BY SHANNON SEVERSON
Summer electricity bills can leave homeowners feeling vulnerable. Additionally, proposed rate increases in utilities could quickly increase the average household’s monthly total by up to$ 240. While there are plenty of small changes people can make to save energy and money, many owners are turning to massive renovations and home improvements — usually with the thought that these useful upgrades will bring about good returns on investment if or when they put their house on the market.
Jan Green, a Scottsdale-based real estate agent with numerous natural certifications and engaged in the sustainability industry since 2008, states that “everyone wants to save energy.” ” I’ve been into sustainability so much that sometimes I forget how little I know”.
On her website’s blog, Green shares information about home energy savings. And she also instructs other agents in marketing and selling high-performance homes, as well as hosts natural appraiser courses. She has personally transformed her personal 1979 Phoenix home from an energy vampire into a net zero dream, earning Arizona’s second Pearl Gold-certified designation.
Pearl is an independent standards and ratings organization and Certified B Corp. that provides third-party verification that a home is energy efficient, secure, safe, and great performing. There are four certified tiers for it: Asset, Silver, Gold, and Platinum. Other increasingly popular green building standards that convert environmentally friendly and energy-saving improvements into tangible property value assets include HERS ( Home Energy Rating Score ) and LEED ( Leadership in Energy and Environmental Design ). HERS ratings are used to evaluate energy performance in LEED for Homes.
When you’re prepared to begin making changes and upgrades,” start with an energy audit through your utility provider”, Green says. The ROI on each item that needs improvement will be displayed in that report. Start with the least expensive ones second.
She points out that there are some inexpensive changes that can be especially useful for those with lower or fixed incomes. You don’t have to buy solar panels. Changes in your everyday routines can really help you save a lot of money. ” ( See” Little Changes, Big Savings,” Page 23.)
Low-income residents in Arizona can receive weatherization assistance programs that may increase costs, as well as several counties and cities. Homeowners should keep extensive records and, when it’s time to sell, find a realtor also versed in the value of energy-efficient upgrades.
Create a list of every feature you’ve added, the date you’ve added it, and how much you spent. Your realtor should pair it with listing documents. Without knowing what you spent, an appraiser cannot assign value.
This is particularly important now, as property appraisal form changes coming in November that document energy-efficiency measures will affect property values, lending, and the appeal to potential homebuyers.
Beginning on November 2, all appraisal reports must include the Universal Appraisal Dataset ( UAD ) 3. 6, which includes information on factors like solar panels or renewable systems, as well as insulation quality. This will help buyers and investors stronger assess long-term property value and sustainability.
Aaron Chonka is a certified appraiser and instructor with experience in renewable and clean appraisals. He suggests using the Appraisal Institute’s” find a natural appraiser “directory to locate an appraiser who has been educated in the valuation of high-performance and energy-efficient residential properties. He claims that appraisal reports with the fresh UAD 3. 6 energy valuation section will benefit from careful upgrades.
” The onus is on the appraiser to be up to speed on how to correctly identify property upgrades and determine how they contribute to value, “he says.
Proper vetting from the lender should ensure appraisers know the methodology to make market-supported adjustments in the fresh report structure, which standardizes how these items are cited.
” Green features will be more important and recognizable,” Chanka claims. There’s room to note energy-efficient components of the property like solar panels, the ownership status of panels, building certifications like Pearl, or energy-efficiency ratings like LEED or HERS. An appraiser recently had the authority to ignore some of these or reject them on presumption. Then they must address it straight.”
PENNIES TO POUNDS: GREENING YOUR HOME FOR A MAXIMUM RETURN
Both Green and Chonka agree that homeowners should start modest when making energy efficient changes. Upgrades at low prices can make a huge difference. Chonka suggests normal maintenance of energy-efficient appliances and HVAC units.
Other simple, affordable changes are available:
Switch to LED light bulbs. These use between 75 % and 90 % less electricity, making them last up to 25 times longer than incandescent bulbs. They also emit less heat than halogen or light bulbs. A typical 60-watt LED bulb costs between$ 5 and$ 8.
Use window sun screens or renewable screens. Mesh screens lower indoor temperatures by up to 8 degrees Celsius, reduce the need for air conditioning, and reduce solar heat gain. This can lower cooling costs by up to 25 %, according to the Department of Energy. Prices range from$ 20 to$ 50 for DIY projects to between$ 80 and$ 280 for a professional installation and fabrication.
Swap out manual or nonprogrammable thermostats with bright models. You might be able to obtain one for nothing from your utility provider. Connect it for more useful run schedules. Up to$ 300 in annual savings are anticipated to result from cost savings of 3 % to 5 %.
For those willing and able to spend a more substantial amount on upgrades, Green and Chonka suggest these bottom energy-saving investments:
Close any gaps, cracks, or holes in the attic that allow air leaks. Use acrylic latex or silicone caulk for smaller gaps and expanding spray foam insulation for larger openings. According to DOE estimates, this process may reduce heating and cooling costs by 15 % to 25 %. The average cost for professional installation is$ 500 to$ 1, 500 with an ROI of two to eight years.
Air duct sealing: Sealing room temperature and lowering utility bills is similar to closing gaps in your attic. Professional methods include Aeroseal, which fills leaks from the inside with a nontoxic expanding aerosol sealant, and closed-cell spray polyurethane foam ( ccSPF). Use UL 181-rated aluminum foil tape or adhesive sealant for DIY projects. Green used Aeroseal, which she recommends, and says she saw immediate savings on her electrical bill. With an ROI of two-and-a-half to five years for Aeroseal, costs range from$ 100 for a DIY fix to$ 2,250 for a professional installation.
