Do you expect to live in your home for several decades or move on within a few years? Either way, you’re probably interested in upgrades that offer immediate benefits today and can increase your home’s market value when you decide to sell. Find out why investing in energy-efficient improvements offers the ideal solution for most homeowners.
High-Value Eco-Friendly Investments
Did you know that you’re more likely to increase your home’s market value and reap plenty of additional benefits by investing in energy efficiency than with most other home improvements? For instance, upgrades like new flooring or countertops only offer a cosmetic improvement. Making your house eco-friendlier can make it more comfortable, cheaper to run and able to attract more buyers when it’s time to sell. Many popular eco-friendly upgrades can pay for themselves quite quickly, so you can enjoy remarkable returns on your investment if you sell next year or stay forever.
Install Eco-Friendly External Windows
A window serves as a portal between the inside and outside. Unfortunately, many older models of windows either never had or lost the ability to insulate very well. Energy-efficient products, such as double- or triple-paned windows, provide extra insulation to ensure your heating and cooling remain indoors and the natural climate stays outdoors. New windows may also block damaging UV rays and offer better sound insulation.
Because your HVAC system won’t need to work as hard, you can enjoy a more comfortable home, lower electricity bills and a longer lifespan for your heating and cooling system. Adding these benefits to a market listing will certainly increase buyer interest, and the installation might pay for itself with increased property values when you sell.
The savings won’t stop with lower utility bills. You may also qualify for a $600 tax break with the Energy Efficiency Home Improvement Credit. If replacing all of your windows still seems too expensive, you could begin with the worst offenders first and then spread your upgrade for multiple years to maximize the tax credit.
Upgrade Home Insulation
The U.S. Department of Energy estimated that improved insulation could result in heating and cooling savings of 20%. Even more, government sources have estimated an increase in home values of several thousand dollars. Critical upgrade areas for insulation in most houses include crawl spaces, attics, floors and basement rim joists.
The DOE also suggested sealing leaks around windows and doors to help prevent drafts. Weatherstripping, house wrap, caulk and other insulating products also qualify for a federal tax credit. Since buyers won’t see most of these insulation upgrades when they tour your home, make sure that you mention them when you list your home.
Homeowners can handle many of these tasks with affordable supplies in a few hours on the weekend. A professional energy auditor can identify insulation upgrades that will offer the most benefits, ensuring quick returns on the investment for professional installations. A home energy audit also qualifies for a tax credit.
Add Solar Panels
Solar-powered homes contribute to the increasingly important call for clean and sustainable energy. Installing solar panels attracts homeowners because they get a chance to lower power bills significantly. Even better, the National Renewables Energy Library found a $20 increase in a home’s market value for every $1 saved on power bills. Solar-powered homes can even contribute to the stability of local power grids by providing power during peak demand.
A whole-home solar power system might require a sizable investment. However, most solar power companies can provide customers with access to low-interest loans, and some subsidized loan programs reduce interest rates and help qualify more buyers.
In addition, rebate and incentive programs can substantially reduce the cost and the amount homeowners may need to borrow. Federal incentives, such as tax credits and rebates, apply to every U.S. taxpayer and homeowner. However, some incentives come from state governments and utility companies.
For instance, a solar panel installation in California, Florida or Colorado will cost less than in other states, primarily because of generous state rebates and estimated property value increases. However, solar installations in New Hampshire still offer federal tax incentives and can save more money on power bills during cold winter months.
If the cost still doesn’t appear feasible, it’s possible to start small and expand later, but it’s a good idea to tell the installation company about plans to add more solar panels later because it can affect how they design the system.
Why Invest in Energy Savings at Home?
Upgrading insulation, installing energy-efficient windows and adding solar panels offer some of the most surefire ways to improve your home’s market value. These home improvement projects can pay for themselves by helping to improve comfort and reduce power bills.
Some eco-friendly projects may require significant investments, however, various incentive programs combined with low-interest loans make them accessible to many homeowners. Also, homeowners can stretch out these innovations to preserve budgets. Other projects, such as sealing drafts, lend themselves well to weekend projects and can be completed with affordable equipment and supplies.
As a homeowner, you’re probably always looking for solutions to make your home more comfortable, save money and attract future buyers. An investment in energy efficiency can satisfy all of these requirements and is likely to offer more long-term value than most common home improvements.
SOURCES
https://turbotax.intuit.com/tax-tips/home-ownership/energy-tax-credit-which-home-improvements-qualify/L5rZH56ex WINDOW TAX CREDIT
https://www.energystar.gov/about/federal_tax_credits/insulation INSULATION TAX CREDIT
https://www.energy.gov/sites/prod/files/guide_to_home_insulation.pdf INSULATION TAX CREDIT
https://www.nrel.gov/docs/fy08osti/42733.pdf State comparisons of savings
https://www.countryliving.com/uk/homes-interiors/interiors/a39822500/eco-home-improvements-increase-property-value/ Estimate of increased value for insulation of thousands