Improving how the U.S. uses energy could do two things at once, a new analysis suggests: reduce strain on the electric grid and lower energy costs for households and businesses.

The biggest opportunity may be hiding in everyday places, including buildings, appliances, and heating systems.

What's happening?

According to Utility Dive, a new report from the American Council for an Energy-Efficient Economy estimates that the U.S. could save about $215 billion a year on energy, adding up to $4.8 trillion by 2050. The report also says building-focused electric efficiency measures could reduce average peak demand growth by 20% through 2050.

By 2050, roughly half of the estimated $439 billion in yearly savings would come from buildings, driven by heat pumps and other efficient appliances. The rest would come largely from industrial upgrades and transportation changes, such as stronger fuel efficiency and broader electric vehicle use.

Why does it matter?

Heat pumps are significantly more energy-efficient than traditional HVAC systems, and they can provide both heating and cooling in one device. That can translate into lower monthly utility bills, long-term savings, and access to tax credits and rebates, and tools such as EnergySage's Heat Pump Marketplace can help people compare options.

For people who are not ready for a whole-home upgrade, Merino offers single-room, ultra-efficient HVAC systems at a lower price point. The targeted heating and cooling option can be installed in under an hour, making it a more accessible way for some households to start cutting energy use.

As electricity use climbs — with energy-intensive data centers among the drivers — and global instability keeps energy prices in focus, reducing waste becomes more important. Using less power can ease pressure on the grid while helping people stay comfortable during peak-demand stretches in summer and winter.

What's being done?

The report points to a wide range of solutions, including broader adoption of equipment that the U.S. Department of Energy deems technically feasible at the highest efficiency levels, according to Utility Dive. In new buildings, the modeling assumes all heating shifts to heat pumps by 2035, backed by incentives and appliance standards. For existing buildings, it assumes additional savings from improved design, insulation, and controls, including policies such as building performance standards.

The analysis also points to demand flexibility programs that can shift electricity use away from peak times. The report says Google has already announced voluntary efforts tied to its data centers and aggregated electric loads more broadly.

Homeowners interested in solar can also use EnergySage, which offers a free solar quotes comparison tool. With EnergySage's help, the average person can get nearly $10,000 in incentives for solar purchases and installations.

And if heating and cooling upgrades are the more immediate priority, it may be worth checking EnergySage's Heat Pump Marketplace to compare equipment and savings opportunities before making a purchase.

"Energy efficiency is the fastest, cheapest, and cleanest way to meet our energy needs," the report states. It adds that "Each inefficient unit represents a large opportunity for energy and bill savings and to reduce winter peak electricity demand."

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