5 High-ROI, Energy-Efficient Upgrades That Boost a Home's Value
As the world's citizens become increasingly aware of the damage being done to the planet—largely due to electricity-fueling resources—the demand for energy-efficient homes has grown.
Concerning getting a good return on investment (ROI) with energy-efficient upgrades, consider the most typical buyer today. The predominant demographic buying homes today are millennials, according to the National Association of Realtors. Here are five tech-savvy and environmentally conscious energy-efficient renovations that can save owners money now and appeal to potential buyers in the future.
Smart Hub + Smart Appliance = Big Savings & Great ROI
Technology is in demand with modern home buyers, and installing a smart hub and a few essential appliances and systems can curb energy bills. These ‘smart homes' are in demand, and many home shoppers are looking for a dwelling that's wired up and ready to go upon move-in. Some top energy-saving smart appliances recommended by Energy Star include:
- Air conditioners
- Ovens & ranges
- Laundry machines
- Home security systems
- Lighting installations
Because they are energy-efficient, may have automatic sensors, and can be controlled remotely, it's easy to cut back on usage for the most commonly employed devices in the home.
Solar Panels: A Good Investment for Homeowners & the Planet
Depending on the structure's size, solar panels can be a significant investment, but it's one that more buyers are looking for. Installations of passive or solar energy sources can seriously reduce energy expenses and eliminate them with the right system. Surpluses of energy created by private grids can be resold to some companies in exchange for cash or credits. With Florida's sunny weather, this is a great option.
On average, solar panel installation costs around $11,000–$15,000 in Florida before federal and local tax credits, which can save thousands of dollars. Even better, some programs may even pay for the entire system for qualified owners. Solar panels also typically recoup about 85% of their value upon resale.
Energy-Efficient Water Systems
Tankless water heaters take up minimal space and produce hot water upon demand within seconds. This means no more paying electrical for a large, space-hogging tank to keep water constantly warm. Smart outdoor sprinkler systems with automated options, sensors, and smart app abilities can save owners big time on water use and bills, another feature buyers appreciate.
Energy-Efficient Heating and Cooling Systems
The Department of Energy estimates that over 40% of utility costs result from heating and cooling use. Smart thermostats are a great start to creating a more energy-efficient heating and cooling system. Standard models allow for time control and temperature settings, but the smart models are optimal.
These are generally very affordable, and most models today can be hooked up to a smart hub device and controlled via Internet-connected apps. Or, owners can take the plunge and invest in an entire energy-efficient HVAC system, which is a good idea if selling is coming soon, as buyers appreciate new major systems under warranty that also cut costs.
Window Replacement, Energy-Efficiency, and ROI
Windows with dual panes and special coatings can help maintain indoor comfort levels with less use of the heating and cooling system. They keep air leaks at bay, and there's less need to worry about cracks. While costly, Consumer Reports estimates around 70% ROI for window upgrades. Energy Star claims owners can save approximately 12% on their energy bills with energy-efficient windows, doors, and skylights as another incentive to invest. This is especially important in Florida, as the heating and cooling savings get higher the farther south the home is. Cut Florida cooling bills by a third when upgrading single-pane windows and by almost 20% when replacing dual-panes.
Considering Upgrading to an Energy-Efficient Home?
If you are thinking about selling a home soon and want to make the sale more appealing for potential buyers by making energy-efficient upgrades, consider which of the items on this list may be within your budget. If you're not planning on selling soon, still consider them; the sooner an energy-efficient upgrade is made, the sooner it starts saving money. If you'd like to look into more options, here are more high-ROI home improvements you may be interested in.