Strategies to Lower Utility Bills Now for Households and Small Businesses

The Environmental and Energy Study Institute (EESI) and the Alliance to Save Energy (ASE) held a briefing about readily-available solutions to help reduce energy costs for homes and small businesses. Together, rising energy demand, extreme weather events, and aging infrastructure are straining the U.S. electric grid, leaving homes and small businesses to feel the impacts of higher utility bills. With U.S. electricity prices having risen an average of 40% since 2020, affordability is now at the center of many conversations on energy policy. Upgrades to heating and cooling systems, insulation, and a wide range of household appliances can add up to cost-effective energy improvements that boost comfort in harsh weather, uplift consumer confidence, expand freedom of choice, and give consumers more control over their utility bills. Appliances with the ENERGY STAR® label, for example, can save a single household $450 annually.

This briefing convened experts from around the country with on-the-ground experience in bolstering energy efficiency and delivering savings to consumers. These panelists explored the benefits of energy-saving solutions available to households and small businesses. They also identified key federal programs that support these initiatives, such as the Low Income Home Energy Assistance Program and the Weatherization Assistance Program.

Highlights

KEY TAKEAWAYS

Energy efficiency is the lowest-cost energy resource available compared to any source of energy generation. There are nearly 2.4 million energy efficiency jobs across almost every county in the United States. ENERGY STAR® provides a valuable foundation for energy efficiency programs through testing, research, and explanations on what energy-using products are above or below the program’s efficiency threshold for an ENERGY STAR label. People most often make energy efficiency-related decisions when something in their home breaks—like the heat, the air conditioning, or an appliance—and, in these stressful situations, knowledgeable contractors, clear programs, and straightforward incentives help people choose options that will save them money and reduce energy use over the lifetime of that product.

 

Sara Polon, Co-Founder and CEO, Soupergirl

• With the help of the Maryland Manufacturing Extension Partnership, Soupergirl made energy efficiency upgrades, including adding a linear chiller to its facility and an electric refrigerated truck to its fleet of vehicles.
• Soupergirl previously used blast chillers, which use air to cool hot soup down, but the new linear chillers use water, which is much more efficient. Soupergirl increased capacity tenfold, while the time and energy required to chill each soup fell significantly. Through these upgrades, the company was able to double its output without increasing energy costs.
• When a small business knows it will have more consistent and lower energy costs, it transforms how it can think about growth.

 

Shane Bulick, Contracting Advisor and Board Member, Building Performance Association; Director of Programs, Earth Forward Group

• There are nearly 2.4 million energy efficiency jobs across almost every county in the United States and many of those involve construction and repair. Around 10% of energy efficiency and weatherization employees are veterans.
• Energy efficiency work is about making homes safe. Broken water heaters, gas furnaces lacking proper exterior flue pipes, and moldy homes are some of the problems that weatherization experts can fix, which saves households money on their utility bills and saves lives.
• Energy audit findings give contractors the information they need to fix “leaky” homes, leading to a customized plan to reduce energy while improving comfort. State programs like the Low Income Usage Reduction Program in Pennsylvania and federal ones like the Low Income Home Energy Assistance Program and Weatherization Assistance Program help bring in funding for these efforts.
• Congress has a role in funding the Weatherization Assistance Program as well as other federal residential energy-efficiency programs and incentives like the Home Energy Rebate programs. Congress can also help improve access to utility data to spur innovation.
• Energy efficiency and weatherization programs are different from standard contracting because they fine-tune the air changes per hour for every place in a home, making homes more comfortable and safer.

 

Joe Fontaine, Administrator, Division of Digital Access, Consumer, and Environmental Affairs, Public Service Commission of Wisconsin

