How New Homes Are Designed to Cut Energy Waste and Lower Your Monthly Bills

TL;DR

• California electricity rates remain among the highest in the country, making energy efficiency an important factor for today’s homeowners. According to the U.S. Energy Information Administration, California’s average residential electricity rate was 35.25¢/kWh in April 2026, compared with 18.83¢/kWh nationally.
• ENERGY STAR estimates that air sealing and insulation upgrades can save up to 15% on heating and cooling costs.
• The amount of energy saved on lighting a single home with LED lighting is 75% less energy than incandescent, and they can last up to 25 times longer than traditional lighting.
• Heat pump water heaters are up to 4× more efficient than conventional electric water heaters (ENERGY STAR).
• Riverland Homes’ energy efficient homes in Elk Grove and Galt have SMUD’s Neighborhood SolarShares program already incorporated into each new home they build, so there is no maintenance of rooftop solar panels!

Energy Efficiency in California Matters More Than Anywhere Because Your Electricity Bill Does Math Every Month

Electricity costs continue to be a major factor for California homeowners. According to the U.S. Energy Information Administration, the average U.S. residential customer paid about 16.48 cents per kilowatt-hour in 2024, with an average monthly electric bill of $142.26. In California, the average residential rate was much higher at 31.97 cents per kilowatt-hour, bringing the state’s average monthly residential electric bill to $160.86.

That gap has continued into 2026. In the EIA’s April 2026 Electric Power Monthly data, the average residential electricity price was 18.83 cents per kilowatt-hour nationwide, while California’s residential average was 35.25 cents per kilowatt-hour. For homeowners, that makes energy efficiency more than a selling point. Features that help reduce energy use, improve comfort, or offset electricity demand can make a meaningful difference over time, especially in a state where electricity rates remain well above the national average.

Every watt of wasted energy in California carries a higher financial burden than in most other states. To address this, homeowners in existing homes can implement several improvements. For instance, single-pane windows, which are found in 43.83 million U.S. homes, according to the 2024 Residential Energy Consumption Survey (RECS) from the EIA, and inadequate insulation, present in 23.33 million homes, are prime candidates for upgrades. Sealing and insulating a home can drastically reduce heating and cooling costs, making it a critical step for homeowners looking to lower their utility bills.

New homes offer a distinct advantage in energy efficiency because they are built to current building codes. Unlike older homes, which often rely on outdated systems and components that have been modified over time, new homes are designed from the ground up with modern, energy-efficient systems. This ensures that energy efficient homes are optimized for performance from the moment they are built, providing long-term savings for homeowners.

How Do New Construction Homes Compare to Older Homes in Terms of Energy Efficiency?

A home’s energy efficiency is determined by several key factors: the thermal shell (walls, roof, floors, windows, and doors), the mechanical systems (heating, cooling, ductwork, and insulation), the lighting, and the systems that support daily living, such as ventilation and indoor air quality.

The home envelope acts like a large cooler, maintaining a consistent interior temperature by preventing outside air from infiltrating the home. In regions like Sacramento, where summer temperatures frequently exceed 100 degrees, a tight thermal envelope is not just a luxury; it’s a necessity. A well-sealed home ensures that cooled air stays inside during the summer and heated air remains inside during the winter, reducing the workload on HVAC systems and lowering energy costs.

For homeowners in California, where electricity rates are among the highest in the nation, choosing an energy-efficient home can support long-term savings and everyday comfort. New homes are often designed with these principles in mind, using features like advanced insulation, high-performance windows, and air sealing techniques to help create a tighter thermal envelope. Riverland Homes incorporates energy-efficient features across its new home communities, giving buyers a way to enjoy modern comfort while being more mindful of ongoing energy costs.

The Importance of Insulation & Air Sealing to Save Money & Improve Energy Efficiency

Home insulation is often overlooked by homeowners, yet it plays a critical role in maintaining a comfortable indoor temperature year-round. For homes built with insulation already in place, the benefits are clear: insulation works 24/7 to keep homes cool in the summer and warm in the winter. According to ENERGY STAR, homeowners can save up to 15% on heating and cooling costs, and 11% on total energy costs, by sealing leaks and insulating key areas such as walls, floors, ceilings, and ducts. In a state like California, where energy costs are high, these savings can translate into hundreds of dollars per year.

