The Energy Upgrade Pyramid
Home energy upgrades should follow a pyramid of priority, starting with the cheapest, highest-impact measures. Level 1: behavior changes (thermostat setback, LED lighting, air-dry laundry) cost $0-200 and save 10-15 percent. Level 2: air sealing and insulation cost $1,000-5,000 and save 20-30 percent. Level 3: equipment upgrades (heat pump HVAC, heat pump water heater, Energy Star appliances) cost $3,000-15,000 and save 30-50 percent. Level 4: renewable generation (solar PV, battery) costs $10,000-25,000 and can eliminate remaining electricity costs. Working up the pyramid ensures you do not oversize expensive systems by first reducing the load they need to serve.