Do you know how and where most of your electricity is consumed? Here are some statistics:

• about 55% goes into heating and cooling of your home
• up to 25% goes into water heating
• the remaining goes into running electronic appliances and lighting

So, the first thing to do for making your home energy-efficient is conduct an energy audit, either on your own or by a professional. Once your home is air-sealed and the basic problems are fixed, optimal conditions exist for you to adopt energy saving methods. Initially, you may have to make a small investment. However, you can easily recover the money invested within a reasonable span of time because of your reduced electricity bills.

Here are some smart ways to make your home energy efficient and save your hard-earned money:

Lighting

• Begin by changing incandescent bulbs to CFLs, or better yet LED lamps. These can help you save up to 80% of the electricity consumed by incandescent bulbs.
• Periodically clean your bulbs to remove the accumulated dust.
• Consider installing light control devices like occupancy sensors, or dimmers, to adjust the lighting level in accordance with the actual need
• Minimize the need for illumination by using skylights and opening curtains or blinds to allow natural light to enter your home.
  

Appliances and Electronics

• Buy only ENERGY STAR rated electrical appliances - the higher the ENERGY STAR rating, the more money you can save on electricity bills.
• If you live in a dry and windy area, use a clothesline to dry your clothes instead of using a spin dryer.
• In the case of appliances that work in standby mode (TVs, cordless phones, CD players, etc.), prevent the "phantom load" by unplugging them from the wall socket while not being used.
• Always use spike busters or surge protectors with computer equipment. Don't forget to switch them off when the equipment is not in use.
• Switch off your computer screen, or better yet the CPU too, if you do not plan on using it for a long period of time.

Hot Water Heating

• Select warm water, or better yet cold water, when using your washing machine unless absolutely required. Heating the water increases the energy consumption of the washing machine by as much as fivefold.
• Take shorter hot water showers or shower with a partner.
• Also, consider adjusting the setting on your hot water heater one or two settings for dramatic savings.
  

Heating and Cooling

• If you are building a new home or are renovating your old one, go for window and door frames made of materials like fiberglass, steel or polyurethane. Such frames create efficient air seals in your home.
• In hot climates, install lighter color or "cool roofs" that reflect the sunlight and absorb less heat.
• Weatherproof your windows and exterior doors. Weatherproofing prevents heat from escaping during the winter and entering during the summer.
• Make sure that your heating and cooling equipment is properly sized for your rooms to avoid frequent cycling.
• If you live in a climate that requires only moderate heating or cooling, then go for heat pumps instead of air conditioners and heaters. If used smartly, they can help reduce your electricity consumption by as much as 40%.
• Use smart landscaping strategies to create an energy-friendly environment around your home. For example, plan landscaping that will keep icy winter winds away and yet direct the cool summer breeze in. You may require the help of a landscape professional to carry this out this efficiently.
• While using an air conditioner or heater, set the temperature to a just comfortable level. No point cooling the room to the extent that you need a thick blanket for sleeping in the summer or heating the room to the extent that you roam around the house in summer wear in the winter.

Renewable Energy

• Keeping climate conditions in mind, consider using alternative energy sources like solar heating for your hot water, and solar cell panels or wind turbines for meeting smaller electricity needs (e.g. outdoor lighting)
• Use solar water heating for your swimming pool.
• Install green technology generators that convert and store energy from the sun, wind or water.

If energy utilization in your home is not carried out efficiently, you could be paying more than 50% of your electricity bills on wasted energy. This loss could be due to multiple factors and suboptimal conditions in your home. You may be using the wrong kind of electrical and electronic equipment or using them at the wrong times or they may be on all the time even when you don't need them.