When people talk about closing costs and other expenses to prepare for when you buy a new home, they often forget to mention furniture, gadgets and new decor. And after 15 years of living in apartments, when I moved into a house, there was a lot to purchase.

Suddenly, I had a separate dining room. And a living room that can fit an L-shaped couch. And a kitchen with enough storage space to finally fit my KitchenAid stand mixer. A backyard where we could grill! A basement where we could work out! Wonders never ceased, but those wonders have a price attached.

My husband and I have been slowly filling up the space, and I try to take advantage of sales seasons so we can save at least a little on all the purchases. Now is a great time to do that as Amazon Prime Day kicks off this week, setting off sales at other retailers, and as we approach annual Fourth of July season sales. We're starting our first full summer in the house, and here's what I'm looking out for. If I already made (or am specifically planning to make) a purchase, I'll let you know what I went with.

Items for hosting

One of the best parts of having a house is getting to host your friends and family, but it helps to have some key supplies. Here's what I'm looking at.

Drink pitchers

My ideal symbol of hosting is a pitcher of iced tea or lemonade at the ready when someone comes over, so I need pitchers. I looked for a glass pitcher over plastic so I can potentially run it through the dishwasher, but mostly so I don't have to think about microplastics.

Amazon option: This 1-gallon square pitcher has a strainer option on its lid, which is useful if you're making something like sangria or lemon-infused water. The list price is $41.23, and it's currently listed for $32.99.

Alternative option: This 64-ounce glass pitcher from Walmart is smaller than the Amazon option but has a more appealing design. It's typically $13.99 but currently lists for $12.59.

What I ended up getting: The lidded options are definitely functional, but I liked the aesthetic of this 80-ounce glass pitcher from Crate & Barrel for $14.95. If you've just moved, Crate & Barrel has a "new mover" promotion for a discount.

Drink dispensers

Along with multifunctional pitchers I can use for bringing water to the dining room table, I wanted a glass drink dispenser I could use for making batch cocktails.

Amazon option: This highly rated dispenser comes with a blackboard sign so you can write what the drink is along with the dispenser. It comes in 1-gallon, 1.5-gallon, and 2-gallon sizes, and it also has the option of getting two dispensers that sit side-by-side on a stand. There is a Prime Day Deal on it, and the 1-gallon set of two with a stand is $32.75 (list $38.99).

Alternative option: Target has a lot of handy home goods, including this stylish 1.8-gallon dispenser with a wooden stand. It's $34.99.

What I ended up getting: We're back at Crate & Barrel with a splurge: This 1.5-gallon dispenser with a marble stand is on sale as part of the company's 4th of July Warehouse Sale. Originally $154.90, it's 10% off.

Cornhole set

If you're having friends and family over, it's nice to have a noncommittal activity available to them, like cornhole. I thought this would be a simple purchase, but there are many different cornhole set options available, from regulation-sized to strictly portable. Let's get into it.

Amazon option: Amazon Basics has a portable set available made out of plywood. It has 4.5 stars from 2,500 reviews and is priced at $73.49.

Alternative options: You can get a Rec League regulation-sized set from Dick's Sporting Goods. It's usually $169.99 but is on major sale for $99.98.

REI sells a backpack cornhole game if you want one to be able to bring somewhere easily, for $39.95.

What I ended up getting: Believe it or not, this was a Costco purchase. Costco has a basic GoSports all-weather set with a simple but classic design. It's $159.99. If you're not already a member, you can get $40 back on a Costco membership.

Backyard fun

I'm excited to have a backyard to relax in. Here's what will make it more fun.

Grill

It's not a backyard summer without a grill. Grills come in all shapes, sizes and price points, so this is where it would help to do some research and pick out what you want, then see if it goes on sale.

Amazon option: Amazon has many Traeger grills, including this portable electric wood pellet grill and smoker. There is a Prime Day Deal on this for $422.61 (list price $499.99).

Alternative option: Lowes has some short-term sales on grills now, including this black pellet grill from PitBoss that has smart compatibility. Normally $749, it's $649 until June 24.

What I ended up getting: Following a friend's lead, we want to get a Weber grill — and you can get those at Costco, with delivery available. This gas grill, for example, is currently $110 off through June 28, coming in at $889.99. There's also a promotion going on through July 25 to save money if you buy multiple Costco Direct items on the same order. If you're not already a member, you can get $40 back on a Costco membership.

Patio umbrella

I was lucky to get a set of patio furniture from my parents that they didn't use anymore, but it's missing an umbrella. Here are some new options.

Amazon option: This 9-foot table umbrella comes in a multitude of colors and has 4.4 stars from over 5,000 reviews. The list price is $58.99, and it's currently on sale with a Prime Day Deal for $39.99.

Alternative options: If you don't have a table to put the umbrella in, try this 15-foot umbrella with a base from Walmart. It's typically $209.99, but certain colors are on sale for $119.99.

If you're a Sam's Club member, check out their patio furniture option. This 10-foot cabana umbrella is selling for $159.97.

Inflatable pool

If you don't buy a house with a pool, you might as well get the next best thing. Inflatable pools are great to have handy if you have grandchildren or nieces and nephews who visit — or if you're an adult who wants to relax outside on a hot day without going to a public pool.

Amazon option: This actually is the option I'm purchasing, based on a recommendation from a friend: An inflatable "tanning pool" lounger made for adults with a pillow to lean back on and cup holders for your lemonade. An extra-large option is typically $45.99 but is currently on sale with a Prime Day Deal for $31.99.

Alternative options: If you're looking for something more for kids, Target has an inflatable pool with a play center and a mini slide. It's usually $117.99 but is on sale for $45.99 (a whopping 61% off), and it has just over four stars from 79 reviews.

If you want something to imitate a real backyard pool, Walmart has an above-ground inflatable pool. A 12-foot version is usually $169.99 and is currently on sale for $109.99.

Summer activities

An exciting part of moving to a new place is getting to explore its public spaces. My new town has a lake and parks accessible to residents, as well as lots of summer concerts and movie screenings. Here's what I'm looking at to make the most of those resources.

Picnic blanket

Whether you're heading to a park or a beach, it's helpful to have a large picnic blanket. Here are some options I found.

Amazon option: This large beach blanket is made with sand in mind, and it has 4.7 stars from over 14,600 reviews. The list price is $28.98, and it's currently on sale with a Prime Day Deal for $18.97.

Alternative option: Target has an extra-large picnic blanket (70 by 80 inches) that's quilted for extra comfort. It's usually $39.99 and is currently on sale for $25.59.

What I ended up getting: I envision using this mostly for relaxing at a local park, so I needed something large and water-resistant for dewy grass. This XL picnic blanket tote from Macy's seems to fit the bill, according to reviews. It's usually $80 but has a Limited-Time Special price of $48.

Beach towels

I wanted to make sure I had extra beach towels so I have something to offer visiting friends if we go to the town pool. Here's what I looked at.

Amazon option: Amazon Basics has a couple of options of 100% cotton beach towels with the classic cabana stripe design. Their list price is $23.26.

Alternative options: If you want to get a few towels to have on hand, Walmart has a 4-pack of colorful beach towels. Usually $40.99, it's on sale for $29.99.

What I ended up getting: This was another Macy's purchase for me during their most recent sale: Striped cotton towels from The Beach House. Their list price is $50 each, but they currently have a Today Only price of $16.99.

Practical items

Now, living in a house is not all fun (inflatable pool!) and games (cornhole!) all the time. There's also upkeep to take care of. Here's what I'm managing, if it helps give you ideas.

Smart thermostat

Pretty much every time there's a sale season, I check for sales on smart thermostats so I can slowly but surely change out my outdated system.

Amazon option: Amazon has its own branded smart thermostat that you can link up with your Alexa. The list price for one thermostat is $79.99, and it's currently on sale with a Prime Day Deal for $57.99.

Alternative option: You can also buy thermostats directly from the manufacturer. Many HVAC experts I've talked to speak highly of the Ecobee; the Premium thermostat is usually $259.99, but is currently on sale for $209.99.

What I ended up getting: Once you start with one system, you basically have to keep going with it, so I always look for sales on Google Nest thermostats. A 4th gen learning thermostat is on sale at Best Buy for $239.99 (list price $279.99).

Dryer vent cap

This is a small detail, but homeowners know the value of paying attention to small details. In this case, a proper dryer vent could mean the difference between enjoying your summer or spending your summer fending off a wasp nest in your dryer vent.

Amazon option: Amazon offers a 4-inch dryer vent cover with a magnetic door and lint trap. It's usually $12.99 but has a Prime Day Deal for $9.99.

Alternative option: If a magnetic door seems a bit too much, Walmart has this classic dryer vent cover designed for airflow. It's $10.

What I ended up getting: My dryer vent is a good target for birds because of where it is on the house, so I went for this airtight dryer cover from Home Depot. It's $19.97.

Weeding tool

As your yard soaks in the sun and warmth, so do weeds. If you, like me, are in a battle against weeds, here are some good buys.

Amazon option: When I told the editor of the Kiplinger Retirement Report that I'd started gardening, he told me I needed to get a Japanese weeding tool for the most efficiency. This weeding sickle from Suizan is on Amazon for $27.80, and I'm keeping an eye out to see if it goes on sale.

Alternative options: Target has a 40-inch weed puller tool that allows you to do more while standing. It's usually $69.99 and is on sale for $39.99.

You could also skip the individual tools and invest in a whole set. Home Depot has a 9-piece gardening tool set with a functional tote bag from Misopily. It's usually $77.62 and is on sale for $72.27.

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At some point in the future, somebody is going to go through all your stuff and throw out most of it. If you don't do it while you're still in good health, someone else will, after you suffer a medical emergency or you pass away. Do your heirs a favor and reduce your own stress by culling your possessions now.

It isn't easy. Discarding things that remind us of loved ones often brings up grief and guilt. And it's maddening to realize that the nice couch or rug we splurged on has no monetary value. Sociologist David J. Ekerdt at the University of Kansas, whose team interviewed more than 100 Americans over the age of 60 for his book Downsizing: Confronting Our Possessions in Later Life, says his research showed “it is an act of courage and of prudence” to confront the thousands of possessions we've accumulated over decades.

With that, here are 10 tips to get started.

1. Set your goal. Matt Paxton, author of Keep the Memories, Lose the Stuff, has his decluttering clients write their goal on a card, which he tapes on a wall. And he sets a deadline. When one client said she wanted her home tidy enough to have friends visit, he had her invite friends for dinner three weeks from that date. “Decluttering is like dieting or fitness. It's very easy to quit,” he says.

2. Don't buy those cute storage bins yet. Aspiring declutterers can be led astray by social media pictures of beautifully lit homes in which all the toys, towels or cleaning supplies are artfully stored in handsome baskets, says Jill Quigley, a professional organizer in Omaha. Some start decluttering by buying bins, which just creates more clutter. Instead, begin by organizing and reducing your stuff. Then, shop for storage solutions that fit your smaller stockpile.

3. Get help. Ekerdt says downsizing works better when you have help. If you're looking for more than just an extra pair of hands, expect to pay between $60 to $200 an hour for an organizing professional. Not only will they keep you motivated and focused, but many specialize in disposal — knowing which items to sell and where to sell them, and which organizations will take donations of non-sellable stuff.

Try searching for locals through professional organizations such as the National Association of Productivity & Organizing Professionals (NAPO) or the National Association of Senior & Specialty Move Managers. Erin Hayes, a professional organizer in New York City, says finding someone who is emotionally attuned to you is crucial, because deciding to toss beloved items can lead to anger and tears.

4. Categorize. Before you start tossing things, put them into categories. "I put like with like so you can see that you have three can openers or nine white tank tops," says Quigley. That makes it easy for clients to get rid of duplicates.

Categorization gets more challenging when it comes to knickknacks, but Kelly Brask, a professional organizer in Chicago and president of the Board of Certification for Professional Organizers, a division of NAPO, tries separating items according to the memories they inspire. That way, people can see how many things they are keeping to, say, remember a grandmother, and consider whether only one or two items are enough for that purpose.

5. Start small. Professional organizers suggest beginning with small, easy tasks. Hayes starts her clients with areas unlikely to spark memories or emotions, such as junk drawers or tool closets. Once they see those cleaned up and organized, they have more confidence to tackle bigger projects, she says. To prevent burnout, she limits decluttering to six hours a day.

6. Beware the "purger's high." Liberating yourself from clutter can feel so good that some people get into a tossing frenzy, says Cristiane Sgrott, an organizer in the Washington, D.C., area. Professional declutterers like herself shake every book, check every pocket and open every teapot. Sgrott has stopped clients on what she calls a "purger's high" from tossing out oven mitts and old shirt boxes where someone had hidden cash.

She also discourages clients from throwing potentially sensitive paperwork or electronics into trash bins. Instead, many businesses and community services offer shredding and secure recycling, she says. "You should be ruthless but not reckless."

7. Don't expect a windfall. One barrier to downsizing: Accepting the reality that you won't recoup much for things you paid a lot for. As baby boomers age and downsize, they're creating a flood of furniture and collectibles, says Julie Hall, director of the American Society of Estate Liquidators.

For realistic value estimates, view prices on sold items on eBay, or try pricing services such as WorthPoint, author Paxton suggests. Selling items yourself through a garage sale or online postings takes a great deal of time and effort, and typically yields comparatively little. Paxton prefers auction houses that handle all the work and offer both in-person and online bidding, such as Everything But The House, MaxSold and Bid-Rush. Such platforms typically take 30% to 40% of your earnings. “The 60% you will receive from the auction house is larger than the 100% you would get on your own,” says Paxton.

Don't expect much of a tax write-off for donating your stuff, either. Charities have become pickier about what they'll accept, and recent changes to tax law limit noncash contribution write-offs.

8. Leave a legacy of love. “You don't want to leave your friends and family with a house full of crap and a bunch of work. You want to leave a legacy of love,” says Brask. “Make sure they know what was important to you and why.” So pare your legacy down to a few meaningful items, and explain the stories behind those things, she says.

Take pictures of items to be discarded, and display those on an electronic frame or in a scrapbook. Paxton recommends an app such as Artifcts, which allows you to make and share videos about items. For a more formal memory handoff, consider setting up a show-and-tell video call or an in-person gathering of loved ones, he suggests.

9. No "maybe" pile, no storage. Declutterers typically sort their things into "keep," "sell," "give" and "trash" categories. Don't add a "maybe" pile, says Mary Kay Buysse, co-executive director of the National Association of Senior & Specialty Move Managers. "The 'maybe pile' is going to do you in, because that is what goes in storage units," she says. By renting a storage unit, you can end up paying thousands of dollars to store things you aren't even sure you want.

10. Avoid re-cluttering. Set up ongoing systems. Sgrott helps clients create labeled baskets, bins or shelves so everyone in the house knows where, say, shoes, batteries or charging wires go.

While many declutterers try to maintain practices such as "one in, one out" for any new possessions, T.K. Coleman, cohost of the Minimalist podcast, suggests a psychological approach. "I want to understand why I am in this position," says Coleman.

He asks, for example, "Am I using impulse purchases to compensate for loneliness?" Coleman tries to remind himself that "saying 'yes' to something you don't want is saying 'no' to something else," such as a clean table and a calm mind.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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There’s a certain point every year when your home can feel as if it’s bursting at the seams. Holiday decorations are stacked in corners, patio furniture and cushions are coming back out for the season, and somehow the closets that just felt organized are full again.

That’s when a storage unit can feel like the perfect solution. It’s quick, convenient and creates extra space without forcing you to decide what to keep, donate or throw away. But storage isn’t as simple as packing things away and forgetting about them.

What you put in a storage unit still matters. Some items won’t hold up over time, especially in spaces without climate control. Others can attract pests, create safety hazards or even violate storage facility rules. Before you start boxing things up, it’s worth knowing what should stay out of storage altogether.

Storage units feel like an easy fix for clutter

But not everything belongs in storage. Not every item you box up will come out in the same condition, or even be allowed in the first place. Storage facilities often have rules about what tenants can keep inside, and even items that aren't prohibited can deteriorate over time due to temperature swings, humidity, pests or neglect.

That means that what starts as a smart decluttering project can turn into an expensive mistake. Before you stash something away for months or years, it's worth considering whether it will survive storage.

When we asked readers of our A Step Ahead newsletter what they're keeping in storage, the answers ranged from quirky collectibles to treasured family keepsakes. Readers reported storing everything from beer can collections and rocket-launching tubes to antique spinning wheels, oversize stuffed animals and a baby doll buggy that has been in the family since 1945.

Those responses highlight an important reality: Storage units often become homes for the items we value most, whether they're collectibles, family heirlooms or pieces of personal history. That's why it's especially important to know which belongings are at risk of damage and which items might not belong in storage at all.

Here are 10 items that don't belong in storage and why keeping them there could cost you.

1. Perishable food and pantry items

Food might seem harmless, but it's one of the quickest ways to create problems inside a storage unit. Pantry staples, pet food, even unopened snacks can attract rodents and insects. Once pests find a food source, they often spread beyond the food itself, damaging boxes, fabrics, furniture and other stored belongings.

Food can also spoil over time, creating unpleasant odors and increasing the risk of contamination, so many storage facilities prohibit food storage altogether.

2. Hazardous or flammable materials

Items such as gasoline, propane tanks, paint, cleaning chemicals and fireworks are almost always prohibited in storage units, and for good reason. These materials can leak, ignite or create hazardous fumes, posing serious safety and fire risks.

Even if nothing goes wrong, storing prohibited materials could violate your rental agreement and lead to penalties or the loss of your unit. As a general rule, if an item is flammable, combustible or corrosive, it shouldn't be placed in a storage unit.

3. Important documents and sentimental items

It's tempting to store paperwork or keepsakes you don't use often, but a storage unit isn't the best place for anything that's difficult or impossible to replace.

Birth certificates, Social Security cards, financial records and family heirlooms can all be damaged by moisture, fire or theft. Even well-maintained facilities can't eliminate those risks entirely.

For items with significant financial, legal or sentimental value, consider storing them in a fireproof safe at home or a bank safe-deposit box instead.

4. Electronics (without climate control)

Electronics don't handle extreme temperatures or humidity well. Heat can warp internal components, while moisture can lead to condensation, corrosion and permanent damage. That old laptop, TV or gaming console you're trying to save for later might not work when you retrieve it, especially if it's been sitting in a non-climate-controlled unit for months or years.

If you need to store electronics, consider renting a climate-controlled unit. These units maintain a more consistent temperature and humidity level throughout the year, helping protect sensitive components from heat, cold and moisture.

It's also a good idea to pack electronics in their original boxes when possible or use sturdy containers with padding to protect them from dust, impact and shifting during storage. Before putting devices away, remove batteries, back up important data and cover equipment with breathable materials rather than plastic, which can trap moisture.

5. Clothing and fabrics

Clothing, linens and upholstered items can quickly fall victim to mold, mildew and pests when stored improperly. In humid conditions, fabrics absorb moisture and develop musty odors or visible mold growth. In drier environments, natural fibers can become brittle, while insects such as moths might damage clothing and textiles.

If you need to store fabrics, make sure everything is clean and completely dry before packing it away. Use breathable garment bags for clothing, acid-free boxes for delicate textiles and sturdy plastic bins with tight-fitting lids for items that need extra protection from pests.

For valuable garments, consider using a wardrobe box that allows clothing to remain hanging and wrinkle-free. Climate-controlled storage can also help protect fabrics from temperature and humidity fluctuations.

Without proper preparation, the clothes, linens and upholstered items you store today might not be in usable condition when you retrieve them months or years later.

6. Wine and alcohol

Wine is particularly sensitive to temperature fluctuations and prolonged exposure to heat. When stored improperly, corks can dry out and shrink, allowing air to enter the bottle and spoil the wine. Excessive heat can accelerate the aging process, alter flavors and, in some cases, permanently damage the contents. Even short periods of exposure to extreme temperatures can affect quality.

If you have a wine collection, consider storing it in a wine refrigerator or another temperature-controlled environment designed for long-term preservation. Ideally, wine should be kept at a consistent temperature with moderate humidity and minimal exposure to light or vibration.

While some storage facilities offer climate-controlled units or specialized wine storage options, a standard storage unit is rarely the best choice for protecting a valuable collection.

7. Tires and unregistered vehicles

Some storage facilities allow vehicles, but often with strict requirements. Unregistered vehicles, leaking fluids and improperly stored tires can create safety, environmental and fire hazards. Tires, in particular, can degrade over time when exposed to fluctuating temperatures and might be restricted by some facilities due to disposal and safety concerns.

Before storing a vehicle or extra tires, review your facility's policies carefully. Many sites offer dedicated vehicle storage for cars, motorcycles, boats, RVs and ATVs, either in outdoor parking spaces or enclosed units.

These specialized storage options might provide additional security, protection from the elements and features such as battery maintenance or climate control. Choosing the right type of storage can help protect your property and prevent costly damage while it's not in use.

8. Live plants or animals

This might sound obvious, but it still happens. Storage units aren’t designed for living things. They lack ventilation, light and consistent temperatures.

These are conditions that can quickly become fatal for plants or animals. In addition to ethical concerns, this can also create sanitation issues and attract pests.

9. Wet or damp items

One of the most common, and costly, storage mistakes is putting items away before they’re completely dry.

That includes:

• Carpets or area rugs cleaned right before moving
• Recently used outdoor gear
• Appliances such as mini fridges or coolers
• Boxes packed during a rainy move

Moisture trapped in a sealed space creates the perfect environment for mold to grow. Once it starts, it spreads quickly. One damp item can ruin an entire unit.

10. Anything extremely valuable or irreplaceable

Even in a secure facility, storage units aren't immune to theft, fire, water damage or natural disasters. If an item has significant financial or sentimental value, think carefully before storing it off-site.

Insurance could help cover some losses, but coverage limits, exclusions and deductibles can leave you paying out of pocket. For many heirlooms, collectibles and family keepsakes, replacement simply isn't possible. When possible, keep valuable items in a location where you can monitor and protect them more closely.

If you choose to store high-value belongings, create a detailed inventory, take photos and keep records of their condition and estimated value. You might also want to review your homeowner, renter or storage insurance coverage and consider additional protection for valuable collections.

The real cost of storing the wrong items

A storage unit might seem as if it's a modest monthly expense, but the costs can add up quickly over time. Depending on the size, location and amenities, you could pay anywhere from $75 to $200 a month, or roughly $900 to $2,400 a year. Add-ons such as insurance, climate control and administrative fees can push that total even higher.

The bigger risk is paying to store items that lose value while they're sitting there. Moisture, temperature fluctuations and pests can damage belongings, turning a storage solution into an expensive replacement project.

Before signing a lease, consider whether the items you're storing are worth the ongoing cost and whether they'll still be in good condition when you need them again. Storage units can absolutely help you stay organized and create breathing room at home. But they’re not a catch-all solution.

Before you pack something away, ask yourself a simple question: Will this item hold up in a dark, enclosed space for months at a time?

If the answer is no, or even maybe, it’s worth finding a better option.

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If you own an electric vehicle, time is running out to take advantage of the EV charger tax credit. The Alternative Fuel Vehicle Refueling Property Credit covers up to 30% of the cost of a home EV charging station, including eligible hardware and installation expenses, up to $1,000.

The credit was originally extended through December 31, 2032. However, the GOP's One Big Beautiful Bill eliminated the tax credit, and it's now set to expire on June 30, 2026.

If you've been considering installing a home charging station, you might want to act soon to take advantage of the credit before it disappears.

Where you install the charger matters

To qualify for the credit, the IRS (PDF) requires you to install the charger in a home in an eligible low-income community census tract, or a nonurban census tract. According to the IRS, about two-thirds of Americans live in census tracts eligible for the credit.

A census tract is a small geographic region or neighborhood as defined by the U.S. Census Bureau. Census tracts allow the government to collect and organize data about these specific areas.

To determine if you live in a tract that’s eligible for the tax credit, use the U.S. Department of Energy 30C Tax Credit Eligibility Locator, which allows you to look up your address, and it identifies whether your home is in an eligible tract.

Not every home will qualify for the credit. If you have a second home, the charger must be installed at your primary residence to qualify for the credit.

Which types of EV chargers qualify

The EV charger tax credit applies to Level 1 and Level 2 chargers; the chargers must be new.

Level 1 chargers use standard 120V outlets and can be used for lighter charging needs, but most homeowners install Level 2 chargers, which are faster and can fully charge typical electric vehicles overnight.

When shopping for an EV charger, consider how you tend to use your vehicle, your typical charging needs and the types of features that you might want.

For example, smart scheduling can charge your vehicle during off-peak times when energy rates are lower, and smart chargers can provide detailed summaries of energy usage and can send you notifications to remind you to charge your car.

Both the hardware and the installation could count toward the tax credit.

Below are a few top-rated Level 2 EV chargers we found:

Do you need an electrician?

Many Level 2 chargers require professional installation. Depending on the location of the charger and the capacity of your electrical panel, an electrician might need to upgrade the panel to handle the additional electrical load.

The installation will typically require an electrical permit, which a licensed electrician can usually obtain on your behalf. If you live in a homeowners association (HOA), you might also need approval before installing a charger.

Installing a charger can become more complicated if you rent your home or live in a condo. In these situations, you might need approval from a landlord, property owner or condo board. You might also have to follow building rules or bylaws that could affect where the charger can be installed or what type of charger you can use.

What records should you keep for the tax credit?

It's essential to carefully organize and keep records of the charger installation for the tax credit. As you move through the process, be sure to retain the following:

• Receipts. Keep receipts for the charger, related equipment and installation costs.
• Permits. Save all permit paperwork, including the signed permit card showing the installation passed inspection.
• Electrician invoices. Retain all invoices from your electrician, including charges for permits, panel upgrades and installation work.
• Proof of payment. Keep proof of payment for all expenses, such as credit card statements, receipts or canceled checks.
• IRS Form 8911. You'll use IRS Form 8911 to claim the tax credit when you file your taxes. Be sure to keep an extra copy of the form for your records.

Is it worth rushing before the deadline?

Installing an EV charger is a significant project, so it’s important to research your options and choose a charger that fits your needs.

That said, the tax credit could provide meaningful savings. Most home chargers cost between $500 and $900, while installation can range from about $1,000 to $3,000 depending on the complexity of the project and the condition of your existing electrical panel.

For example, if your total project cost came to $2,800, you could potentially receive an $840 tax credit. If you were already planning to install a charger, it might be worth completing the project before the June 30 deadline.

To meet that deadline, though, you’ll likely need to move quickly, especially if permits are required.

Start contacting electricians now to check their availability and ask whether they believe the installation can realistically be completed in time.

To qualify for the EV charger tax credit, the installation must be fully completed by June 30.

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Given rising energy costs, renters are looking for alternative ways to save on electricity. Plug-in solar panels are one potential solution, and they're quickly gaining traction because of their ease of use. Lawmakers in Maine, New Hampshire, Vermont, Massachusetts, Connecticut and Rhode Island are all advancing proposals that would allow residents to use plug-in solar systems that connect to standard home outlets.

Plug-in solar systems, also called balcony solar systems, are smaller alternatives to traditional rooftop panels. These systems typically feature a compact solar panel that can be placed on a balcony or patio, without the need for complex installation.

That simplicity makes balcony solar a more practical option for renters who want to offset some electricity costs without making permanent changes to a rental unit. As interest in plug-in solar grows, states are beginning to revisit regulations around the technology, while renters weigh whether the potential savings justify the upfront cost.

Why renters are suddenly interested in portable solar

Rising electricity costs are likely driving the growing interest in portable solar systems. According to the National Energy Assistance Directors Association, average summer residential cooling bills are projected to reach $778 in 2026. That's an 8.5% increase from last year's average bill of $717 and a 37.2% increase since 2020.

Traditional rooftop solar panels can help offset those costs, but they remain out of reach for many renters. Rooftop systems are expensive, require professional installation and permanently alter a building's structure, meaning tenants would typically need a landlord's approval before installing them.

Balcony solar systems offer a more flexible alternative. These smaller systems generally cost less upfront, don't require permanent structural changes and can move with a renter from one property to another.

How much money can renters actually save?

Balcony solar setups will not power an entire rental property, but they can help offset some everyday electricity use. Most plug-in systems on the market range from about 400 to 800 watts, which is typically enough to help power smaller appliances like a Wi-Fi router and standby electronics.

The exact savings will depend on the size of the system you buy, your electricity usage, local utility rates and how much direct sunlight your panels receive. In many cases, renters may save anywhere from about $10 to $50 per month, with higher savings possible in states where electricity costs are more expensive, according to EnergySage.

Over the course of a year, a well-placed system in a sunny location could offset several hundred dollars in electricity costs.

How much do balcony solar systems cost?

Balcony solar systems can vary significantly in price depending on their size, battery storage capacity and portability features. Smaller plug-in systems designed to offset basic apartment electricity use may cost a few hundred dollars, while larger systems with battery backup and indoor power storage can range from about $2,000 to more than $3,000.

Some of the most recognizable brands in the portable solar market include Jackery, EcoFlow and Anker. Many of these systems combine portable solar panels with battery storage, allowing renters to store power for later use or provide backup electricity during outages.

More expensive systems typically offer larger battery capacity, faster charging speeds and greater flexibility for indoor and outdoor use. But renters should also consider whether the potential energy savings justify the upfront cost. In some cases, it could take several years of lower electricity bills to offset the price of a premium solar energy system.

Before buying a balcony solar kit, renters should consider portability, balcony space, sunlight exposure and whether the unit has appropriate safety certifications. Smaller apartments with limited direct sunlight may not generate enough electricity to justify a larger setup.

Below are a few standout solar power kits we found:

The legal gray area around plug-in solar in the U.S.

While plug-in solar adoption is already widespread in countries like Germany, regulations in the United States are still evolving.

Some states are beginning to ease restrictions on balcony solar systems. Utah has passed legislation making it easier for renters to use plug-in solar panels, while California and Illinois are considering broader legalization efforts. In some cities, renters may still need permits or approval before installing a system, so accessibility can vary depending on where you live.

Many of these regulations stem from utility and safety concerns tied to how solar systems connect to the electrical grid. Traditional rooftop solar systems are professionally installed and include technology designed to prevent excess electricity from flowing back into the grid.

Most balcony solar systems work differently. Rather than feeding large amounts of power into the grid, they are typically designed to help offset electricity used directly inside a rental unit. But some laws and local regulations do not yet distinguish between rooftop and plug-in systems, meaning renters may still face permit requirements or installation restrictions.

What renters should know before buying a system

Before you buy a plug-in solar system, consider the following factors:

• Landlord and HOA considerations: Rental agreements and HOA regulations may restrict the use of balcony solar systems. Before buying a system, check your lease and any building or community rules to confirm that plug-in panels are allowed.
• Safety certifications: Since these systems connect to your home's electrical system, safety certifications matter. UL Solutions has developed a testing and certification standard for plug-in solar systems based on UL 3700. Look for certified systems and avoid cheap or uncertified products.
• Sun exposure: Your savings will depend heavily on how much sunlight your panels receive. Balconies with limited direct sun or heavy shade may produce far less energy, reducing the return on your investment. The direction your balcony faces can also affect performance.

Could balcony solar become mainstream?

Europe has already embraced balcony solar, offering a glimpse at how the technology could expand in the United States. Germany has become one of the leading examples of adoption. According to Euronews, more than one million plug-in solar systems were installed in Germany between 2022 and 2025. Government incentives and falling solar equipment prices have likely helped fuel that growth.

