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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
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Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
As climate change becomes more of a problem in the United States and globally, having a green home is becoming more desirable. According to the National Association of Realtors (NAR), there has been a notable increase in homes on the market with energy-efficient features, as homeowners try to reduce their environmental impact.
Green home features, like solar panels, can improve the efficiency of your home by requiring less energy and fewer resources. If you are thinking about upgrading your home with green features, here’s everything you need to know — including what green improvements can increase the value of your home, and how to find your Home Energy Score.
Energy saving homes are becoming more common, and buyers are making green features a priority during their search. Here are some statistics around energy-efficient homes, including those certified as LEED (Leadership in Energy and Environmental Design), a widely used ratings system from the U.S. Green Building Council.
If you are considering an energy-efficient home, there are a variety of things to look out for. Here are some of the biggest ones:
Energy-efficient homes don’t just reduce the cost of heating, cooling and electricity. They also positively impact the environment. When your home requires less energy, it frees up important resources, like water, and reduces reliance on commercial building materials, which often generate large amounts of greenhouse gasses.
A home’s energy efficiency isn’t just important while you’re living there. Certain green home features can also increase the value of your home when you get ready to sell it.
Data shows that green homes are becoming more desirable for buyers. In a 2022 NAR survey, 50 percent of Realtors said they helped a client purchase or sell a home with green features in the last year, up from 32 percent the previous year.
Another NAR study looked at the energy-efficiency features that homebuyers found to be the most important. Efficient heating/cooling and windows/doors/siding were the top rankers, with 30 percent of buyers saying they were important. After that, 24 percent of buyers wanted energy-efficient lighting, 20 percent were looking for energy-efficient appliances and 10 percent wanted landscaping for energy conservation. A smaller number of homebuyers, just 3 percent, were specifically looking for a house with solar panels.
Although energy-efficient home improvements can be expensive, certain changes can potentially increase your real estate value significantly. For example, in New Jersey, homes with solar panels can sell for almost 10% more than homes without — for a median-priced home there, that equates to more than $32,000.
Wondering how to make your home more energy efficient? Start by getting your Home Energy Score. This scoring system, provided by the U.S. Department of Energy, reflects the current efficiency of your home based on energy use and associated costs. The DOE equates it to a miles per gallon rating for a car, but for your home. Scores are on a scale of one to 10, with 10 being the most efficient. You can enter your zip code online to find a qualified assessor to score your home.
When the evaluation is complete, you receive not just a score but also a comprehensive report from the assessor that breaks down your energy usage and provides suggestions for improvement. However, keep in mind that Home Energy Scores are mostly for your own benefit. The main purpose is to help you save money by making strategic green improvements.
Here are a few green home improvements that can have a significant return on investment:
Green buildings, such as those that are LEED-certified, are designed and built to reduce energy and water usage, and improve efficiency over typical buildings. They have a smaller impact on the environment and can be better for human health. Both residential homes and commercial buildings can include green features, such as solar panels, low-flow plumbing fixtures and energy-efficient heating and cooling systems.
Renewable energy is any source of energy that is not fully depleted once it’s used, or replenishes itself at a faster rate than it is consumed. Common examples of renewable energy are solar and wind power, which continue to generate as the energy is being consumed. Fossil fuels like oil are not considered sources of renewable energy.
Common ways to reduce energy consumption in your home include installing energy-efficient appliances, putting solar panels on your roof and using a smart thermostat to control the temperature in your home. You can also make small lifestyle changes to reduce your energy usage, such as taking shorter showers, turning off lights when you leave a room and unplugging electronics when they are not in use.
Solar energy harnesses the sun’s rays to create electricity. Sunlight on a solar panel or cell gets converted into electrical energy, which can be stored in a battery or used to power appliances and devices in your home. Even on cloudy days, solar panels generally continue to convert energy from sunlight, but at a slower rate.
Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products.
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