In energy efficient homes, air sealing and insulation are implemented during construction, ensuring that homeowners benefit from these savings without any additional effort. Builders focus on sealing penetration points for pipes, wires, and ductwork, as well as the rim joist, to prevent air leaks. Older homes, even those built within the last decade, often suffer from leaky rim joists and poorly sealed penetration points, which can only be addressed through proper construction techniques.

For those considering new homes in Elk Grove or new homes in Galt, Riverland Homes offers communities with energy-efficient features built into the home from the start. This proactive approach to energy efficiency is one of the many reasons new homes can offer stronger performance, greater comfort, and more modern living compared to many older resale properties.

The Home’s Windows

Windows play a pivotal role in a home’s energy efficiency. Older homes, particularly those built 20 or more years ago, often feature single-pane windows with little to no insulating value. These windows allow heat to enter during the summer and escape during the winter, making it difficult to maintain a comfortable indoor temperature. In contrast, new homes are equipped with high-performance windows that incorporate advanced technologies to improve energy efficiency.

High-performance windows typically feature low-emissivity (low-E) coatings, which reflect radiant heat. In hot climates like Sacramento, these coatings are invaluable for keeping homes cool. Additionally, dual-pane or triple-pane windows with insulating gas fills between the panes provide superior thermal resistance, reducing air infiltration and preventing drafts. Proper flashing and sealing around windows further enhance their performance, ensuring that the home remains energy-efficient year-round.

ENERGY STAR’s Thermal Enclosure guidelines highlight the importance of high-performance windows in maintaining a comfortable indoor environment. These windows not only improve energy efficiency but also block harmful UV rays, protecting flooring and furniture from fading. At Riverland Homes, dual-pane windows are a standard feature in all energy efficient homes, ensuring that homeowners benefit from these advanced technologies without any additional cost.

HVAC and Hot Water

New residential HVAC systems are increasingly shifting toward heat pumps, which are significantly more efficient than traditional resistance-based systems. In California, the 2025 Building Energy Efficiency Standards, which apply to residential buildings with permit submissions on or after January 1, 2026, prioritize heat pumps for space heating and hot water. The California Energy Commission (CEC) also emphasizes heat pump adoption, load flexibility, and tighter ventilation requirements in its updated code. For homeowners looking for practical ways to save on electric bill costs over time, these energy-efficient systems can play an important role in reducing overall energy use while supporting a more comfortable home. 

Heat pumps operate by transferring heat rather than generating it, making them far more efficient than electric resistance heaters. According to ENERGY STAR, upgrading to an ENERGY STAR certified heat pump can save an average of $460 per year when switching from electric resistance heaters. In California, where residential electricity rates remain well above the national average, efficient heating and cooling systems can make a meaningful difference in overall energy use and long-term home comfort. The U.S. Energy Information Administration reported California’s average residential electricity rate at 35.25 cents per kilowatt-hour in April 2026, compared with the national residential average of 18.83 cents per kilowatt-hour. However, the efficiency of a heat pump is only as good as the home’s construction. A poorly insulated or leaky home will force the heat pump to work harder, reducing its overall efficiency.

Smart thermostats are another tool that homeowners can use to optimize their HVAC systems. These devices allow homeowners to create customized schedules for heating and cooling, reducing energy consumption when the home is unoccupied. For those considering new homes in Elk Grove or new homes in Galt, working with an energy efficient home builder ensures that these advanced systems are integrated into the home’s design from the outset.

How Hot Water Features in Home Energy Efficiency

Hot water heating is one of the largest energy consumers in most homes, second only to space heating. Traditional electric resistance water heaters are inefficient compared to modern heat pump water heaters, which can be up to four times more efficient. According to ENERGY STAR, heat pump water heaters transfer heat from the surrounding air to the water in the tank, making them ideal for mild climates like Sacramento.

For homeowners in California, where electricity rates are high, upgrading to a heat pump water heater can result in significant savings. Replacing a conventional electric resistance water heater with a heat pump model can save up to 3,500 kWh per year, translating to hundreds of dollars in annual savings. Riverland Homes regularly uses heat pump water heaters as a standard feature, ensuring that homeowners benefit from these savings from day one.