Alternative energy sources like solar may help renters and homeowners reduce electricity costs, but the future of balcony solar in the U.S. will likely depend on how quickly states update regulations and make the systems easier to install and use.

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Memorial Day weekend often marks the start of summer fun, when many people pull patio furniture, kayaks and golf clubs back out of storage. But for households short on space, self-storage units can help keep seasonal gear, bulky items and overflow clutter out of the garage and basement until they’re needed again.

Self-storage has become increasingly common in the U.S. The industry now includes more than 2.1 billion square feet of storage space, and about one in three Americans currently uses self-storage, with another 18% planning to rent a unit in the future, according to SpareFoot.

In a recent survey of Kiplinger’s A Step Ahead newsletter readers, 61% of those surveyed said the main reason they rent a storage unit is a lack of space at home.

Furniture was the most commonly stored item at 72%, followed by seasonal decorations at 61% and sentimental items at 50%.

Still, storage only makes sense for certain items. Before renting a unit, think carefully about what you truly need to keep and whether the monthly cost is worth it. These 10 items tend to be some of the best choices for storage.

Furniture and household overflow

Sofas, tables, bed frames and spare mattresses are all big, bulky items that you can put into storage.

If you’re downsizing your home, preparing to move or rotating decor in your home, putting these items in storage can give you extra space while letting you swap favorite pieces in and out when you want a different look.

Before storing fabric items like couches and mattresses, cover them with furniture covers, sheets or breathable plastic wrap to help protect them from mildew, musty smells, dust and pests while they’re in storage.

Many basic furniture covers cost less than $20 and can help keep your items in better condition over time.

Seasonal decor and holiday items

Consider putting seasonal decor and holiday items, like artificial trees, inflatables and specialty decorations, into a self-storage unit. When you only use these items a few months out of the year, storing them can help reduce clutter in your everyday living space.

Clear plastic totes can make storage much easier since you can quickly see what’s inside without opening every box. Add simple labels to each tote so your holiday and seasonal items are easy to grab and go when you need them.

For bulky items you don’t want ruined, like wreaths, tree skirts or oversized decor, large clear zippered storage bags can help protect them from dust, moisture and damage.

A little planning can cut down on trips to your storage unit, too. When you drop off one season’s decor, pick up the next season’s items during the same trip.

Clothing and wardrobe overflow

A storage unit can be excellent for your overflow clothing items. You can store off-season clothes, like bulky coats and specialty items, until you need them, freeing up closet space.

Wash and fully dry the clothes before you store them, and use wardrobe boxes for any items that are usually hung. Be sure to invest in proper storage for clothes. These plastic storage bins are great for items like T-shirts and pants. Include some cedar chips or blocks to help repel insects.

Sports and outdoor equipment

Outdoor equipment like bikes, skis, golf clubs and camping gear take up a lot of space in your home, so consider putting these items in storage. While these items are bulky, if you use them regularly, you can probably justify the cost of storing them.

To keep everything organized and easy to grab, consider using a bike rack or rolling sports storage cart inside your unit. Keeping gear upright and grouped together can help prevent damage and make it easier to quickly load up for your next outing.

Business inventory and side hustle supplies

If you're running a business or side hustle, supplies like inventory, packaging materials, and tools can quickly take up space in your home.

A storage unit can be a good place for these essentials, and you can periodically draw down from your supply and bring home what you’ll need for the coming month or two.

Self-storage can be especially helpful if you run an eBay or Etsy shop or operate a small business from home. Keeping inventory, packaging supplies and seasonal products in storage can free up valuable living space while helping you stay more organized.

In some cases, you may also be able to deduct the cost of a storage unit used for business purposes on your taxes, so keep receipts and track your expenses throughout the year.

Documents and records (stored the right way)

You can declutter those documents and records you're storing at home by moving them to a self-storage facility, freeing up space in desks, drawers and filing cabinets.

Just make sure that you store documents and records the right way. Invest in quality document containers that will protect the paperwork inside in case of a flood.

Avoid storing any items that are irreplaceable or treasured. Consider digitizing documents so you can shred the paper copies entirely.

Durable collectibles and media

If you have durable collectibles, like books, vinyl and decor collections, you may be able to move these items to storage. Focus on choosing items that won't degrade easily, and pack them in sealable containers to help protect them from damage.

You may want to invest in a climate-controlled storage unit to help protect the items. If you'll be storing anything valuable, look for a facility with strong security measures, including security cameras and gated access.

Vehicles and large equipment

You can also rent space for cars, motorcycles, and lawn equipment, leaving your driveway and yard looking neater. Many storage facilities allow you to store vehicles in drive-up units, but be sure to verify the facility's rules ahead of time.

Keeping vehicles under a car cover can help preserve them while not in use, prolonging their life and helping maintain their value.

If you need to store tires independently of a vehicle, that can be a different story; tires are flammable, so they're usually prohibited. That said, facilities that let you store vehicles will usually let you store the vehicles with their tires on them, but you can't store extra, separate tires.

Appliances

If you’re in between moves, remodeling your home or planning a future upgrade, it might make sense to keep your current appliances instead of rushing to replace them. Storing appliances can save you the cost of buying new ones while temporarily getting these bulky items out of your home.

Before placing appliances into storage, clean and fully dry them to help prevent mold, mildew and odors from building up over time. Leaving appliance doors slightly cracked can also help improve airflow while they’re stored.

Kids’ items you plan to reuse

As the children in your life outgrow items like baby gear, toys and furniture, you may want to place some of those items into storage if you plan to reuse them in the future. Storing practical items like bassinets, high chairs, seasonal clothing and durable toys can save money if you expect to need them again for another child or grandchild.

Before storing children’s items, clean and dry everything thoroughly and place smaller pieces in labeled bins so they’re easier to find later. Be selective about what you keep, though.

Some products, including car seats, cribs and certain baby gear, can expire or fall out of current safety standards over time, making them better candidates for donation or disposal instead of long-term storage.

Storage makes sense when it solves a space problem — not when it delays a decision

Storage units can make sense when you use them for seasonal, bulky or high-value items that you'll use again. But it’s easy to fall into the trap of paying a storage fee month after month to hold onto things that you don't need.

If you're storing items that you truly no longer need, the cost can quietly add up and outweigh the benefit. Be strategic about what you decide to store and balance storing items with donating the things you won't use again.

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The red-hot real estate market of the past few years has cooled somewhat, and buyers now have more options. That shift puts more pressure on sellers to make a strong first impression, especially if you want your home to sell quickly.

Today’s buyers are more prepared. Many are touring homes with a clear checklist in hand. In fact, Redfin notes that buyers often rely on house hunting checklists to compare features, condition and overall value. That means your home needs to check the right boxes from the start.

The good news: You don’t need a full remodel to stand out. A handful of targeted upgrades can improve your home’s appeal and help attract serious buyers.

The exterior upgrades that can help your home sell faster

Boosting your home’s curb appeal often delivers the fastest payoff because it shapes a buyer’s first impression before they even step inside. And that first look matters. According to a RE/MAX poll, 46.2% of respondents said a shabby exterior is the biggest turnoff when touring a home.

Your home’s exterior sets expectations for what buyers will find inside. If it looks clean, well-kept and inviting, buyers are more likely to feel confident about the rest of the property and move forward with a showing.

Start with simple, high-impact updates. Painting the front door is one of the easiest ways to refresh your home’s appearance. Research from Zillow shows that door color can influence both curb appeal and sale price, with black front doors selling for about $6,449 more than comparable homes, and slate blue doors attracting premiums of around $1,537.

From there, focus on overall cleanliness and maintenance. Pressure washing siding, driveways and walkways can quickly make your home look newer and better cared for. A basic landscaping refresh, such as mowing the lawn, trimming bushes and adding fresh mulch, can further elevate the look without requiring a major investment.

Most of these upgrades can be completed in a weekend, but they can have an outsized impact by attracting more buyers early in the process and helping your home stand out in a more competitive market.

Refresh walls and lighting for a quick reset

Refreshing your interior walls can quickly transform how your home feels to buyers. Clean walls in a neutral, lighter shade help rooms look brighter, larger and more move-in ready, all of which can increase appeal during showings.

A fresh coat of neutral paint is one of the most cost-effective upgrades you can make, but it delivers a strong visual impact. While you are updating walls, take the opportunity to improve your lighting as well. Swapping outdated fixtures and using brighter, warm-toned bulbs can make spaces feel more inviting and highlight your home’s best features.

Look for simple ways to maximize light throughout the home. Replacing a large piece of wall art with a mirror can reflect natural light and create the illusion of more space. Lighter, neutral curtains can also help brighten a room, especially when they are fully open during showings to let in as much natural light as possible.

These small updates work together to create a clean, airy feel that helps buyers better picture themselves living in the space.

Make small kitchen updates instead of a full remodel

You can improve your kitchen’s appeal without committing to a full remodel. In many cases, smaller updates deliver a better return. According to WM Construction, minor kitchen remodels can yield returns of about 112.9%, compared with roughly 50% for full gut renovations.

Focus on simple, visible upgrades that modernize the space. Swapping out cabinet hardware and faucets is an easy way to give your kitchen a more updated look. Painting cabinets in a neutral color can achieve a similar effect to a full replacement at a fraction of the cost.

Other affordable updates, like installing a new backsplash, can quickly refresh the overall feel of the room. Replacing outdated fixtures and choosing stainless steel, energy-efficient appliances can also make a strong impression, signaling to buyers that the kitchen is both functional and up to date.

These targeted improvements can make your kitchen feel current and well-maintained, without the time or expense of a major renovation.

Clean, declutter and fix the little things

A thorough deep clean can significantly improve your home’s appeal to potential buyers. Start by decluttering and cleaning each room from top to bottom, or consider hiring a professional if you do not have the time to handle it yourself.

Pay close attention to odors, especially those related to pets or cooking. If possible, open windows to bring in fresh air and create a cleaner, more inviting environment during showings.

While you are preparing your home, take care of small repairs that buyers are likely to notice. Fix leaky faucets, chipped paint and loose handles, and regrout bathroom tile if needed. These minor updates are inexpensive, but they signal that the home has been well maintained.

Together, a clean, clutter-free space and a handful of simple fixes can make your home feel move-in ready and help buyers focus on its best features.

Create simple outdoor living appeal

Make the most of your outdoor space to help buyers picture themselves enjoying the home. Even a simple setup can create a strong impression. Consider adding a small seating area, a fire pit or outdoor lighting to a yard or patio to define the space.

Layer in a few finishing touches to make the area feel inviting. Potted plants, outdoor pillows, candles, a rug or a light throw can add warmth and comfort without requiring a major investment.

These small updates can make outdoor areas feel like an extension of the home, which is especially appealing to buyers. A functional, welcoming outdoor space can help your home stand out and may even contribute to a faster sale.

What not to do before selling

As you make a list of your home upgrades, be sure to avoid some common mistakes:

• Over-personalized upgrades: Avoid bold design choices that may not appeal to a wide range of buyers, such as bright paint colors, unusual flooring or themed rooms. The goal is to create a space that feels neutral and inviting, not one that reflects a specific taste.
• Luxury renovations: High-end upgrades like in-ground pools, marble countertops or adding a walk-in closet can be expensive and often do not deliver a strong return. In many cases, buyers will not pay enough of a premium to offset the cost. Focus on smaller, cost-effective improvements instead.
• Letting personal taste lead: It is easy to design for your own preferences, but what appeals to you may not resonate with buyers. Features like a pink front door or a bold-colored appliance can feel like projects buyers will need to undo. Stick with simple, neutral updates that appeal to the broadest audience.

Small updates can speed up your sale — without overspending

You do not need a full overhaul or a contractor to get your home market-ready. A series of simple, low-cost improvements can make a difference, especially when they are visible to buyers during a showing.

These updates help create a space that feels clean, well-maintained and easy to move into, making it easier for buyers to picture themselves living there. That emotional connection can be what turns interest into an offer.

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If you need cash for a major expense, you might be considering tapping your home equity. With a home equity line of credit (HELOC), a home equity loan or a cash-out refinance, you can access the equity in your home and use that money for renovations and other expenses.

But it’s more important than ever to understand the potential risks that come with tapping your home equity. According to the Intercontinental Exchange Mortgage Monitor report, Americans hold approximately $17 trillion in total equity, with about $11 trillion tappable.

High home values and limited inventory have resulted in equity-rich but cash-constrained households. Using your home’s equity can be a risky move, so be sure you understand all of the factors involved before deciding if this is the right decision for you.

Borrowing costs remain elevated, with new pressures in 2026

Home equity borrowing is still relatively expensive, and recent economic conditions are adding more uncertainty to where rates go next.

As of April 2026, average home equity loan rates are hovering around the 8% range, according to Bankrate:

• 5-year home equity loan: 7.89%
• 10-year home equity loan: 8.02%
• 15-year home equity loan: 8.00%

Rates vary based on credit score, loan-to-value ratio and lender.

These rates are noticeably higher than what many homeowners are used to, especially those who locked in mortgage rates below 4% in recent years.

At the same time, the Federal Reserve has held rates steady through its January and March meetings, signaling a more cautious approach to rate cuts. That means borrowing costs tied to the prime rate, including HELOCs, have remained relatively high so far this year.

Geopolitical tensions, including the ongoing war in Iran, are also contributing to inflation pressure, particularly through energy prices. That added uncertainty can make it harder for rates to move lower in the near term.

In this environment, the type of loan you choose matters more. Home equity loans offer fixed rates, which can provide predictable payments. HELOCs typically come with variable rates, meaning your costs could change over time. Meanwhile, mortgage rates, which affect cash-out refinancing, tend to follow the 10-year Treasury yield and remain sensitive to inflation and broader market conditions.

When tapping your home equity can make sense

Tapping your home equity may make sense when you’re using the funds for a clear, high-value purpose. For example, you might finance home improvements that increase your property’s value, helping offset the cost of borrowing over time.

Some homeowners also use home equity to consolidate high-interest debt. Replacing a credit card balance with a rate around 20% with a lower-rate home equity loan or HELOC can reduce interest costs and simplify payments.

Home equity can also help cover large, planned expenses, such as education costs or major medical bills. In these cases, the value of the expense may justify the interest you’ll pay. Used intentionally, home equity can be a strategic financial tool — not just a way to cover everyday spending.

Use the tool below, powered by Bankrate, to explore and compare today's home equity loan and HELOC options from multiple lenders:

When tapping your home equity could be a risky move

Tapping your home equity can be risky. When you use your equity, your home is collateral. If you default on your loan, you could face foreclosure.

HELOCs have variable interest rates. While your interest rate could drop, it could also rise, meaning your payments could be larger than you anticipated, and you might ultimately pay much more in interest than you’d planned.

It’s also possible to overborrow home equity. When paired with market uncertainty resulting in fluctuating interest rates and home values, overborrowing could increase your chance of defaulting on your loan and facing foreclosure. It's always best to borrow no more money than you absolutely need, which will also help minimize what you pay in interest.

Home equity loan vs. HELOC vs. cash-out refinance

Let’s take a look at how three methods of accessing home equity compare:

• Home equity loans are fixed-rate loans, so you’ll have predictable, set payments throughout the loan’s term.
• HELOCs are revolving credit lines that you can draw from, repay and reuse. They offer flexibility, but variable rates mean your payments can change over time.
• A cash-out refinance replaces your existing mortgage with a new, larger loan, resetting your interest rate and loan terms.

Since many homeowners are locked into ultra-low mortgage rates, refinancing tends to be a less attractive option right now.

Timing matters more than most borrowers realize

Timing matters when tapping your home equity. Rates could fall later in 2026, but that’s far from certain. Waiting might help you secure a lower rate, but it could also work against you if home values decline or lending standards tighten.

The key is balancing timing with necessity. If you’re facing a time-sensitive expense, such as an urgent home repair or education costs, waiting for a better rate may not be practical.

How to decide if borrowing is right for you

This simple checklist can help you decide if borrowing against your home equity is right for you:

• Do you have a clear purpose? Tapping home equity is risky, so make sure that your purpose justifies that risk.
• Can you comfortably afford payments? With your home as collateral, you risk foreclosure if you can’t make the payments.
• Are you choosing the right product? Be sure you understand the pros and cons of each home equity product to choose the one that’s best for your situation.
• Have you compared lenders? Rates, terms and loan costs can vary from lender to lender. Compare quotes from multiple mortgage lenders to find the best option.

Think beyond access to equity

Home equity can be a powerful financial tool, but it comes with real risk. Because your home is on the line, it’s important to borrow with a clear purpose and a plan to manage the payments.

The decision isn’t just about whether you can access the funds. It’s about whether using your equity supports your broader financial goals and makes sense given today’s rates and market conditions.

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As mortgage rates ease from their recent highs, home equity lines of credit (HELOCs) are regaining traction among homeowners looking for flexible ways to borrow.

At the same time, many homeowners are sitting on record levels of equity after years of rapid home price growth that began during the pandemic. That combination is driving a shift away from cash-out refinancing and toward HELOCs as a more adaptable financing option.

But HELOCs aren't the same as they were a few years ago. New lender rules, evolving rate dynamics and tighter borrowing requirements are changing how these loans work in practice. Understanding those changes is key to deciding whether a HELOC fits your financial strategy in 2026.

What's changing with HELOCs and why it matters

A growing shift toward nonbank lenders is reshaping how HELOCs are structured. In the past, banks and credit unions dominated the market and typically allowed homeowners to open a line of credit without requiring an immediate draw.

Today, nonbank lenders, including institutional investors and fintech companies, are introducing stricter terms. Some now require borrowers to draw a minimum percentage of the credit line upfront, which can limit flexibility and might not align with how many homeowners prefer to use a HELOC.

Traditionally, many homeowners used HELOCs like a credit card, drawing only what they needed, repaying it, and borrowing again as needed. But that flexibility is starting to change. According to HELN News, some lenders are beginning to require an initial draw of 50% or more of the credit line, with certain products requiring even higher amounts. These requirements move away from the traditional borrow-as-you-go model.

Being forced to take a larger upfront draw can significantly increase the costs of a HELOC. Borrowers might end up paying interest on money they do not need yet, while also taking on higher monthly payment obligations. That added financial strain can become risky, especially if income changes unexpectedly.

How HELOC rates really work (and why timing matters)

HELOC rates are variable, which means they can change over time based on broader interest rate movements. Most HELOCs are tied to the prime rate, which is closely influenced by decisions made by the Federal Reserve. According to The Mortgage Reports, changes in Fed policy can filter through to HELOC rates and monthly payments within weeks.

The Federal Reserve sets the federal funds rate, a key benchmark that influences borrowing costs across the economy. When the Fed raises or lowers that rate, banks typically adjust the prime rate in response. Because HELOCs are priced using the prime rate plus a lender margin, those changes can directly affect how much borrowers pay, both now and over the life of the line of credit.

The Federal Reserve cut the federal funds rate several times in late 2025 but has held rates steady at its most recent meetings. As a result, HELOC rates remain relatively elevated, hovering in the low-to-mid 7% range, according to Bankrate. While many forecasts call for rates to gradually decline this year, that path is far from certain.

Borrowers opening a HELOC now could benefit if rates move lower. But variable rates cut both ways. With economic conditions still uncertain, there is also a risk that rates stay higher for longer or even rise again, which would push HELOC payments up over time.

How to compare HELOC offers like a pro

Since every lender sets their own HELOC terms and rates, it's important to shop around and compare offers. Consider the following factors as you evaluate HELOC offers:

• Look for draw flexibility: Choose a HELOC with no minimum initial draw requirement. The ability to borrow only what you need, when you need it, can help reduce interest costs and keep payments manageable.
• Compare margin and index, not just the teaser rate: Introductory rates are temporary and often last 12 months or less. Focus on the lender's margin and the index, typically the prime rate. Together, these determine your long-term rate once the teaser period ends.
• Check rate caps and adjustment frequency: HELOC rates can adjust as often as monthly. Most lenders set a lifetime cap on how high your rate can go, and some include periodic caps that limit how much it can increase at one time. These details directly affect your risk and potential payment changes.
• Watch fees closely: HELOCs can come with appraisal, application and title fees, along with ongoing costs like annual maintenance or inactivity fees. Closing costs might range from little to no upfront cost to as much as 2% to 5% in some cases.

Use the tool below to explore and compare some of today's top home equity offers:

When a HELOC makes sense — and when it doesn't

HELOCs can be a good fit in certain situations, particularly for home improvement projects where costs might change and funds are needed in stages. They can also help cover short-term liquidity needs, giving you flexibility to borrow and repay as expenses arise.

Some homeowners use a HELOC to consolidate higher-interest debt. While this can lower borrowing costs, it comes with added risk. Because HELOCs have variable rates and are secured by your home, missed payments could put your property at risk.

In other cases, a HELOC might not be the right choice. If your income is unpredictable or you might struggle to keep up with payments, the risk increases significantly. HELOCs are also less suitable for long-term borrowing, where a fixed-rate loan can offer more stability and predictable payments.

Keep in mind that payments can rise over time. If you aren't confident you can handle higher costs down the road, a HELOC might not be the best option.

Alternatives that might offer better value

Several alternatives might provide a better value and better overall fit than a HELOC:

• Home equity loan: A home equity loan offers a fixed interest rate and predictable monthly payments, which can make budgeting easier over time. This stability can provide peace of mind compared with a variable-rate HELOC.
• Cash-out refinance: A cash-out refinance replaces your existing mortgage with a larger one, allowing you to take a portion of your home equity as cash. With rates still relatively high, this option might not make sense right now, but it could become more attractive if borrowing costs decline.
• 0% introductory APR credit card: If you have strong credit, you might qualify for a card with a 0% introductory APR for 12 to 21 months. This can be a cost-effective way to finance short-term expenses. However, once the promotional period ends, rates can jump significantly, often into the teens or higher, so any remaining balance could become expensive quickly.

Smart borrowing strategies Kiplinger readers can use

If you're considering a HELOC, put smart borrowing strategies to use:

• Borrow in stages: Rather than maxing out your line with a large initial draw, borrow in stages as you need the money. This strategy can help avoid paying interest on funds that you didn't actually need.
• Lock in fixed-rate portions: Some lenders give you the chance to convert part of your HELOC balance into a fixed-rate loan. This option offers more predictable interest and payments, while the remainder of your HELOC retains that variable interest rate.
• Use a HELOC as a tool: HELOCs are a tool to help with short-term funding needs. They're not ideal as a long-term crutch. If you need a long-term funding solution, look at other options, such as a home equity loan.
• Match borrowing to ROI: Consider the return on investment (ROI) you'll get from a HELOC. For example, you might use the funds for a renovation that can significantly increase your home's value. Make sure that the ROI justifies the cost and the potential risk of a HELOC.

Used strategically, HELOCs can be valuable tools to help with your short-term funding needs. Just be sure that you understand how this tool works and that it's really the best option for your needs.

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Home renovations can be stressful, especially when communication is unclear or plans change midproject. Hiring the right contractor can make the difference between a smooth renovation and a costly, frustrating experience.

Because contractors oversee everything from scheduling and budgets to permits and building codes, it’s essential to choose someone who is skilled, knowledgeable and reputable.

Asking the right questions before you hire can help you compare candidates, set clear expectations and protect both your home and your budget, so you can feel more confident as the project begins.

Start with basics: Licensing, insurance and credentials

When you look for a contractor, it's important to begin with questions that establish whether they’re properly qualified for the work you need.

These basics can help you quickly narrow your list and avoid hiring someone who isn't legally or professionally prepared to handle your renovation. They also protect you from potential liability if something goes wrong.

• Are you licensed for this type of project? Ask which licenses the contractor holds, and confirm that they meet your state's licensing requirements for the specific type of work your project involves.
• Do you have liability insurance and workers' compensation coverage? Without proper insurance, you could be held financially responsible for injuries or property damage that happens on your project. It's important to hire a contractor who is fully insured.
• Are you bonded? A bonded contractor carries a surety bond, which is a financial guarantee that certain losses will be covered if the contractor fails to complete the job or meet legal obligations, such as pulling permits.
  

Background and experience

Ask about the contractor's background and experience to ensure they're prepared for the specific type and scope of your home renovation.

Not every contractor specializes in the same kind of work, and experience with projects such as yours can make a big difference in how smoothly things go.

• How long have you been in business? Ask about the contractor's experience, and be sure to also ask how many projects they’ve completed.
• Have you done projects like mine? Get specific and find out how many similar projects the contractor has completed. Look for a contractor who has experience with the same type of renovations, whether you’re updating your kitchen or are putting on an addition.
• Can you provide recent references? Ask the contractor to provide several recent references, then take the time to contact those references. Ask them not only about the type and quality of work performed, but about their entire experience working with the contractor and if they would choose to hire them again.

It's also a good idea to check online reviews and referrals for a comprehensive understanding of what people are saying about the contractor.

Along with online reviews and referrals, verify the contractor's license and insurance with your state or the issuing insurer to confirm their credentials are current.

Scope, permits and process

Asking detailed questions about the project's scope helps set realistic expectations and avoid surprises that can delay the project or increase costs. Rules around permits and inspections, in particular, can play a major role in how smoothly — or slowly — a renovation moves forward.

• Will you handle permits and inspections? If your project requires permits, a contractor who will handle that process can help ensure the job runs smoothly, plus it means you don’t have to worry about the permitting process.
• What is your process from start to finish? Get details on how the contractor works, including how they'll manage each element of the project.
• Do you manage design, materials and subcontractors? Getting specific about these details now can help you better understand what the contractor will handle and what might be left up to you to manage.
• What is included — and what’s excluded? Ask the contractor to clearly identify what they do and what they don't do during a project. Identifying any gaps now can help you plan.

Timeline, schedule and disruption

Renovation schedules can be notoriously difficult to manage, so ask plenty of details about the project’s timeline.

• When can you start work? Highly sought-after contractors often have multiple projects scheduled, which can delay their start date. Confirm that their availability works with your timeline.
• How long will it take? Ask for an estimated renovation duration, but remember that the timeline might change, and delays often occur.
• What’s the daily schedule onsite? Understanding the daily work schedule can help you plan your own schedule, or even determine if you need to move out of your home during the renovation.
• How will you protect my home and property during construction? Get details on specifics such as how the contractor will protect your floors or keep dust out of the rest of your home during the project.

Budget, bids and payment terms

Ask detailed questions about project costs and payment terms so you can stay in control of your renovation budget. Be sure to get written, itemized estimates from multiple contractors so you can compare pricing, scope and what's included before you commit.

• Is the bid a fixed price or estimate? A fixed price bid gives you a definite, predictable price, while an estimate could change significantly. Be sure you understand which price the contractor is providing.
• What’s the payment schedule? Contractors will often require an initial deposit, then you'll make additional payments when certain project milestones are achieved. This schedule needs to be clearly identified before you sign your contract.
• How are change orders handled? Changes can and do arise midrenovation. Get details on how the contractor handles such situations.

Communication and decision making

Good communication can prevent small issues from turning into bigger problems and helps you stay informed throughout the renovation. Ask contractors how they communicate and make decisions so expectations are clear from the start.

• What’s your preferred contact method? Some contractors prefer phone, while others will text or email. Clarify what the contractor prefers ahead of time.
• Who is my point person? The contractor should be able to give you a single point person with whom to communicate, which can help avoid miscommunication and confusion.
• How often should I expect updates? Some contractors communicate more often than others. Clarifying update frequency will help give you an idea of what to expect and whether the contractor’s communication frequency aligns with your expectations.  
• What happens if issues arise or timelines slip? Find out how a contractor has handled these issues in the past to make sure they're prepared to handle them if they arise during your project.

Watch for red flags

As you speak with contractors, pay attention not just to their answers, but to how they communicate and conduct themselves. Certain behaviors can signal potential problems down the road, so watch for these red flags:

Large upfront cash requests or pressure to sign quickly. Upfront deposits are typically 10% to 30% of the renovation's total cost. If a contractor is pressuring you for a much larger deposit or wants you to sign a contract very quickly, look for another contractor.

Refusal to put details in writing. Contractors should be willing to put all these details in writing, since it protects both you and the contractor. Only work with a contractor who provides a full, detailed contract.

Inconsistent or vague answers. If a contractor doesn't provide satisfactory and consistent answers to your questions, you won’t be able to fully trust them with your project.

Lack of references. An experienced, skilled contractor should be able to provide you with plenty of references. If they can't, look for a different contractor.

After the hire: Contracts and documentation

Once you decide to hire a contractor, they should provide you with a detailed contract, including the renovation's scope, timeline, warranty, payment terms and a dispute process. Read and understand the contract before you sign it, then keep a copy of the document that you and the contractor signed in a safe place.

Keep a file of permits, receipts, change orders and correspondence with the contractor throughout the duration of the project. Hopefully, you won’t encounter any issues during your renovation, but if you do, these documents can help you navigate them.

Planning a major home upgrade? Tapping your home's equity through a HELOC or home equity loan can provide flexible funding for renovation costs. Rates and terms vary by lender, so it's worth comparing offers before you choose.

Use the tool below, powered by Bankrate, to explore and compare some of today's top offers:

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With a home equity line of credit, or HELOC, you can use your home’s equity to cover costs like renovations, education or emergency expenses. With Americans collectively holding about $17.3 trillion in home equity, a level not seen in decades, many homeowners now have more borrowing power than they realize.

A HELOC’s flexibility is appealing, but your monthly payment can shift based on your credit, loan terms and interest rate. Understanding how those factors work is key before tapping your equity.

Here’s what a $50,000 HELOC may cost each month and how to decide if this type of financing fits your needs.

What affects your HELOC payment?

Many factors affect your HELOC payment, so it’s important to consider your specific situation and how these factors will impact your rates:

• Credit score: If you have a high credit score, you’re more likely to qualify for a lower HELOC interest rate. If your credit score is lower, though, you’ll probably have a higher interest rate. Keep in mind that even if you have a HELOC already, if your credit score drops during the loan term, your lender might increase your interest rate because they consider you a higher-risk borrower.
• HELOC term: Your HELOC term will affect your rates, too. Shorter terms usually carry lower interest rates, and longer terms will typically have higher interest rates. Most HELOCs consist of a draw period ranging from five to 10 years, during which you make interest-only payments. The repayment period can last 10 to 20 years, and during that period, you’ll be repaying the principal and interest, meaning your payments will increase.
• Loan-to-value ratio: Your loan-to-value ratio compares the amount of your loan to your home’s appraised value. The lower this ratio is, the less risky lenders consider you to be, meaning you’re likely to get a lower interest rate. According to First Merchants Bank, you’ll need a loan-to-value ratio of 90% or lower to qualify for a HELOC. For the best interest rates, your loan-to-value ratio should be 80% or less.
• Prime interest rate: Your HELOC interest rates are based on the prime rate, which is affected by the Federal Reserve’s actions. According to the Wall Street Journal, the average HELOC interest rate as of November 11 is 7.82%.
• Lender margins: In addition to the prime rate, each lender can add their own margins to determine your final interest rate. Lender margins can be negative or positive, and they vary from lender to lender. As a result, it’s best to shop around and compare quotes from multiple lenders before taking out a HELOC.
• Variable rate adjustments: Most HELOCs have a variable interest rate, so your interest rate can change throughout the term of your loan. As the prime rate fluctuates, your interest rate could increase or decrease, too.
• Rate cap: Many lenders implement an interest rate cap to protect you if interest rates decrease dramatically. Often, that cap is around 18%, but that can vary depending on your lender.

How much a $50,000 HELOC costs per month

Here’s an example of what a $50,000 HELOC could cost based on current rates and typical loan terms. The United Nations Federal Credit Union HELOC payment calculator makes this easy.

