One of the biggest objections to ‘going green’ or investing in sustainable energy construction is the ROI — the return on investment. Green energy — especially residential solar — has become one of the most talked-about home upgrades in recent years. Along with the excitement about energy independence and sustainability, there’s also been a lot of conversation about financing structures, long-term agreements, and whether the investment truly pays off.
So what does the return on investment actually look like when green energy systems are approached thoughtfully?
First things first
Let’s take a look at what ‘going green’ or investing in sustainable, efficient energy really means. That’s actually tough to define on a case-by-case basis (although on a professional level, it’s a bit easier).
‘Going green’ doesn’t necessarily equate to outfitting your entire roof with solar panels or recycling greywater. That’s why the term ‘sustainable, efficient’ energy is also used side-by-side: because even if you’re just being more efficient and methodical in your energy plans, you’re still checking a box for green energy.
Smart homes, in-floor heating, and even higher R-value insulation are examples of efficiency that you probably didn’t think of as necessarily being ‘green.’
A quick summation of this point is simply that if you’re purposely trying to make your home more efficient in its energy use — by way of HVAC, energy generation, or using less energy as a whole — that constitutes ‘going green’ or investing in sustainable energy.
The nitty-gritty
Let’s be upfront here: going green, along with any home improvement, is going to cost money upfront (see what we did there?)
How much money, of course, depends on the improvement. A full bathroom remodel costs a lot more than replacing your sink the same way going full solar costs a lot more than just adding a smart thermostat.
If you were to go all-in and outfit your home with a full solar system, you’re looking at $30,505 on average, according to energysage. Obviously, with that being the average, yours would most certainly differ.
On the low end of the scale, a smart thermostat runs from around $100 to $300, depending on features, and installation starts at roughly $100 as well (but can run more). Generally speaking, it’s about a $200-400 upgrade, but once again, prices can fluctuate inside and outside this range.
These aren’t your only options for going green, either, but a representation of a typical range of upgrades. There are plenty of other ways of becoming more energy efficient, so don’t stop with these two.
Savings? Investment return?
A big allure for many people is the tax credit you may be eligible for by switching to solar panels. There are other incentives, like energy providers’ own rebates, just for a window replacement.
But it’s not just the upfront savings that can add to your ROI. Many people see the value in such investments long-term, and as such, when it’s time to sell, you can make money on these systems.
“What if I never sell?” is a valid question — and you’re not alone. The savings on your energy bill alone will snowball over time, and while it won’t provide the big check like the tax credits and rebates will, your system will not only pay for itself, but will pay you just for owning it in many cases.
That’s right — some energy companies will literally buy your excess energy from you. It is a very real possibility to get paid for having an efficient system.
Conclusion
While there are few cons to upgrading your home’s efficiency and reducing your net carbon footprint, there are objections, misinformation, and a lack of overall education on the subject.
If you’re exploring upgrading your home in any fashion, due diligence is important in the research every step of the way.
Some upgrades are a high upfront cost, but the long-term savings and equity in your property are well worth the initial cost. And in some cases, financing is available.
