Working from home can save you money on commuting, lunches and work clothes, but those savings may come with a downside: higher home energy bills.
HVAC experts say remote workers often spend hundreds more each year on heating and cooling because their systems are running throughout the day instead of getting a break when the house is empty.
USA TODAY wanted to know how home systems are really impacted by the remote workforce, so we asked the HVAC experts at ARS, a national HVAC servicer and installer, about HVAC trends they’ve noticed since more people have chosen WFH.
Working From Home Can Drive Up Household Energy Costs
The more time you spend at home, the more often your HVAC system needs to run, and run well. If you left for the office every day, you may not have needed to run your air conditioner or furnace until you came home. Now? HVAC systems are running constantly.
“They’re running their system throughout the day instead of turning it down when they’re off at their place of business,” says Ken Turner, HVAC sales manager at YES! Heating, Air Conditioning, Plumbing and Electric℠.
During the pandemic, when roughly one-third of the workforce returned home, national residential energy use increased by about 10%, according to findings from a study done by economist Steve Cicala. In the second half of 2020, homeowners spent an estimated $13 billion more on electricity than they would have normally. It’s not the extended use of your laptop or desktop that’s driving those costs up. It’s more than likely your HVAC system.
Turner says many homeowners could be seeing higher energy bills simply because their systems are no longer getting a break during traditional work hours. For those in mild climates, there may not be a significant difference. But for homeowners living in areas that experience extreme heat, cold winters or both, changes to your home energy costs could be rather large.
HVAC Expenses Are One of the Biggest Hidden Costs of Remote Work
Heating and cooling systems account for the largest share of home energy use, with some estimates as high as 40% to 50% of your home energy costs. Air conditioners alone account for nearly 20% of all home energy use, according to data from the U.S. Energy Information Administration (EIA).
Depending on your local energy costs, climate and HVAC setup, remote work could add anywhere from $10 to $50 per month, which comes out to an average of $120 to $600 of added energy costs per year.
Besides the hike in energy use and cost, being home more often has led to more people becoming painfully aware of how poorly their systems run. Being home all day has made homeowners more aware of comfort issues, inefficiencies and aging equipment that may have gone unnoticed when their house sat empty for most of the day. “A lot more people are recognizing how bad their systems are,” says Turner. “We’ve seen an uptick of people actually being familiar with how their system performs because of a lot more people working from home.”
More Time at Home Can Expose HVAC Problems
Turner says remote workers are increasingly noticing when their systems can’t maintain desired temperatures during the hottest parts of the day. “People are like, ‘It’s one in the [afternoon] and my AC is not getting it down to what I need it to be,'” he says.
When you’re home all day, you’re more likely to notice hot spots, places where cooling is uneven or that your systems can’t keep up with the heat. It could be that you have an older unit that can’t maintain your preferred temperature during peak hours of the day. Or, it could indicate different problems, like leaky ducts or poor home insulation.
Are HVAC Energy Costs Tax Deductible?
Your energy bills are higher from working remotely, but it doesn’t necessarily mean you can deduct those costs.
Your monthly utility bill is not tax-deductible if you’re a W-2 worker. Self-employed freelancers and independent contractors may be able to claim part of their HVAC and utility costs as tax-deductible, but it depends on your state’s rules. Talk to your accountant to make sure you qualify before adding a home office tax deduction.
You may be eligible for a tax credit if you install a new, energy-efficient HVAC system, but how much you’re eligible for varies state to state. If you installed a new energy-efficiency home upgrade from January 1, 2023, through December 31, 2025, you could qualify for a credit up to $3,200.
As of July 2026, there is no new federal energy efficiency tax credit. But states like Maryland, New York, and Wisconsin offer tax credits for heat pumps.
Energy-Efficient HVAC Upgrades Can Help Reduce Costs
You might not be able to claim HVAC costs on your tax return, but there are ways remote workers can save on annual costs. To offset the additional energy costs, you could upgrade your system, invest in smart HVAC technology and commit to regular HVAC servicing. Making your home and HVAC system more energy efficient could save you money down the line.
- Replace your old HVAC system with a newer model.
- Install smart thermostats and zoning systems so that you can target the spaces that need it instead of your entire home.
- Seal air leaks and improve insulation to stop conditioned air from escaping your home.
- Perform routine HVAC maintenance to improve efficiency and expand your system’s lifespan.
- Research and use potential tax credits for qualifying energy-efficiency improvements.
The Bottom Line on Remote Work, HVAC Costs and Taxes
Being home more means more expensive utility costs, not to mention you could start to notice problems with your HVAC system. If you’re working from home and notice problems with your AC or heating system, call your local HVAC company to see what needs to be done.
Reporting by Alora Bopray, USA TODAY / USA TODAY. USA TODAY Network via Reuters Connect.
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