If you have excellent credit and a low loan-to-value ratio, you might qualify for an interest rate around 7.82%. With a 10-year draw period followed by a 20-year repayment period, your payments would begin as interest-only and later shift to principal and interest.

The table below outlines how those payments break down:

Note: These payments don’t account for potential changes from a variable interest rate. Your actual monthly cost may increase or decrease over time.

HELOC vs. home equity loan: What’s the difference in monthly cost?

Like a HELOC, a home equity loan lets you borrow against your home’s equity, but the structure is different. A HELOC gives you flexibility to borrow only what you need during the draw period, while a home equity loan provides a single lump sum upfront.

Home equity loans also come with fixed interest rates, which means your monthly payment stays the same throughout the life of the loan. That predictability creates a very different cost profile compared with a HELOC’s variable rate and interest-only draw period.

Because of those differences, your monthly cost on a home equity loan may be more stable, while a HELOC’s payment may rise or fall over time.

Use the tool below to explore some of today's top home equity offers, powered by Bankrate:

Pros and cons of borrowing $50,000 from your home equity

There are several pros and cons to taking out a $50,000 HELOC. Its biggest advantage is flexibility. During the draw period, you can borrow, repay and borrow again up to your credit limit. For example, if your limit is $50,000, you could borrow the full amount, repay $15,000 and then borrow that $15,000 again whenever you need it.

This revolving structure makes a HELOC useful when you’re unsure how much you’ll ultimately need, such as when funding education costs or paying for a home upgrade or renovation.

During the draw period, another advantage of a HELOC is that your required payment typically covers only the interest, not the principal. You can choose to pay down the principal during this time, but the option to make interest-only payments keeps your initial costs lower. That trade-off does mean your principal and interest payments will be higher once the repayment period begins.

There are downsides to consider, too. Most HELOCs have variable interest rates, which can rise or fall throughout the loan term. Because your rate isn’t fixed, your monthly payment can change, and you’ll need to be prepared for potential fluctuations as the prime rate moves.

A HELOC also uses your home as collateral. If you’re unable to make the required payments, you could put your home at risk. It’s important to weigh that possibility carefully and make sure you’re comfortable with the long-term commitment.

When a $50,000 HELOC makes sense

A $50,000 HELOC can make sense in several situations. It’s often used for home improvements, particularly if the renovation is likely to increase your property’s value. It can also provide quick access to funds for large or unexpected expenses, such as medical bills, education costs or business startup needs.

A HELOC may also work as a debt consolidation tool. If you’re carrying multiple high-interest debts and qualify for a lower HELOC rate, you could use the line to pay those balances off and replace them with a single monthly payment. Just be mindful that HELOCs have variable interest rates and longer repayment periods, which could result in higher overall costs if rates rise.

As with any borrowing decision, it’s important to consider how predictable your expenses are and whether the flexibility of a HELOC aligns with your financial situation.

Tips before applying for a HELOC

If you decide a HELOC is right for you, it’s important to carefully shop around. Interest rates and rate caps can vary from lender to lender, so get multiple offers and compare them. Make sure that you understand all of the terms of the loan, and if you’re not clear on something, ask for more information.

A HELOC may be helpful in certain situations, but it’s not the right choice for everyone or every scenario. Consider the long-term affordability of this type of loan and make sure that you’re comfortable with the risks before you take out a HELOC.

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Homeowners today are sitting on a historic amount of real estate wealth. Americans collectively hold about $17.3 trillion in home equity, a level not seen in decades.

At the same time, borrowing costs tied to that equity have begun to ease. Many home-equity loans, home-equity lines of credit (HELOCs) and cash-out refinances have recently dipped below 8%, after peaking much higher during the rate-hike cycle.

With 2026 approaching, a year that could bring both lower interest rates and tax-law changes, many homeowners are weighing their options. Should they tap their equity now, or wait in hopes of better savings later? Here is how to think about the trade-offs.

When borrowing now makes sense

Pulling equity out before the year ends can be a smart move in several scenarios, especially if you’re using funds strategically. Here are a few reasons when tapping your home’s equity might make sense.

You’re planning a renovation or essential home project.

If your roof, HVAC system or major appliances are nearing the end of their lifespans, tapping equity can be far more affordable than turning to high-interest credit cards or personal loans. Even slightly lower home-equity rates can translate into substantial long-term savings on large projects.

You’re consolidating high-interest debt.

Credit card APRs regularly sit above 20%, so even a home-equity loan in the 7% range can slash interest costs. For disciplined borrowers who won’t fall back into high-interest balances, tapping equity can serve as a true reset for their budget.

You want flexibility and expect rates to fall.

A variable-rate HELOC lets you borrow only what you need when you need it, and you’ll only pay interest on the amount drawn. If market rates continue to decline into the new year, your HELOC payments could adjust downward accordingly.

You’re confident in long-term home value and stable cash flow.

If your income is steady and your local housing market remains resilient, borrowing today might offer a healthy balance of affordability and liquidity without adding unnecessary financial strain.

Why waiting could be smarter and what’s at stake

Patience can pay off, especially if rate forecasts hold. Here are a few reasons you might want to wait before tapping your home’s equity.

Additional rate cuts might lower borrowing costs.

Some analysts expect the Fed to continue trimming rates into 2026. If that plays out, fixed-rate home-equity loans and even cash-out refinances could become cheaper next year. Shaving even half a percentage point off a large loan can save thousands over time.

Fixed-rate borrowers stand to gain the most by waiting.

Unlike HELOCs, which can adjust downward as rates fall, fixed-rate loans require you to lock in a rate at closing. If you’re planning a major home improvement project next year, delaying could give you more room to secure a better deal.

But waiting isn’t without risk, since your home’s value or local market conditions could shift. In some markets, tighter lending standards or shifts in demand could make equity borrowing more restrictive over time. Unexpected expenses can also come up. If a sudden repair or financial emergency hits, you might be forced to borrow during a less favorable window.

Waiting can save you money, but only if market conditions move in your favor and your financial needs stay predictable.

If you haven't taken out a home equity loan or HELOC yet, use our home equity tool below, powered by Bankrate, to compare rates you can get today:

Common mistakes homeowners make when tapping equity and how to avoid them

One of the biggest mistakes homeowners make when borrowing against their home is using the funds for non-essential or short-lived expenses such as vacations, gifts or lifestyle upgrades. While tempting in the moment, these uses don’t build long-term value and often leave borrowers with years of additional debt.

Another common misstep is assuming HELOC rates will continue to fall. Variable-rate credit lines can be helpful for flexibility, but they’re also unpredictable. If rates rise again, monthly payments can climb quickly.

Homeowners also frequently borrow more than they truly need, simply because lenders approve larger credit limits. Taking the maximum available amount can put unnecessary pressure on your budget and increase overall risk.

To avoid these pitfalls, focus equity borrowing on essential financial goals like necessary home improvements or consolidating high-interest debt, choose the loan structure that aligns with your risk tolerance, and borrow only what’s needed to meet your objective.

Practical advice for homeowners evaluating their options

If you’re weighing whether to pull equity now or wait until 2026, take these steps to make a sound decision:

1. Calculate your current equity (realistically)

Review your latest mortgage balance and compare it with recent comparable sales in your area. Don’t rely solely on automated valuation tools, since they can be overly optimistic.

2. Clarify your purpose

Equity borrowing makes the most sense when it strengthens your financial health: Increasing home value or lowering interest costs. If the purpose is discretionary, it’s better to pause.

3. Shop aggressively for a lender

Rates, closing costs and terms vary widely. Don’t automatically default to your current mortgage provider. A difference of even 0.25% can significantly affect long-term cost. It pays to shop around for a mortgage lender, since each lender might offer different rates, fee structures and support.

4. Choose the right loan structure for your personality and goals

A HELOC works well for gradual projects or flexible cash needs because you can draw funds as you go.
A home-equity loan suits borrowers who want predictable monthly payments and a fixed repayment timeline.

5. Run the numbers before committing

Estimate monthly payments, total interest costs and the potential tax benefits. Under current IRS rules, interest on home-equity debt is tax-deductible only when the funds are used for qualifying home improvements. That’s worth factoring into your calculations.

Tapping your home equity before 2026 can be a strategic way to unlock lower-cost financing, but only if the timing aligns with your broader financial goals. Borrowing now offers certainty and flexibility, especially for homeowners facing immediate needs or high-interest debt.

Waiting, meanwhile, might yield better rates, but also carries risks tied to home prices, market conditions and unforeseen expenses.

The right move depends on your financial stability, long-term plans and comfort with rate fluctuations. Approach the decision carefully, run the numbers, and choose the option that delivers the best balance of cost, stability and opportunity for your household.

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• A New Kind of HELOC Lets Homeowners Fund Remodels on Their Terms

Anyone who’s tackled a home remodel knows costs can snowball fast, and today’s prices for materials, labor and financing don’t make it any easier. While mortgage rates have cooled slightly from their 2023 peak, many homeowners are still reluctant to refinance and lose their low rates.

That has sparked a new question: How can you fund a remodel without touching your first mortgage or maxing out credit cards?

Rather than relying on a traditional loan with fixed draws and paperwork-heavy funding, a growing number of lenders now offer flexible, card-based home equity lines of credit (HELOCs) that let homeowners tap their home’s value as needed. These hybrid products work much like a credit card, offering swipe access or digital transfers but with interest rates tied to home-equity lending rather than high-rate consumer credit.

Why homeowners are looking beyond traditional HELOCs

A standard home equity line of credit (HELOC) remains one of the most common ways to fund a home remodel. It offers a revolving line of credit secured by your home’s equity, typically with variable interest rates that are lower than most personal loans or credit cards.

But traditional HELOCs can feel rigid. Lenders often require a minimum draw amount, charge setup fees or impose strict repayment schedules. That’s where Trovy and similar platforms come in.

They combine the lower-rate borrowing power of a HELOC with the convenience and accessibility of a credit card. Instead of completing multiple forms and waiting for funds to transfer to a bank account, approved borrowers receive a Trovy card linked directly to their home-equity line.

With it, homeowners can pay contractors, purchase materials or move funds online, drawing only what they need, when they need it.

How a home-equity-backed card like Trovy works

Trovy’s model is designed for homeowners with built-up equity who want to finance projects gradually. You start by applying online, providing property details and verifying income and credit. Once approved, your line of credit is secured by your home but you don’t have to borrow a lump sum right away.

Instead, Trovy issues a HELOC card that functions like a credit card. You can use it for materials, appliances, contractor invoices and other purchases related to your renovation.

Because it’s tied to your home equity, the interest rate will likely be lower than a standard credit card. Trovy lists variable APRs in the 6% to 12% range, depending on your credit profile and available equity.

Other notable features:

• No minimum draw requirement. You only pay interest on what you use.
• No annual or closing fees. Trovy eliminates several costs that can make traditional HELOCs less appealing.
• Flexible repayment. Borrowers can pay down balances at any time without penalty.
• Tax-deductible interest. When funds are used for qualified home improvements, the interest may be deductible under IRS rules.

For homeowners managing multi-phase projects, say, a kitchen update now and a bathroom overhaul six months later, this flexibility can be a game-changer.

Real-world example: A remodel paid as it happens

Imagine a homeowner planning a $75,000 kitchen remodel. Rather than taking out a lump-sum home equity loan or depleting savings, they open a $100,000 Trovy line of credit. During construction, they use the Trovy card to pay a contractor’s $20,000 deposit and later buy $15,000 worth of appliances.

Because they’ve only drawn $35,000 so far, they pay interest on that amount, not on the full $100,000 line of credit. When phase two begins months later, they can use the same line to cover additional costs. This approach keeps cash flow flexible and helps avoid paying interest on unused funds.

It’s a modern take on the HELOC, built for how most renovations actually unfold one invoice, delivery or supply run at a time.

How Trovy compares to other funding options

The main advantage of a Trovy HELOC card is control. You can access your home’s value at lower rates than credit cards, but without the commitment of a lump-sum loan.

The trade-off is that, like any HELOC, your home is collateral. Missing payments could affect your credit or, in some cases, lead to foreclosure.

When Trovy makes sense and when it doesn’t

A home-equity-backed card is best suited for homeowners who:

• Have significant equity (at least 20%) and good credit.
• Prefer incremental funding over a single lump sum.
• Want a lower-interest alternative to credit cards for big-ticket home upgrades.
• Plan to deduct interest for qualifying renovations.

It may not be ideal if you:

• Don't have good credit.
• Don’t have enough equity.
• Prefer not to secure a credit line with your home.

The future of home-equity access

For homeowners who want to remodel without refinancing or racking up high-interest debt, Trovy’s home-equity-backed card offers a middle ground. You borrow only what you need, and enjoy rates below typical credit cards.

It’s not a one-size-fits-all solution, and borrowers should compare costs and read the fine print. But as more homeowners look for flexible ways to use their built-up equity amid high renovation costs, Trovy’s model offers a modern option in home-improvement financing.

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The Federal Reserve cut rates for the second time in 2025 this week. While that's not great news for savers, it's good news for borrowers. If you've been waiting on rates to drop to take out a home equity line of credit or HELOC or personal loan for some home improvement projects, now is the time to strike.

While rates are expected to come down further, the clock is ticking on a package of energy-efficient home improvement tax credits that could put thousands back in your pocket after making eligible upgrades to your home.

You can always refinance a loan when rates drop further, but you won't be able to claim these tax credits after the new year, making this the "just right" time for home upgrades.

Here are the home upgrades that might be eligible and why it's worth squeezing these projects in before the year ends.

Tax credits worth up to $3,200 expire in December

The One Big Beautiful Bill ushers in several changes that taxpayers will need to consider as they plan for 2026. One of the most urgent changes you'll want to prepare for are the expiring tax credits.

Right now, you can claim 30% of the cost of any eligible residential clean energy upgrade made during the year.

You can also claim up to 30% of other energy efficient upgrades, with maximum credits ranging from about $150 up to $2,000, depending on the project. You can claim up to a total of $3,200 for all energy efficient home improvement projects completed through the end of the year.

Which projects are eligible for tax credits? You can find the full details on the IRS website.

Here are some of the key projects you might want to get done before December 31, 2025, to claim the energy efficient home improvement tax credit:

• New exterior doors or windows
• New insulation or air sealing materials
• Upgraded HVAC equipment
• Upgraded water heaters, biomass stoves or boilers

If you've been thinking about installing solar panels or other renewable energy equipment in your home, the residential clean energy credit also expires on December 31. You'll need to move fast if you were banking on that 30% tax credit.

Make sure that the upgrades you're making meet the energy efficiency standards set out by the Environmental Protection Agency (EPA). You'll also only be able to claim these credits on your primary residence. Your vacation home or rental properties are ineligible.

You should also check with your state as well as your local utilities for any additional rebates or discounts you might be able to stack on top of your federal tax credits.

Falling Fed rates are good news for borrowers

At its October meeting, the Federal Reserve dropped its target rate to the 3.75% to 4% range. That's the second cut of the year, which should bring borrowing costs down with it.

For homeowners planning to use a HELOC, that's even more reason to knock out those renovation projects you've been putting off.

Rates on home equity loans also tend to drop in response to Fed rate cuts — as do other types of debt. If you haven't taken out a home equity loan or HELOC yet, use our home equity tool below, powered by Bankrate, to compare rates you can get today:

You'll benefit from hiring contractors during the off season, too

Winter is a slow season for many contractors, especially with the holidays approaching. Some might be willing to offer discounted rates for projects during this time.

Even if you can't leverage your timing into a deal, it could at least ensure your project is done quickly and smoothly. Since contractors are unlikely to be juggling as many projects as they do during peak season, your home could be high on their priority list.

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Summer is peak season for vacation homes, making it an ideal time to think about how a second property can serve as both a personal retreat and an investment. Whether you already own a vacation home or are considering buying one, the right design choices can help attract renters, reduce maintenance costs and increase long-term value.

Many second-home owners eventually rent their property to offset costs, whether through short-term vacation rental platforms or long-term tenants. But decorating and outfitting a second home requires a different mindset than designing a primary residence. Choices need to appeal to guests, withstand heavy use and help protect your investment.

If you're buying a second home with rental income in mind — or looking to get more from a property you already own — the goal is making sure the home helps pay for itself. These design rules can help ensure your investment works for you, not the other way around.

1. Design a space that works for you and your guests

One of the best things about owning a second home is the freedom it gives you, you can design and use the space however you like. But if your goal is to make the property appealing to guests, whether for short-term rentals or visiting family, you’ll want to create an environment that’s both welcoming and versatile.

Start by choosing furnishings and layouts that serve multiple purposes. Look for pieces that reflect your taste while also offering broad appeal for visitors. Think comfortable, durable and timeless. Furniture that can withstand daily use from your family as well as occasional wear from guests. Materials should be easy to clean and high-quality enough to last.

When it comes to design, keep the overall look uncluttered and inviting. Avoid overly busy or distracting décor, and instead aim for a balance of style and function. Adding thoughtful touches like extra seating options, storage that hides away personal items, or neutral color schemes with a few warm accents can help your second home feel both personal and guest-friendly.

2. Let the location guide your home's style

If you’re turning your second home into a vacation rental, let the local community and surroundings guide your design choices. A cottage in a beach town, for example, can lean into light, airy colors, nautical touches, and casual, comfortable furnishings. A mountain cabin, on the other hand, might feel more inviting with rustic textures, natural wood and cozy layers.

The goal isn’t to over-theme the space, but to capture the spirit of the area in a way that feels authentic and welcoming. Play with different design elements until you strike the right balance between your own style and what will resonate with guests.

By reflecting the character of the destination, you’ll not only create a more memorable experience but also make your property stand out in a competitive rental market.

3. Offer flexible sleeping options

While one bed in the primary bedroom may work for your own stays, it’s worth thinking about the needs of potential visitors. Flexible sleeping arrangements can make your second home more appealing to families, groups of friends or long-term guests.

Instead of one large bed in every room, consider adding two twin beds to at least one bedroom, which can easily accommodate both children and adults. You might also incorporate a sleeper sofa, a daybed with a trundle, or even a Murphy bed to maximize capacity without sacrificing style or comfort.

These options allow you to host larger groups while keeping the space practical and comfortable for your own use.

4. Choose finishes that cut down on upkeep

You can invest in quality materials without sacrificing style. Luxury vinyl plank flooring is durable, attractive, and cost-effective, while weather-resistant outdoor furniture extends the life of your patio or deck.

Inside, opt for easy-to-clean fabrics like leather or microfiber and sturdy surfaces such as wood or metal. Choosing low-maintenance, long-lasting pieces helps cut down on turnaround time between guests.

5. Add smart tech for convenience and security

A smart home is nice not just for you, but also for potential guests. There are so many ways to incorporate technology into your second home.

Smart lock

A physical key can be problematic when you regularly rent out your home. You must find a way to get the key to every new visitor staying at your second home. And if they lose it, you have to invest in getting new ones created. A smart lock is a keyless, remote-controlled lock for the front door.

As the homeowner, you can lock and unlock the door from wherever you are and give virtual keys to visitors. You can also set up alerts for activity and get notifications for who is coming and when.

Smart thermostat

Gone are the days of walking up to the thermostat and changing the temperature. Smart thermostats are on Wi-Fi, allowing you to control the temperature wherever you are.

You can set a smart thermostat at a specific temperature during the day (and at night) and turn off your air conditioning when no one is home. You don’t have to be there to do it, but rather, you can make changes straight from your phone.

Security systems

Like other smart home additions, new security systems are easily accessible through an app. You can use popular options like Ring or Google Nest, or get a system installed through a security company, like ADT or Vivint.

Whether you go the professional or DIY approach, choose one that works best with your smart home setup and has a simple user interface.

Keep backup options in mind for all your tech updates if technology falters. What’s your plan if there’s a glitch? You should be able to understand all of your tech, whether it’s restarting it or explaining the features to potential guests.

Make your second home work for you

Owning a second home can be a luxury, but it also brings extra expenses — from the mortgage to insurance, taxes and upkeep. One way to offset those costs is by turning the property into a source of income.

With the right upgrades, your second home can double as a rental when you’re not using it. Thoughtful design choices and smart home improvements not only make the space more appealing to guests but also help your property stand out in a competitive market.

On the hunt for a vacation home? Use the tool below, powered by Bankrate, to explore and compare some of today's top mortgage offers:

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Some may look forward to gardening in autumn. Crisper days, cozier mornings, and generally cooler temperatures are just a few benefits of fall gardening. But while spring and summer have a plethora of plants to choose from, what do you plant in a fall garden?

There’s actually a large selection. From seasonal classics like mums and carrots, to early spring blooms for those who like to look ahead.

But as you go about planting this season, watch out: A few garden improvements may be subject to a “fall garden tax” and increase your property tax bill.

Here’s more of what you need to know while preparing your fall garden — and how it might affect your taxes.

Fall garden plants for 2025: What to plant in August and September

Before we get into taxes, let’s talk plants. Namely, what should you plant in August and September?

While the first day of autumn in 2025 is Monday, September 22nd, you’ll want to factor in The Old Farmer’s Almanac frost schedule when sowing.

Many quick-maturing plants require about six to eight weeks to grow before the first frost date is expected in your area.

This will likely mean you’re too late to start planting pumpkins in time for Halloween. But here are a few examples of what you may be able to plant in August or September, depending on where you live:

• Leafy greens, like lettuce, spinach, kale, and arugula.
• Root vegetables, like carrots, beets, and turnips.
• Flowers like mums, pansies, and violas.
• Other veggies like broccoli, cabbage, and peas.

You can also get a head start on early spring gardening. Perennial bulbs, such as daffodils and tulips, may be planted in September before the ground freezes.

However, various weather phenomena, including droughts, rainstorms, and early frosts, can affect your planting season, as can soil hardiness and microclimates. So you may want to chat with a gardener at your local garden store for tailored guidance.

Plant projects for the fall garden could increase property taxes

Unfortunately, what you do in the fall garden might have tax consequences.

That’s because your home’s property tax bill is assessed based on the original cost you paid for your house plus any improvements or additions (with a periodic reassessment completed by the applicable municipality).

While “improvements” are often renovations on your home’s structure, fall garden landscapes can also contribute to your overall property tax liability if they increase the assessed value of your home.

• For instance, the American Society of Landscape Architects (ASLA) reports that you can get a 15% to 20% increase on your home price through landscaping investments.*
• Investing in your landscape through fall garden projects may impact your property tax bill if your home’s value is affected.
• We refer to this phenomenon as the “fall garden tax.”

*Your home’s tax basis and market value are distinct concepts. However, both may be impacted by home improvements and affect the overall assessed value of your home. For more information, check out Kiplinger’s report, Tax-Deductible Home Improvements for Retirement.

Fall garden ideas and the ‘fall garden tax’

Several fall garden ideas can increase your home’s assessed value, thus potentially contributing to a higher property tax bill. Here are a few examples:

• “Hardscaping” or adding permanent structures to your fall garden, like a patio, fence, or retaining wall.
• Elaborate garden layouts, or those that include the installation of an irrigation system.
• Mature trees, particularly if they “add value” in your area. A common example of a fall garden tree is one that produces apples or pears.

Property tax assessors may look for improvements that impact the market value of the home. While the above-listed projects could increase market value, that’s not always the case, and you may want to consult with a tax professional on the specifics of your fall garden project if you think your property tax liability might be impacted.

See also: How to Reduce Your Property Tax.

Fall gardening: What should I plant in 2025?

If you want to avoid increasing your property tax bill while you focus on your fall garden, here are some tax-friendly ideas:

• Stick with seasonal annuals. Common varieties may include marigolds, pansies, mums, and sunflowers.
• Plant perennials. Aster, goldenrod, coneflowers, and phlox are popular this time of year.
• Don’t forget your decorative plants. Pumpkins, gourds, and squashes can add a pop of color, especially if most of your garden growth is underground.

Where you live can greatly impact what is considered a taxable landscaping “improvement” for property tax purposes.

For example, planting mature orange trees in Florida might increase your property tax bill in the Sunshine State, but not in, say, Colorado. So check out your neighbor’s lawn to get a slightly better idea of what could hike your home’s assessed value — you never know until you look!

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As some parts of the country start experience the first waves of real summer heat, you may start hearing talk about a curious phenomenon known as corn sweat. As temperatures climb, the millions of acres of corn fields sprawling across the Midwest are causing localized humidity spikes, exacerbating the already searing summer heat.

But, what exactly is corn sweat? Why is it making the air feel hotter? And how can understanding this complicated relationship help you find the most energy-efficient home upgrades for extreme heat that fit your climate?

Keep reading to learn more about corn sweat and the key to cutting your energy bill without sacrificing your comfort this summer.

What is corn sweat?

All plants have a self-cooling process called transpiration. It's essentially the plant version of sweating. When it's hot out, leaves release water through the pores in their leaves. That water evaporates, taking the heat with it as it leaves the surface of the leaf.

While the process happens differently in humans, the cooling mechanics are the same. Water vapor carries heat away from the body, whether it's a plant body or a human one.

According to the U.S. Geological Survey, a one-acre corn field will "sweat" 3,000 or more gallons of water per day. Then, add to that the water evaporating from the regularly-irrigated soil as well.

Globally, the impact of corn sweat or any other plant transpiration is tiny. 90% of the water vapor in the air comes from oceans, rivers and lakes. Only the remaining 10% comes from trees and plants "sweating."

But those numbers are planet-wide averages. In a state like Iowa, which has about 13.5 million acres of corn, the impact of that transpiration adds up.

In the right conditions – or wrong ones, for anyone trying to stay cool – corn sweat can increase local humidity levels by as much as 40%, according to the National Geographic.

In effect, you can have pockets of high humidity right around corn fields, causing the heat index (how hot it feels) to soar compared to neighboring areas that aren't near the sweaty crop.

Corn sweat would actually be a good thing in a dry climate

The relationship between temperature and humidity is weird. In a dry climate, corn sweat – or transpiration from any plant – would have a welcome cooling effect.

Transpiration from a single tree can have the cooling effect of five standard air conditioners running continuously for 20 hours, according to the EPA.

Combine that with a tree's shade blocking the sun from bearing directly down on you or the ground and the impact can result in air that is up to nine degrees cooler under a tree compared to just outside it. Even those sweaty corn fields are likely cooling the air below them by as much as five degrees.

The problem is that increasing the humidity also increases the heat index. In a dry climate, that increase is far outweighed by the decrease in temperature.

On an 82 degree day with 40% humidity, for example, a 10% increase in humidity would raise the heat index to 83 degrees. That one-degree spike is significantly outweighed by the nine-degree drop in temperature underneath a tree.

In a humid climate, on the other hand, the cooling effect of transpiration can easily be outstripped by soaring humidity. Take that same 82-degree day but say the humidity is already at 75%. A 10% increase in humidity would result in a heat index of 90 degrees.

As temperature and humidity levels get higher, the cooling effect of transpiration is drowned out entirely. By the time temperatures hit the 90s, a relative humidity of 60% or more already makes it feel 10 degrees hotter than it is.

Even air conditioning struggles to cool a humid climate

The cooling effect of plant transpiration isn't the only thing that's drowned out by high humidity. Your air conditioning also works harder to make your home feel comfortable when it's battling high humidity as well as high heat. The reason is the heat index.

The heat index refers to the difference between the actual temperature and how hot it feels. Relative humidity of 50% or above will start to feel warmer than the actual temperature.

When temperatures are in the mid-80s or below, every 10% increase in relative humidity will raise the heat index one degree further above the actual temperature.

At higher temperatures, the heat index climbs even faster. By 90 degrees, a relative humidity of 50% will make it feel like 95 degrees and every 10% increase in relative humidity above that will add five or more degrees to the heat index.

If you've got your air conditioner running, the ability of your system to make 90-degree air feel like, say, 78 degrees will be influenced by humidity. If you're at 50% humidity, 90 degrees would feel like 95.

Simply removing moisture to reduce the humidity to 40% or lower would already be enough to shave five degrees off the heat index, helping you stay cool without air conditioning — or at least easing the workload for your HVAC system.

Save money by getting a dehumidifier to help your AC

If you live in a humid climate, getting a portable dehumidifier can end up saving you money and increasing your comfort at home. By reducing the humidity in your home, you could potentially crank up the thermostat a couple of degrees without noticing any difference in your comfort.

At more moderate temperatures, running a dehumidifier alone may be enough to get your home to a comfortable temperature.

While air conditioners do dry the air somewhat as part of the cooling process, they're not nearly as efficient as a dehumidifier. Your AC removes less moisture and uses up more power to do it than a portable dehumidifier would.

Pairing the two gives you precision control over the climate in your home. By keeping the indoor humidity below 50%, you can make sure the temperature on the thermostat matches the temperature that you feel.

More tips for combatting humidity in your home

Getting a dehumidifier is the sure-fire way to keep humidity levels in your home where you want them. But if you don't have one or you don't have enough of them to dehumidify every room in the house, here are some other easy weatherproofing projects and summer cooling tips for making your home less muggy:

• Open windows and doors to ventilate your home. For even better results, point a fan at your open windows or doors to push hot, humid air outside.
• Get a whole house fan to consistently pull hot, damp air out of your home.
• Dry surfaces promptly. After you shower, wipe down the walls and bathtub. After you do the dishes, wipe down the sink. These small habits can reduce the amount of water available to evaporate into the air, helping reduce overall humidity indoors.
• To keep humid outside air from seeping into your home, make sure your windows and doors are caulked and sealed.
• Add humidity-loving plants like orchids and snake plants. They can dehumidify the air around them by absorbing the water vapor for themselves. The effect here is small, but if you like plants and have the time to care for them, prioritizing moisture-hungry species like these will work in your favor.

Smart ways to beat the heat and cut energy costs

Understanding how factors like corn sweat and high humidity impact your home environment can help you take smarter steps to stay comfortable.

Investing in a dehumidifier, sealing air leaks and using ventilation tools effectively can reduce strain on your air conditioning system and lower energy bills. With the right upgrades, you can maintain a cooler, healthier home, even in the most extreme summer heat.

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Florida is once again investing heavily in protecting homes and wallets from hurricane damage. Thanks to a fresh $280 million funding boost in the 2025–2026 state budget, the My Safe Florida Home program is making a major comeback.

The program, which offers grants of up to $10,000 per household, helps eligible homeowners pay for such critical wind-mitigation upgrades as impact-resistant windows, fortified doors and roof reinforcements.

The initiative is designed to increase hurricane resilience and reduce the financial strain of storm recovery. These upgrades could also lower your homeowner’s insurance premium, which can be a much-needed relief in a state where coverage costs have continued to climb.

High demand prompts return of Florida’s hurricane upgrade initiative

The My Safe Florida Home program originally launched in the mid-2000s but was revived in 2022 following years of extreme weather and rising insurance costs.

By 2023, demand had overwhelmed supply. Thousands of applications were left unfunded when the program ran out of money, prompting lawmakers to step in this year with a significantly larger allocation.

That $280 million funding infusion aims to reach more Floridians this time around, giving residents a second chance to upgrade and protect their homes.

Eligibility requirements for My Safe Florida Home grants

The program is open to full-time Florida homeowners who live in single-family, site-built homes. To qualify, your home must meet certain requirements:

• It must be your primary residence.
• The insured value must not exceed the cap (currently $700,000).
• A wind mitigation inspection is required to identify needed upgrades.
• Priority is given to homeowners age 60 and older.

Once approved, eligible homeowners can receive up to $10,000 in matching grants, with the state covering $2 for every $1 the homeowner contributes.

