Utah Ranks 7th Most Energy-Efficient State; Carolinas Lag in 2025 Report

Utah has once again landed among the most energy-efficient states in the country, while the Carolinas sit near the bottom of the list. WalletHub's latest Most & Least Energy-Efficient States report, published October 14, 2025, ranked Utah 7th out of 48 states analyzed. South Carolina finished dead last at #48, and North Carolina landed near the bottom at #37.

How the Rankings Were Calculated

WalletHub measured both home-energy efficiency (the ratio of total residential energy use to degree days) and vehicle-fuel efficiency (miles driven per gallon of gasoline consumed) across the lower 48 states. Alaska and Hawaii were excluded because of data limitations. The top five states were Vermont, California, Washington, New York, and Massachusetts. Colorado took sixth, Utah seventh, followed by Oregon, Minnesota, and Nevada to round out the top 10.

Utah posted a total score of 78.93. Its strongest showing was in home-energy efficiency, where it placed fifth nationwide, thanks in part to tighter building codes, a drier climate that reduces cooling loads in many areas, and steady adoption of high-efficiency heating equipment. Vehicle efficiency ranked ninth.

Why the Carolinas Ranked So Low

South Carolina earned a total score of 23.79 — the worst in the nation. West Virginia (28.24) and Alabama (29.76) rounded out the bottom three. North Carolina's #37 finish reflects a similar pattern: hot, humid summers drive heavy air-conditioning use, older housing stock often lacks sufficient insulation and air sealing, and electric-resistance heat remains common. Homes in these climates can consume far more energy per square foot than homes in more efficient states, even when utility rates are lower.

If you own a home in either Carolina, the ranking is a reminder that the building envelope — insulation, windows, ductwork, and air sealing — usually drives your bill more than the thermostat setting does.

What Utah Homeowners Can Do Next

Ranking seventh is good, but it doesn't mean Utah homes are done improving. Rocky Mountain Power's Wattsmart Homes program is the main vehicle for residential rebates across most of the state. Current incentives cover:

• Smart thermostats (instant rebate at participating retailers)
• High-efficiency central air conditioners and heat pumps
• Attic, wall, and floor insulation upgrades
• Evaporative coolers, a solid fit for Utah's dry climate
• ENERGY STAR clothes washers, refrigerators, and heat-pump water heaters
• Free Wattsmart Home Energy Assessments that identify the highest-ROI fixes in your home

Dominion Energy offers complementary natural-gas rebates on high-efficiency furnaces, tankless water heaters, and smart thermostats for customers on its system.

On the federal side, the Energy Efficient Home Improvement Credit (IRS Section 25C) remains available and stacks with utility rebates. Homeowners can claim up to $1,200 per year for insulation, windows, doors, and audits, plus a separate $2,000 credit for qualifying heat pumps, heat-pump water heaters, or biomass stoves — up to $3,200 total in a single tax year. The Residential Clean Energy Credit still covers 30% of the cost of rooftop solar, battery storage, and geothermal systems with no annual cap.

Utah was allocated roughly $101 million for the federal Home Energy Rebates (HEAR and HOMES) programs, targeted at low- and moderate-income households with rebates up to $14,000. Recent federal funding changes have paused the program's rollout in Utah, so homeowners should check Utah's Office of Energy Development site for launch updates before assuming they are available.

Where to Start

The highest-value move for most Utah homeowners is a Wattsmart Home Energy Assessment — it's free and produces a prioritized list of upgrades. From there, stacking a utility rebate with the federal 25C credit routinely cuts the net cost of an insulation job or heat-pump install by 40% or more. For homeowners in the Carolinas, the same federal credits apply, and Duke Energy, Dominion Energy South Carolina, and local co-ops each run their own rebate menus worth checking before any major equipment purchase.

State rankings change year to year, but the math on efficiency upgrades does not: sealing, insulating, and right-sizing your HVAC almost always pay back faster than chasing the next thermostat setting.