Energy Savings Calculator

Compare the cost of energy improvements vs. long-term savings on your utility bills.

The federal energy credits ended after 2025

Public Law 119-21, enacted July 4, 2025, terminated both residential energy credits early. The Energy Efficient Home Improvement Credit (§25C — insulation, HVAC, windows, doors) is not allowed for property placed in service after December 31, 2025, and the Residential Clean Energy Credit (§25D — solar, battery storage, geothermal) is not allowed for expenditures made after December 31, 2025, with an expenditure treated as made when the installation is completed. This calculator therefore estimates $0 in federal credits. Budget the full installed cost, then check your state energy office and utility for programs that still run. See the IRS FAQs on Public Law 119-21 and Home Energy Tax Credits.

Current Monthly Energy Bill

State

Select Improvements

Insulation15–25% savings

$1,500–$4,500

New HVAC System20–30% savings

$5,000–$12,000

Smart Thermostat10–15% savings

$150–$500

Energy-Efficient Windows10–20% savings

$5,000–$15,000

Solar Panels50–90% savings

$15,000–$35,000

Estimated Annual Savings

$600

/year · $50/month

Savings by Improvement

Insulation

$600/yr

Est. Cost

$3,000

Payback

5.0 yrs

10-Yr Net

$3,000

Tax credit: None — the §25C credit ended after 2025Get insulation cost estimate →

Total Investment Summary

Total Cost

$3,000

Payback Period

5.0 yrs

10-Year Net Savings

$3,000

Est. Federal Tax Credits

§25C and §25D both ended after 2025

Tips for Maximizing Energy Savings

✓ Start with insulation and air sealing — they offer the fastest payback for most homes.
✓ There is no longer a federal credit to time your projects around, so sequence them by payback instead — do the fastest-paying work first.
✓ Check your state energy office and utility company for rebates. With the federal credits gone, these are the only incentives left for most homeowners.
✓ Schedule a professional home energy audit to identify the highest-impact improvements for your specific home.
✓ Solar panels still offer the largest long-term savings, but the 30% federal credit no longer applies to a 2026 installation — check state and utility programs before you assume the old payback math.

Get Insulation Cost Estimate →Get Solar Panel Cost Estimate →

Frequently Asked Questions

Can I still claim the federal 25C tax credit?

Not for work done now. The Energy Efficient Home Improvement Credit (§25C) covered 30% of the cost of improvements like insulation, HVAC systems and energy-efficient windows, up to $3,200 per year within category-specific limits — but Public Law 119-21, enacted July 4, 2025, ended it for property placed in service after December 31, 2025. If your project was placed in service in 2025 or earlier and you have not filed for that year yet, you can still claim it on that year's return. See the IRS Home Energy Tax Credits page.

Does the 30% solar ITC still apply?

No. The Residential Clean Energy Credit (IRC §25D) covered 30% of a solar system's total cost with no cap, but Public Law 119-21 — enacted July 4, 2025 — ended it for expenditures made after December 31, 2025. The expenditure counts as made when installation is completed, so a system finished in 2026 gets no federal credit. This calculator therefore adds nothing for solar in the credit estimate. See the IRS Home Energy Tax Credits page.

Which improvement has the best ROI?

Insulation and air sealing typically offer the fastest payback (2–5 years), while solar panels provide the largest total savings over 10–25 years. Smart thermostats are the most affordable starting point with a payback under 2 years.

Do energy savings vary by state?

Yes, significantly. States with higher energy costs (like Hawaii, Connecticut, and Massachusetts) see larger dollar savings from the same improvements. Many states and utilities also run their own rebate programs, and with the federal credits gone those are now the incentives that matter.