Lower-income households might qualify for a full grant with no match required. Keep in mind that the grant money is provided after you’ve been approved and have the required wind-mitigation work done on your home.

Eligible home improvements under the grant program

Funds from the program can be used to install:

• Impact-resistant windows and exterior doors
• Upgraded garage doors
• Roof reinforcements or replacements
• Improved roof-to-wall connections

These improvements can significantly strengthen your home’s ability to withstand hurricane-force winds, potentially sparing you from catastrophic damage during storm season.

How home upgrades can lower your insurance costs

While hurricane mitigation is the primary goal, the financial incentive doesn’t end there. By making these upgrades, homeowners could become eligible for wind mitigation credits that lower their property insurance costs.

"Improving your home’s structure is one of the few strategies Florida homeowners can take to directly reduce insurance premiums,” said Florida Chief Financial Officer Jimmy Patronis in a recent press release. “The My Safe Florida Home program is a win-win.”

These savings can be especially valuable as Florida continues to see steep increases in home insurance premiums. Even modest discounts from wind-mitigation credits can help offset rising costs and make coverage more affordable in the long run.

How to apply

Funding is available on a first-come, first-served basis and if past cycles are any indication, interest will be high.

The program will prioritize senior citizens and low-income homeowners with several special application periods before opening to the general public:

• July 1–15: Low-income homeowners age 60 and older
• July 16–30: Low-income homeowners of any age
• July 31–Aug. 14: Moderate-income homeowners age 60 and older
• August 15–30: Moderate-income homeowners of any age
• August 31 and later: All other eligible Florida homeowners

To apply, visit MySafeFLHome.com and complete the eligibility form. From there, you’ll schedule a free wind mitigation inspection. Once you receive the inspection report, you can choose a contractor and submit your grant application.

If you're thinking of applying, start gathering your insurance and property documents now to avoid delays.

A timely opportunity for Florida homeowners

Florida’s renewed commitment to hurricane resilience is welcome news for many, especially as the state approaches peak storm season. With $280 million in funding on the table, those who qualify should take advantage of the opportunity to strengthen their homes and potentially lower their insurance costs.

Given the program’s popularity and limited funds, acting early could make all the difference. Don’t wait until the next storm warning; start preparing now.

Compare some of today's best home insurance offers with the tool below, powered by Bankrate:

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Amazon Prime Day is October 7 and 8. Along with thousands of sales on everyday items, one overlooked component of Prime Day is that you can use it to make your home more energy efficient and save in multiple ways.

How? First, you can take advantage of all the deals on energy-efficiency items on sale during Prime Day. Next, some of your home improvement projects qualify for tax credits. And now is the time to take advantage of those credits while they're still available.

President Donald Trump signed into law the One Big, Beautiful Bill, which will end the energy-efficient home improvement credit designed to help homeowners save on upgrades like adding exterior doors, central air conditioners, water heaters, electric or natural gas pumps, and more. This credit expires after December 31, 2025.

Therefore, now is a great time to invest in home improvements while they're on sale, reduce your home's energy costs — and claim tax credits for them.

Before diving into the deals, you'll need an Amazon Prime account to do so. If you're new, you can try it free for 30 days:

Save on exterior doors during Amazon Prime Day

A strong exterior door not only provides a sense of security but can also lower your energy costs. The U.S. Department of Energy states you can save up to 10% on your utility bills by replacing your exterior door with an energy-efficient model.

The savings extend further, as you can earn a tax credit on them. Per the IRS, exterior doors that meet Energy Star requirements qualify for a tax credit of 30% of the costs of the door, up to $250 per door, with a $500 annual cap.

Here is one of the best deals you can score right now:

Water heater deals for Amazon Prime Day

Another way to lower energy costs is with a tankless water heater. Tankless water heaters can improve energy efficiency in your home by heating water only when you need it, instead of running more continuously like other models.

The U.S. Department of Energy states it can improve energy efficiency in smaller homes by up to 34% and in larger homes by as much as 14%. What's more, some water heaters qualify for a tax credit of up to $600 per unit if they meet or exceed the Consortium for Energy Efficiency (CEE) highest efficiency tier.

And during Amazon Prime Day, you can receive a great deal and earn tax credits on this tankless water heater:

Other Prime Day deals to lower energy costs

While some of these items won't qualify for tax credits, you can still save money during Amazon Prime Day and lower your energy costs:

• Govee Smart Plug with Energy Monitoring (4-Pack) – Now $39.99. Save 20%
• Emerson Sensi Touch Wi-Fi Smart Thermostat (ST75) – Now $134.99. Save 23%
• Google Nest Learning Thermostat (4th Gen) + Nest Temperature Sensor – Now $249.99. Save 17%
• Blackout Curtains (84” Ivory, 2 Panels) – Now $39.99. Save 20%
• Stopwatt Energy Saving Device (4-Pack) – Now $79.99. Save 15%

How do I receive tax credits for my Amazon Prime Day purchases?

You can claim expenses related to any qualifying home improvements installed during the year you're filing your taxes. To do so, you'll need to file Form 5695, Residential Energy Credits, with your tax return.

Amazon Prime Day gives you the opportunity to save on energy-efficiency items that can lower your energy bills. On top of this, some of these items come with tax credits, where, as long as you install them before the end of the year, you can save even more.

However, time is limited on both savings opportunities. Amazon Prime Day runs through October 8. Meanwhile, the tax credits for home energy improvements will end at the end of this year.

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If you own a condominium in Florida, you’re probably familiar with the state requirements that went into effect after the 2021 Surfside condominium collapse.

While those laws were created to enhance safety, they also brought significant financial and logistical challenges for condo owners. The 2025 Florida condo reform bill, which took effect July 1, aims to ease those burdens while preserving key requirements for inspections and reserve funding.

Steep HOA fee increases and surprise repair costs left many condo owners struggling to keep up, fueling concerns about affordability and weakening buyer demand. The new reforms are designed to ease financial pressure and reduce uncertainty for owners while still upholding essential safety measures, creating a more sustainable path forward for Florida’s condo communities.

What the 2022 Florida condo law required

The 2022 Florida condo law introduced new requirements for licensed inspections, financial disclosures and reserve fund contributions:

• More inspections were required. For example, buildings occupied before 1992 needed to receive a milestone inspection by December 31, 2024. If structural repairs were needed, condo owners had to fund those repairs.
• In addition to requiring milestone inspections, the law required that those inspections be reported to local authorities, condo unit owners and the public, such as when a condo was listed for sale.
• Building associations were also required to budget and collect funds to cover maintenance, such as the cost of a new roof or elevator repairs. That requirement meant that some condo owners faced financial difficulty in paying for repairs while also saving funds for future maintenance.

These requirements not only made owning a condo more complex but also significantly more expensive. Although nearly 2 million people live in Florida condominiums, the added financial pressure contributed to a slowdown in the market.

By 2025, condo sales had dropped, prices declined and demand weakened. Many homeowners associations (HOAs) were forced to raise fees in order to meet the state’s new funding mandates for repairs and maintenance, further increasing the cost of ownership and putting added strain on residents.

How the 2025 condo reform bill eases the burden

On June 23, Florida Governor Ron DeSantis signed the condo reform bill 2025 to provide relief to condo owners. "Today in Clearwater, I signed legislation to deliver much-needed relief to condo owners across Florida," DeSantis said. "We’ve heard the concerns of condo owners throughout Florida, and we are delivering reforms that will provide financial relief and flexibility, strengthen oversight for condo associations and empower unit owners."

The legislation includes House Bill 913 and HB393.

HB 913 makes several valuable improvements for condo owners:

• Increased reserve funding flexibility means that after associations have performed a milestone inspection and are working on critical repairs, they can pause contributing to their reserve fund for up to two years.
• Rather than having to rely on reserve funds to make repairs, condo associations can explore alternate funding options, like loans or lines of credit.
• Boards and unit owners can terminate contracts if a manager doesn’t follow the state’s condo laws.
• Association managers whose license is revoked by the Department of Business and Professional Regulation cannot hold roles in management firms or be licensed for 10 years.
• Associations must provide more information and records online, so residents can easily access records for their condo’s management.

HB 393 focuses on the My Safe Florida Condo Pilot Program and introduces several important updates. Among its key changes, the legislation:

• Changes the eligible improvements to include replacement of the condo roof covering
• Restricts the program eligibility to buildings that are three or more stories tall and that contain at least two single-family dwellings

Those changes still prioritize condo safety, but they give condo associations and owners more flexibility, especially when it comes to the financial demands of owning and maintaining a condo.

Structural integrity studies and inspection requirements remain in place to help prevent future tragedies like the Surfside collapse. However, the reforms aim to ease the financial strain created by the 2022 law.

With more options for funding repairs and contributing to reserve accounts, HOAs may no longer need to raise fees as aggressively, potentially offering much-needed relief for condo owners.

What Florida condo owners can expect next

With new reforms in place, Florida condo owners may begin to see a better balance between safety and affordability. While key inspection and maintenance requirements remain, the added financial flexibility could ease HOA fee pressures and make condo ownership more manageable. As these changes take hold, the market may stabilize, restoring confidence for both current owners and potential buyers.

Explore your options and compare some of today's best home insurance offers with the tool below, powered by Bankrate:

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Summers have been oppressively hot, and that’s not about to change anytime soon. If you’re thinking about making home upgrades for extreme heat, now may be the perfect time.

According to the World Meteorological Organization, the next five years are likely to bring temperatures at or near record-high levels. There’s an 80% chance that at least one of the next five years will become the warmest on record, breaking the record-setting temperatures reached in 2024. Plus, there’s a 70% chance that the average warming for 2025 to 2029 will be more than 1.5 degrees Celsius, or 34.7 degrees Fahrenheit.

That means we’ll need to prepare for hotter days ahead — but heat-proofing your home can make those sticky summers much more bearable. As you plan upcoming remodeling projects or seasonal upgrades, consider these smart home improvements for extreme heat.

Fortify your roof and insulation

Extreme heat can wear out and damage your roof over time, causing materials like shingles to crack, warp and blister. The heat can reduce your roof’s lifespan, and if your roof is damaged, moisture can get through and damage your home.

To protect your roof, invest in extra ventilation, like attic fans, which can help keep hot air from getting trapped in your attic. Updating your ventilation system can also help prevent mold from forming while keeping your home cooler, too.

Adding or replacing your attic insulation can help keep cool air within your house. Maximizing your home’s insulation has the added benefit of reducing the load on your HVAC system, which can prolong its lifespan and reduce your utility usage.

You might also want to upgrade to reflective or cool roofing materials to help reduce heat absorption. While asphalt shingles can be damaged by extreme heat, other roofing materials, like clay tiles or metal roof panels, can better withstand extreme heat.

Invest in efficient cooling and ventilation

Your older HVAC system may have gotten by during the past few summers, but as heatwaves become more prolonged, older systems will struggle to keep up with your home’s cooling needs.

To keep your home cool, upgrade to a high-efficiency HVAC system or a heat pump with a smart thermostat. The smart thermostat allows you to easily adjust and monitor your home’s temperature even when you aren’t home, so you can avoid wasting energy.

Additionally, make sure your home is zoned, so you can control the temperatures within each zone. You can maximize the cooling in rooms where your family is present, like the dining room or living room, while letting unused spaces get a bit warmer until you need to access them again.

Whole-house ventilation can also help release trapped heat and improve the airflow throughout your home. This system, which consists of ducts and fans, can bring clean air into and throughout your home to help keep temperatures cool. Whole-house ventilation has the added benefit of helping to control moisture and reduce allergens for better overall air quality.

Add shade and exterior protection

The right upgrades to your home’s exterior can dramatically reduce its indoor temperature. Block direct sunlight and create shade for your home by planting shade trees.

You can also add awnings, pergolas or shade sails to block sunlight, plus you can remove these additions in the winter to maximize natural light and warmth.

If you park your vehicle near your home, your vehicle’s reflective surface can radiate sunlight and heat to your home. Consider installing a carport or creating a covered parking space to protect your home from this radiant heat.

Prepare for power disruptions

To survive extreme heat at home, most homeowners will rely more on utilities to power HVAC systems and fans, and that additional usage can strain the power grid. Plus, the increased temperatures will contribute to more extreme weather, like stronger hurricanes. These factors mean that power grid outages will become more likely, too.

You can prepare for a power outage by investing in a standby generator to keep your air conditioner, fridge or medical equipment running during an emergency.

If you're not ready to purchase a standby generator, then think about installing solar panels with a battery backup. They can generate enough electricity to help power some of your essentials, so you can keep your lights on until the power returns.

Upgrade windows and materials for heat resistance

Heat can travel through your home’s windows, so protect them to keep your home cooler. Add heat-blocking window film, UV shades or thermal curtains to keep your home’s interior spaces cooler.

Extreme, prolonged heat can also take a toll on your home’s exterior finishes. You might want to invest in materials that are more heat-resistant, such as fiber cement siding or heat-resistant paints to maximize your exterior’s lifespan.

It’s time to make home upgrades for extreme heat

With the temperatures only rising over the coming years, now is the time to make home improvements for hot weather. Investing in just a few of these improvements can help keep your home cooler while also saving money on your utility bills.

If you’re planning any home renovations or DIY projects this summer, incorporate some of these ideas so that you’re better prepared to survive extreme heat at home.

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If you are mulling installing solar panels on your roof or making other energy-efficient improvements to your home, you may want to act quickly to take advantage of one of two federal income tax credits. First, is the residential clean energy property credit for homeowners who install a power system that uses solar or other renewable energy. Second, is the energy-efficient home improvement credit for homeowners who make smaller energy-saving purchases for their homes.

How long these two credits — which reduce the taxes you owe dollar for dollar — will remain on the books, and what, if any, changes will be made, are currently open questions. On May 22, the House passed its One Big Beautiful Bill that would extend the tax changes in the 2017 Tax Cuts and Jobs Act that automatically expire at the end of 2025. The bill also provides lots of other tax breaks.

The House's One Big Beautiful Bill would also scale back many of the green energy tax credits that were created, expanded or renewed in the 2022 Inflation Reduction Act., including the home energy savings tax credits. Specifically, the bill would repeal the residential clean energy property credit and the energy efficient home improvement credit, effective for property placed in service after 2025.

Now it's the Senate's turn. The odds are good that Congress will pass a tax package sometime this summer, despite a series of hurdles that lawmakers will have to overcome. However, the Senate will make some changes to the bill, including possible revisions to the green energy tax credits.

Since homeowners may claim a home energy credit only for the year the improvements are made, if you’re thinking of making any energy-saving upgrades, you’ll want to pay for them and get them completed before December 31 to ensure a tax credit. They should be claimed using IRS Form 5695.

The residential clean energy property credit

This tax break is for homeowners who install an alternative energy system that relies on a renewable energy source, such as solar, wind, geothermal, or fuel cell or battery storage technology. Think solar panels, solar-powered water heaters, geothermal heat pumps, wind turbines, fuel cells, etc. The credit equals 30% of the cost of materials and installation or systems that you install in your home. There is no maximum credit dollar limit for solar, geothermal, wind, or battery storage systems. But for fuel cells, the credit is capped at $500 for each half-kilowatt of power capacity.

Unused residential clean energy property credits can be carried forward to reduce tax owed in future years. Homeowners who install a renewable energy system sometimes qualify for a rebate. These rebates are nontaxable, but they reduce the system’s cost for figuring the credit.

• Read more: Are Clean Energy Tax Credits a Thing of the Past?

The energy efficient home improvement credit

The basic credit is 30% of the cost and installation of certain types of insulation, boilers, central air-conditioning systems, water heaters, heat pumps, exterior doors and windows, etc., that you install in a home. These items must also meet certain energy-efficiency requirements, depending on the product. There is a $1,200 general aggregate yearly credit limit. But many specific upgrades have lower monetary credit limits and others have higher ones.

Here are the item-by-item yearly caps: $150 for a home-energy audit; $500 in aggregate for exterior doors (a maximum of $250 per door); $600 for exterior windows or skylights, and $600 for natural gas, propane or oil water heaters, electric panels, central air conditioners, or natural gas, propane or oil furnaces or hot water boilers. And $2,000 for biomass stoves or biomass boilers, electric or natural gas heat pump water heaters, or electric or natural gas heat pumps. Unlike the residential clean energy property credit, you cannot carry forward any unused energy-efficient home improvement credits to future years.

As an example, let’s say that in 2025, you purchase and install in your home two exterior doors at a cost of $1,000 each, windows and skylights at a total cost of $2,200, and a $6,000 central air conditioner. Your 2025 tax credit amount is $1,200. Now, change the facts. In 2025, you purchase and install in your home a natural gas heat pump that costs $7,000, a $4,000 natural gas tankless water heater, and a $6,000 central air conditioner. Your total maximum credit is $3,200: $2,000 for the heat pump. $600 for the water heater and $600 for the air conditioner.

For more on these credits and the documentation they require, read Tax Credits for Energy-Efficiency Home Improvement in 2025.

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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Manny Varas takes his wine seriously — so seriously that he built a wine cellar at home to house his 900-bottle collection.

The contemporary space features a domed ceiling, insulated glass and club seating for tastings. Forgoing the classic wooden cellar look, Varas opted for stone walls and metal display racks.

"I have about 150 bottles displayed and 800 hidden away. It just shows a difference in style where a lot of our clients and I are trying to do 'less is more,' " says Varas, founder of construction company MV Group USA in Miami. "It's there, but we don't have to have everything exposed like the old traditional wine cellars."

As wine cellars become more popular in higher-end homes, some homeowners might wonder if the investment is worth it — for their wine collection or their wallet.

Passive wine cellars, for the casual enthusiast

Before assessing the value, it helps to understand the two types of wine cellars — passive and active.

A passive wine cellar isn't refrigerated and typically has less storage. "A passive wine cellar can still be in a separate room with a door. A lot of times we'll do the frame of glass — though the cellar is for storage, it's mainly for looks," says Audrey Frances Doty, founder of Audrey Frances Design in Atlanta.

Passive wine cellars are often installed in cool, dark places (such as finished basements) and can start at around $5,000. "Usually, the person is not a serious wine collector," says Doty. "They're into it, they love drinking it, but don't have an extensive collection."

Leveling up and keeping cool with active wine cellars

For serious collectors, active wine cellars offer more control of refrigeration and humidity — and have the price tag to match.

Instead of drywall, active wine cellars use mold-resistant blue board and spray foam insulation to protect the room from heat. Varas says a 300-foot wine cellar usually starts around $60,000.

Some people install wine fridges within their cellars so they can store different types of wines — such as Champagne, which is kept at a cooler temperature than Merlot — in the same space.

Do wine cellars add resale value to a house?

It depends.

"It's hard to put a dollar amount on it, but what we see, especially in homes above $5 million, is you need a hook," says Harvin Greene, a real estate agent with Dorsey Alston Realtors in Atlanta. "You need something that pulls people in and is unique."

Luxury cellars add a unique element that can set a house apart, and at that price level, a wine cellar is almost expected, even if they’re not always used for wine.

"We're starting to see people use them a lot for bourbons, tequilas and also cigars," says Greene. In homes under $2 million, she finds that cellars aren't as appreciated because space is more limited, and owners aren’t storing high volumes of wine.

In these homes, wine cellars won't raise the appraised value, but a thoughtfully integrated wine feature, such as a wine fridge or a small-scale cellar, stands out. "That's a nice feature that doesn't take up a lot of square footage and doesn't require a massive amount of wine to fill it," says Greene.

Who really 'needs' a wine cellar in their home?

Wine cellars make the most sense for wine enthusiasts investing in their collections, which often means buying in bulk and tracking maturation dates.

"I like to be able to understand when a wine is going to be at its maturity and peak," says Varas. "It's a fun investment strategy where you buy a bottle that you're not able to drink for several years and you’re getting it at a discounted rate."

For example, you might buy a 2021 bottle of Château Lafite Rothschild that doesn’t mature until 2029. "That bottle you could purchase today at $200 and a fully matured one that's ready to drink, it's $1,500," he says. "But you're able to buy it at an 80% discount because of the wait."

Apps such as InVintory help track when bottles are ready.

Wine cellars don't have to be luxurious to be functional. In Napa, Stevie Stacionis, a wine strategist and restaurateur, recently built a wine cellar in her garage for about $2,200 with the help of her handy husband. Industrial Metro rack shelving lines the 72-square-foot room, the wine bottles reside in stackable cardboard tubes, and thick rubber mats cover the concrete floors (in case of earthquakes). The cellar stays at a cool 57 degrees with controlled humidity to keep the corks plump.

Protecting the wine’s integrity was paramount; the aesthetics, not so much.

"About 90% of the wine in our cellar, I'm going to drink it very soon," says Stacionis. "However, I do care about how intact it stays, and I know that I don't keep my house at a proper temperature."

Stacionis mostly buys wines made with minimal intervention, so they're more sensitive to temperature fluctuations. "You want to protect the wine from heat, light and oxygen," she says.

The bottom line on home wine cellars

Ultimately, a full-fledged wine cellar isn't for everyone, especially if you're not buying wine by the case or trying to design a showpiece. It's not all or nothing, however. For those who don't want to invest in a wine cellar, a wine cooler is a step in between.

Stacionis suggests a EuroCave wine cooler, which mimics a wine cellar's temperature and humidity settings without taking up too much space.

"If you're buying wine and your house is never going to be more than 70 degrees, and you think you're going to drink the wine within the next few months, just keep it in the fridge," says Stacionis. "If you're really looking to save it for longer than a year, it just needs to be at a proper temperature in a wine fridge."

Whether you’re growing a Burgundy collection or stocking up on enough Sauvignon Blanc to last through summer, properly stored wine is a luxury itself — club seating optional.

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With summer just around the corner, it’s a great time to refresh your home’s look — whether you’re planning to sell soon or simply want to enjoy your space more. A few well-chosen upgrades can enhance your comfort now and increase your resale value later.

Home improvements are a natural part of homeownership, whether you’re settling into a fixer-upper or looking to refresh a place you’ve lived in for years. And while not every project delivers the same return, some upgrades stand out for their impact.

If you’re ready to invest in your home this summer, here are a few updates that can deliver value, both today and when it's time to sell.

1. Update appliances

New appliances can be a big win for potential buyers. The fewer things they have to replace when they move in, the more they save in the long run. Consider updating your kitchen appliances to match, making your kitchen look uniform and welcoming.

Appliance bundles can be a great deal and ensure a cohesive look. They’re also a smart way to upgrade to modern, energy-efficient features like smart fridges and advanced cooking technology.

Check to see how long you’ve had other appliances in your home, like your washer and dryer, air conditioner and water heater. Older models can drive up utility costs, so it might be time to replace the oldest ones with newer, energy-efficient versions that help you save on electricity.

2. Upgrade bathrooms

If you want potential buyers to feel instantly at home, update the bathroom. Updates to the bathroom could be anything from installing rain shower heads to increased storage.

Swapping in modern fixtures, updated lighting or a sleek new mirror can instantly elevate the space and make it feel brighter and more inviting. Even small changes like matte black faucets or vanity lights can give the bathroom a fresh, spa-like feel.

If your current bathroom setup feels cramped, it might be time to schedule a demo day. But even if a full renovation isn’t in the cards, tackling small projects over time — like updating fixtures, painting, or replacing hardware — can make the upgrade feel more manageable.

Bit by bit, you can transform the space without the stress of a major overhaul.

3. Update the kitchen

A kitchen can make or break a home’s appeal. Old or outdated kitchens can turn away potential buyers, and if you’re in a buyer’s market, you want as many people as possible to compete for your place.

Major kitchen remodeling can take many months to complete, upwards of seven months for large projects. If you’re trying to sell your home by a set date, you may want to start renovating now. If your budget doesn’t allow for a big kitchen remodel, see what you can get done for a little less.

For instance, check the cost of painting the cabinets and changing the hardware. See how much it would be to change the countertops or a backsplash. Little kitchen updates can go a long way.

4. Update the flooring

New flooring can instantly elevate the look and feel of your home. Whether you opt for luxury vinyl planks, hardwood or tile. Fresh floors add value and enhance a home’s aesthetic, especially if the current flooring is worn or dated.

While your style may influence the final choice, it’s smart to consider popular, durable options that will suit most tastes if you plan to sell in the near future.

Not ready for a big renovation? Start small by adding modern, stylish rugs. They can refresh a space, cover imperfections, and give rooms a cozy, pulled-together look without the commitment of a full flooring project.

5. Upgrade the lighting and technology

If you haven’t updated your lighting in a while, now’s a great time to start. Well-placed, modern lighting can instantly brighten a room and highlight your home’s best features.

Swapping out dated fixtures or adding layered lighting — like under-cabinet lights or dimmable sconces — can give any space a fresh, polished look.

Smart home technology is another easy upgrade that adds both comfort and convenience. Consider installing a smart thermostat to control the temperature remotely, or smart light bulbs that adjust based on your schedule.

These small changes can make daily life more efficient and give your home a modern edge.

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• 13 Home Features Today's Buyers Want Most
• Save Money On Utilities With A Home Energy Audit

Summer is right around the corner. It means trips, cookouts and on the less pleasant side of the spectrum, higher electric bills.

The reason? As weather heats up, more homes and businesses use air conditioning more. This places stress on an outdated energy grid, and suppliers base price on demand.

Therefore, starting on June 1, energy prices could raise significantly in deregulated energy markets.

Deregulation's impact on electric bills

Some states have regulated energy and some don't. Regulated states usually have the utility as your sole provider for electricity services since your location dictates who you have.

Alternatively, in deregulated markets, you could have a supplier and utility. The supplier's main task is to puchase energy at competitive prices then turn around to offer them to customers.

In essence, you're gaining the power of choice as you can shop multiple providers to find the right plans and pricing that work for you. Meanwhile, the utility company maintains powerlines, reads meters, handles account matters and responds to outages.

A perk of deregulated energy is you have plan choices. Fixed-rate plans lock in your electric rate for a specified time. The only issue with them is if you need to cancel before the term expires, the provider could charge you an early termination fee. But by that same token, you won't have to worry about rate increases while you're under contract.

Meanwhile, variable-rate plans can change prices each month, based on factors like energy load demand and climate.

Furthermore, when demand increases, like it does during the summer, it can result in higher rates and electric bills. The good news with variable-rate plans is you're not under contract, so you're free to switch at any time without any fees.

Which cities will have the highest surge in electric bills?

Arbor, an app that helps you save on energy bills, conducted a study to find the cities where electric bills will increase the most this summer.

Here are the seven cities with the largest increases:

A couple things to note: First, every city making this list is in a deregulated energy market. Two, prices per unit when you buy energy are in cents per kilowatt hour. The average home uses around 855 kWh per month, according to SaveonEnergy, but you can group together your last three electric bills to estimate how much you use per month.

The rates Arbor used for this table was current as of May 1. However, rates are subject to change at anytime.

What this tables shows is the anticipated rate you can expect to pay in these cities when the surge pricing goes into effect and after you switch to a fixed-rate plan. In areas like New Jersey and Pittsburgh, you could save up to $50 monthly off your electric bills by switching to a fixed-rate provider.

How do you switch? It depends on where you live. Some communities negotiate rates with suppliers for their residents, while in other areas, you're free to go about shopping for your own plan.

If your community does the negotiations for you, check your mail for any notifications, as they'll include notices and ways to choose another supplier.

If you're on your own, use sites like Arbor or SaveOnEnergy to shop for and compare prices in your area. Once you find a plan you like, you can complete the process through the website or call customer service for any questions you have or to sign up.

Another option is to reach out to your local utility. They have resources available, where they direct you to shopping platforms to pick a plan.

Keep in mind that even when you switch suppliers, your utility remains the same. They'll also be your point of contact with any account issues or to report an outage.

Other ways to lower electric bills

Here are some items you can buy to lower electric bills quickly:

The bottom line

Electric bills continue to rise. And with summer right around the corner, now marks an excellent time to prepare your home for the sweltering heat.

If you live in a deregulated energy market, shop around suppliers and find a fixed-rate energy plan that'll help you keep costs low during peak demand. Also, consider outfitting your home with some of these smart home devices, as they can keep costs reasonable when the weather isn't.

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Summer is a tough time for your home. The warmer weather puts stress on your home's air conditioner, spiking energy costs at a time when they're already expensive. And severe weather could unplug you from the grid altogether.

When the power goes out, it might not seem like a big deal to many. However, if you need power for medical devices, such as oxygen concentrators, or require a cool environment due to your health conditions, an outage represents a serious issue.

With this in mind, here are some things you can do to maintain power in an outage. I'll also cover home essentials to have on hand if there's an outage and you don't have a generator.

Prevent power outages with a home generator

A whole home generator can help you bridge the gap between when a power outage happens and your utility turns it back on.

Some of the best generators run on gasoline or propane. That means when the fuel runs low, you can refill it and run it continuously. They're not cheap by any means, but you can find great options through your local hardware store or online:

It's important to note that home generators are not a one-size-fits-all solution. Ideally, you'll want to consider the appliances you need powered during a blackout, then calculate the wattage to ensure the generator can handle your home's demand. Lowe's has a helpful wattage calculator to assist you.

Moreover, costs could play a role in whether you want to pull the trigger. Home Advisor notes whole home generators run from $1,516 to $8,809, with power capacity, brand, installation costs and permits being price drivers.

You'll also want to conduct maintenance on it annually, or consult a pro to do so. Ideally, you'll want it inspected before the winter or summer months, when inclement weather becomes a more frequent visitor.

If your area isn't prone to many power outages but you want to have something prepared in case it does go out, consider a portable generator.

Portable generators are great for powering everything from small devices to appliances. And you won't have to fork over a ton of money or do extensive construction to accommodate them.

Go green, gain energy independence

Another way to keep the lights on is to harness the power of the sun. Solar panels, battery backups and generators generate electricity from the sun and convert it to AC electricity, which you can use to power items in your home when the lights are out.

Installing a solar energy system is the most permanent and most expensive solution. Energy Sage estimates the cost to install a system is $30,500, but there are state tax incentives that lower overall costs.

To demonstrate, New York offers homeowners up to 25% back of their total costs, up to $5,000, with the New York Solar Energy System Equipment Credit. Other states offering tax credits include Arizona, Colorado, Hawaii, Massachusetts, New Mexico and South Carolina.

Moreover, with solar panels, you gain energy independence, which means you don't have to rely on the grid as an energy source. However, if you want to keep the power on when an outage occurs, you'll need to have a battery backup, which stores the energy produced by your solar panels. Without a battery, the electricity could go back through the power lines, creating a dangerous situation for utility workers.

These can be expensive, costing on average around $15,000, according to Energy Sage. However, they do qualify for energy tax credits.

If you don't want to fork over tens of thousands of dollars, there are less expensive and more temporary measures available. Portable options and battery backups powered by solar can keep power available when you need.

Prices depend on capabilities and what you want charged during an outage. If you don't encounter them often and just want a small system to have around in case, portable solar chargers are not bad options to consider.

Other gear for power outages

The Red Cross has a helpful list of items to include when preparing for an outage. Here's a look at some of the essentials:

• Coleman Chiller 48qt Insulated Portable Cooler with Ice Retention & Heavy-Duty Handles - $25.99
• Lepro LED Camping Lanterns Battery Powered - $16.99
• Esky Emergency Hand Crank Radio 7400mWh with 3 LED Flashlight, AM/FM/NOAA Portable Weather Radio with Power Bank Phone Charger - $15.59
• Johnson & Johnson All-Purpose Portable Compact First Aid Kit - $18.36
• Energizer Auto-On LED Flashlights Rechargeable for Home Power Failure - $10.49
• Portable Neck Fan, Hands Free Bladeless Fan, 360° Cooling Personal Fan - $25.61
• GearLight 2Pack LED Headlamp - $14.99
• Duracell Coppertop AA Batteries with Power Boost Ingredients, 24 Count Pack - $16.60

On the perishables end, have one gallon of water per person per day set aside. It's also ideal to have ample non-perishable food and at least a seven-day supply of any prescriptions you take.

