Home Energy Savings Calculator
Calculates projected dollar savings on heating and electricity bills from comprehensive home weatherization packages (air sealing, attic insulation upgrades, high-efficiency heat pump conversions, and LED retrofits) using standard DOE building simulation data.
Formula
Annual Utility Spend = (Electric × 12) + (Heating × 12); Annual Savings = Annual Spend × Savings % (15% to 35%)
1. Total Annual Utility Spend = (Monthly Electric × 12) + (Monthly Heating × 12) 2. Upgrade Savings Factor: Attic Only = 15%; Comprehensive = 25%; Full Electrification = 35% 3. Annual Dollar Savings = Total Annual Spend × Savings Factor 4. 10-Year Cumulative Savings = Annual Dollar Savings × 10 × (1 + 0.03 annual utility rate inflation) 5. Inflation Reduction Act (IRA) Federal Tax Credit (25C) = Up to $1,200 (Insulation) or $2,000 (Heat Pump)
Inputs
- Conditioned Home Floor Area
- Average Monthly Electric Bill ($)
- Average Monthly Heating Bill ($ / Gas / Oil)
- Primary Heating Fuel
- Planned Weatherization Upgrades
Worked example
Calculating savings from Comprehensive Air Sealing + R-49 Attic Insulation.
Outcome: Total annual energy bill is $3,600. A comprehensive air sealing and insulation package reduces heating/cooling demand by 25%, saving $900 every year ($10,317 over 10 years with energy inflation). Eligible for up to $1,200 in Section 25C federal tax credits.
What federal tax credits exist for home insulation and heat pumps under the Inflation Reduction Act?
The Section 25C Energy Efficient Home Improvement Credit covers 30% of the cost of insulation and air sealing (up to $1,200/year) and 30% of heat pump installations (up to $2,000/year), resetting annually through 2032.