Coldwell Banker’s Cynthia De Riemer speaks to energy efficiency and home buyers’ wish lists
The significant inflation experienced in the U.S. economy over the past several years has prompted homeowners and prospective buyers to be more conscientious about energy-saving systems and habits, which go hand-inhand with environmental considerations. Heating oil and gas prices in particular have increased. Some of the mechanical systems that are getting more attention include solar panels, geothermal heating and cooling units, heat pumps, improved insulation, and double-pane windows.
The technology behind many of these systems is improving, making them more cost-effective, but the upfront cost to install some of the systems can be substantial. Buyers increasingly scrutinize the age and efficiency of the home’s mechanicals and its monthly energy costs. If the heating, cooling, or insulation is inefficient, it could cause a prospective buyer to walk away, or it could open the door to negotiations regarding price reductions to cover the cost of improvements.
To gauge buyers‘ willingness to invest in energy-saving systems, you can look at the growth of solar panel installations over the past decade. The solar energy sector in the U.S. grew by an annual rate of 24% over the past decade, according to consumeraffairs.com.
In 2020, 3.7% of American households had solar photovoltaic (PV) systems, and this is expected to grow to 15% by 2030. In 2023, approximately 3.2 million U.S. homes had solar panels.
Last year was also a turning point in the efficiency of solar panels, surpassing the 30% rate for new systems, compared to typical efficiency ratings of 15% to 22% for systems in place today. In Connecticut, the average cost of a solar panel addition is $14,700, after government credits and the estimated payback is eight years for that project.
Low-technology energy-saving projects, such as replacing old windows with double-pane windows, or aftermarket spray foam or blown-in fiberglass insulation, may not be much cheaper than a solar panel system, but they are an aesthetic improvement compared to solar panels, which typically detract from a home’s aesthetic.
Homeowners may want to perform an energy audit to determine if there is a need or a potential cost-saving benefit to installing an energy saving system, whether it is a major project or a simple window upgrade. One source in Connecticut is www.energizect.com. Another local company that can help find ways to be more energy efficient is Eversource, at this website: https://www.eversource. com/content/ct-c/residential/save-money-energy/ energy-efficiency-programs
Cynthia De Riemer, Coldwell Banker/Global Luxury,
203-637-1300 office, 203-918-1523 cell, cynthia.deriemer@cbmoves. com