Replace aging insulation: This is especially effective in older homes to increase HVAC efficiency, and owners can see a decrease in cooling costs of as much as 35 %. With an ROI of two to five years, the average cost for installation is$ 2 to$ 6 per square foot.
On the flip side, some big upgrades don’t result in the energy savings payoff homeowners expect, Green notes. For a high-ticket item with an ROI of 17 to 20 years, for instance, fresh windows tend to be more stylistic or comfort-based than energy-saving. Expensive battery walls and unique EV charging stations can be listed in but don’t add much value to appraisals. Solar panels are also listed on the overpriced list, especially if they are leased, making them a zero-value item on appraisals.
” Outside of windows, thermal is the next thing you should do,” Green says”. Before adding renewable, improve the building. The free, lower, and median cost upgrades I suggest reduced my energy bill by 71 % before I installed solar panels.”
The solar recoup is relatively minor for an up to$ 28 000 investment for a private system, despite the state tax credit and exemption for Arizona. Consumers can seek out rebates, incentives, and policies through DSIRE ( Database of State Incentives for Renewables &, Efficiency ). Once you’ve found a thermal system appraiser with experience like Chonka, it’s important to keep track of and present the entire system details to your realtor or lender, including permits, size, certifications, energy ratings, and installation date.
REVVING UP VALUE
Yet when improvements are carried out and documented, Chonka claims that there are still myths about homeowner ownership that focus on how much they cost versus what the market is willing to pay. It’s never a dollar-for-dollar situation.
He claims that the value of a home does not increase at the same rate as the amount of money spent. It varies by price point, demographics, and certain neighborhoods. That being said, right, well-organized documents, particularly those that come with a one-page summary that lists all the improvements, are helpful.
But what if you’re the first on your block to make improvements? When comps are mixed or limited, Chonka suggests that suffered appraisers can use energy-efficient or certified homes in a rivaling neighborhood.
” It’s a matter of expanding your search, and you have that latitude, “he explains”. Phoenix was one of the independent appraisers hired by Pearl a couple years ago to assess the value of the certifications in four distinct U.S. markets. That supporting information can be presented to a lender.”
Chonka makes an additional significant homeowner incentive for investing in energy-saving improvements: Lenders won’t accept an income-only strategy for home sale purposes, but upgrades that keep more money in borrowers ‘ pockets do make a difference.
” Studies demonstrate that owners of high-performing energy-efficient homes have lower mortgage default rates due to lower monthly expenses,” Chonka says”. This is a fact that lenders are aware of, and it plays into qualifications because these homeowners are generally viewed as stronger borrowers.
Assess, act, and record: With proper documentation and competent experts, the benefits to homeowners, borrowers, prospective homebuyers, and the environment are numerous. There has never been a better time to clean your home, regardless of the cost.
Little Changes, Big Savings
9 easy ( and inexpensive ) home projects to do to conserve energy.
Our houses use a lot of energy. In fact, more than a quarter of the world’s carbon dioxide pollution is caused by the amount of energy used to run homes, according to the International Energy Agency’s World Energy Outlook. But you don’t need to spend large amounts of money or do big renovations to save dollars and energy. According to APS, these are nine simple steps you can take to increase the efficiency of your home.
Pre-cool your home to use less energy during higher-cost top hours.
Pre-cooling is useful if you’re on a time-of-use plan. APS peak hours are 4-7 p. m., so set your thermostat a few degrees lower for many hours during the day before to 4 p. m. Finally, between 4-7 p. m. on weekdays, set it a few degrees higher. You can save 2 % to 3 % on energy cooling costs for every degree you raise your thermostat.
Use ceiling fans quickly and switch to counterclockwise rotation.
Ceiling fans circulate air, making a room feel up to 5 degrees cooler. Fans should be set counterclockwise in hot weather to push air down and create a cooling effect. Keep fans off when you leave the room in order to reduce your energy usage.
Replace or clean your air filter.
A clogged filter can cause your cooling system to function more slowly than it should. A clear filter helps improve airflow and system efficiency.
When you are ahead, raise the thermostat a few degrees.
Setting your thermostat higher when no one is home can help reduce energy use without sacrificing comfort when you return. This is made simple by a bright thermostat.
Turn off the lights when you leave the room.
Because it sounds easy, it is. Turning off lights, ceiling fans, and electronics when they’re never needed helps conserve energy. Switch to LED bulbs for even more energy-saving savings, which last long and are less energy-consuming than conventional light bulbs.
Use blinds, curtains, and shades carefully.
Keep window coverings closed during the day’s sunniest hours to reduce domestic heat gain.
Check weather stripping and seals around doors and windows.
Small air leaks can allow warm air to enter and cool air to escape. Repairing or adding weatherstripping or caulking helps improve comfort while possible lowering energy use.
Use alternative cooking equipment.
Ovens add more heat to the home, making the air conditioner work harder. For a few meals a week, try grilling inside or using an air fryer, slow cooker, or microwave.
Schedule an HVAC tune-up.
Have your system evaluated annually by a certified technician, preferably in the spring, before the weather starts to warm up. This not only helps protect against unexpected breakdowns, but a fresh, well-maintained unit uses less energy.
