your renovations or financing package.

4. Additional upgrades will add to the total cost of this project. What are my loan options for making energy performance upgrades?

If you are making additional upgrades to improve the energy efficiency of your home, ask your contractor or lender about including them in your renovation financing package. If that is not possible, ask your contractor if there are loan or financing options to help pay for the additional upgrades. For example, you may be eligible for an energy efficiency loan or an on-bill recovery or smart energy loan through NYSERDA.

Depending on what upgrades you are making, you may also qualify for tax credits and financial incentives available through New York State, your utility, or the Inflation Reduction Act. Some incentives and financing programs require that you get a  professional home energy assessment first.

5. What should I be thinking about that I’m not?

A good contractor will help you get the most out of your investment, which includes energy efficiency. Ask your contractor if there are any additional upgrades you should be considering, such as weatherization improvements like adding insulation or air sealing. These additional improvements will add long-term value to your home through increased comfort and reduced energy bills.

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