Increasing Home Value Through Home Energy Upgrades

The document highlights that energy efficiency upgrades, particularly attic insulation, can provide a high return on investment in terms of home resale value. It references the Remodeling magazine Cost vs. Value Report to show that attic insulation was the only project with a greater-than-100-percent cost vs. value ratio nationally, yielding a 166 percent return. Beyond resale value, the briefing identifies operational cost savings, improved thermal comfort, and health benefits—such as an 85 percent drop in hospital admissions for children with asthma following comprehensive retrofits—as key drivers for homeowners. Other value-adding upgrades mentioned include solar PV systems, high-efficiency HVAC systems, envelope improvements, and advanced water heating technologies.

• Attic insulation projects provided the highest return on investment among 30 remodeling projects examined in the Remodeling magazine Cost vs. Value Report, being the only project to exceed a 100-percent cost vs. value ratio nationally. The researchers calculated a 166 percent return, with an average cost of $1,268 resulting in a real estate value increase of $1,482 after 12 months.
• Energy upgrades offer benefits beyond resale value, including operational savings, psychological satisfaction, and health improvements. A survey by the National Association of Realtors (NAR) ranked energy efficiency as the third most common reason for home changes, and attic insulation received a 'joy score' of 8.7. Furthermore, comprehensive energy, health, and safety retrofits were associated with a nearly 85 percent reduction in hospital admissions and a 68 percent reduction in emergency visits for children with asthma.
• Various other energy-related upgrades contribute to home value: solar PV systems in California showed a strong premium, with an average estimated premium of $24,851 for a system 2.9 years old and 3.7 kW in size. High-efficiency HVAC replacements (gas furnace and ENERGY STAR-rated central air) showed a recovered value of 71 percent, while envelope-related improvements (roofing, doors, siding) had recouped values between 75 and 83 percent.
• Green certifications and labels can increase a home's selling price. In a study of 66,000 homes in San Antonio, a green designation increased the selling price by almost 1 percent, while specific energy efficient features increased the price by approximately 6 percent. More broadly, energy labels and certifications can provide asset value premiums ranging from 2 to 9 percent.

APA

RMI (2016). Increasing Home Value Through Home Energy Upgrades. https://rmi.org/resources/increasing-home-value-home-energy-upgrades/

Chicago

RMI. Increasing Home Value Through Home Energy Upgrades. 2016. https://rmi.org/resources/increasing-home-value-home-energy-upgrades/.

Wikipedia

{{cite report |author=RMI |title=Increasing Home Value Through Home Energy Upgrades |date=22 March 2016 |url=https://rmi.org/resources/increasing-home-value-home-energy-upgrades/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2016increasing, author = {{RMI}}, title = {{Increasing Home Value Through Home Energy Upgrades}}, institution = {RMI}, year = {2016}, month = mar, url = {https://rmi.org/resources/increasing-home-value-home-energy-upgrades/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }