Many people invest in home renovations to make their surroundings more comfortable and to improve its value. What many homeowners may not consider is that of all the potential home renovations, energy-efficient projects often deliver consumers the greatest return on their investments .
If you invest in renovations that add "green" value to your house, you may benefit from lower energy and utility bills, along with a higher resale value of your home, and, as a bonus, you may be eligible for a tax break come return time.*
Lower energy bills
A good place for you to start is to purchase Energy Star-rated appliances and other household items. According to the U.S. Department of Energy, in 2017 these products helped Americans save a whopping $30 billion in energy costs. You can also expect to save about 26% of your annual electric bill, which, on average, is about $575 for most Americans. Energy-efficient products convert into big savings over time.
Higher resale value
Homeowners who have made improvements that translate to better energy efficiency can significantly boost their homes' value. Great renovation projects that could increase resale value include:
- Water systems
- Solar panels
- HVAC systems
Green homes can be priced at a premium thanks to their contributing to lower utility bills and fewer maintenance expenses. Additionally, our modern times are transitioning to living a greener lifestyle, which people will find more appealing in homes that already possess these attributes.
Leveraging tax breaks*
If you're looking to leverage tax breaks, pursuing clean energy solutions is a great way to help the planet and possibly put some money back in your pocket through tax breaks. Currently, the IRS offers tax credits for solar panels, solar water heaters, air source heat pumps, wind turbines, geothermal heat pumps, fuel cell and microturbine systems, biomass stoves and other improvements that are Energy Star-rated. Additionally, individual states often offer tax initiatives as well.
If you're thinking of doing a conversion or upgrade, it's often better to act sooner rather than later because tax credits do expire. Of course, new ones may also be passed so it's good to always keep up to date on changing tax laws.
Importantly, energy efficiency is not a trend that will be fading anytime soon since our society is going to continue to develop ways to live a healthier and cleaner lifestyle. Clean initiatives are drastically improving, and, as the market continues to grow, these products are steadily becoming more affordable. Now is a great time to invest, especially if you're looking for a good return on your investment.
At Dividend Finance, our goal is to help consumers meet their clean energy and energy-efficient goals. Our plans include both long- and short-term financing options, making for a fully customizable experience. Talk to your contractor about financing through Dividend today!
*Please consult your tax advisor for tax incentives that may be available to you; Dividend Finance does not provide tax advice.