All told, we're entering the season where power outages are a more frequent occurrence. Adopting some of these measures can help you remain comfortable and safe, when they happen.

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Upgrading your home security can give you peace of mind, help minimize property damage, protect your family and even help you save money on home insurance rates.

If you're ready to boost your home security, you don't necessarily have to call in a professional. There are many DIY home security upgrades that you can easily make yourself.

When you're done, call up your insurer. Many home insurance companies offer discounts for home security upgrades, though the amount of the discount varies by provider and the type of device or upgrade. So, make sure to call afterward to find out if any of your DIY projects qualify for a lower home insurance premium.

1. Smart home security systems

DIY smart home security systems like Ring, SimpliSafe and Wyze offer affordable home security packages. You can choose from packages including security cameras, motion sensors and alarms.

For example, the Ring Alarm Wireless Security System includes a base station, keypad, door/window contact sensor, motion detector and range extender to help you get started. You can add on more devices over time, which can help minimize the initial costs of your security system.

These systems tend to be easy to install yourself, and you can customize them to your security goals. For example, you might decide to add on smart smoke detectors and carbon monoxide alarms. If the alarms are triggered, your monitoring system will contact your local fire department, even if you're not home at the time of the fire.

Security systems can be smart investments in your home's safety. According to a study funded by the Alarm Industry Research and Education Foundation, 60% of burglars would look for an alternative target if they saw an alarm system, and most burglars look for an alarm before attempting a burglary.

Additionally, some insurers offer discounts for monitored systems or even unmonitored smart home security systems. So be sure to ask your home insurance provider if there are discounts available and which type qualifies.

2. Deadbolts and reinforced door hardware

The deadbolt that's currently on your door might not do the best job of protecting your home, so consider reinforcing it with a Grade 1 deadbolt.

The American National Standards Institute developed a system to rate deadbolt quality. Grade 1 deadbolts offer the highest quality, most reliable security based on factors like their strength and the quality of materials used.

Upgrading your deadbolt can help prevent a burglar from being able to kick in your door. In addition to investing in a Grade 1 deadbolt, reinforce your door frame with a steel strike plate.

Use long screws that go at least one inch into the door frame stud to maximize the resistance of the strike plate, making your door more difficult to kick in. These affordable upgrades can have a big impact on your home’s security.

3. Motion-sensor lights and smart bulbs

Outdoor motion-sensor lights can deter break-ins and improve the visibility around your home. Since the lights only turn on when activated, they can help save you money on your electrical bill while improving your home's security.

You can install many motion-sensor lights in place of an outdoor flood light, but you'll need some electrical knowledge since the lights will have to be wired in.

Solar motion-sensor lights, like the Bell + Howell Solar Powered Motion Sensor Flood Light, are much simpler to install and can be easily relocated around your home and yard as needed.

4. Security window film

Security window film helps strengthen your glass windows, absorbing impacts from a break-in attempt and helping to prevent the window from shattering.

Some window films also darken your windows to prevent burglars from being able to easily see into your home.

Window film is easy to install and can be left in place for years. It may help to slow or deter break-ins, and can also help minimize storm damage.

5. Video doorbells

Video doorbells are affordable and easy to install, and many can pair with your existing smart security system.

While some doorbells are designed to be hardwired, there are plenty of battery-powered options, like the Ring Battery Doorbell Plus, that make for an easy DIY installation.

If you're renting your home, look for a no-drill video doorbell mount that's easy to install and just as easy to remove when it's time to move out.

With a video doorbell, you can answer your door and speak with visitors even when you aren't home. The doorbells also capture and store video footage that you can use as evidence in case you need to file a home insurance claim. These doorbells offer peace of mind and are a great investment in your home's security.

Additional ways to lower your home insurance premiums

If you're looking to lower your home insurance premiums, start by calling your insurance provider. Ask whether the home security device you're considering qualifies for a discount, and take the opportunity to explore other potential savings.

You might be eligible for discounts by bundling your home and auto policies, enrolling in paperless billing, or making home improvements like installing a new roof.

Make it a habit to review your insurance coverage annually to ensure it still fits your needs — and that you're getting all the discounts you qualify for.

If you're considering bigger home improvement projects, that could qualify for bigger discounts. Spring is a great time to tap your home equity to get those projects funded.

Use your tool below, powered by Bankrate, to see what kind of home equity rates you can get right now:

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Weather can take a toll on your home and lead to expensive repairs. Home insurance helps protect your property when disaster strikes, but that doesn't mean it'll cover everything that happens, and you don't want to file a claim if you can avoid it.

Most insurers exclude damage caused by neglect or improper maintenance. For example, if a roof suffers water damage and your insurer notices clogged gutters, the company might pin the damage on a lack of maintenance and deny your claim.

Each year, about one in 35 insured homes experiences a property damage claim related to wind or hail, and one in 60 insured homes files a claim for water damage or freezing, according to the Insurance Information Institute.

These nine home hardening projects are things you can do yourself over a weekend or hire a pro to handle for you, and they can help safeguard your home from the elements. This will lower the risk of needing to file a claim in the first place and increase the odds of a claim being approved if you do need to file one. As an added bonus, some of these projects might also help lower your home insurance premiums.

1. Seal windows and doors

Drafty windows and doors can drive up your home heating and cooling costs, and leaks and water intrusion can damage your home's interior. Fortunately, sealing windows and doors is a pretty easy DIY weatherproofing project.

To start, use caulk to fill in any gaps between your window frames and walls. Caulk can create a finished look to the space, and if you choose a paintable latex caulk, you can always paint over it.

Next, install weatherstripping along the bottom of doors and windows where gaps occur. You can choose several different types of weatherstripping, including adhesive-backed products that are simple to install. Make sure the weatherstripping is the right width for the space and that it compresses when you close the window or door.

If you have older, single-pane windows, caulking the framing might not be enough. In the long term, replacing those older windows with double-pane ones is a great energy-efficient upgrade. Until then, an affordable and easy way to minimize heat loss through your windows is to use a sheet of heat-sealed plastic.

It's kind of like the Saran Wrap you'd use to store leftovers in the fridge. You stick it to the window frame and then blow on it with a hair dryer until it shrinks to create an airtight seal. Come spring, you can simply peel it off.

2. Find and seal other sources of air leaks around your home

Your windows and doors are the usual suspects. But there are plenty of other less obvious air leaks around your home that can make it feel drafty even with the most well-insulated doors and windows.

To find those leaks, start by inspecting the exterior of your home for small holes and cracks. As you find one, seal smaller gaps and cracks with caulk and fill larger ones with expanding spray foam.

Next, do the same inside your house. Some common culprits include the attic hatch, recessed lighting, baseboards, light switches, outlets, plumbing connections and exhaust vents (such as the one coming from your gas furnace or fireplace).

3. Install gutter guards

Clogged gutters can cause ice dams, roof damage and foundation issues. If water overflows the gutters and runs down the side of your home, it can also damage your siding.

Gutter guards can help prevent clogs and save you time on gutter cleaning and maintenance. These systems are usually easy to install, too. The Gutter Guard by Gutterglove can be screwed or taped onto your gutters, and it prevents debris such as leaves and sticks from getting stuck.

Be careful about accessing the gutters. Always take precautions when you use a ladder, like having a second person present. If you're not comfortable with accessing the gutters or don't have someone around who can spot you, you should hire a professional to do this work. Your safety is always key.

Most insurance companies don't offer discounts for gutter guards, but weatherproofing your home with gutter guards can help prevent damage to your roof.

4. Insulate your plumbing (indoors and outdoors)

You can usually find pipe wrap or rolls of foam pipe insulation at a home improvement store such as Lowe's or Home Depot. Wherever pipes are exposed to unconditioned air — think plumbing in the attic, crawl space or garage — you want to wrap them in foam insulation.

This can prevent freezing in the winter, but it can also make your hot water system more efficient by minimizing heat loss as the heated water travels through your pipes.

5. Clean or replace air filters

A dirty filter isn't just bad for your air quality: It also makes your HVAC system work harder to pull air in and heat (or cool) your home efficiently.

Most filters need replacing every three months or so. Even if your system has reusable filters, they should still be cleaned about as often. Basically, that means cleaning or replacing them whenever the seasons change.

6. Make sure your sump pump works

A sump pump can help prevent basement flooding, but only if it's clean and functioning properly. You don't want to find out it's not working in the middle of a storm.

To start, unplug the pump so there's no power going to it, then remove any dirt or debris on the pump itself or in the opening around it. Once clean, plug it back in and pour a bucket of water into the sump pump area to make sure it kicks on when it's supposed to.

If it doesn't, you might need to repair or replace the pump. For simple repairs (such as swapping the float switch), it'll be easy to do yourself. For a complete replacement or more complicated repairs, you might want to hire a plumber.

Even if your sump pump works fine, consider adding a battery backup if it doesn't have one. If the power goes out in a storm, you want your pump to have an alternate power source so it can keep doing its job.

For example, the Basement Watchdog Sump Pump System has a battery backup that features 24-hour monitoring and alarms that can alert you to problems with power conditions and other issues. The battery backup ensures the pump stays operational during power outages, so your basement stays dry.

Home insurance usually won't cover damage caused by sump pump failure or overflow. You can add on water backup coverage for extra protection, but buying a sump pump with backup power might help you avoid having to file a homeowners insurance claim and pay your deductible.

7. Secure loose fencing and other outdoor items

Flying debris can damage your home, windows, vehicles and other structures on your property, and damage caused by flying debris is a common source of home insurance claims.

This includes such things as loose fencing, trash cans, patio furniture, trampolines, playsets and other common backyard items. Not only can they be blown around in a storm, but they also wear faster if left out to be exposed to the elements.

For the sake of your home and the outdoor items themselves, store them in your garage or in a shed for the cold season. For things that can't be stored (such as your fence), take the time to secure any loose parts. That might mean replacing rotting fence boards or reinforcing pergolas to make sure they're securely attached to the ground.

For larger items that aren't already securely attached to the ground, such as raised garden beds or fire pits, consider using tie-down kits. These are basically straps and stakes that you can use to strap your outdoor decor to the ground, holding it in place during bad weather.

8. Upgrade roof anchors or shingles

Minor upgrades to your roof might lower your home insurance premiums. Roof repair costs can range from $150 to $8,000, and roof replacements can cost even more, according to This Old House.

There are several affordable, DIY-friendly ways to upgrade your roof. Applying a sealant to your shingles can help protect them from moisture and UV rays, prolonging their lifespan and helping them to better protect your home.

Remember to follow safety protocols for any project that requires a ladder and roof access. If you're not comfortable with this work, you can hire a local handyman to do it.

As a more involved project, if you're in a location that often sees hurricanes and strong winds, installing hurricane clips can help reinforce and stabilize your roof. These clips attach your roof trusses or rafters to the walls of your home, helping secure the roof to prevent it from being lifted off of your house during extreme winds.

Hurricane clips are best installed by a professional, and a roofing expert can help identify the appropriate types of clips and placement for your home. Familiarity with local building codes is also important.

9. Keep up with winter tree pruning

This is an often-overlooked task but an important one for protecting your property. If you have any trees near your house, your garage or your fence, get a licensed, knowledgeable arborist — not just a tree trimming service — to inspect the trees around your property.

Weak limbs or new growth that's too crowded have the potential to break off in a storm or even on a windy day. Getting these risky limbs removed annually, especially in winter when pruning is less stressful on trees, can improve the overall health of the tree and reduce the risk of falling limbs damaging your property.

If you're handy with a chainsaw and the trees aren't too large, you might be able to do this task yourself. Make sure you look up proper pruning techniques. Cutting a limb in the wrong place (or at the wrong time) can make your tree vulnerable to disease or trigger the growth of weakly attached new limbs.

Additional ways to save on home insurance

These weatherproofing projects might qualify for insurance discounts, helping you cut home insurance costs without losing coverage.

Insurance companies often offer discounts for other upgrades, too, like for installing a new roof or buying a monitored home security system.

To maximize your savings, contact your insurance company and ask about available discounts that can lower your home insurance premiums. Update the insurance company when you’ve completed your upgrades, too.

Looking to save on home insurance? Use the tool below to explore some of today's top home insurance offers:

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Earth Day is April 22nd this year. Since its beginning in 1970, Earth Day has served as a yearly reminder of just how interconnected we are with our planet. Each year, people around the world come together to recognize the importance of protecting and preserving our natural environment.

This year, why not take the holiday's message to heart and make meaningful changes toward more eco-friendly living? You don't need to overhaul your entire lifestyle to make an impact.

Instead, start small with these three simple, green practices to celebrate Earth Day and contribute positively to the planet.

1. Be smart about energy

Did you know that residential energy use accounts for nearly 20% of greenhouse gas emissions in the U.S.?

While that number may seem overwhelming, there are simple steps you can take to reduce your energy consumption and carbon footprint.

• Switch to LED light bulbs: Replacing traditional incandescent light bulbs with energy-efficient LED alternatives is one of the easiest ways to conserve energy. LEDs use up to 75% less energy and can last 25 times longer than standard bulbs.
• Unplug devices when not in use: Electronics and appliances continue to draw power even when they’re turned off. Known as "phantom energy," this hidden electricity usage can add up to significant energy waste over time. Combat this by unplugging devices like phone chargers, televisions or coffee makers when they’re not in use.
• Consider installing a smart thermostat: A smart thermostat is a brilliant upgrade for any home. These devices learn your routine and automatically adjust the temperature to conserve energy when you don’t need it, such as when you're away from home or asleep. Many smart thermostats also provide insights into your energy use, helping you make informed, sustainable choices.

Upgrade your home’s energy efficiency and reduce your monthly bills with these Earth-friendly essentials:

• GE LED Light Bulbs (Various Wattages)
• Honeywell Home Black/White Smart Compatible Thermostat with Wi-Fi Compatibility
• Eaton Wi-Fi Smart 15 -Amp 125-volt Tamper Resistant Residential
• Utilitech 6-ft 3 -Outlet 2 -USB Ports Indoor Black Power Strip
• Lutron Lumea LED+ Single-pole LED Slide Light dimmer switch White

These upgrades reduce your carbon footprint and lower your utility bills.

2. Go Green with Your Home

Creating an eco-conscious household doesn’t have to involve major renovations. Simple, sustainable upgrades can make a world of difference.

One easy switch is to start composting your kitchen and garden waste. By doing this, you can reduce what ends up in landfills while creating nutrient-rich soil for your plants. Investing in a small compost bin for your kitchen or yard is all you need to get started.

A rain barrel is another eco-friendly item that can help you collect runoff from your roof during rainy days, which you can then use to water your garden, plants or lawn.

Finally, solar-powered garden lights store energy from the sun during the day and use it to illuminate your outdoor spaces at night. They’re easy to install, cost-effective and energy-efficient.

These items can help you make these simple swaps:

• Miracle-Gro 18.5 Plastic Tumbler Composter
• Good Ideas Rain Barrel with Diverter Kit (50-Gallon)
• Nature Spring 6 -Pack 0.79 -Lumens Black Solar Integrated LED Path Light Kit
• EcoSmart Tankless Electric Water Heater
• Delta In2ition 5.0 -Settings Chrome 6.5-in Round Dual/Combo Shower Head 2.5 GPM

3. Give Back to the Earth

Earth Day is a perfect opportunity to reconnect with nature and give back to the planet. Even small actions can make a big difference.

Planting a tree is one of the most iconic Earth Day activities for a reason. Trees absorb carbon dioxide, provide oxygen and offer habitats for wildlife. Don’t have space for a tree? Opt for planting pollinator-friendly flowers or native plants.

You can also join or organize a community cleanup. This is a great way to protect the environment while building connections with your neighbors.

Check for organized cleanups in your area, or take the initiative to start your own. Even a few hours of trash collection can greatly improve your local environment.

If your time is limited, consider contributing to environmental organizations or sustainability projects. Whether it’s donating to a reforestation program or buying products from eco-friendly brands, your support helps fund initiatives that protect the planet.

• Scotts Turf Builder Landscaper's (North) 7-lb Mixture/Blend Grass Seed
• Flowerwood 2.5 -Quart Screening Green Giant Arborvitae (2 Pack) In pot (with soil)
• BLACK+DECKER 180.0-CFM 180-MPH Corded Electric Handheld Leaf Blower
• Earthwise 18-in Corded Electric Hedge Trimmer
• Bonnie Plants and Herbs

Even small acts of care can add up to a big impact. Earth Day isn't about perfection but about progress.

By following these three simple rules, you can make your home more eco-friendly, save energy and reconnect with the world around you.

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Adapting your home for a vacation rental — whether your whole house, a basement apartment or a room — could be a real help in retirement. America has a retirement cash flow problem, and there is no obvious solution for financially strapped U.S. retirees. So, it's worth running the numbers to see if this type of rental could add the cash cushion you need in your retirement plan.

According to a recent Employee Benefit Research Institute (EBRI) study, 68% of the nation’s retirees reported having outstanding credit card debt. At the same time, approximately half of US seniors said they have “saved less” than they needed for retirement.

Additionally, 59% of retirees told EBRI they have only 90 days of emergency savings, down from 69% in 2022. Meanwhile, 36% of retirees say they have experienced “unexpected spending needs” since their retirement, the study noted.

With thin wallets and draining bank accounts an unfortunate reality for too many US retirees, getting creative with income generation in their golden years isn’t a luxury — it’s a necessity.

That’s where a short-term Airbnb or Vrbo rental can help, experts say

"For retirees seeking extra cash flow, short-term renting can be a golden opportunity, but only if it fits their property and lifestyle,” says Jen Yacoube, wealth advisor at Adero Partners in Walnut Creek, Cal.

For retirees, an “ideal” setup would convert unused space into a private area with its room, bathroom, kitchenette, and entry, keeping life seamless and secure, Yacoube notes.

“Sharing a space is less ideal and can feel intrusive,” she says. “Equally important is deciding if a retiree wants to embrace the role of a hands-on host or would prefer a stress-free, passive income stream with a property manager. The key is aligning this venture with their vision for retirement."

Getting your vacation rental experience rolling

Starting out as an Airbnb or VRBO host isn’t overly complex, but you’ll still need a comprehensive action plan to get your short-term rental business going. Apply these expert tips to the process of getting up and renting.

Evaluate your situation

David Ciccarelli, CEO and founder of the vacation rental platform Lake, recommends that retirees start their short-term rental journey by self-evaluating. “Ask yourself the right questions,” he says. “Why do you want to rent out your place? Were you previously in the hospitality industry and loved being around and serving people? If you can connect there, it's likely a great fit.”

Yet, if you're looking for a simple way to generate income during retirement, it'll prove more challenging than anticipated. “Short-term rentals require marketing and technical skills to get set up properly,” he says. “These skills can be learned, but expect to spend hundreds of hours just getting going.”

Stage your home via video

Ciccarelli says that your home’s location and photos represent 90% of the marketing on these platforms.

“You'll need to name your property (ideally something catchy and unique) and then create some high-quality photos,” he notes. “If you're not into photography, ask your son, daughter, or grandkids to take "aspirational" and "inspirational" photos of each room in the house.”

Ciccarelli’s data shows that the top properties on his company’s platform have over 20 photos, with over 50 photos, so be prepared to take loads of pictures.

“When I say a photo of each room, I mean it,” he notes. “Include each amenity (i.e., washer, dryer, coffee maker, luxury towels, etc.,) and don't forget the home’s exterior. Be sure to upload photos of the property and the views from your deck or patio.”

Plan your pricing

Before officially signing up with a short-term rental partner like Airbnb or Vrbo, gauge your pricing points.

“Look at other similar rental homes in your geographic area and determine what they’re charging,” says Debra L. Morrison, a certified financial planner at Women Navigating Finances, LLC in Lincoln Park, N.J. “Compare the number of bedrooms to the number of bathrooms the view the accessibility and the location compared with your home.”

Mark your rent prices moderately higher or lower than the competition. “If you’re unsure, Vrbo has an automated system whereby you can check the local competition and their pricing,” Morrison says.

Be mindful of the calendar, as that can trigger higher rental prices in your favor. “Holiday pricing is often higher, as demand is high and supply is low,” Morrison adds. “If your home is located in an area with seasonal appeal, you’ll want to increase the per night rental charge for those weeks/months.”

To book longer stays, offer a 10%-15% rental discount for monthly renters. “That may incentivize folks to book your place for a month,” Morrison adds.

Set up your account

Both Airbnb and Vrbo make it relatively easy to sign up for short-term rentals at your retirement home, but there’s more to the job than that.

“You can either set up accounts on one or both channels, but if you plan on marketing your property on multiple rental sites, you’ll need a channel manager that can sync the calendars from both sites to a central booking calendar,” says Austin Hair, managing partner at Leaders Real Estate in Orlando, Fla.

Retirees can expect to see different property management systems online with varying price points and features, so do your due diligence and choose accordingly. “We use Hostaway as our channel manager and PMS, which allows us to offer our short-term rental on many different platforms, including Vrbo, Airbnb, Booking.com, and our direct booking website,” Hair notes.

Protect yourself

Airbnb and Vrbo provide standardized terms, but retirees may benefit from supplementing these with additional house rules or contracts.

“For example, specifying guidelines around noise, parties, or damage can help mitigate risks,” Hair says. “Consider requiring security deposits and investing in short-term rental insurance for added protection. You can implement a rental agreement with a digital signature by using property management software like Ownerrez.”

Aim for a short-term rental contract, a must-have for retirees working with Airbnb or Vrbo.

“A short-term lease rental contract makes the most sense in so much as you can include a liability protection clause,” Morrison advises. “Very few people starting out renting their homes imagine the worst, yet the worst can happen. So make sure to collect a significant security deposit and name the conditions that cause renters to forfeit a part or all of their security deposit.”

It's also a good idea to automatically include a separate liability policy per rental with a partner like Vrbo. “At about $80 or, that policy provision can provide extra coverage,” Morrison adds.

Check with your homeowners' association

If you have a homeowner’s association, you’ll want to know any association rules governing short-term rentals.

“If you’re a condo or co-op owner and want to work with Airbnb or Vrbo, examine your association’s bylaws,” Morrison says. “If your association rules dictate a certain minimum night stay, you’ll need to put that in your description so you don’t have to answer every single inquiry about minimum stays.”

Last minute tips

A retiree looking to succeed in the short-term home rental market with Airbnb or VRBO should emphasize good customer service and responsiveness.

“If you’re managing the property yourself, aim to respond to renters within 5–10 minutes and set up an automatic message after check-in to address any issues early on, potentially avoiding negative reviews,” Yacoube says. “Build a cushion into your pricing to cover inevitable minor breakages like glasses or dishes, rather than charging renters for normal wear and tear.”

Make the process easier on yourself with small action moves that help.

“Save yourself any hassles by designing your space with durable, easy-to-clean materials that can withstand heavy use,” Yacoube notes. “One of the biggest mistakes hosts make is over-personalizing the space with fragile or high-maintenance furnishings.”

“Short-term rentals thrive on practicality and guest comfort, not perfection,” she adds.

Read More

• Four Ways to Use Your Home Equity to Boost Your Retirement
• How Short-Term Real Estate Rentals Can Lower Your Tax Exposure
• Short-Term Rentals: 10 Things to Know About Sites Like Airbnb
• Five Signs It's Time to Retire in 2025

The federal solar tax credit, officially the “Residential Clean Energy Credit,” has become a popular incentive for homeowners to invest in renewable energy. The credit is here due to the Inflation Reduction Act (IRA). It allows eligible homeowners to deduct up to 30% of the cost of installing a solar energy system on their federal returns.

Notably, this tax break has led to a boom in solar installations across the United States. 

Data show that last year was a record-breaking one for solar installations, with 51% more gigawatts of solar energy capacity installed than the prior year. (That’s according to a market report by the Solar Energy Industries Association (SEIA) and data analytics company Wood Mackenzie.) 

To top it off, the IRS and the U.S. Treasury Department recently revealed that residential clean energy payouts to taxpayers have reached billions of dollars.

So, if you’ve been on the fence over whether to “go solar,” this tax credit might entice you to take the leap. But before you do, it’s also important to know that increased demand and interest in solar panel installations have led to a rise in scam solar contracts.

Here’s more of what you need to know.

IRS solar tax credit payouts top $6 billion

The IRS has paid billions in solar tax credits since the program's inception.

Recent data show that more than 1.2 million taxpayers took advantage of the residential clean energy tax credit, claiming a total of around $6.3 billion. That translates to an average of just over $5,000 in people’s pockets for each eligible claim.

• Rooftop solar panels were popular, with about 752,300 homeowners claiming credits specifically for those installations. 
• Additionally, about 48,840 taxpayers reportedly claimed credits for battery storage systems.

How the solar tax credit works

The tax credit allows homeowners to claim 30% of the cost of installing a solar energy system on their federal income tax return. The credit reduces your tax bill, and if you end up with more credit than you owe in taxes, you can generally carry that over to future years.

Proponents of the incentive say it makes renewable energy more accessible by helping to reduce upfront solar installation costs.

Who can claim it? If you make clean energy improvements to your main home — including solar panels or solar water heaters — you’re likely eligible for the tax credit. Make sure the system is on a property you live in most of the time, and consult a trusted tax professional if you’re unsure of your eligibility.

How much is the tax credit? The solar tax credit covers up to 30% of the total cost of your solar installation, including the setup. There’s no maximum dollar amount for how much you can claim (the credit is based on a percentage of eligible costs).

Note: The tax credit will remain at 30% through 2032. After that, it decreases to 26% in 2033 and 22% in 2034. 

This tax break generally applies to qualified expenses like:

• Solar electric panels and fuel cells
• Certified solar water heaters
• Labor costs for installation, prep, assembly
• Permitting fees and inspection costs
• Certain capacity battery storage technology 

Use IRS Form 5695 when filing your federal tax return.

Beware of solar panel scams

While solar tax credit can be beneficial, the Consumer Financial Protection Bureau (CFPB) is warning about deceptive practices. Some companies are using misleading sales tactics and fraudulent contracts to exploit homeowners.

Scams can range from sending fake loan contracts to lenders to claiming inflated or non-existent tax credits or claiming you'll receive a rebate check from the government in the mail.

Specifically, the CFPB cautions to beware of:

• Promises of unrealistic savings
• High-pressure sales
• Hidden fees or escalating solar contract payments
• Companies claiming to be affiliated with government programs

To protect yourself, research solar installation companies and verify any claims that a given company is affiliated with a government program. 

It’s also good to:

• Get multiple quotes from reputable installers
• Read contracts carefully before signing
• Be cautious of door-to-door sales pitches

Homeowner tax breaks: Bottom line

Given the popularity of solar installations and clean energy tax credits, it’s important to stay informed about the benefits and potential risks before signing any solar installation contract.

Also, don’t forget about other ways to lower your tax bill. The IRS offers several tax credits and deductions for homeowners and homebuyers and the IRA contains other clean energy incentives like the federal EV tax credit.

Related

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If you're a Wisconsin resident, you can now save even more on home energy improvements, thanks to the state's recent launch of the Home Efficiency Rebate (HOMES) program. Depending on your household income, you could receive a rebate for up to 100% of the costs (on up to $5,000) to purchase and install a heat pump or other energy-efficient home improvements. 

The HOMES program will benefit not only Wisconsin families but also the environment. White House national climate advisor Ali Zaidi says that these rebates will "both reduce emissions and lower energy costs for Wisconsin families using tried-and-true insulation, heat pumps, and efficient appliances and lighting." These savings may be stacked with existing energy efficiency incentives.

Here's what you need to know about the program, which could be heading to your state soon.

What is the Home Efficiency Rebate Program? 

Wisconsin just became the first state to launch the nation’s first-ever Home Efficiency Rebate (HOMES) program, supported by the Inflation Reduction Act. The rebate program, in partnership with the U.S. Department of Energy, will enable Wisconsin residents, particularly those with lower and middle incomes, to save on energy-saving home improvements, which includes insulation, air sealing and heat pumps that reduce whole-home energy consumption. It's just one part of the Biden-Harris Administration’s initiative "to provide $8.8 billion in Federal funding" to "lower energy costs and increase efficiency in American homes."

How much can I save?

By participating in the HOMES program, households could save up to $14,000 for energy-efficient home upgrades, not to mention the hundreds more you'll save on monthly energy bills.

According to the National Renewable Energy Lab (NREL), a majority of Americans (62% to 95% of households, depending upon heat pump efficiency) would see a drop in their energy bills by using a heat pump — $300 to $1,500 annually, according to the DOE. And since heat gain and loss through windows is responsible for 25% to 30% of residential heating and cooling energy use, installing or upgrading windows to be more energy efficient is likely to lower your power bill.

To qualify for the program, Wisconsin residents will first need to get a home energy audit to understand how their home uses energy and where they can save.  Certain tax credits can offset the cost of the energy audit, and low-income households are eligible for a rebate. 

Both single-family and multifamily properties are eligible for the program. Qualifications for rebates are based on both household income and how much energy can be saved. Single-family homes making less than 80% of their area median income (AMI) can save up to $10,000, while those making between 80% to 150% AMI can save $4,000. Those making at or above 150% AMI can save up to $3,000. If you are unsure what your AMI is, you can look up your AMI through Fannie Mae.

Review the following chart from Focus On Energy to learn more about how much you can save.

Wisconsin will also launch the Home Electrification and Appliance Rebates (HEAR) later this year, which also offers up to $14,000 off high-efficiency electric appliances and home upgrades. This program is only for households earning 150% of Area Median Income or less. One thing to note about the program, however, is that households will not be eligible to receive a rebate from both programs for the same upgrade. 

The following chart from Focus on Energy shows how much low- or moderate-income households can save with HEAR later this year.

Ten other states — Arizona, California, Hawaii, Indiana, Maine, New Mexico, New York, Rhode Island, Washington and Wisconsin — have also received funding from the DOE to launch one (or both) of the above rebate programs. You can use this map to check your state’s progress toward launching its rebates.

Related Content

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Are you planning to spruce up your home? Whether you’re getting ready to sell your house or you’re just tired of having a dated kitchen or bathroom, it’s important to make smart, cost-effective choices when you renovate.

If you expect to stay put for a while, even a minor remodeling project can enhance your enjoyment of the space. And if you plan to put your house on the market soon, you can give it a competitive edge by painting, updating lighting fixtures and appliances, or even refreshing a bathroom or two before listing it.

Tips for sellers

If you’re making upgrades in anticipation of putting your home up for sale, do your research first to make sure it’s money well spent. After all, not all fix-it projects yield the same return on investment — and why plunk money down on a project that won’t provide a reasonable return when you sell?

“If you have a house that looks old or worn, your potential buyers will discount their offer by their estimate of what it will take to bring it up to par,” says Mari Adam, a certified financial planner in Boca Raton, Florida. “But while it’s great to make your house look fresher and up to date, you don’t want to over-improve it or do idiosyncratic projects that won’t appeal to a potential buyer.”

One way to help get the most value for your remodeling buck is to consult an experienced local real estate agent. A local agent understands the market, knows what’s selling and what’s not, and is familiar with the homes that will compete against yours. He or she knows what it will take to present your home in the best possible light and can make suggestions of projects to improve its marketability.

