Increasing Home Value Through Home Energy Upgrades
Summary
This briefing by RMI discusses how energy efficiency upgrades, specifically attic insulation, can increase home resale value and provide additional benefits in terms of operational cost savings, health, and comfort. It references data from Remodeling magazine and the National Association of Realtors to demonstrate that certain energy projects offer higher returns on investment than typical home remodeling projects.
Key insights
- Attic insulation was the only remodeling project in the Remodeling magazine Cost vs. Value Report to achieve a national average cost vs. value ratio greater than 100 percent, yielding a 166 percent return. This was based on an average cost of $1,268 and a real estate value increase of $1,482 after 12 months.
- Energy upgrades provide value beyond resale price, including operational savings, improved health, and psychological benefits. For example, attic insulation received a "joy score" of 8.7 out of 10, and comprehensive energy and safety retrofits were associated with an 85 percent drop in hospital admissions and a 68 percent drop in emergency visits for children with asthma.
- Other energy-related home improvements show positive, though often lower, recouped values compared to attic insulation. HVAC replacements with high-efficiency gas furnaces and ENERGY STAR-rated central air conditioning showed a recovered value of 71 percent, while envelope-related improvements (roofing, doors, siding) ranged from 75 to 83 percent.
- Green certifications and solar PV systems also increase asset value. In San Antonio, a green designation increased selling prices by nearly 1 percent, and energy efficient features increased them by about 6 percent. In California, a 2013 Berkeley Lab analysis found an average estimated premium of $24,851 for an average solar PV system (2.9 years old, 3.7 kW).
Cite the original document
- 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} }
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