July 24, 2026
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