This is important too because competition in some markets is tight. And the National Association of Realtors estimates home sales will rise by 9% year-over-year in 2025.

Another valuable resource is the annual Cost vs. Value (CVV) report from Zonda, a housing data and consultancy firm. This report analyzes 23 common home-renovation projects to determine how much value those projects retain at resale.

Results of the CVV report are often surprising. For example, many homeowners believe that a kitchen or bath remodel will provide the most return on their investment. But the 2024 CVV report, released in April 2024 and based on 2023 data, found that a garage door replacement was the top-performing project. With an average cost of $4,513 and an $8,751 resale value, a homeowner completing that project will recoup a whopping 194% of the cost.

The second- and third-ranked remodeling projects on the 2024 list were a steel entry-door replacement and installation of manufactured stone veneer, which returned 188% and 153% of their cost, respectively. It’s no coincidence that all three of the top-performing projects this year are exterior projects that help to improve a home’s curb appeal.

“A buyer’s first impression of a house is super strong,” says Clay DeKorne, chief editor of Zonda’s JLC group. “When buyers drive up to a house that looks really shabby on the exterior, they form an impression that directly affects how much they want to pay for it. The interior may be wonderful, but they have to overcome the impressions they form about the outside.”

Curb appeal is an example of the old adage, “You don’t get a second chance to make a first impression.” Prospective buyers assume that if a house is well maintained, with an updated exterior, fresh paint, flowers and manicured landscaping, that the owner has been equally attentive to routine maintenance of the rest of the house, DeKorne says.

The CVV also indicates which home-improvement projects don’t deliver value. An upscale bathroom addition, for example — a project with an average cost of $107,477 — returns just 32.6% of that cost at sale, and an upscale primary suite addition, with an average cost of $339,513, has a return of just 23.9%.

That’s why home sellers need to carefully assess their planned projects to make sure they don’t spend money they won’t get back upon the sale of their homes. The full Cost vs. Value report breaks down the average cost and resale value for projects by region as well as nationwide.

Making it your own

Even if you’re not planning to sell your house soon, the CVV report can help guide you if you’re on a budget; many of the projects with the highest return on investment are also among the ones with the lowest costs. And because you don’t have to worry about making renovations that appeal to a wide range of potential home buyers, you can choose upgrades that suit your tastes.

“People love to renovate their kitchens and bathrooms because that’s when they can put their mark on a house,” says DeKorne. “All of the selections — the countertops, flooring, cabinets, fixtures — are personal, and the value you get is the enjoyment of living in the space you created.”

You can spend tens of thousands of dollars to create a kitchen you love, a place where you’ll spend countless hours dining, entertaining or socializing with friends and family. But if the buyer of your house doesn’t like the ornate cherry cabinets you selected and prefers a bright white kitchen, then that kitchen will have no value to the buyer.

Homeowners planning to stay for a while should feel free to personalize their space, choosing designs and finishes that make their house a home, rather than keeping it neutral in an attempt to appeal to a broader audience of potential home buyers.

Debby Belt, a senior associate at Hammond Residential Real Estate in Chestnut Hill, Massachusetts, says clients often ask her whether a certain renovation is worthwhile. “When I’m asked that question, the number one thing I say is, ‘Will you enjoy it?’ ” she says. “You can’t think of the future because by the time you sell your house, the styles might be different.”

Below are four remodeling projects among the top 10 from the CVV report that recoup the highest percentage of their cost at resale. We chose them not only because are they decent investments, but also because they can make your living space more enjoyable if you plan to stick around for a while. (Or, in the case of putting energy-efficient appliances in your kitchen or adding new siding — which can also improve energy efficiency — the projects can save you some money on utility bills in the long run.)

Plus, all these renovations have an average cost of less than $30,000, and some may run considerably less, allowing you to rejuvenate your home without breaking the bank.

Give your kitchen a facelift

A minor kitchen remodel is one of only two interior projects that are among the CVV report’s top 10 performers (the other is a midrange bath remodel; see below). The kitchen remodel costs an average of $27,492, with a resale value of $26,406 and 96.1% of the cost recouped.

Zonda based these numbers on the following specifications:

• A functional but dated 200-square-foot kitchen
• 30 linear feet of cabinetry and countertops
• Leaving cabinet boxes in place and replacing fronts with new shaker-style wood panels and drawer fronts, including new hardware
• Replacing a cooktop/oven range and slide-in refrigerator with new energy-efficient models
• Replacing laminate countertops
• Installing a mid-price sink and faucet
• Adding new resilient flooring
• Painting walls, trim and ceiling

This project, which requires no demolition except for removal of the counters and flooring, can be completed in four weeks, according to Lee Bardin, owner of Expert Renovation Team in Newton, Massachusetts, who has 30 years of design-build experience.

While it’s a great way to refresh a dated kitchen economically, Bardin warns that old cabinet boxes might be in poor shape, with stains or water damage — and that will be visible as soon as you open the doors. An alternative to refacing is to spray paint the cabinets, drawers and doors with multiple coats of lacquer finish. Bardin says the finished look is great and the cost is less than that of refacing.

Upgrade to fiber-cement siding

Replacing existing siding with new fiber-cement siding has an average job cost of $20,619, a resale value of $18,230 and a return on investment of 88.4%. Zonda based these numbers on the following specifications:

• Replacing 1,250 square feet of existing siding with new fiber-cement siding (factory primed and factory painted)
• Installing trim pieces, using either fiber-cement boards or cellular PVC
• Ensuring a continuous water-resistive barrier, such as a house wrap, beneath the siding

Fiber-cement siding, while more expensive than vinyl, is durable and long-lasting, and it performs better in moist environments, according to Elizabeth Gomez, co-owner of Bridge City Contracting in Battle Ground, Wash. The most important component of the installation process, which takes about three to five days for a 1,250-square-foot siding job, is the wrap that goes under the siding because it weatherizes the house and protects it from moisture issues such as dry rot and black mold, she says.

If your existing siding is in good shape and you’re primarily interested in boosting curb appeal, one way to re-side a house cost-effectively is to do only the front. That’s what Danielle Kilian did in 2021, when she installed fiber-cement siding on the front of her 1,546-square-foot home in Vancouver, Washington, at a total cost of about $13,000, including painting and a new front door. “

The rest of the siding was in good-enough condition, and we did the front to update the look of the house,” says Kilian, events director for the Building Industry Association of Clark County. “The front is what is seen by neighbors and by ourselves when we come home. So that was the most important piece for us, and we were able to do it in an affordable way.”

Build a deck

The addition of a wood deck has an average cost of $17,615, a resale value of $14,596 and a return of 82.9%. These costs are based on the following specifications:

• Adding a 16-by-20-foot deck, using pressure-treated joists (which are more resistant to rot and insects), supported by 4-by-4-inch posts anchored to concrete piers
• Installing pressure-treated deck boards in a simple linear pattern
• Including a built-in bench and planter of the same decking material
• Including stairs and a complete railing system using pressure-treated wood posts, railings and balusters

The construction of a 16-by-20-foot wood deck takes less than a week, according to Michael Ebner, owner of Back to Nature Decks in Oreland, Pennsylvania. Once the deck is completed, he recommends sealing it and re-sealing every year or two to preserve it.

Ebner notes that about 80% of his clients opt for a composite deck instead of wood, although the price is higher — an average $24,206 for a 16-by-20-foot deck with similar specifications as the wood deck described above, according to the CVV report. The composite will last longer, Ebner says — good for 20 to 30 years with no maintenance. So if you’re planning to stay in your house for more than 10 years, he says the composite is “a no-brainer.”

One tip Ebner has for homeowners who want a deck is to go big. “A 16-by-20-foot deck is decent, but with all the amenities people have now — grills and furniture and a fire pit — think about extending the budget a bit to make it bigger. You will always fill it.” The incremental price of building a slightly larger deck is not substantial, he says, adding about $40 to $45 per square foot to the cost.

Update a bathroom

A midrange bathroom remodel comes with an average job cost of $25,251, a resale value of $18,613 and a return on investment of 73.7%. These statistics are based on a bathroom remodel with the following specifications:

• Updating an existing 5-by-7-foot bathroom
• Replacing all fixtures, including a 30-by-60-inch porcelain-on-steel tub with a 4-by-4-inch ceramic tile surround
• Installing a new single-lever temperature and pressure-balanced shower control, a standard white toilet, a solid-surface vanity counter with an integrated sink, a recessed medicine cabinet with a light, a ceramic tile floor, and vinyl wallpaper

Bardin says that what starts as a simple bathroom remodel may end up being more comprehensive if the plumbing or electrical systems need to be updated as well. He says this project typically takes about eight weeks because multiple subcontractors are involved and, in his jurisdiction, seven inspections are needed along the way.

Bardin has two tips for home-owners planning a bathroom remodel. First, for the sink, he recommends a single-hole faucet, not the type with a spout and two handles. He says the single position has fewer problems, lasts longer and is easier to clean. Second, if a tub/shower is being installed, he says it’s critical that it be no deeper than 14 inches because it’s challenging for a homeowner or guest to step over anything higher, especially with wet feet. He suggests that anyone who wants a soaking tub install it in the primary bath, not a secondary bath that children and guests will be using.

Updating a bathroom can add tremendous value to a home. Real estate agent Debby Belt first tried to sell an expanded ranch home in Chestnut Hill, Massachusetts, with dated bathrooms, although it had a beautiful new kitchen. The offers she received were low, so Belt suggested that the owner take the house off the market and refresh three bathrooms, which Belt described as “livable, but dreary.” After she re-listed the home, it sold for $140,000 more than it would have before the bathroom facelifts, ultimately closing in February 2022 for $2.6 million.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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I recently had a call with a client who was looking to fund the construction of a swimming pool at his house. The client had enough cash to pay for the project but wanted to weigh all the financing options. This is the type of advice we as financial planners are often asked to give.

Funding a large purchase should be thoughtfully planned. I always recommend that clients take a moment to consider how a potential purchase impacts their overall financial plan and long-term goals, and I work with them to quantify those impacts.

If you decide that a purchase aligns with your goals, then you can think about how to fund it. Here’s a rundown of some common options.

Cash reserves

Cash reserves are usually the best option for funding a project. However, you must determine whether raiding your cash stash would put its balance below the recommended threshold for covering any emergency needs — say, to manage expenses if you lose your job or to pay medical bills resulting from an unexpected illness. As a rule of thumb, I suggest maintaining six months’ worth of living expenses in an easily accessible account.

Investments

Using money from your investment portfolio can also be a solid choice, although you’ll want to evaluate the pros and cons of taking out funds for the project now compared with leaving them in your account, allowing them to grow and be used for other goals.

If you decide to withdraw from your investment account, be aware of the tax implications. You’ll typically owe capital gains tax on investment earnings; long-term gains from selling investments that you’ve held for more than a year are taxed at rates of 0%, 15% or 20%, depending on your taxable income. Assets you’ve held for a year or less are taxed at the same rate as your ordinary income, with rates ranging from 10% to 37%.

A home equity line of credit

A HELOC, which is a line of credit that allows you to borrow against the equity in your home, can be a good source for financing a project — especially if you can get a reasonable interest rate. Recently, the average rate on a $30,000 HELOC was 9.07%, according to Bankrate. HELOC rates are usually variable, rising and falling based on market conditions.

HELOCs typically involve a draw period of up to 10 years, during which you can borrow money and may be required to pay only interest each month, followed by a repayment period of up to 20 years. During the repayment period, you’ll need to pay back the full amount borrowed plus interest.

If you use HELOC funds for a home improvement project, the interest on up to $750,000 of debt (or $375,000 if you’re married filing separately) may be tax-deductible.

A no-interest credit card offer

Some credit cards offer an introductory 0% interest rate on purchases for a limited time — typically anywhere from six to 21 months. Applying for one of these cards may be a good way to get short-term financing for a project, but it’s important to pay off the balance before the 0% period expires. 

Otherwise, you’ll pay the card’s standard rate, which is usually much higher, on the remainder of the balance. Or worse, you may pay retroactive interest on the full purchase amount if you don’t pay off the entire balance before the promotional period ends. Retailers, such as home-improvement stores, commonly use these deferred-interest payment plans on their credit cards.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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There will be little relief from soaring electricity costs or hot temperatures this summer. The Farmers' Almanac is predicting 2024 to be one of the hottest summers on record and it is expected to be a warm, hot and muggy season for most of the nation. 

Staying cool will be a challenge and a necessity. Is it better to use a fan or air conditioner to beat the heat? The best answer can vary from person to person, depending on several factors. To determine which cooling solution is best for you, we first need to look at how both technologies work, when they work best and how much they cost to install and operate. 

Here are some facts that can help get you through the hot summer months without dramatically increasing your energy consumption and expenses.

Fans vs. air conditioners: how do they keep you cool?

Fans and air conditioners help you stay cool in very different ways. But both are primarily leveraging the cooling power of evaporation. 

Part of what makes fans so energy efficient is they aren’t cooling down the whole room, just you. Fans blow air over your skin, which promotes moisture evaporation. Evaporation is an endothermic process, meaning the moisture absorbs heat from its surroundings as it turns into vapor. A fan helps by replacing this hot, humid air with cooler, drier air, allowing for more evaporation.

An air conditioner provides cold air inside your home by removing heat and humidity from the indoor air. It returns the cooled air to the indoor space and transfers the unwanted heat and humidity outside.

A standard air conditioner or cooling system uses a specialized chemical called refrigerant and has three main mechanical components: a compressor, a condenser coil and an evaporator coil. These components work together to quickly convert the refrigerant from gas to liquid and back again.

Fans vs. air conditioners: The cost of cooling

Cooling yourself with a fan vs. an air conditioner is significantly more energy efficient and cheaper. Fans use around 1% of the electricity consumed by air conditioners. You could leave a fan running for 24 hours and still use less energy than 15 minutes of air conditioning.

On average, an air conditioner costs between $0.06 and $0.88 per hour to use, according to inspirecleanenergy.com data. To get a general idea of your daily energy costs, multiply the wattage of your air conditioner by the number of hours of energy consumption.

The average cost to run central air conditioning is $30 to $270 per month, depending on the unit size and efficiency. A three-ton unit (or 36,000 BTU) can cool a 1,500-2,000 square foot home and consume 2,400 – 4,500 watts per hour. The average monthly cost to run a unit that size is $86 – $162, according to homeguide.com data. 

A standard window air conditioner costs an average of $19 to $55 per month. The typical master bedroom is  224 square feet and would need a unit with 8,000 – 10,000 BTUs. An air conditioner this size consumes 800 to 1,000 watts per hour for $29 – $36 per month. 

Most ceiling fans range between 55 and 100 watts, with an average of around 75 watts. For instance, a large 72-inch ceiling fan with a wattage of 180 will only draw 0.18 kilowatt-hour. The average cost in the U.S. for electricity (as of March 2024) per kilowatt hour is 16.68 cents. Let's do the math $0.167 x 0.18 kWh = $0.030. It only costs around $0.03 per hour to run a large ceiling fan. If you’re someone who loves the cool breeze and white noise, you’ll pay 72 cents a day to keep the fan running for a full 24 hours. 

Pros of fans

Using fans to cool your home can help you save on energy costs because they’re cheaper to operate. However, they may not work effectively to cool your house when the temperatures and/or humidity is high. 

Fans, such as ceiling fans, desk fans and window fans are best when used at close range. While the strongest fans can circulate air throughout an entire room, they're much more effective if you're sitting right in front of them.

Electric fans offer the following benefits:

• Fans cost less.  Buying and installing a new ceiling fan can cost between $85 and $625 without complex wiring. The average cost is $249, according to Angi.com data. Adding wiring where there is no ceiling wiring is a big job that might cost up to $2,000.  Your electrician will have to open walls, run wires, install boxes, and hook up your junction box. 
• They don't harm the environment. Electric fans don’t use coolants and require less energy than air conditioners.
• Portability/Ease of installation. Adding a ceiling fan to a room is a breeze compared to installing central air conditioning. Except for ceiling fans, you can move fans around the house and use them where you need them. 

When fans just aren't enough

Using a fan can be more harmful than helpful when indoor air temperatures are hotter than your body temperature. When indoor air temperatures are hotter than about 95°F, using a fan may cause your body to gain heat instead of lose it. On very hot, humid days, sweat evaporates off the skin slower than normal, and fans make it even more difficult for the body to lose heat by sweating.

Limitations of electric fans include:

• Inferior cooling power. Fans don’t cool the air, so even if you run several fans, they won’t be able to match the cooling power of an air conditioner, especially during extremely hot and humid days
• Fans don’t improve air quality. Fans don’t have filters, so they can't reduce the amount of dust, pollen and other harmful particles in the air
• Humidity issues. Fans don’t suck the moisture out of the air. They make you feel cool by making your sweat evaporate. To reduce the moisture in the air, you'll have to run a humidifier in addition to a fan. 
• Safety risks. Floor and tabletop fans can pose some risks for small kids who might poke their fingers through the grills

Pros of air conditioning  

Using an air conditioner can be your best friend during scorching weather as it can quickly bring the room temperature down to a comfortable level. They’re much better at cooling larger areas because they reduce the ambient heat in your environment. Your body dissipates heat more efficiently because air conditioners reduce humidity by removing moisture from the air. However, air conditioners consumer a significant amount of electricity.

Here are the benefits you and your home can get from air conditioners:

• Improves air quality. ACs can filter out dust, outdoor pollen, and other allergens. They also reduce humidity, which keeps the growth of mold and mildew in check. 
• Effective at reducing humidity. When the moisture is higher than 50%, the humidity can lead to mold growth. An air conditioner can suck the moisture out of the air, making a room more comfortable during sweltering days and reducing conditions that irritate allergies.
• Can cool large areas. An air conditioner can bring room temperature down quickly, while fans can only increase air circulation
• Prevents dehydration and heat stroke. Exposure to high temperatures leads to profuse sweating and can lead to dehydration. ACs reduce sweating, thus preventing dehydration and bringing down air temperature reduces the risk of heat stroke.

Drawbacks of using an air conditioner

• It costs more. The average cost of a new central air conditioning system is $5,856, but it can range from $3,800 to $7,500, according to architecturaldigest.com data. Central AC systems are the most popular choice in hot climates and are the most expensive to install and run. 
• Central air conditioners and scale of installation. Installing a central AC system. requires the services of an installer to cut into your walls, put in the ductwork and possibly install the unit outdoors.   
• Cheaper options are still costly. Window units cost less and many can be installed without professional assistance.  A window-mounted air conditioner can cost anywhere from $150 to $550 depending on its size and cooling capacity. 
• Maintenance costs. Regular air conditioner maintenance servicing costs around $75 to $200 for simple tune-ups, with a national average of $100, according to homeadvisor.com data. Recharging AC refrigerant costs around $100 to $350
• Can cause health problems. Lack of proper maintenance can reduce energy efficiency and make people sick. A clean filter improves air quality by removing dust and allergens. Filters can become clogged without regular cleaning and replacement. Dirty filters spread harmful particles that can trigger or worsen respiratory ailments. 

Which option is best for you?

A head-to-head comparison between using a fan vs. air conditioner has limited use because each one helps you cool down in different ways. Figuring out which one is better for you depends on current weather conditions, your needs and the size of your space.

Use a fan if:

• The humidity is at or below 50%
• The temperature is less than 95°F. Use a fan when outdoor air temperatures are cooler than indoor air temperatures. 
• You can locate yourself close to the fan
• You want to use less electricity

Use an air conditioner if:

• The humidity is at or above 60%
• If the temperature is more than 75°F 
• You’re looking to cool a large area
• You can afford a higher electrical bill

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As electricity costs rise and temperatures start to heat up, saving on cooling costs this summer has become a top priority for many. Experts believe that from the Rockies to the East Coast, this summer could very likely be one of the hottest on record, and according to Accuweather, from June through August, temperatures are expected to reach 2 degrees above historical averages across more than half of the country.

As you search for the cheapest and most effective way to beat the heat, you may wonder which is better: a heat pump or air conditioner? Here’s what you need to know about the two.

Heat pump vs air conditioner: How do they work?

Simply put, air conditioners work by moving heat from the interior of your home to a warm outside environment. 

Air conditioners contain a liquid refrigerant that evaporates in an interior evaporator coil, “pulling heat out of indoor air and cooling your home," according to the DOE. After which, “the hot refrigerant gas is pumped outdoors into the condenser where it reverts back to a liquid, giving up its heat to the outside air flowing over the condenser's metal tubing and fins.”

Similarly, heat pumps cool your home by transferring warm air from inside your house to the outside. "From a cooling perspective, minus a few technical details, heat pumps and air conditioners are essentially the same when operating in cooling mode,” according to Carrier. 

However, heat pumps can do something air conditioners cannot: warm your home by extracting heat and moving it inside your home. An air conditioner is typically paired with a furnace in order to heat your home when it’s cold outside. You can opt for either “ductless” mini-split heat pumps if your home doesn’t have ductwork, or purchase a heat pump to work with the existing ducting in your home.

Because they work similarly, heat pumps are just as efficient as air conditioners when used to cool your home during the summer months. However, when it comes to heating your home, heat pumps have the advantage. They're more energy efficient when compared to standard furnaces or boilers. Heat pumps use less energy to warm your home than conventional electric or gas systems, because they move heat rather than generate it, according to Energy Star.

Heat pump vs air conditioner: Which is cheaper?

How much a heat pump costs depends on a number of factors, including the type of unit you choose, its efficiency rating and where you live. But while heat pumps have steep up-front costs, they can save you money in the long run. 

Heat pumps cost $4,200 to $7,600, on average, including installation fees, according to Architectural Digest. Ductwork installation will add $3,000 to $7,500 to your final cost. Air conditioners, on the other hand, cost between $3,800 and $7,500. However, you’ll need to also invest in a heating system: adding a furnace could cost $2,807 to $6,783, on average.

However, if you can justify the up-front expenses of installing a heat pump, you’ll save on expenses down the road. A majority of Americans (62% to 95% of households, depending upon heat pump efficiency) would see a drop in their energy bills by using a heat pump, according to the National Renewable Energy Lab (NREL). And depending on the size of your home, your local climate and which unit you choose, you can save $300 to $1,500 annually, according to the DOE.

There are also tax credits and incentives for installing a heat pump that can save you even more money. For example, thanks to the Inflation Reduction Act, homeowners may claim a credit for up to $2,000 or 30% of the project cost. 

And if you're a Wisconsin resident, you can now save even more on home energy improvements, thanks to the state's recent launch of the Home Efficiency Rebate (HOMES) program. Depending on your household income, you could receive a rebate for up to 100% of the costs (on up to $5,000) to purchase and install a heat pump or other energy-efficient home improvements. 

Not a Wisconsin resident? Similar programs may be heading to your state soon. You can use this map to check your state’s progress toward launching its rebates.

Also, learn more about heat pump savings by checking out our article Heat Pumps: Can You Save on Home Cooling and Heating?

Heat pump vs air conditioner: What are the sustainability differences?

Another added benefit of heat pumps is that they're better options for the environment. Because they use less energy, heat pumps help reduce carbon pollution.  Heat pumps reduce emissions by up to 93% over their lifetime compared with gas furnaces, according to Rocky Mountain Institute (RMI).  

"Heat pumps lower household annual energy emissions on average by 36% to 64% — or 2.5 to 4.4 metric tons of CO2 equivalent per year per housing unit," according to Canary Media.

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Never heard of a swamp cooler? You're not alone. Sometimes called an evaporative cooler, these efficient appliances can help beat the heat in certain climates and may be a better option than air conditioning for some homes. With record-breaking heatwaves and high electric bills, consumers need to find ways to stay cool without paying a fortune.  

Here’s what you need to know about swamp coolers vs air conditioners.

Swamp cooler vs air conditioner: mechanical differences

A swamp cooler lowers your home temperature by adding humidity to the air. It works by passing air over a damp pad, letting the moisture from the pad evaporate, which cools the air by 15°- to 40°F before it is directed into the home, as per the DOE. Because of this, swamp coolers are only suitable for low-humidity areas, making them good options for homes in the Western and Southwestern parts of the country. 

Unlike an air conditioner, a swamp cooler is an open system. This means that you’ll need to have doors or windows at least partially open while running the cooler. Swamp coolers “rely on the flow of air through the building to direct the cool air, and since they always need hot, dry air to evaporate the water, it needs to displace the air already in the house,” according to HowStuffWorks. The warm air has to escape somewhere. That may be a deal-breaker if you have allergies and want to avoid pollen or pollution.

Swamp coolers can be installed on the roof, in a window or on the ground, although most commonly, they’re installed in a down-flow arrangement on a roof, reports the DOE. Small coolers can be installed in a window to heat a specific room in your home, and small, portable evaporative coolers on wheels are now available.

On the other hand, air conditioners cool your home by transferring heat from the interior of your home to a warm outside environment. And it’s a bit more complicated. Here’s how it works, according to the DOE. Basically, an air conditioner contains a liquid refrigerant that evaporates in an interior evaporator coil, “pulling heat out of indoor air and cooling your home.” After which, “the hot refrigerant gas is pumped outdoors into the condenser where it reverts back to a liquid, giving up its heat to the outside air flowing over the condenser's metal tubing and fins.”

Unlike a swamp cooler, installing air conditioning is a more difficult and lengthy process, but can be used in homes in both humid and arid climates. Although they do tend to dry the air.

Upfront costs

The unit's price is a big difference between swamp coolers and air conditioners. How much each cost ultimately depends on the size and type of the unit and how it is installed. However, on average, swamp coolers have lower installation costs, making them cheaper.

The average cost for a swamp cooler installed in a 1,500 sq. ft home is $3,900, while an air conditioner averages $5,000, according to Fixr.

Here’s a price breakdown for swamp coolers, as per Fixr. 

• Portable swamp coolers: Range from $100 to $1,500 or more
• Mounted swamp coolers: range from $500 to $1,500
• Window swamp coolers: Range from $300 to $1,000
• Installation costs: Range from $100 (for a simple freestanding unit) to $1,000 (for a mounted unit)
• Overall costs: Range from $100 to $2,500

And here’s a price breakdown for air conditioners, also courtesy of Fixr.

• Portable unit: Range from $200 to $700
• Window unit: Range from $300 to $1,200
• Installation costs: Range from $100 (do it yourself) to $800 (professionally) 
• Central units: $1,500 on average, installation costs range from $2,000 to $5,000
• Overall costs: Range from $200 to $6,500

Cost to run and efficiency

Electricity: A swamp cooler uses 60% to 80% less electricity than a standard AC unit, meaning big savings on electricity costs. That efficiency is becoming an ever-more important factor for consumers. According to the U.S. Energy Information Administration (EIA), you can expect to pay more for electricity this summer than last year. The EIA forecasts that residential customers’ monthly electricity bills will average $173 from June to August. Last summer's average was $168. 

The EIA also found that monthly costs remain high in dry regions of the country, where swamp coolers might be a good option. The Southwest has the highest average monthly electric bill of $203. 

Water: One downside of swamp coolers is their use of water — often a scarce commodity in the arid environments where these appliances are most useful. Estimates of swamp cooler water use vary widely. While air conditioners do not require any water, swamp coolers may use between about 3,000 and 12,500 gallons of water annually, depending on location, size and other factors, according to the New Mexico Office of the State Engineer.

Swamp cooler vs air conditioner: sustainability differences

Overall, swamp coolers are more eco-friendly than air conditioners. They don’t contain any toxic chemicals and typically have lower levels of CO2 and greenhouse gas emissions. If refrigerant from an AC unit leaks, it can have a significant impact on the environment. For example, R-410A, a common refrigerant, has a global warming potential (GWP) of 4,260 over 20 years, according to the Natural Resources Defense Council (NRDC). If a pound of this refrigerant leaks into the atmosphere, it packs 4,260 times the climate wallop as a pound of CO2. 

So, if you live in a dry, arid region of the country, not only will using a swamp cooler save you money, but it’ll also pose less of a risk to the environment and reduce your carbon footprint.

Bottom line

Simply put, swamp coolers cool your home by adding humidity to the air, while air conditioners cool your home by pulling heat from inside your home to the outside. And while swamp coolers use significantly less energy and are cheaper than air conditioners, they have a huge drawback. They're most effective in dry climates and aren't suitable for areas with high humidity levels. They may also consume significant amounts of water. However, if you live in a dry climate, such as in the West or Southwest, you can reduce your carbon footprint and help the environment by installing a swamp cooler.

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In the early days of summer, the heat is a welcome change after months of chilly winter and rainy spring. But it gets old quickly, especially if you don't have air conditioning or if you just don't want to use it because you're trying to cut your energy bills this summer.

Surviving the heat without A/C is possible if you plan ahead with some proven tactics to help you stay cool in the summer. Whether it's energy efficient upgrades or simple changes to your daily routine, there are surprising number of ways to keep your home cooler this summer.

Here are 12 ways to help keep your home cool when the temperatures rises.

1. Keep sunlight out — close your window coverings 

Summer sun delivers heat right through your windows. Keep out the heat with shades or blinds during the sunniest hours to keep your home cool without AC. This is a passive cooling method that is one of the cheapest and simplest way to keep your home cool in summer.

Another quick and easy way to keep your home cool is to apply a reflective, heat-reducing window film to regulate the temperature. As a bonus, it even works in reverse, keeping more warm air inside during the winter months — and it’s quick and easy to install. 

2. Install an exterior window shade or awning 

Installing an awning, pergola or shade trees by your west windows will shield your home from hot afternoon rays. Direct sunlight is like a heater in the cooling season.

3. Use ceiling fans properly

Set your ceiling fans to rotate counterclockwise. In the summer, the fan blades should rotate counterclockwise (as you look up at it) to push the air straight down. Increase the fan speed on the hottest days.

4. Use your fans in the right places 

Fans keep air moving around, rather than cooling the air. Blow air directly on people to get a cooling effect or set up your fans to draw in cooler air from the outside (or a cooler part of the house) to the warm areas. 

5. Change out the sheets on your bed 

Pick lighter fabrics, such as linen and bamboo viscose, preferably in brighter colors such as white, since they reflect light and heat and help keep your house cool in the summer. The material of your sheets also matters because lightweight fabrics breathe easier than thicker ones.

Avoid unnatural fabrics or fabrics with a tight weave.

6. Close doors to unused rooms 

To keep the cool air where you need it most, close off doors to unused rooms. It prevents cool air from leaking to parts of the house where you don’t need it.

7. Fire up the backyard grill! Avoid using the oven or stove 

Cooking generates excess heat and can significantly raise the temperature inside your home.  Instead, opt for meals that don’t need cooking, such as salads or sandwiches, and plan for grilled dishes to avoid generating more heat in the house.

Take your cooking outside. If hot food is in order, fire up the grill instead of turning on the oven. From pizza to beer can chicken, there are numerous ways to cook a meal on the grill.  

8. Invest in a dehumidifier 

The ideal indoor humidity level in summer should be around 40% to 50%. Dehumidifiers remove excess moisture from the air in your home and make it more comfortable, even in high temperatures. 

Most dehumidifiers will come with sensors that turn the device off when the ideal humidity level is met. Also, use the water gathered by your dehumidifier to water your plants for added conservation.

9. Install an attic ventilator 

Attics can get pretty warm during the summer, sometimes heating up to 150 degrees. This heat will most likely spread throughout your home, raising the overall temperature. In addition to insulating your attic, you can also invest in an attic ventilator or attic fan. 

