How an Eco-friendly Home can Boost ROI When Selling?

Greening your home isn’t only beneficial for the environment and reducing energy costs, if you are thinking of selling it in the future, environmental upgrades can also help your ROI. Some green home improvements have a better ROI than others (think solar panels), and doing your research before your start any project can help you get the most bang for your buck. We’ve outlined a few of the best options that you might want to consider when determining the ROI of eco-friendly homes:

1. Tankless water heater

One of the easiest and least expensive upgrades you can make to take your home in an eco-friendly direction is buying a new water heater, especially if it hasn’t been changed in the last decade. Water heating is responsible for 16% of a typical home’s energy costs and swapping out an old, inefficient water heater, for a tankless version could cost a couple thousand dollars, and will save you money every month. It will also be an attractive selling point for your home.

2. Upgraded windows

If your home has drafty windows, they are the next feature that you want to turn to for an energy-efficient upgrade. The cost of windows will depend on the size of your home and the quality that you go for, but there is no doubt that this is likely worth your investment.

The Department of Energy says heat gain and loss through older windows is responsible for 25 to 30% of energy usage for heating and cooling. According to Consumer Reports, Energy Star-certified windows can lower your home’s energy bills by up to 15%, and that translates to attractive savings for a potential buyer.

3. Solar panels

Solar panels can save you money, but not right away, so they may not have the best ROI if you are planning to sell soon. That’s because installing solar panels have major upfront costs. The good news is that homes with solar energy systems typically garner higher selling prices than homes with other types of systems.

One study found that homebuyers were willing to pay a premium of $15,000, and, according to the U.S. Department of Energy, homes that feature solar panels may also sell faster than homes that derive their energy from fossil fuels.

However, determining the ROI of installing solar is complicated. According to Energy Informative, a five-kilowatt system — the average size of a system in the United States — can cost around $20,000. But the exact size of the system you’ll need will depend on how big your home is and how much power it uses.

Another consideration is your home’s location, as there may be state rebates (such as in California, Arizona, and Colorado), in addition to federal tax credits. Evaluate the number of years that you intend to stay in your home, and compare the average monthly savings of using solar with how much of the system you’ll have paid off by your projected moving day.

With one or more of these strategies in mind, you will be well on your way to greening your home to make it more attractive to potential buyers.

Salman Zafar

Salman Zafar is the CEO of BioEnergy Consult, and an international consultant, advisor and trainer with expertise in waste management, biomass energy, waste-to-energy, environment protection and resource conservation. His geographical areas of focus include Asia, Africa and the Middle East. Salman has successfully accomplished a wide range of projects in the areas of biogas technology, biomass energy, waste-to-energy, recycling and waste management. Salman has participated in numerous national and international conferences all over the world. He is a prolific environmental journalist, and has authored more than 300 articles in reputed journals, magazines and websites. In addition, he is proactively engaged in creating mass awareness on renewable energy, waste management and environmental sustainability through his blogs and portals. Salman can be reached at salman@bioenergyconsult.com or salman@cleantechloops.com.

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