How an Eco-friendly House 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 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:

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.

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.

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.

ROI of Commercial Solar Panels for Business Owners

The way business owners think about solar panels has changed. Less than ten years ago, businesses were concerned about whether solar power would provide them with the energy they need. Now, that question is almost never asked, because it’s been answered. Two of the biggest companies in the world, Google and Walmart, have installed dozens of solar plants at their headquarters. Solar energy has been shown to work well for big business.

Now small businesses want to know how solar panels can provide them with a strong ROI.

It’s said money doesn’t grow on trees, but in the case of solar panels, it does fall from the sky.

Commercial Solar Panels Decrease Energy Costs

Solar panels cut down on the amount of energy you pay for, because all day every day, you’re producing your own.

There is a common misconception that solar panels only work when the sun is blaring but this isn’t the case. Even on an average day in the depths of a British Winter, solar panels produce enough energy.

When you generate your own solar power, you only have to switch to the National Grid at night. With most small businesses using less power at night, this can offer huge savings.

More than that, small business owners protect themselves from losses due to energy price increases. As the cost of using the National Grid rises, solar panels save a small business owner more and more money.

Generate a Passive Income

Feed-in-tariffs (FIT) offer a big ROI for business owners who want to install solar panels. FIT is a government scheme which intends to encourage people to adopt low-carbon and renewable energy technologies, by paying them to do so.

Under FIT, every unit of energy your solar PV system generates is paid for whether you use that energy or not, and you’re paid for any energy your system produces that goes back into the national grid.

This allows small business owners to generate a passive income for twenty years, guaranteed by the UK government. As if it couldn’t get any better, all the money earned under FIT is completely tax free.

The Cost of Installation Has Decreased

Many small business owners were reluctant to switch to solar panels because of the high initial outlay. Since the launch of the FIT scheme, the cost of installation has decreased dramatically, which means business owners will see their solar panels generate returns faster now than at any other point.

There are plenty of subsidies available to those who are looking to install commercial solar panels, because the government wants renewable energy to work for individuals and businesses. This also means the return on investment for solar panel technologies is at a high.

Helping the Environment Helps Your Business

If businesses are looking for sustainable and long-term growth, thinking conscientiously about the environment is crucial. With global temperatures rising, the rising costs of food and energy are going to have a massive impact on how consumers spend their money.

Solar panels have low maintenance cost

Switching to sustainable energy now has a positive impact on the ecosystem, which protects the pockets of consumers of your products for years to come. Decreased outgoings for energy means greater savings, and a show of environmental care can increase your prestige in a crowded market.

The Return on Investment

Solar panels cost very little to maintain once they’re installed, and can last up to thirty years. The estimated savings for residential properties over a twenty-year period is around £9,000, and for commercial properties that figure extends even higher; a small business can look to save £16,000.

No planning permission is required for businesses to install solar panels, saving you time which can save you money. Low installation costs, a decrease in energy outgoings and the generation of a passive income means the ROI of solar panels is higher now than at any other point. Solar energy works wonders for your business and the planet.