These fans work by evacuating the hot air from your attic and drawing in cool air from outside. As a result, your attic remains relatively cool, and this can help keep your house cool in the summer. 

10. Insulation is key — insulate and air-seal your home 

Many of the things that help keep your home warmer in the winter also help keep your home cooler in the summer. If you feel the temperature extremes in both seasons, consider a weatherization project. 

Adding insulation to your attic and walls will make a significant improvement to your home’s climate, even in the warmer months. It also cuts back on cooling and heating costs. Insulation is also a pretty inexpensive and simple solution, and you can also try DIY insulation for further savings.

11. Install a cool roof 

A cool roof absorbs and transfers less heat from the sun to the building compared with a more conventional roof. Buildings with cool roofs use less air conditioning, save energy, and have more comfortable indoor temperatures. For example, in non-air-conditioned residential buildings, cool roofs can lower maximum indoor temperatures by 2.2 to 5.9°F, according to the US Environmental Protection Agency (EPA).

On days when you do use air conditioning, a solar reflectance from a cool roof can reduce peak cooling demand by 11–27%. White roofing products stay coolest in the sun, reflecting about 60 – 90% of sunlight. 

Cool Roofs in Cold Climates. Because cool roofs reflect sunlight and reduce solar heat gain into a building, they may increase energy use in buildings during winter months in cold climates. However, these costs may be offset by your savings in the summer. 

12. Plant foliage to keep your house cool in summer 

Trees and foliage act as natural barriers to sunlight and also significantly improve the landscape. While it may be a few seasons before you can reap the benefits, it will be worth it. You can choose fast-growing trees such as Sycamore, Maple, or Poplar trees. Also, opt for deciduous trees that lose their leaves in the winter. That way, your home will have shade in the summer, but you’ll get plenty of sunshine in the winter.

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You may have heard that homeowners can use generous home energy improvement tax incentives and rebates to install solar panels or insulate their homes. Such projects often pay for themselves within a few months or years, and buyers often highly value these home features. Less well-known is the use of Home Energy Management Systems (HEMS), a relatively new technology that is quickly catching on in some areas of the country.

As the U.S. relies more on electricity and less on fossil fuels like oil or gas, the fragility of electricity grids has become more apparent. For example, the 2021 Texas deep freeze overtaxed the state-run grid, causing a blackout for 4.5 million customers and 57 deaths. Such extreme weather, inflation, geopolitical unrest and demand growth have contributed to a 30% rise in electricity prices since 2021, according to the Consumer Price Index. 

The home energy management industry has stepped in to provide solutions for homeowners who want their electricity supply to be more resilient and affordable. Some of these products, such as home solar systems, are already commercially successful. But storing that energy in home batteries (for example, overnight or on rainy days) is just starting to take off. One energy management company, Scheider Electric, is rolling out connected home products that will utilize battery storage.

The work done by Schneider Electric revolves around digitizing, electrifying and decarbonizing home energy. I spoke to Michael Lotfy Gierges, executive vice president of Schneider Electric’s Home & Distribution segment, to learn more about how energy improvements to your home, particularly the role of smart home technology — such as a home energy management system (HEMS) —  can benefit both your wallet and the environment.  

Home energy technology

Gierges touches on the three main challenges facing consumers in their daily lives that Schneider aims to address: the climate crisis, the significant increase in energy prices and the impact this has on the consumer.

“[The] climate crisis is real. It affects the pattern of our daily lives. It also affects the reliability and stability of the grid,” says Gierges, adding that energy prices are at a record high. "What does it mean for the daily homeowner user, whether it's your owner or a tenant? It means that you have unreliable power. You have a very expensive source of energy.”

The climate crisis is severely affecting our way of life. From extreme cold to heatwaves and wildfires, higher energy consumption and more expensive utility bills are the result. According to a study from Bank of America, the average total utility payments per customer was nearly $300 as of March 2024, a nearly one-quarter rise in cost since 2019. 

Furthermore, according to Gierges, homes represent 22% of all global greenhouse gas emissions, with all buildings representing around 40% of emissions. And these greenhouse gases are one of the main causes of the climate crisis.  

“This is where Schneider and my business comes into play because we can help you solve all those three challenges,” says Gierges. “Imagine [that] you live in a home where you have a prosumer (a mix between a producer and a consumer). . . . You have your energy, your solar panel on top of your home, you have a battery and an inverter, and you are driving an electrical vehicle. You have our final distribution and our home energy management system running all this for you.”

Such energy management helps you understand your overall energy consumption and be more intentional with how you use energy, which can significantly lower your energy bills. It lets you know the best time to charge your car, for example, or the best temperature to set your heater or cooler. And all this can be controlled within an app. You can click on, say, "reduce my bill" or "use more sustainable energy sources," and it will be done for you. In this way, a home energy management system can keep your home comfortable while helping manage your production and consumption of energy sustainably. 

Home energy and sustainability

In addition to Schneider, companies providing home energy management systems include Generac and Tesla. As the price of residential battery storage declines, these systems will enjoy greater uptake. For now, they are most popular in states with extreme weather or high electricity prices, particularly in California, Texas and Florida. California has an incentive program through 2024. Texas and Florida do not have state-level incentives, but some utilities offer extra benefits to customers who install solar systems with battery storage. 

These systems may save you money and are guaranteed to reduce greenhouse gas emissions. The less energy you use, the less emissions you’re producing. Here are several other home changes you can make, according to the EPA, to reduce greenhouse gases and save money. 

• Change your lights: By replacing your five most frequently used light fixtures or bulbs with ENERGY STAR  lightbulbs, you can save up to $70 a year on energy bills, as these bulbs generate 75% less heat, use about 75% less energy and last from 10 to 50 times longer.
• Purchase ENERGY Star appliances: These appliances can reduce greenhouse gas emissions by around 130,000 pounds, saving you $11,000 on energy bills.
• Heat and cool your home properly: Replace old equipment, change your air filters regularly and use the right thermostat settings (or use a smart thermostat) to reduce emissions and save money.
• Insulate your home: Caulk, weather stripping and insulation can be used to seal your home and keep the cold air in and the warm air out (or vice-versa). 
• Use water efficiently: Change your habits and update appliances to avoid wasting water. For example, take shorter showers, turn the faucet off when brushing your teeth and only run your dishwasher when full. Fix all leaky appliances or replace them with WaterSense products.
• Compost: Both food scraps and yard waste make up 20% to 30% of what is thrown away. Instead of sending this garbage to a landfill, compost it instead.
• Calculate your carbon footprint: Using a carbon footprint calculator can help you gain a better understanding of how much greenhouse gas emissions you are causing.

Gierges tells Kiplinger that cost savings go hand-in-hand with decarbonization. Whatever reason you choose, “you still come to the same solution and you still come to the same result. You call it sustainability, you call it savings, you call it energy independence. It's still all the same, right? You want energy independence. You want to save money for the average consumer and the average citizen. Then sustainability is also the solution.”

Also, check out Kiplinger's list of home energy savings articles for additional ways you can save:

• Save Big by Going Green at Home
• Electric Heaters vs Radiators
• Electric vs Gas Heat: Which Is Cheaper?
• Fan Heaters vs Oil Heaters
• Dishwasher vs Hand Washing

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I recently had a call with a client looking to fund the construction of a swimming pool. Though they had enough cash to finance the project, they wanted to weigh all their options. This is a question we hear a lot as financial planners. Though home improvement questions often arise, questions about funding a wedding, a recreational vehicle or a dream sailboat are also common.

In most cases, funding large purchases should be thoughtfully planned. As a financial planner, I don’t make judgments about purchases but always recommend that clients take a moment to consider how a potential purchase impacts their overall financial plan and long-term goals. I work with them to quantify those impacts. Once you decide a purchase aligns with your goals, or you choose to revisit and amend your financial plan, you can consider how to fund the purchase.

Cash reserves

Cash reserves are the best option for funding any project. The opportunity cost of lost interest earned will almost always be less than the cost of financing a purchase. However, you must determine if raiding your cash reserves puts you below the recommended threshold to cover any emergency funding needs: loss of job, medical issues, etc. As a rule of thumb, I recommend maintaining six months of expenses in liquid assets.

Investments

These have similar, though usually higher, opportunity costs as using cash reserves. Before you look at this category to fund projects, you also need to consider the tax implications of liquidating an investment. You may also be able to use your investments as collateral to obtain a lower interest rate than a personal loan.

A home equity line of credit

This can be a good source for financing projects. You want to ensure that your interest rate is reasonable and that you have incorporated the monthly loan cost into your overall budget. If this is a home improvement project, it may be tax-deductible. As always, check with your tax professional.

A 401(k) loan

A 401(k) loan can be attractive because the interest rate is usually lower than other financing sources. However, careful consideration should be given as to the impact on the growth of your retirement assets and that the purchase is not beyond your current means. This may be a good option if you pay back the loan in a reasonable amount of time.

No-interest or low-interest credit card offers

No-interest or low-interest credit card offers can also be a financing option. Typically, you pay a 2% to 3% origination fee to get a short-term loan of six to 12 months with no or little interest. The critical piece is to pay off the loan before the special loan term period expires. Failure to pay off the balance will result in costly finance charges. Most credit card companies will assess the deferred interest, which then makes your low-cost financing extremely expensive. With careful use, a credit card loan can be a good short-term financing choice.

A word of caution when financing any project: Financing should never be used to help you live above your means. It should always be used judiciously and never without considering the impacts on your financial future.

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The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

Natural disasters like hurricanes, wildfires and severe storms can bring communities together — but they can also attract scammers. The Better Business Bureau (BBB) warns that these high-stress events often draw in "storm chasers" and out-of-town contractors looking to exploit vulnerable homeowners.

Disasters create a surge in demand for repairs and cleanup, and scammers are quick to seize the opportunity. While some contractors may be legitimate, others may lack proper licensing, offer quick fixes or make promises they can't keep.

There are things you should do when hiring any contractor, including making sure you get three estimates for the work, put everything in writing and paying with a credit card. We'll show you how.

Protecting yourself from storm chasers

The BBB provided the following tips to help protect yourself from storm chasers:

• Talk to your insurance company: Ask about your natural disasters coverage and any requirements for filing a claim as well as whether you have coverage related to temporary lodging if your home is no longer livable. Also, ask if the insurer has recommendations for contractors for any work or cleanup that may be required.
• Do your research: If you need to find a contractor, look for a businesses that you can trust using BBB's search tool. Check with the state or local government agency responsible for registering and providing licenses to contractors in your area. Also, talk with friends and family to see if they have any recommendations.
• Resist high-pressure sales tactics: Whether they show up at your door or call you on the phone, storm chasers will sometimes tout their "good deals" that you will only get if you hire them immediately.
• Be wary of door-to-door contractors: Many municipalities require solicitation permits for door-to-door sales, so if a contractor shows up at your door, ask for identification. You should also check their vehicle for a business name, phone number and license plate for your state.
• Do not sign over insurance checks: Rather than signing over an insurance check, have the contractor send you an invoice and pay them directly, ideally with a credit card since these offer additional fraud protection over other forms of payment. Never sign any forms that give the contractor the rights to your insurance claims. Contact your insurance company directly with any questions or concerns.
• Don't let contractors go where you can't see them: While most contractors follow the law, an unethical one may create damage just to get work. Given that, you should not allow anyone you do not know to inspect your roof, attic, crawl space, ducts or any other area of your house where you cannot watch them or see for yourself.

How to find a contractor

Whether you need help after a natural disaster or are simply looking to remodel your home, there are several ways to vet a contractor. These include taking stock of the contractor's credentials and experience, talking to references and checking if they have liability and workers' compensation insurance.

The BBB also provides a how to find a reliable and trustworthy contractor resource page with links to other helpful sites.

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It's not too late to take some steps that will protect your home for the winter. Storms, ice and wind are around the corner, and you want to make sure that your home is safe — and warm.

These steps, most of which you can do yourself, will help cut your utility bills, protect your investment and possibly increase the value of your home.

Keep in mind, many of these actions can be taken throughout the year. So if you find yourself chilly inside this winter, remember that come spring and start your preparation for the next winter.

Investing in an annual service for your home heating system will save you money in the long run. For about $100 to $300, a technician will inspect your furnace, boiler or heat pump to be sure the system is clean and in good repair, and that it can achieve its manufacturer-rated efficiency. The inspection also measures carbon-monoxide leakage.

If you do this in the fall or before the weather gets dire, you'll minimize the chance of being 200th in line for repairs on the coldest day of the year.

Look for a heating and air-conditioning contractor who belongs to the Air Conditioning Contractors of America and employs technicians certified by the North American Technician Excellence (NATE) program. The contractor should follow the protocol for ACCAs "national standard for residential maintenance" (or the QM, short for "quality maintenance").

If your ceiling fan has a reverse switch, use it to run the fan's blades in a clockwise direction after you turn on your heat. Energy Star says the fan will produce an updraft and push down into the room heated air from the ceiling (remember, hot air rises).

This is especially helpful in rooms with high ceilings — and it might even allow you to turn down your thermostat by a degree or two for greater energy savings.

If your home had lots of icicles last winter — or worse, ice dams, which can cause meltwater to back up and flow into your house — take steps to prevent potential damage this year.

A home energy auditor or weatherization contractor can identify and fix air leaks and inadequate insulation in your home's attic that can lead to ice dams.

Since 2023, you can claim the federal energy-efficiency tax credit for 30% of the cost, up to $3,200. The credit has no lifetime dollar limit, and you can claim the maximum annual credit every year that you make eligible improvements until 2033. Your state or utility may offer a rebate, too.

There are limits on the allowable annual federal credit and on the amount of credit for certain types of qualified expenses. 

The maximum credit you can claim each year is:

• $1,200 for energy property costs and certain energy-efficient home improvements, with limits on doors ($250 per door and $500 total), windows ($600) and home energy audits ($150)
• $2,000 per year for qualified heat pumps, biomass stoves or biomass boilers.

And by the way, a home energy audit may qualify you for a tax credit up to $150.

A roof inspection is one of those preventive maintenance jobs you may miss. Get up close and personal with your roof using a ladder. If you're uncomfortable with heights, you can do a thorough inspection from the ground using a pair of binoculars.

Look for damaged, loose or missing shingles that may leak during winter’s storms or from melting snow. Don't overlook cracked and worn rubber around vent pipes or masses of moss and lichen, which could indicate the roof is decaying underneath.

If your roof is flat and surfaced with asphalt and pebbles, as many are in the Southwest, rake or blow off fall leaves and pine needles, which hold moisture, said Bill Richardson, past president of the American Society of Home Inspectors. (Don't sweep aside the pebbles; that will expose the asphalt to damaging sunlight.)

If need be, hire a handyman to repair a few shingles ($100 – $300 according to homeguide.com) or a roofer for a larger section ($200 – $600 for a 100-square-foot area). Check and repair breaks in the flashing seals around vent stacks and chimneys, too.

Caulking windows and doors properly can protect your house from unwanted moisture and air leaks. If you notice drafts in your home or that your energy bills have spiked, this is a sign you might need to replace the caulk around your windows and doors. Plan to replace the caulk about once every five to 10 years.

Richardson said if the gaps between siding and window or door frames are bigger than the width of a nickel, you need to reapply exterior caulk. (Check the joints in window and door frames, too.) Silicone caulk is best for exterior use because it won’t shrink and it’s impervious to the elements.

Try GE's Silicone 2 Window and Door product, which is “rain ready” in 30 minutes ($10.98 at Home Depot). Check window-glazing putty, too (which seals glass into the window frame). Add weather stripping as needed around doors, making sure you cannot see any daylight from inside your home.

Gutters need to be cleaned at least twice a year — in the spring and in the fall. If you have pine trees near your home, needles will need to be removed every three months to reduce the potential for clogging the gutters and downspouts. Neglecting gutter maintenance can lead to costly repairs down the line. Regular maintenance will make your gutters last longer.

If your gutters are full of detritus, water can back up against the house and damage roofing, siding and wood trim — plus cause leaks and ice dams. Gutters filled with debris can also make homes for rodents and other pests.

You'll typically pay $70 to $225 to clean gutters on a single-story house, depending on its size. Also look for missing or damaged gutters and fascia boards and repair them.

Water can cause problems for homeowners, whether it be a minor inconvenience or damages rising into the thousands. Mold, damaging landscaping, basement leaks and foundation damage are some of the serious issues pooling water can cause. Extending your downspouts is one way to divert potentially damaging water. 

Add extensions to downspouts so that water should be diverted at least 4 to 6 feet away from the foundation. If a home has basement walls, it should be at least 6 feet away. The farther away from the foundation the better. Putting gravel or rocks at the end of the downspout will help avoid erosion.

For example, HomeDepot.com sells Amerimax Flex-a-Spout extension (which extends 25 to 55 inches) for about $9.

Faucet winterization is important for preventing burst pipes. Leaving your faucet unprotected can lead to flooding and water damage in your house. Undrained water in pipes can freeze, which will cause pipes to burst as the ice expands. 

To winterize outdoor faucets, follow these steps:

1. Disconnect your hose(s). Disconnect all of your garden hoses and take off any splitters attached to your faucets. Then drain the water that remains in the faucets.
2. Locate your shut-off valves. You’ll usually find shutoff valves for outdoor faucets inside your home, often on the basement wall corresponding to your outdoor faucet.
3. Drain your outside faucet completely. Allow any excess water to trickle out from the faucet. If water keeps coming, you may need to tighten the interior shutoff valve.
4. Once your faucet drains, keep the handle in the "on" position when you close things up for the winter.
5. Insulate your faucet. Pick up an outdoor faucet cover for a few dollars at your local home improvement store.

If you live in a cold climate, consider having a plumber install a new freeze-proof faucet for you. This type of faucet automatically drains any water that enters when the faucet is in the "off" position to prevent a frozen buildup that can cause a pipe to burst.

Winterizing your sprinkler system is an important part of preparing your home for cold weather. Depending on the slope of your property, you may have a choice between manual or automatic draining versus a sprinkler system blowout if you want to save some money. And if your land slopes enough to allow for complete drainage of a manual or automatic drain irrigation system, you may be able to complete winterization at no cost at all.

The average cost for a sprinkler system blowout is $100 to $250, depending on the size of the system. A sprinkler professional can perform this service on any kind of lawn sprinkler system, and it uses high-pressure air to force water out of the pipes, eliminating the problem of water sitting in low spots. Draining sprinkler-system pipes, as with spigots, will help avoid freezing and leaks.

Mow your leaves instead of raking them. Mulching leaves back into your lawn will provide a natural source of nutrients that will improve the growth of your lawn. 

The trick is to cut the leaves, while dry, into dime-sized pieces that will fall among the grass blades, where they will decompose and nourish your lawn over the winter.

Use your lawn mower without its bag, and optionally swap the cutting blade for a mulching blade (about $15-$35). The process may take several passes.

There are really only two things you must do to prepare your lawn mower for hibernation. You’ll have to clean the deck and depending on the mower type, you’ll need to stabilize the fuel — or remove the battery.

Step 1: Clean the deck
The deck houses the cutting blades and facilitates the orderly expulsion of grass clippings. Not only will keeping it clean help with the performance of your mower, but it also helps cut down on the spread of lawn diseases. 

Before you begin cleaning, as a safety measure disconnect the spark plug wire on gas models and remove the battery on battery-powered models. It's always a good idea to consult your lawn mower's product manual to assist you and maintain proper safety precautions. 

Use a garden hose to spray down the deck, ensuring the water pressure is high enough to dislodge any grass clippings or debris that have adhered. Some spots may be more stubborn than others. For these hard-to-clean areas, try a brush and paint scraper.

Step 2: Winterize fuel or remove battery
As the mower sits through the winter, fuel remaining in its engine will decompose, "varnishing" the carburetor and causing difficulty when you try to start the engine in the spring. 

If you keep your mower in the basement during the winter, you should remove the fuel regardless of how much is left because storing it inside could be a fire hazard.

Step 3, for a gas-powered mower: Remove or stabilize the fuel
If you've added a stabilizer to your fuel to keep it fresh longer, then fill the gas tank to the top with more stabilized fuel and run the engine briefly to allow it to circulate. 

If not, wait until the tank is nearly empty from use and run the engine (outdoors) to use up the remaining fuel. Check your mower's manual for other cold-weather storage steps.

Step 3, for an electric mower: Remove the battery
Remove the battery or batteries and store them inside your home to minimize temperature fluctuation. Extreme temperatures can shorten the life span of battery cells and cause them to fail prematurely

You may be tempted to get out the pruning shears after the leaves fall, when you can first see the underlying structure of the plant. But horticulturalists advise waiting to prune until late winter for most plants, when they've been long dormant and just before spring growth begins. Winter is a good time for pruning and tree removal. Pruning during dormancy (called “dormant pruning”) has several benefits for your trees. 

Winter pruning can avoid spreading some serious diseases that are active and spread easily during the spring and summer growing seasons. Because the tree is dormant, winter pruning doesn’t stimulate new growth. Trees are able to heal from pruning cuts before warmer weather brings out destructive insects and pathogens.

Damaged, dead or dying trees can be dangerous in prune winter, particularly when there are significant amounts of ice or snow. Dormant pruning makes them safer and can also rejuvenate weaker trees by removing dead and diseased wood.

To get advice specific to your plants and region, consult master gardeners at local nurseries or horticulturalists with your state university's cooperation extension department. 

One exception: You may need to hire an arborist to remove deadfall or trim limbs close to your home or power lines that could cause problems in a winter storm.

A sump pump’s job is to move water that collects in a sump basin out of your basement and away from your home. It makes sense that a sump pump works its hardest during rainy months, when flooding is most likely to send water into basements and crawl spaces. But what about in the winter months? How does it operate when snow and ice are involved?

A sump pump still has some work to do in the winter, because all that ice and snow does eventually melt, giving the sump pump something to do. While a sump pump does run in cold weather, it shouldn’t run all the time.

One of the most important steps to winterize your sump pump is to disconnect any extension hose attached to your sump pump's discharge pipe before the start of winter to prevent freezing. Remove your sump pump discharge hose extensions prior to the temperature dropping below freezing. 

If there is a blockage of ice and the pump engages during an early thaw, or turns on to remove excess water from the sump, what may have started as a partial ice blockage will soon turn into a complete ice blockage. This could lead to a very costly spring. 

Before you burn the Yule log, make sure your fireplace (or any heating appliance burning gas, oil, wood or coal), chimney and vents are clean and in good repair. That will prevent chimney fires and prevent carbon monoxide from creeping into your home.

There is not a hard and firm rule on how often to clean your chimney. The National Fire Protection Association recommends having heating equipment and chimneys cleaned and inspected every year by a qualified professional. 

When you burn wood in your fireplace or woodstove, it leaves behind ash and carbon residue creosote that needs to be cleaned out. Creosote is a flammable substance that can ignite into a fire that spreads throughout the chimney and to your home.

Regular cleaning of a chimney can reduce the risk of a chimney fire, but even if you choose to clean the chimney yourself, you should also have the chimney inspected by a professional on a regular basis. Professional inspection will check for creosote as well as blockage, damage and structural problems.

The job of the chimney sweep is to remove soot, blockages and built-up creosote from your chimney liner, firebox, smoke chamber and damper. This cleaning will help create a safer operation of your system during the heating system. 

Search for a sweep certified by the Chimney Safety Institute of America. You can expect to pay $45 to $85 for an inspection to see if you need a cleaning, and $150 to $300 for the cleaning, according to CleanerMatch.

Winter work can be hard on tools. Fluids can thicken and freeze, metals can shrink, and water vapor can cause cracks when it freezes and melts.

Here are four tips to keep your tools working well when the temperature drops: 

1. Lubricate parts of tools as the manufacturer recommends
2. Store cordless power tools in a heated shed or garage, most do not do well in very cold weather
3. Make sure to clean any blades or other parts of your equipment after each use. Apply a thin layer of oil to prevent rust
4. Tools with metal and plastic parts can become fragile in extreme cold. Let them warm up indoors before use to prevent breakage

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Floods, hurricanes and seasonal rainfall can wreak havoc if you aren’t prepared and properly insured. You need more than some fresh batteries and bottled water. You need flood insurance. Homeowners insurance typically covers damage that comes from the top down — such as rain and wind damage — but it doesn't cover rising water and flooding.

Storms strain insurers that are expected to face claims for billions of dollars. This adds to a challenging year for the insurance industry that could result in higher premiums for customers: Florida has already seen insurers pull out of the housing market.

All of these factors make it vital for homeowners in areas prone to flooding to proactively seek flood insurance. Some private insurers offer flood coverage, and the Federal Emergency Management Agency (FEMA) administers the National Flood Insurance Program (NFIP) to ensure affordable access to flood insurance and help restore homes to pre-disaster conditions.

How to get flood insurance and how much it costs

Flood insurance isn't covered by standard homeowners insurance policies, but your mortgage lender may require you to get flood insurance if you live in a high-risk area. Flood insurance can also be important even if it's not required, especially if you have a basement that could get flooded.

Most people can get flood insurance through the NFIP, and flood coverage can be purchased through an agent, from your current insurance company, or you can use the NFIP insurance provider locator. Coverage takes effect after a 30-day waiting period, so it's a good idea to buy a policy as soon as possible so you'll have the protection before the end of this year's storm season.

Flood insurance has an average cost of about $888 per year, according to Policy Genius, which used data from FEMA. But premiums vary depending on your property's flood risk and geography. For example, the average annual cost in Connecticut on the East Coast is $1,590, while it's $798 in North Dakota in the Midwest.

In 2021, FEMA implemented a new system for assessing flood risk called Risk Rating 2.0 and is adjusting premiums accordingly. The old methodology neither took the cost of rebuilding a home into consideration, nor did it reflect new data that includes more flood risk variables.

The data has been updated to include flood frequency and the damage from different types of floods, your distance to a water source and property characteristics such as elevation and the cost to rebuild.

These new risk assessments have now been factored into premium costs. Those with the greatest risk will see the largest increases. FEMA provides a breakdown of how Risk Rating 2.0 impacted premiums. You can view information about your state, county or zip code.

Flood insurance can be inexpensive for low-risk areas. For low-risk homes with a maximum coverage of $250,000 for the dwelling and $100,000 for possessions, the premiums are on average $673 per year, according to FEMA, and slightly higher if you have a basement.

You'll also pay a recently implemented surcharge of $25 for primary residences, or $250 for nonresidential property and second homes. Similar coverage can cost more than $2,500 in a high-risk area.

If you’re a renter, the NFIP offers affordable flood insurance to protect your possessions in the event of a flood. There is a maximum coverage of $100,000 for contents-only coverage. A starting policy will cost you about $99 per year. You’ll have coverage to replace your furniture, clothes, television, computers, rugs and artwork.

How much would a flood cost you? 

You can look up the risk of flooding for your address and get price quotes at FloodSmart.gov. Your mortgage provider may require you to get flood insurance if you live in a high-risk area, but the coverage can be valuable even if your lender doesn't require it. In 2021, the average residential flood claim was $44,401.

The website also has a tool, the cost of flooding, that shows how much flood damage is likely to cost you, based on the number of inches of flooding and the size of your home (with a breakdown of the types of items that would be damaged during a flood of that level).

For example, the tool shows that a 6-inch flood in a 2,500-square-foot home could result in $52,307 in damages. FEMA says that just one inch of floodwater could cause up to $25,000 in damage.

NFIP vs private flood insurance

The government flood insurance program is a good start, but you may need more coverage, as you can only get up to $250,000 in coverage for your dwelling and $100,000 for your possessions. Federal insurance also doesn't pay for living expenses if you have to move temporarily because of flood damage, and things like swimming pools, patios and most cars.

You can get supplemental flood insurance through a few private insurers, such as Chubb or Aon Edge. These policies can increase coverage limits to the same level as your homeowners' policy, cover expenses while you're away from home because of the flooding, provide more extensive coverage for items damaged in your basement, and will insure your possessions up to their replacement value (federal coverage is limited to depreciated value).

You can find a local agent at FloodSmart.gov, and you can find out more about federal aid and disaster assistance from the Federal Emergency Management Agency.

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A central air system can be a great addition to your home — keeping your home cool and comfortable in the summer months and you may even add value to your home.

How much it costs to install central air is dependent on a host of factors, including the air conditioning type you invest in, its energy efficiency rating, and the size of your home.

Here’s a rundown on everything you need to know about installing central air, upgrading an old and inefficient air conditioner, installing a new eco-cooling system, and the all-important details on the cost to install central air into your home, helping you decide if it's worth installing central air.

How much does central air cost to install?

The cost of installing central air depends on a number of factors, including the type of system you opt for, the size of your home, whether any additional work needs to be carried out, and whether you need to bring in professional help.

Typically, however, the cost to install central air conditioning will vary between $5,000 and $12,000, says Adam Graham, construction industry analyst at Fixr with “most homeowners paying $7,000 for a 2,000 square foot home,”

One of the most critical decisions you'll need to make is what kind of central air system is best for you and your home. 

What system is best?

Central air systems come in two main types — a split system and a packaged system. 

Split systems consist of two main units, one outdoor and another indoor. 
Packaged systems have their components in one outside unit. 

The cost difference between the two is not insignificant, Fixr’s Graham says, with a split system costing between $2,500 and $7,500, while a packaged system totals between $3,000 and $8,000.

Graham says that the split system is “the most common” and requires less maintenance than a packaged system.

How Important is Energy Efficiency?

A seasonal energy efficiency rating (SEER) is given to air conditioning units based on the “relative amount of energy needed to provide a specific cooling output,” explain the experts at the US Department of Energy’s Energy Saver. 

The latest and most efficient systems will have a rating of around 26, so use this as a benchmark when comparing different models.

Higher SEER rating units will increase the cost to install central air but hotter climates may require a unit with one of the higher SEER ratings to keep energy costs down once the unit's been installed.

Don't forget that updates to the energy efficient home improvement credit mean that you can cut your tax bill when you make certain types of energy-efficient home improvements. There's a yearly tax credit of $600 for installing central air systems that meet certain energy-efficiency ratings. 

For even bigger savings, consider a heat pump instead of central air conditioning. Although it sounds as if it will be heating your home, a heat pump is an extremely efficient technology for cooling your home. Qualified households can receive rebates up to $8,000 for each heat pump under new federal incentives. Check if you qualify for home energy improvement credits worth $1,000s and find other ways to save big by going green at home.

Other Factors That Determine Costs

Beyond looking at the effectiveness of various models, knowing which type will work best in your house is an important part of ensuring your new system operates well. There are a number of important factors that affect the cost to install central air.

The size of your home is an important factor.
If possible, find out the square footage of your home or have an installer come and see what kind of system would best suit your space.

• The size of your home will have an impact on the installation costs associated with central air. "The cost to install a unit for an 800 square foot home can be as little as $2,000, whereas a 3,000 square foot home can run up costs of up to $18,000,” says Graham.
• The square footage of a home is also used to calculate the type of unit you'll need. Your installer will calculate how much energy — measured in British thermal units (BTUs) — is needed to cool each room. “The more BTUs required to cool a home, the higher the costs to install central air conditioning” explains Graham.

The type of home you live in

“Installing an AC unit in a mobile home can cost as little as $3,000, whereas installing central air in an apartment can cost up to $150,000,’ says Graham. “The costs related to central air conditioning can vary widely depending on the type of home as ducts may not yet be installed and multiple units may need to be fed by one system.”

The climate

The hotter it is where you live, the larger the unit (and the more BTUs) you'll need and the more your unit will cost. Your home’s insulation and the amount of direct sunlight it receives are also factored into the calculation of energy requirements.

Additional costs to consider

If you’re looking to upgrade an old system, then you may have to pay some additional costs. 

“Some companies may charge a fee of up to $200 to remove and dispose of an old AC unit,” says Graham.

Ductwork is an important aspect of your new system working optimally without looking overbearing in your home. If you don’t have existing ductwork in your home, ducts will need to be installed in order to have central air conditioning, which means a higher bill. 

Installing "ductwork can cost between $1,800 to $3,300 for both labor and materials,” says Graham.

Will central air add value to your home?

It’s certainly worth having central air installed in your home for two main reasons. Not only does it make your home more comfortable during the summer months, but it can add to the value of your home.

“Central air is very likely to increase home value, particularly for homes located in warmer climates. What's more, central air allows you to live more comfortably through the months of the year when temperatures are high,” says Graham.

And replacing an old system can be worthwhile too. 

“The most efficient air conditioners use 30 to 50 percent less energy to produce the same amount of cooling as air conditioners made in the mid-1970s,” according to the US Department of Energy's experts. 

“Even if your air conditioner is only 10 years old, you may save 20 to 40 percent of your cooling energy costs by replacing it with a newer, more efficient model,” they add.

Can you install your own central air unit?

“Installing a central air unit is not a suitable DIY project as it requires a licensed professional to be installed adequately,” says Adam.

Regardless of which contractor you choose to bring in, make sure they follow the US Department of Energy’s Energy Saver recommendations to ensure the system is installed correctly and safely and that it works at its optimum.  

Read more

• 10 Ways to Prepare Your Home for Summer Weather
• Save Big By Going Green At Home
• A Smarter Way to Heat and Cool Your Home
• Cheap Ways to Cool Your Home in the Summer

Getting the right tax advice and tips is vital in the complex tax world we live in. The Kiplinger Tax Letter helps you stay right on the money with the latest news and forecasts, with insight from our highly experienced team (Get a free issue of The Kiplinger Tax Letter or subscribe). You can only get the full array of advice by subscribing to the Tax Letter, but we will regularly feature snippets from it online, and here is one of those samples…

Pondering eco-saving upgrades to your home? You may qualify for one of two federal income tax credits, depending on the type of energy-efficient improvement you ultimately decide to make to your residence.

Residential clean energy property credit

We’ll begin with the juicier tax break: The residential clean energy property credit for people who install an alternative energy system that relies on a renewable energy source, such as solar, wind, geothermal, or fuel cell or battery storage tech.

Think solar panels, solar-powered water heaters, geothermal heat pumps, wind turbines, fuel cells, etc.

Residential fuel cells must be installed in your main home to qualify for the credit. The rest are credit-eligible whether installed in a primary residence or vacation home.

The credit equals 30% of the cost of materials and installation for systems that you install in your home through 2032. It falls to 26% in 2033, 24% in 2034, and then expires. 

There is no maximum credit dollar limit for solar, geothermal, wind, or battery storage systems. But for fuel cells, it’s capped at $500 for each half-kilowatt of power capacity, with any unused credit able to be carried over to future tax years.

Homeowners who install a renewable energy system sometimes qualify for a rebate. These rebates are nontaxable, but they reduce the system’s cost for figuring the credit.

Say you put a $35,000 solar system in your home and get a $1,000 installation rebate from the utility. Your tax credit is $10,200 (30% x ($35,000 - $1,000)), not $10,500.

Energy-efficient home improvement credit revamp

We’ll now turn to the smaller, energy-efficient home improvement credit. It’s been around for years, but Congress revamped it beginning in 2023.

Homeowners get up to a 30% credit for the cost of certain types of insulation, boilers, central air-conditioning systems, water heaters, heat pumps, exterior doors, windows, and the like that they install in their homes from 2023 through 2032.

These items must also meet certain energy-efficiency ratings, depending on the product.

There’s a $1,200 general aggregate yearly credit limit. This new annual limit replaces the old $500 lifetime cap. So, even if you claimed the maximum $500 credit on pre-2023 returns, you’re still eligible for this bigger and better green-energy break.

But many specific types of home improvement projects have lower credit limits. Here are the item-by-item yearly caps: $150 for a home-energy audit. $500 in aggregate for exterior doors (a maximum of $250 per door). And $600 for windows; skylights; natural gas, propane, or oil water heaters; electric panels; central air conditioners; or natural gas, propane, oil furnaces, or hot water boilers.

Some items have a higher yearly credit of $2,000: Biomass stoves or boilers; electric or natural gas heat-pump water heaters; or electric or natural gas heat pumps.

Here is an example. In 2023, you put a natural gas heat pump in your home that costs $8,000 with installation, a $3,000 natural gas tankless water heater, and a central air conditioner costing $7,000. Your total maximum credit is $3,200; $2,000 for the heat pump, $600 for the water heater, and $600 for the air conditioner.

This first appeared in The Kiplinger Tax Letter. It helps you navigate the complex world of tax by keeping you up-to-date on new and pending changes in tax laws, providing tips to lower your business taxes and personal taxes, and forecasting what the White House and Congress might do with taxes. Get a free issue of The Kiplinger Tax Letter or subscribe. 

Read more

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No Mow May is an easy life hack that can save you money and deliver a host of side benefits. It’s as simple as mowing your lawn less frequently or not all during the month of May. This pause allows wildflowers time to bloom, serving up a nectar-rich buffet for bees, butterflies and other pollinators. Without this help, many such insects will emerge in the spring with little food to sustain them. 

In turn, you can save money and time by reducing your mower’s gas or electricity use, or by skipping the mowing service. Depending on where you live, you may also save on fertilizer, water and other lawn treatments. 

How No Mow May can help you save money 

You can participate in three ways: stop mowing just a section of your lawn, mow less frequently, or stop mowing your entire lawn altogether. All three will help pollinators and use less of your time and resources. 

According to Home Advisor, the average cost of basic lawn mowing service is between $30 and $80 per visit. So, if you pay for lawn maintenance once a week in the spring, you may save between $120 and $320 by participating in No Mow May. 

White clover is one of the most common wildflowers that will likely benefit from a mowing respite. Rather than fighting it with pesticides and other measures, pause your mowing so that it flowers and spreads throughout your lawn. As a member of the legume family, white clover improves soil health by fixing nitrogen in the soil, making nearby grass healthier and greener. Let the clover have its way and you can often ditch expensive and polluting lawn pesticides and fertilizers. 

 How No Mow May can benefit people 

If you are of a certain age, you may remember riding in the car on summer nights, bugs splattered against the windshield. Those days are gone. Now, habitat loss and other stressors are driving a profound deterioration of insect and pollinator health; a 2019 study estimated that as many as one in three insect species is in danger of extinction. 

That spells trouble for humans, as we rely on insects for pollination of many varieties fruits and vegetables. In the garden, fewer insects mean less food for birds and other predators. 

Healthy ecosystems, even in our yards, make for better human health. One study found that a greater diversity of bird species in urban and suburban yards protected nearby people from West Nile Virus. And having a rich array of bird and plant species is good for our mental health.  

Talk to your neighbors

Before you store your mower for the month, consider your neighbors. If your property is under strict Homeowners Association rules, review guidance on lawn and yard maintenance. If any of your immediate neighbors has a bee allergy, you may need to keep up with mowing for their safety. 

Bee City USA, the organization that launched No Mow May, has toolkits and other resources to get you on your way. 

When a popular retailer like Bed Bath & Beyond closes, customers are left with a lot of questions. How long will stores be open? Can you still shop online? 

When it comes to the home goods store, people are wondering: Can you still use Bed Bath & Beyond coupons? Bed Bath & Beyond Inc. filed for Chapter 11 Bankruptcy protection on April 23, 2023, and shopping at the chain’s 360 stores in the wind-down will look a little bit different. 

Why is Bed Bath & Beyond closing?

Bed Bath & Beyond Inc. indicated in a business update at the start of 2023 that there was “lower customer traffic.” The company reported $1.259 billion in net sales in its fiscal third fiscal quarter, ended Nov. 26, 2022, which was $619 million less than Bed Bath & Beyond brought in at the end of 2021. Bed Bath & Beyond also had “substantial doubt about the Company’s ability to continue.”

Prior to the Chapter 11 filing, Bed Bath & Beyond started the year by closing hundreds of locations. The company is taking a “dual-path” approach to its Chapter 11 proceedings by initiating a liquidation sale as well as marketing Bed Bath & Beyond and buybuy BABY as part of an auction, according to its April 26 press release.

“Bed Bath & Beyond has finally succumbed to the fact its business is broken and filed for bankruptcy,” Neil Saunders, retail analyst and managing director of Global Data, told CNBC on April 23.

Bed Bath & Beyond closing deals

Customers can shop online and in-store deals of 10% to 30% off merchandise at 360 Bed Bath & Beyond locations and 120 buybuy BABY as the wind-down process continues. 

It’s not clear when stores will close, but you can only redeem Bed Bath & Beyond gift cards, store credits and merchandise credits through Monday, May 8, according to an email from a Bed Bath & Beyond rep to Kiplinger. The store will accept returns on items purchased prior to April 26 through May 24, 2023. 

Where to use Bed Bath & Beyond coupons

As a result of the bankruptcy, Bed Bath & Beyond stopped accepting the infamous 20% off coupons on April 26, but you can redeem them at other retailers:

• Big Lots will honor expired Bed Bath & Beyond coupons in store for 20% off a purchase of $50 or more through May 7, 2023 
• The Container Store will accept valid and expired coupons in stores. You can bring in any Bed Bath & Beyond coupon through May 31, 2023, to receive 20% off a single item 
• JOANN Fabric will accept unexpired 20% off Bed Bath & Beyond coupons in stores through the expiration date listed on your coupon. You’ll get 20% off a single item 
• Kirkland’s Home will also accept unexpired coupons for 20% off a single item through May 31, 2023 

There has never been a better time to make your home more energy efficient. The Inflation Reduction Act is a game changer for homeowners looking to make green home improvements and save money on utility bills. “It’s a monumental piece of tax legislation” that’s packed with tax credits and deductions, says Mark Steber, chief tax officer at Jackson Hewitt. 

At the same time, the law has “a lot for homeowners to parse through, and there are a lot of nuances for what qualifies and what doesn’t qualify for a tax break,” Steber says. 

If you’re thinking of purchasing an energy-efficient appliance or system, here’s what you need to know to squeeze the most savings out of the Inflation Reduction Act, along with tips on four common green home-improvement projects.

Say farewell to lifetime limits

Until the end of 2022, homeowners could claim a credit for up to 10% of the cost of installing certain energy-efficient insulation, windows, doors, roofing and other home improvements. But the credit was capped at a modest lifetime limit of $500, with a $300 lifetime limit for windows. 

That’s no longer the case. The Inflation Reduction Act’s Energy Efficient Home Improvement Credit lets homeowners — no matter their income — claim a tax credit for up to 30% of the cost of qualifying home improvements, up to $1,200 per year. (A credit is a dollar-for-dollar reduction in your tax bill). 

However, there are annual dollar limits for certain items:

• $250 per exterior door (up to $500)
• $600 for exterior windows and skylights; central air conditioners; electric panels and wiring; natural gas, propane or oil water heaters; natural gas, propane or oil furnaces; and hot water boilers

One exception: There’s a more generous yearly credit limit of 30% of the cost, up to $2,000 per year for heat-pump water heaters and heat pumps for heating and cooling your home that meet the highest “non-advanced” efficiency tier of the Consortium for Energy Efficiency (CEE). 

Lisa Greene-Lewis, a CPA and tax expert at TurboTax, recommends that homeowners space out qualifying home projects over several years to reap more benefits. “If you’re thinking of installing new energy-efficient windows, consider starting with the first floor of your house, and then do the second floor the following year,” she suggests. The Energy Efficient Home Improvement Credit is valid through 2032.

Clean-energy systems

Before the law kicked in, you could take a tax credit of up to 26% of the cost to install qualifying systems that use solar, wind, geothermal, biomass or fuel-cell power to produce electricity, heat water or regulate the temperature in your home. That credit has been replaced by the Residential Clean Energy Credit, which now excludes biomass but adds battery storage and, most importantly, offers sweeter incentives for renewable-energy home improvements.

Under the tax law, consumers can qualify for a clean-energy credit of up to 30% for eligible expenditures from 2022 through 2032. The credit then slides to 26% for systems installed in 2033 and 22% for systems installed in 2034, and it expires after 2034.

A 4% bump may seem small, but it can equate to big savings when you are making large-scale clean-energy improvements to your home. For example, the average cost to install a 10-kilowatt solar panel system is $29,500, according to EnergySage, a solar marketplace that connects homeowners with installers and manufacturers. For that expense, a 30% credit is $8,850, compared with $7,670 for a 26% credit.

Plus, there’s no dollar limit on the clean energy credit. So whether you shell out $20,000 or more than $100,000 on a renewable-energy system, you’ll receive a 30% credit for the full amount you spend.

The Inflation Reduction Act also extends the tax credit for installing electric vehicle charging stations at homes through 2032, up to 30% per charger, with a maximum credit of $1,000. What’s new is that the credit now also applies to other EV charging equipment, such as bidirectional (two-way) chargers.

Take advantage of rebates

The new High-Efficiency Electric Home Rebate program, added as part of the Inflation Reduction Act, will offer nearly $9 billion in rebates to low- and middle-income families who purchase energy-efficient electric appliances.

To qualify for a rebate, your family’s total annual income must be less than 150% of the median income where you live. Qualifying homeowners can receive rebates for as much as:

• $840 for a stove, cooktop, range, oven or heat-pump clothes dryer
• $1,750 for a heat pump water heater
• $8,000 for a heat pump for space heating or cooling

There will also be rebates for other upgrades, up to:

• $1,600 for insulation, air sealing and ventilation
• $2,500 for electric wiring
• $4,000 for an electric load service center upgrade

The new law’s rebate program is expected to launch later this year, says Ben Evans, federal legislative director at the U.S. Green Building Council. The rebates will be managed by each state’s energy office. “Once these programs get up and running, we’ll have more guidance around how to apply for the rebates, but we know that these rebates will be quite lucrative for a lot of people,” he says.

In the meantime, you might qualify for a rebate from the federal government or your utility company for installing an Energy Star–certified product. Go here to search for Energy Star rebates in your area.

Rewiring America, a nonprofit focused on electrifying homes, businesses and communities, offers a calculator that can give you an estimate of how much you could save through the Inflation Reduction Act’s tax incentives and rebates based on factors such as your tax filing status, zip code and household income. “The calculator can help you maximize your benefits and figure out what changes you want to make to your home,” says Noah Goldmann, a policy analyst and tax expert at Rewiring America.

Why you should get a home energy audit

In a home energy audit, a residential energy professional assesses your home’s current energy consumption and identifies ways to make your house more energy efficient. “There are various benefits to completing a home energy audit, such as reducing energy costs on your utility bill, improving comfort levels in your home, reducing your home’s environmental impact and increasing the lifespan of your appliances and equipment,” says Rebecca Moser, a sustainability manager in the Washington DC area. 

Another reason to get a home energy audit: The Inflation Reduction Act established a $150 tax credit for them. A home energy audit runs an average of $431, HomeAdvisor reports, with costs varying depending on a home’s square footage.

Four green projects that pay off

Energy-efficient windows

• Cost: $325 to $2,000 per window, according to Angi.com; hiring a contractor to install them adds an extra $300 to $1,000 per window.
• Tax credit: $600 annually for exterior windows and skylights.
• Potential rebate: Only if windows are part of a retrofit that achieves specific energy savings

Replacing all of the windows in your home is pricey, but the savings on your energy bills and increased comfort make it worth serious consideration. According to Angi.com, vinyl replacement windows typically range from $220 to $2,000 per window, depending on the brand, size and cost of the installation. If you choose wood frames, plan on paying $270 to $2,400. Vinyl windows cost less and require less maintenance, and the frames can be filled with insulating foam. Installation costs are higher for double- or triple-pane windows.  The average labor cost for installing windows costs between $100 and $300 per window.

But installing energy-efficient windows can have a big impact on your energy bill. Heat gain and loss through windows is typically responsible for 25% to 30% of a home’s heating and cooling energy use, Energy.gov says. Look for the Energy Star label, which means that a product meets the energy-saving criteria set by the Environmental Protection Agency.

Replacing single-pane windows with Energy Star–certified windows can save you from about $200 to nearly $600 in household energy bills a year for an average-size home.

If you don’t have the budget to replace every window in your home, Moser suggests conducting an air-leakage test around windows throughout your house. “This will help determine drafty areas in your home and where window installers need to pay greater attention,” she says. Also, if you space out the work over two or three years, you can double or triple the tax savings.

Heat-pump water heaters

• Cost: $1,500 to $3,000
• Tax credit: up to $2,000 annually for electric and some gas models
• Potential rebate: up to $1,750

Looking to nab that handsome $2,000 tax credit for installing an Energy Star–certified heat-pump water heater? You’ll also see a big reduction in your home’s energy costs, with a family of four saving an average of $550 a year on their energy bill by installing an Energy Star–certified model, with a lifetime savings of around $5,600, according to Energystar.gov. You’ll recoup your investment after less than four years.

Heat-pump water heaters are big-ticket items, though. One way to save money: Purchase the right size heater for your family. Typically, a household of four only needs a 50- or 60-gallon water heater, which can cost significantly less than a 75- or 80-gallon water heater. For example, you can save about $1850 by getting a 50-gallon Voltex electric heat pump heater instead of an 80-gallon model.

Note that heat-pump water heaters need a good bit of space — approximately the space in a 12-by-12-foot room, according to Energy Star. Also, they generate noise similar to a dehumidifier and require air filter cleaning periodically.

Attic insulation

• Cost: $1,500 to $3,500, including installation, according to HomeAdvisor
• Tax credit: up to $1,200 annually
• Potential rebate: $1,600

For many homeowners, “insulation is out of sight and out of mind,” says Doug Anderson, home envelope product manager for the EPA’s Energy Star program. But poor attic insulation is one of the biggest culprits for home energy loss. Focusing on the attic, which tends to have greater exposure to heat, cold and moisture than other parts of the house, often makes sense.

Insulating an attic, including materials and labor, typically costs between $1,500 and $3,500, HomeAdvisor says, but costs can vary widely depending on the type of insulation you choose. Anderson says fiberglass offers the most bang for your buck.

Pro tip if you’re going to do the work yourself: “Always air seal your attic floor before adding attic insulation,” Anderson advises.

Solar Panels

• Cost: $29,500, on average, for a 10-kilowatt system, according to EnergySage
• Tax credit: 30% of cost
• Potential rebate: none as part of the Inflation Reduction Act’s rebate program

Even though a home solar roof system can cost as much as a small kitchen remodel, it can pay for itself in the long run, with the average homeowner saving anywhere between $20,000 and $90,000 over the life of their solar panel system, EnergySage says.

Nick Liberati, senior communications manager for EnergySage, breaks it down: The cost of a 10-kilowatt system priced at the national average of $ 2.86 per watt is $31,460. The federal tax credit allows you to deduct 30% of the cost of installing solar panels from your federal taxes, or in this case, a total of $9,438, bringing the cost to $22,002. On average, it takes 8 years to break even — that is, to save enough on power to recover the cost of solar panels. After that, solar energy is free until the equipment wears out.

However, some houses aren’t good candidates for solar panels. It depends on the age and condition of your roof, its orientation toward the sun, whether it’s shaded by trees and other factors. So it’s a good idea to hire a home energy specialist to help you determine whether solar roof panels make sense for your home. (Some home energy audits include a roof inspection for solar panel potential.)

For a rough idea of how much you’d save going solar, enter your address at Google Project Sunroof to see how many hours of usable sunlight your house receives each year, the recommended size of a roof solar installation for your home and the estimated energy savings over 20 years.

Note: This item first appeared in Kiplinger's Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here. 

Editor's note: This story has been updated to reflect the credit for home improvements was capped until the end of 2022.

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You've called your current house "home" for a long time. That means you'll likely need to do some serious decluttering if you plan to move in retirement. But your home is much more than just walls and a roof over your head; it's the cozy backdrop filled with all those familiar sights, sounds and sentimental touches that can’t simply be packed into boxes or easily decluttered.

But as the seasons change, you may also be changing the season of your life, including looking for ways to prepare your home for selling, moving or downsizing — without compromising your style.

Whether you're retiring, planning for it, or still working a 9-to-5, now is the perfect time to invoke your inner Marie Kondo, the popular Japanese organization expert who famously emphasizes keeping only those items that “spark joy” in you.

Although older people can get wrapped up in their memories and the trinkets of their past, Kondo counsels: “Truly precious memories will never vanish even if you discard the objects associated with them. No matter how wonderful things used to be, we cannot live in the past. The joy and excitement we feel here and now are more important.”

To declutter your home, prepare to let go

Experts have made downsizing and decluttering seem simple: Keep it, trash it or donate it. If only it were that easy.

“Decluttering can seem daunting, especially for retirees and those nearing retirement who may have accumulated decades’ worth of clutter,” says Aaron Traub, owner of My Professional Organizer in New Orleans.

For anyone planning a move or just downsizing to a smaller place, the process often requires sifting through a lifetime of memories and mementos — children’s art, love letters, your late father's tools — making the process far more complex and emotionally draining.

But it doesn’t have to be that way, especially if you consider the opportunity to offload a lot of your stuff for a fresh start.

“I always recommend that my clients focus on the idea of what they want to keep — what will support their lifestyle today, and their hopes and dreams for tomorrow, rather than the more traditional idea that we have to declutter to get rid of stuff,” says Danie Smallwood, a self-described decluttering mindset coach based in Bethesda, Md.

Whether you’re preparing for a costly move or just starting your spring cleaning, here are nine tips on how to start downsizing and decluttering.

1. Don’t try to do it all in one day 

Downsizing and decluttering need to be done consistently. “Even if all you can manage is dealing with one paper from the mountain that has built up on your desk, commit to doing that one tiny thing every single day,” Smallwood says.

“Will you unclutter your whole desk that way? No. But you will create the confidence that you are someone who declutters, who sticks with it, who can keep it up — and that's the most important step you can take in the beginning.”

Whether it's 10 or 30 minutes a day, or a full day on the weekend, setting aside a dedicated time to declutter will help ensure you progress,” says Traub.

2. Start with easy wins

Gather all trash, clean out the fridge and pantry, and then collect and organize receipts and paperwork, which likely have minimal sentimental value. Next, “look for things that are out of place, like that dusty old pile of books, clothes, shoes, old technology and small appliances,” says Diane Quintana, an organizer with Release Repurpose Reorganize in Atlanta. “Can you put these things away? If you can’t put them away, can you make room for them by decluttering where they would typically go?” Better yet, donate books you've read and clothes you'll no longer wear to charity and get a break on your taxes. Keep the receipts.

Then move on to other smaller areas. Consider tackling individual drawers before moving up to something slightly larger, such as a closet or a spare room, suggests Darcy Speed, who trains other organizers and home stagers at Ultimate Academy. “There are usually fewer decisions to be made regarding what to keep and what to donate,” she says.

3. Stop collecting more stuff

Everyone likes the latest and greatest new gadgets, knickknacks or devices. But sometimes you can reduce stress and make your life simpler by getting by with what you already own, even if that means telling friends and family members to skip this year’s birthday presents.

“If you continue to accumulate things through the decluttering process, you’re just rearranging deck chairs on the Titanic, and you’ll be a lot slower in reaching your goals,” says Lisa Dooley, author of More Space. More Time. More Joy!: Organizing Your Best Life.

4. Consider getting outside help 

Professional organizers can map out a process and timeline while keeping things moving.

“It can be helpful to have an objective outsider around when things start to get stuck,” says Melissa Gungi, a San Francisco-based professional organizer who works with retirees and seniors. “I also encourage getting help for the smaller bumps, like hiring haulers for a couple of hours to move heavy things around or take the trash out, or finding resources for where to donate and recycle things.”

5. Time to sort out your belongings

When sorting out the "clutter" you've accumulated, it's easier on your emotions to put the items into four groups — Keep, Give, Sell, Trash

Keep: It's your stuff, so it makes sense you'll want to keep everything, but that's not always best. Instead, reserve this category for items you use regularly. These are the belongings you just can't do without, or don't want to do without. It may include sentimental items like family photos or your kid's trophies, knitting supplies (if you actually knit), legal papers like your will or house deed, and more. You get the idea.

Give: If you have special ties to certain items that are just too strong to break, consider giving them to a family member or close friend. That way, these items will be treasured just as you've always treasured them. You might also consider donating them to your favorite charity or to your church. Instead of clinging to the memories of the past, make room for all the new memories to come.

Trash: Trashing your belongings may be the hardest for many people. After all, these items have held a place in your home (and your heart) for years, and it's hard to part with things you may use in the future.

But ask yourself: "Do I want to pack all this stuff up and move it to another home?" If there are things you will never use, you can't donate, and they won’t sell, throw them away and be free!

Sell: Now it's time to earn some cash. Have a yard sale or sell your items online. Facebook Marketplace, Poshmark, Ebay and more, can be a great place to start.

If you have valuable things you want to part with, such as silverware or gold jewelry, collectibles like rare coins, art or antiques, take your time. Research online auction houses, estate sale professionals and other ways to get a reasonable price for your items.

6. Give yourself grace with a 'maybe' box

If you’re on the fence about a particular item, set it aside, suggests Smallwood, the Maryland decluttering coach. The hardest decisions will involve holiday ornaments, scrapbooks, pictures and other items that tear at your heart. “Sentimental items will slow you down, and the goal is to get through as much as you can, as quickly as you can,” she says.

When the box is full, “put a note on it and a date when you will revisit those contents,” she says. “By then, your decluttering muscles will be stronger,” and you’ll be able to make a decision.

7. Ask yourself the last time you used something 

If you haven’t used the rusty old flower box or worn the bell bottom jeans from the 70's stuck in the back of your closet in the past year, and don’t expect you will anytime soon, it's probably safe to get rid of it, says Aaron Traub, the Dallas organizer.

If you find it hard to let go of clothing even when you never wear it, try the reverse hanger trick. It works like this: Take all of your garments on hangers and put them in backward, so that the open end of each hanger now faces you. Set a calendar reminder for six months from now. When you wear a piece and go to put it back, make sure the hanger faces the opposite way.

When time is up, you’ll know exactly what you haven’t worn. Donate or sell all of those items on backward hangers. Chances are, if you haven’t worn it in the past six months, it’s time to let go

8. Involve your family 

Reach out to your family and ask them to go through any possessions they may have left behind. Then invite family members over for a “give and take” visit, suggests Darcy Speed. “Explain that you are looking to declutter and encourage them to choose their favorite items. The "giver" can share the story behind the keepsake, making it even more meaningful, and then it can be taken out of the home.”

You may think about keeping this stuff for your heirs, but keep in mind that your children rarely have the same attachments to items you do. Your kids will likely want to create their own new memories. Instead, discard the items. But before you do, “take pictures and videos to keep the memories alive,” suggests John Linden, a Los Angeles-based interior designer.

9. Declutter on a regular basis

Finally, be sure that your old habits don’t return. “Keep up with the organization,” says Linden. “Make sure to declutter on a regular basis, and be conscious of what new items you are bringing into your home.”

For Jakob Miller, in New York, “Decluttering was a challenging but rewarding task. Not only did it make my home more organized and functional, but it also gave me a sense of peace and clarity,” he says. “Just start small, take it one step at a time. And you'll be amazed at the results.”

Note: This item first appeared in Kiplinger’s Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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Rising energy costs have many homeowners looking for ways to manage their usage and lower their bills, and smart meters — which display real-time energy consumption—can be a useful tool in this effort.

According to the Edison Foundation's Institute for Electric Innovation, as of 2022, 77% of U.S. homes and businesses had smart meters. These devices continue to play an important role in the electric power industry, enabling two-way communication between energy providers and consumers, improving grid resiliency, and offering new energy management services.

But, not everyone likes smart meters. So what are the big pros and cons of each meter type?

Before moving onto the answers, consider our other articles about home energy savings, including oven vs air fryer, electric heaters vs radiators, wood burning stove vs central heating, fan heaters vs oil heaters, dishwasher vs hand washing, and our audit on how to save on energy bills.

Smart meter: pros

There are a few selling points to smart meters. First, they should mean more accurate bills ‒ your energy use is transmitted directly to your energy supplier, meaning they know exactly how much to charge you.

Compared with having to submit those meter readings yourself, or having someone from your supplier turn up at the front door to get those readings, that will be preferable for many.

In addition, since you will be able to see your energy use in dollars and cents if you get an in-house display to go with your smart meter, it should help you to be a little more energy efficient. For example, if you can see precisely what it’s costing you when you leave lights on, or boil water unnecessarily, then it may push you into being a little less wasteful.

Since you can see how much each appliance costs you, it can also help you identify appliances you might benefit from replacing with a more efficient model.

In theory, switching energy suppliers is more straightforward too. No longer do you need to worry about sending your old supplier a final reading before the switch takes place, since all of the relevant info is transmitted to them automatically.

Not only can smart meters help you make cost-saving changes to your habits, but they can also open up eligibility for money-saving schemes.

Smart meter: cons

Some people believe that the meters are an invasion of privacy, offering energy suppliers too great an insight into your habits.

There have also been frequent warnings about smart meters being targeted by hackers, though it’s understood there have yet to be any actual instances of this taking place.

Then there is the risk of your smart meter going "dumb." This is when it loses the smart functionality, meaning that you have to still submit meter readings to your energy supplier.

Smart meters can suffer from connectivity issues. After all, you’ll struggle to use a smart meter properly if your coverage is patchy.

Traditional meter: pros

Smart meters aren’t compulsory, so there are plenty of households actively choosing to remain on traditional meters.

Some will like the fact that doing so retains an element of privacy, meaning that their energy supplier ‒ or even other residents of the house ‒ don’t have such clear information on where the energy is being used.

If the meter is positioned in an easy-to-access location, and they are happy to carry out the readings each month, then sharing them with the supplier may not be much of a hardship.

Being on a traditional meter makes it slightly more difficult for suppliers to transfer the household onto a prepayment meter too. Suppliers have to actually notify you about the switch and arrange for the meter to be fitted, for example.

Traditional meter: cons

The obvious downside of a traditional meter is that you have to take a hands-on role. Rather than the energy supplier getting an up-to-date reading of how much energy you’re using, it relies on you submitting readings from your gas and electricity meters to the supplier yourself every month.

It’s easy to forget to do this, in which case you’ll be subject to bills based on estimated usage. Clearly, an estimate is never going to be all that accurate, so you could end up paying far more ‒ or even far less ‒ than you actually owe.

Overpaying is far from ideal, particularly when money is tight. Yes, you will get the money back, but it may be that you could have benefited from having that money at your disposal in the months beforehand.

The situation is even more serious if you have underpaid, as you will then be subject to larger bills in the future to clear that debt and pay for your ongoing energy use.

The verdict

Working out the correct form of energy meter for you will come down to how your approach to energy bills and usage.

If you are determined to keep your usage, and therefore your bills, as low as possible then a smart meter can be a fantastic asset.

The meter will help you see precisely how much using each appliance is costing, and can push you into changing your habits in ways which will reduce the size of your bills.

Smart meters also remove the effort involved in meter reading, since the information is shared directly with the supplier.

But, they clearly won’t be a good idea for everyone. If you have poor coverage in your area then you could miss out on the smart features.

Ultimately you will need to determine for yourself what is most important, and therefore which type of meter is best for your needs.

Learn more about reducing your bills and taking advantage of useful homeowner tax credits.

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