• In Wisconsin, the Focus on Energy program helps advance energy efficiency statewide. Instead of running their own energy efficiency programs, all the state’s utilities contribute to a centralized fund that pays contractors to roll out standardized programs. Using a centralized statewide structure has allowed for the quick rollout of the Home Energy Rebate Programs.
• Energy efficiency programs provide broad benefits to the environment and the economy, with cost being the core consideration across the full range of decisions the Wisconsin Public Service Commission makes. Energy efficiency is the lowest-cost energy resource available compared to any source of energy generation, making it the first area of investment before any generation sources.
• Utilities get back $4.76 for every $1 invested in the Focus on Energy program. The program has saved enough energy to avoid the construction of at least one, if not multiple, full-sized power plants. Residential and business customers save more than $60 million per year.
• Since Wisconsin relies on imported fuel for energy, efficiency programs help keep money in the state by supporting local contractors, manufacturing, and retailers. Broader social benefits include reduced water usage and greenhouse gas emissions, as well as corresponding health benefits.
• Focus on Energy offers a range of programs for all paying customers to participate in. Budgets are allocated such that both business and residential customers pay into programs they can benefit from. Participation is easy, and outreach efforts reach populations that are historically underserved.
• Businesses, like the Ahlstrom Thilmany Paper Mill, can access energy advisors, who identify areas of improvement and oversee projects to improve energy efficiency. Businesses report that these advisors can be even more valuable than the financial incentives associated with energy efficiency upgrades.
• Energy-efficient technologies often have a high up-front cost, meaning incentives need to be provided. Lifetime costs, which include up-front costs and the energy costs of operating the appliance over its life cycle, are often lower for customers. Contractors, with supporting information from Focus on Energy, can provide guidance on these trade-offs.
• ENERGY STAR® provides a valuable foundation for energy efficiency programs through testing, research, and explanations on what energy-using products are above or below the program’s efficiency threshold for an ENERGY STAR label.
• Energy load growth and utility bills are rising, and the national consensus from commissioners is that the most cost-effective source of energy supply is energy efficiency.
• The National Association of Regulatory Utility Commissioners came to the same consensus in February 2026, agreeing to a resolution that says that energy efficiency should be the first source of investment.

 

Mark Trzyna, Regional Manager, Daikin Comfort

• Daikin has three core efficiency-related technologies: heat pumps, inverters, and R-32 refrigerant. Heat pumps move heat either in or out of the home, depending on the mode of operation, rather than generating it. Inverters, used to operate heat pumps, manage energy use by controlling motor speeds. Refrigerants run through heat pump systems, and R-32 has a lower global warming potential than other refrigerants and makes the system run more efficiently.
• Most U.S. homes use unitary split systems (73%) or inefficient window units (15%) for air conditioning. Many consumers buy new systems only when their old one unexpectedly breaks, usually when it is either very hot or very cold, making quick replacement time their main concern.
• Unitary split products are generally made up of condensers, which take heat from the home and put it outside to cool the home, and heaters, which generate heat to distribute it throughout the home. By contrast, heat pumps transfer heat during both seasons, depending on whether the consumer wants to heat or cool their home.
• Inverter technology has transformed heat pump technology. Heat pumps are now a smaller, quieter, more efficient option than gas furnaces, with the ability to maintain 100% capacity at as low as −5°F to −15°F.
• About 40% of energy consumed in North America is in heating, air conditioning, and water heating. For individual homeowners and small businesses, those costs could be up to 60% of the utility bill.
• Gas furnaces can generate heat with up to 98% efficiency, while heat pumps have the ability to deliver three to five times that efficiency, since they move heat instead of producing it.
• Daikin built its North American headquarters just outside of Houston, Texas. In addition to housing its corporate U.S. headquarters, the campus has 4.3 million square feet of manufacturing space and research and development labs. Daikin can distribute nearly five million units out of the facility annually. Daikin also has a Sustainability and Innovation Center in Washington, D.C., that is open for visitors.
• Daikin wants to help buyers make the right decisions for their homes. Daikin provides buyer’s guides to support people in selecting the most energy-efficient technologies for their homes.

 

Q&A

 

Q: What is a common misconception on Capitol Hill about energy efficiency, and how would you dispel such misconceptions?

Bulick:

• The biggest misconception right now for contractors is building trust with customers. Contractors are seen as trying to upsell jobs, both in the low-income weatherization world and the new construction world. Ultimately, most contractors are not upselling to make more money, but rather they are often trying to make the home more efficient, which will cost the homeowner less money over time—and good results bring good business. 

Trzyna:

• A big misconception is not knowing how far heating, ventilation, and air conditioning (HVAC) technology has progressed.
• Another would be the impact of inverters. Inverter compressors have the ability to reduce energy consumption, make homes healthier, and deliver comfort.