Lighting

Lighting is another area where homeowners can achieve significant energy savings. While lighting may not be the largest energy consumer in a home, inefficiencies can quickly add up. The U.S. Department of Energy reports that residential LEDs use at least 75% less energy than incandescent bulbs and can last up to 25 times longer than traditional lighting. This makes LED lighting a cost-effective choice for homeowners looking to reduce their electricity bills.

In new homes, LED lighting is typically installed throughout the home as a standard feature. While homeowners may choose to add a few incandescent or halogen lights for accent or task lighting, these additions can significantly increase energy consumption. The heat generated by incandescent bulbs can also force air conditioning systems to work harder during the summer months, further driving up energy costs. By prioritizing LED lighting in energy efficient homes, builders like Riverland Homes ensure that homeowners save money on their electric bills from the moment they move in.

SMUD Neighborhood SolarShares Program: Tegan Estates, Elk Grove to Receive Solar Energy Credit

Solar energy is a popular option for homeowners looking to reduce their reliance on traditional electricity, but rooftop solar systems can come with added considerations, including installation, maintenance, and long-term system performance. SMUD’s Neighborhood SolarShares program offers an alternative for participating new home communities by providing access to solar energy credits without requiring rooftop panels on each home. According to SMUD, utility customers save about $10 per kW of SolarShares per year, usually totaling around $10 to $40 annually. While the bill savings are modest, the program gives homeowners a simple way to benefit from locally generated solar energy without having to install, maintain, or manage a rooftop solar system.

The SolarShares program is particularly appealing for homeowners who want to benefit from solar energy without the drawbacks of traditional rooftop systems. There are no upfront costs, no maintenance responsibilities, and no concerns about the long-term impact on resale value. Riverland Homes has partnered with SMUD to include the SolarShares program as a standard feature in all new homes in Elk Grove at Tegan Estates. This ensures that homeowners in this community can enjoy the benefits of solar energy without any of the typical headaches.

What Energy Efficiency Features Are at Tegan Estates?

Tegan Estates, Elk Grove: What's Built Into These Homes?

Tegan Estates is a new community in Elk Grove developed by Riverland Homes, offering energy efficient homes designed for comfort and savings. Each home in this community incorporates advanced energy-efficient features, including:

• SMUD Neighborhood SolarShares: This program provides homeowners with solar energy credits without the need for rooftop panels, reducing electricity bills and supporting California’s environmental goals.
• Insulation and Air Sealing: Homes are built to current California code minimums, with air sealing at penetration points and the rim joist to prevent energy loss.
• Dual-Pane Windows: High-performance windows with low-E coatings and insulating gas fills reduce heat transfer and improve energy efficiency.
• Heat Pump HVAC Systems: These systems provide both heating and cooling with superior efficiency compared to traditional resistance-based systems.
• Heat Pump Water Heaters: Up to four times more efficient than conventional electric water heaters, these systems reduce energy consumption and lower utility bills.
• LED Lighting: Energy-efficient lighting is installed throughout the home, reducing electricity usage and extending bulb life.
• Smart Home Controls: WiFi-enabled thermostats and garage door controls allow homeowners to optimize energy consumption and reduce waste.

These features are designed to work together to create a tight thermal shell and efficient mechanical systems, ensuring that homeowners save money on their utility bills while enjoying a comfortable living environment. 

For those interested in new homes in Elk Grove, Tegan Estates offers a prime example of how energy efficient home builders can deliver long-term savings and value. You can learn more about the community here!

What Energy Efficiency Features Are at Dry Creek Oaks?

Dry Creek Oaks, Galt: How Is This Community Built for Efficiency?

Dry Creek Oaks is another community of energy efficient new homes in Galt built by Riverland Homes. Like Tegan Estates, this community features a range of energy-saving technologies designed to reduce utility bills and improve comfort. Key features include:



• SMUD Neighborhood SolarShares: Homeowners receive solar energy credits without the need for rooftop panels, providing savings on their electricity bills.
• High-Performance Insulation: Homes are built with advanced insulation techniques to minimize energy loss and maintain a consistent indoor temperature.
• Dual-Pane Windows: These windows feature low-E coatings and insulating gas fills to reduce heat transfer and improve energy efficiency.
• Heat Pump HVAC Systems: Efficient heating and cooling systems reduce energy consumption and lower utility costs.
• Heat Pump Water Heaters: These systems provide hot water with up to four times the efficiency of conventional electric water heaters.
• LED Lighting: Energy-efficient lighting is installed throughout the home, reducing electricity usage and extending bulb life.

