The short answer
Start with an energy assessment and a clear description of the comfort or operating-cost problem. Compare improvements as a system, then verify the contractor, installation scope and any incentive before committing. Do not assume the former federal credit of up to $3,200 applies to work installed in 2026.
Find the problem before choosing equipment
Collect recent utility bills and note rooms that are difficult to cool, drafts, humidity concerns and equipment problems. The Department of Energy explains how a home energy assessment can identify improvement opportunities and provide a written plan. Share the same findings with each bidder so proposals address the same problem.
Ask which recommendations are urgent, which can be staged and which require additional investigation. An equipment replacement may not resolve a problem caused by the building envelope, ducts or controls.
U.S. Department of Energy: home energy assessment guide (PDF)
Compare air sealing and insulation together
ENERGY STAR identifies sealing and insulation as ways to improve comfort and energy efficiency. The right scope depends on where air leaks occur, existing materials and the home’s construction. Do not cover over unresolved water or ventilation problems.
Request the proposed insulation material, area, installed performance target, preparation, cleanup and access requirements. Ask how the contractor will document completion. Keep before-and-after records rather than relying only on the number of bags or rolls supplied.
Give every equipment proposal a clear specification
For heat pumps, ask the installer to explain sizing, duct compatibility, controls, electrical needs, condensate handling and the commissioning process. For replacement windows, compare opening repairs, installation details and documented product performance.
For solar, compare the cash price with financing terms, ongoing charges, roof condition, utility approval and the production assumptions in the proposal. Ask who handles any future removal and reinstallation for roof work. Smart thermostats should be checked for system compatibility and useful scheduling before purchase.
- Compare total installed cost, not just the advertised equipment price.
- Ask which assumptions support any savings estimate.
- Identify permits, utility dependencies, warranties and ongoing service obligations.
Check 2026 incentives before putting them in the budget
The IRS says the Energy Efficient Home Improvement Credit covered qualifying improvements made through December 31, 2025. The former annual maximum of up to $3,200 should not be advertised as a current benefit for new 2026 installations.
A separate state, local or utility program may have its own rules, funding limits and approval process. Verify the exact program with its administrator before signing, and ask whether approval is needed before work starts. Treat an unapproved rebate as uncertain when comparing affordability.
IRS: Energy Efficient Home Improvement Credit and its 2025 end date
Check the business and keep the handover documents
Search the business on ServiceFax and review available licensing and public-record findings before hiring. Match the company you reviewed to the written proposal. Confirm the required license scope, permits and insurance separately for the actual job.
Keep the equipment model numbers, permit and inspection records, warranty registrations, commissioning results and payment schedule. A ServiceFax report does not certify energy savings, incentive eligibility, installation quality or insurance coverage.
Frequently asked questions
Can I claim the old $3,200 federal credit for a new 2026 installation?
Do not assume so. The IRS identifies December 31, 2025 as the end date for qualifying improvements under that credit. Check the current IRS guidance and any separate incentive program for your circumstances.
Will new equipment always lower my bill?
No savings amount is guaranteed. Usage, rates, sizing, installation, building conditions and maintenance affect the result. Ask for written assumptions and compare complete proposals.