Consider the cost-saving benefits of energy efficient homes if you plan to build a new home. Energy efficient homes are the future of the real estate market. Some benefits to building green include waste reduction, conservation of natural resources, improvement in air and water quality, protection of ecosystems, and noise reduction. Aside from contributing to environmental sustainability and improving health, homeowners can also benefit financially from energy efficient homes.
1. Energy Efficient Homes Have a Higher Resale Value
Adding eco-friendly features such as water-saving plumbing systems and solar panels to your home can attract more buyers and increase your home’s resale value. In fact, one study conducted by economists at the University of California at Berkeley and UCLA found that in the California real estate market, energy efficient homes sold at an average premium of nine percent compared to similar single family homes from 2007 to 2012. This is not surprising since energy efficient homes save buyers money on energy costs over time and afford buyers the added incentive of knowing that they are helping to protect the environment.
2. Greater Marketability Due to an Increase in Demand
Environmentally friendly businesses may have an advantage over their competitors thanks to an increase in environmentally conscious consumers. This is evident in the building green movement, which started as a popular real estate trend. The demand for energy efficient homes is expect to rise as society becomes more environmentally conscious. As a result, building energy efficient homes today provide greater marketability and allow homeowners to sell their homes faster when they are ready to sell.
3. Lower Utility Bills
Energy efficient homes built from green systems and materials consume less energy. You can expect to save money on your water and electricity bills by using water-saving plumbing systems and Energy Star appliances. Trading in traditional light bulbs for green alternatives such as LEDs or CFLs will help you save on your electricity bill as well.
4. Energy Efficient Homes Are Better for the Environment
One of the greatest humanitarian concerns today is the environment. There are many different ways to reduce your carbon footprint. Building energy efficient homes is one of them and perhaps one of the easiest ways to contribute to this cause.
According to the Residential Energy Services Network, 16 percent of greenhouse gases produced in the United States come from residential dwellings. There are significantly fewer harmful toxins inside energy efficient homes built from eco-friendly materials. Less air pollution inside your home means better overall health, fewer medical bills, and quite often lower insurance premiums.
5. Energy Efficient Homes Provide State and Federal Tax Incentives
Homeowners with energy efficient homes receive state and federal tax incentives. There are state and federal tax breaks for both energy efficiency and renewables. Programs vary and typically come in three main types: sales tax exemptions, income tax credits or deductions, and property tax rebates or exemptions. Many states specifically exempt purchases of energy-efficient products or renewable energy equipment and some have special sales tax holidays for purchases of Energy Star appliances. A sales tax incentive can be used in addition to a federal tax break for energy. While not all states provide property tax rebates or exemptions, it is a nice perk for those who live in state that do.
Upgrades that qualify for federal tax credits include metal and asphalt roofs, non solar water heaters, insulation, biomass stoves, heating, ventilation, air conditioning, geothermal heat pumps, and residential wind turbines. The tax credit amounts for those vary, and under the Bipartisan Budget Act of 2018, the renewable energy tax credits for fuel cells, small wind turbines, and geothermal heat pumps now feature a gradual step down in the credit value, the same as those for solar energy systems. The energy tax credit for solar panel systems and solar hot water systems is worth 30 percent of the cost of buying and installing a solar system. It then goes down to 26 percent and then 22 percent for the following years.
In addition to all of the personal and environmental health benefits, energy efficient homes have a number of cost-saving benefits to take into consideration when building a home. Take advantage of this long-term benefits today. Contact us to learn more about the cost of building an energy efficient home.