The SMUD Neighborhood SolarShares program at Dry Creek Oaks meets California’s solar requirement without the need for rooftop panels, making it an attractive option for homeowners who want to benefit from solar energy without the associated costs and maintenance. 

For those considering new homes in Galt, Dry Creek Oaks offers a compelling example of how energy efficient home builders can deliver long-term savings and value. Learn more about this 55+ community here!

Key Efficiency Factors in New Construction vs. Older Homes

New Construction vs. Resale: What Makes a Riverland Home More Efficient?

When comparing new construction with a resale home, energy efficiency often comes down to what is already built into the property. An older home may have aging windows, inconsistent insulation, outdated lighting, or heating and cooling equipment that uses more energy than today’s systems. Addressing those issues after purchase can require additional upgrades, planning, and expense.

Riverland Homes builds energy-efficient features into its homes from the start. Depending on the community and home, these features include dual-pane windows, insulation and air sealing that meet current California standards, heat pump heating and cooling systems, heat pump water heaters, LED lighting, and WiFi-enabled thermostats. Homes at Tegan Estates and Dry Creek Oaks also participate in SMUD’s Neighborhood SolarShares program, providing access to solar energy credits without requiring individual rooftop panels.

Because these systems are incorporated during construction, Riverland homeowners can begin benefiting from improved efficiency and indoor comfort as soon as they move in. For buyers comparing new homes in Elk Grove or new homes in Galt with older resale properties, Riverland Homes offers modern features designed to reduce energy waste and help homeowners better manage ongoing utility costs.

Your Action Plan: What to Look for When Evaluating New Homes for Energy Efficiency

When evaluating energy efficient homes, homebuyers should ask the following questions to ensure they are making an informed decision:

1. Ask about the insulation spec. What R-value are the walls and attic insulated to? Is air sealing done at penetrations, not just between studs?
2. Verify the window type. Dual-pane is the starting point. Ask whether they have low-E coatings and what the U-factor is for your climate zone.
3. What type of heating, ventilation, and air-conditioning (HVAC) system has been installed? Heat pumps are the most efficient type of cooling and heating. Ask about the SEER2 and/or HSPF2 ratings to ensure the system meets minimum efficiency for your climate.
4. Water Heater: Is the water heater a heat pump water heater or a traditional tank style? How efficient is the water heater, and how does it affect your energy consumption?
5. Check the lighting plan. Are LEDs standard throughout, or only in certain fixtures?
6. Smart Home Controls: Are all of the home’s lighting, temperature, and security systems able to be controlled by smart home controls? Are there pre-programmed schedules for the home’s features to automatically change based on time of day or other external factors?
7. Find out about solar. Does the community participate in SolarShares or another program? Is rooftop solar an option? What’s included versus optional?
8. Look at appliances. Are they ENERGY STAR rated? Household appliances account for nearly 11% of energy use in the average home, so make sure to check that appliances are ENERGY STAR rated.
9. Is the home electric ready? Ask the builder if the home’s electrical panel can support future electric-based equipment, including EV charging equipment and other electric-based appliances.

By asking these questions, homebuyers can gain a clear understanding of a home’s energy efficiency and make an informed decision. Builders that prioritize energy efficiency will be able to answer these questions easily and provide documentation to support their claims.

New Home FAQs: Energy Efficiency from the Home Buyer’s Perspective

Why do new homes have lower utility bills than resale homes?

New homes have lower utility bills than resale homes due to three key factors: a tighter building envelope, more efficient mechanical systems, and modern lighting. New homes are built to current building codes, which prioritize energy efficiency through advanced insulation, air sealing, and high-performance windows. Additionally, new homes feature efficient HVAC systems, such as heat pumps, and LED lighting, which reduce energy consumption and lower utility bills. In contrast, older homes often suffer from air leaks, inadequate insulation, and outdated systems, all of which contribute to higher energy costs.

Do new homes in California come with solar panels?