 

Q: The American Affordability Act of 2025 (H.R.6900) would restore the tax credits that were in place under the Inflation Reduction Act (IRA) (P.L. 117-169). Specifically, it would restore the 30% energy efficiency tax credits on the consumer side. How reliable have these tax credits been for incentivizing energy-efficient upgrades? 

Bulick:

• Tax credits have been very reliable. The energy efficiency industry—specifically contractors—suffered when the incentives were lost. The rebate programs and incentives help contractors sell jobs, upgrade homes, and decrease energy consumption.
• The tax credits used to encourage weatherization, energy efficiency, and solar energy. The repeal was devastating to the homeowners who are trying to establish energy independence and reduce the strain on the grid.
• Uncertainty around the political climate and the repeal of legislation such as the IRA is causing contractors that specialize in weatherization and energy efficiency to feel unsteady about their jobs, leading to a labor gap as fewer workers stay in or enter the field. This lack of skilled tradespeople leads to exacerbated prices.

Trzyna:

• HVAC purchases are usually done under financial stress, with 80% of consumers buying base efficiency products. This gives contractors a talking point to try to convince consumers into purchasing long-lasting and energy-efficient technology. HVAC systems commonly see a 15- to 17-year life, with that shortening to 10 or 12 years in the South and 20-plus years in milder climates. Because of this, opportunities to replace systems with energy-efficient systems, instead of the cheapest option, are infrequent and need to be capitalized on.
• The up-front purchase cost plays a significant role in what systems are bought, and prices have gone up dramatically. Up-front cost reductions and back-end rebates are both important.

 

Q: How do delays in federal funding impact businesses and homeowners?

Bulick

• Bipartisan support for the Weatherization Assistance Program (WAP) reauthorization was critical. WAP needs to be reauthorized. Under WAP, there needs to be an increase in the average cost of upgrades per dwelling unit, which has not changed in 17 years outside of the baseline 3% increases. The average cost per unit is critical because it affects permitted labor rates. If the number is low, the salary of an energy auditor, field technician, or crew lead cannot be increased.

 

Q: What are some immediate things that people can do to improve the energy efficiency of their homes or businesses?

Trzyna

• Consumers do not have to invest in new HVAC systems immediately, but they should start researching them. Education, through avenues like the Daikin buyer’s guides, can help people be prepared for future repairs or replacements.

Bulick

• Have an energy audit evaluation done on homes by an industry expert. Energy audits are offered through utility programs and can be ratepayer funded for income-qualified individuals.
• For moderate-income homes, look into ENERGY STAR programs and appliances. ENERGY STAR appliances can provide instant, enduring savings while assuring consumers of the quality of the appliance they are buying.
• There are many components in an energy-efficient house: proper insulation, no leaks, and an efficient HVAC system.

 

Q: If contractors had easy access to utility data, how could this help customers?

Trzyna

• When selecting an HVAC system, life-cycle performance is critical. In addition to the up-front cost, the total cost of ownership is driven by the system’s electricity consumption every year. Data from homes in Maryland shows that inverter-based systems use two thirds of the energy that single-stage units do. Understanding those numbers, and the resulting cost differences helps consumers understand what they will pay over the total life cycle.

Bulick

• Every residential building works as a system, and data access allows consumers and contractors to disaggregate energy consumption. Energy consumption is broken down into three parts: baseload consumption, summer cooling, and winter heating.
• Data access is critical to weatherization and energy efficiency professionals in order to successfully complete energy audits and understand the home as a system.

 

Q: What is the difference between energy bill data and the kind of data that utilities would be able to provide to allow for these smart decisions?

Bulick

• Some utilities have algorithms built into their customer portals that provide information on the baseload and summer and winter loads, which is very helpful. However, access to that data varies from utility to utility.

 

Q: Looking ahead, is there something that you are particularly excited about in terms of energy efficiency and helping customers save money?

Trzyna

• Daikin just released new technology, along with other manufacturers, that can enhance HVAC systems. In particular, Daikin is looking at how to make inverters that work particularly well for different regions of the United States.

Bulick

• People’s awareness of their energy use is increasing due to rising energy costs. This awareness is influencing consumers as they purchase new appliances, with an eye towards options that will reduce energy use.
• Homes and commercial buildings also increasingly have the potential to be connected and act as a virtual power plant.

 

Compiled by Andie May Hardin and Aastha Singh and edited for clarity and length. This is not a transcript.