California’s solar requirement can be met in several ways, including rooftop solar panels, community solar programs, and virtual net metering. Riverland Homes’ communities at Tegan Estates and Dry Creek Oaks participate in SMUD’s Neighborhood SolarShares program, which provides homeowners with solar energy credits without the need for rooftop panels. This program is an excellent alternative for homeowners who want to benefit from solar energy without the upfront costs, maintenance, or resale complications associated with traditional rooftop systems. For those considering new homes in Elk Grove or new homes in Galt, the SolarShares program offers a hassle-free way to reduce electricity bills and support renewable energy.

How much less do new homes cost to heat and cool compared to older houses?

The savings from heating and cooling a new home compared to an older home can vary based on factors such as square footage, location, and usage. However, energy efficient home builders like Riverland Homes have found that well-sealed and well-insulated homes can save up to 15% on heating and cooling costs. Heat pumps, which are standard in new homes, are significantly more efficient than the resistance-based systems found in older homes. In California, where electricity rates are high and continue to rise, these savings can translate into hundreds of dollars per year. For homeowners considering new homes in Elk Grove or new homes in Galt, choosing an energy-efficient home can lead to substantial long-term savings.

Is buying a new construction home worth it for the energy savings alone?

The energy savings from a new construction home are a significant factor in its overall value. Unlike one-time savings from appliances or fixtures, the savings from energy-efficient features are realized monthly through lower utility bills. In a state like California, where electricity rates are among the highest in the nation, these savings can add up to thousands of dollars over the life of the home. Riverland Homes includes energy-efficient features as standard in all its communities, ensuring that homeowners benefit from these savings without any additional cost. For those considering energy efficient homes, the long-term financial benefits make new construction a worthwhile choice.

Who builds energy efficient new homes in Elk Grove CA?

Riverland Homes builds energy efficient new homes in Elk Grove at Tegan Estates. These homes feature advanced insulation, dual-pane windows, heat pump HVAC systems, heat pump water heaters, LED lighting, and smart home controls. Riverland Homes is also partnered with SMUD to offer the Neighborhood SolarShares program, providing homeowners with solar energy credits without the need for rooftop panels. For those looking for new homes in Elk Grove with built-in energy efficiency, Riverland Homes is a trusted energy efficient home builder that delivers long-term savings and comfort.

Conclusion

Energy efficiency in new homes is the result of careful design and construction decisions that prioritize long-term savings and comfort. From advanced insulation and air sealing to high-performance windows, heat pump systems, and LED lighting, every feature is chosen to reduce energy waste and lower utility bills. In California, where electricity rates are high and continue to rise, the difference between an efficient home and an inefficient one grows larger each year.

Riverland Homes’ communities at Tegan Estates in Elk Grove and Dry Creek Oaks in Galt are built to thrive in this high-cost energy environment. Each home in these communities features insulation, windows, HVAC systems, water heaters, lighting, and SolarShares designed to minimize energy waste and reduce electricity costs. For homebuyers interested in energy efficient homes in the Sacramento region, Riverland Homes is a leading energy efficient home builder that delivers verified energy efficiency and long-term savings.

Sources

California Energy Commission. 2025 Building Energy Efficiency Standards Code Summary. 2024, www.energy.ca.gov.

ENERGY STAR. Heat Pump Water Heaters Fact Sheet. 2024, www.energystar.gov/sites/default/files/tools/ES_HPWH_Factsheet.pdf.

New Homes: Features & Benefits. 2024, www.energystar.gov/newhomes/features-benefits.

Seal and Insulate with ENERGY STAR. 2024, www.energystar.gov/saveathome/seal_insulate/methodology.

U.S. Department of Energy. Air-Source Heat Pumps: A Guide to Technologies and Systems. 2024, www.energy.gov.

LED Lighting. 2024, www.energy.gov/energysaver/led-lighting.

U.S. Energy Information Administration. Average Price of Electricity to Ultimate Customers by End-Use Sector. 2024, www.eia.gov/electricity/sales_revenue_price/pdf/table_4.pdf.

Residential Energy Consumption Survey (RECS). 2024, www.eia.gov/consumption/residential.

U.S. Environmental Protection Agency ENERGY STAR. ENERGY STAR Certified Air Source Heat Pumps. 2025, www.energystar.gov/sites/default/files/2025-05/2025%20Central%20Heat%20Pump%20Fact%20Sheet.pdf. 

U.S. Energy Information Administration. Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Electric Power Monthly, March 2026, released May 21, 2026, www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a.