The Financial Benefits of a Sustainable Home

Lessening your home’s carbon footprint isn’t just good for the planet — it’s good for your wallet. While it might seem like it requires significant up-front costs or a sacrifice in long-term comfort, that’s not always the case. The truth is that many eco-friendly changes are small and unnoticeable, yet they can lead to significant cost savings — and even boost your home’s value.

Skeptical that you can have all these benefits? Let’s break it down.

Lower Operating Costs

Higher electricity costs have been taking a significant bite out of Americans’ budgets for nearly 20 years,[1] and projections show that this cost will continue to outpace inflation at least through 2026.[2] Energy-saving actions and appliances can reduce this financial burden while maintaining your home’s comfort and lessening your carbon footprint.

• LED bulbs use 75% less energy and last up to 25% longer than incandescent bulbs.[3]

• Properly sealing and insulating your home helps prevent air leaks, which can reduce your heating and cooling costs and reduce unnecessary strain on your HVAC system, which could extend its lifespan.

• Setting your thermostat back 7°-10°F for 8 hours a day can save you 10% or more a year on energy costs.[4] A programmable thermostat makes this even easier.

• Tankless water heaters are 24%–34% more energy efficient than conventional models (based on homes that use 41 gallons of hot water or less daily).[5] And while tankless water heaters cost more, they last 5 to 10 years longer than conventional models.[5]

Tax Credits and Incentives

Of course, all of these projects incur some cost to you, but you may be able to offset upfront costs. Through 2032, energy-saving projects like installing solar panels, upgrading insulation, replacing old windows, and more can qualify for up to $3,200 in home efficiency tax credits.[6] Check with the IRS for information on specific projects and benefits. Your state or city might also offer financial incentives, which could lower the cost of your initial investment even more.

Higher Resale Value

In addition to enjoying cost savings over the years you live in your home, you can also expect benefits when it’s time to sell. Homes offering tankless water heaters can add 1.2% to their sales price and sell two days faster.[7] Double-pane windows add 1% to sales value and sell seven days faster, while homes with programmable thermostats can sell six days faster.[7] Other features like solar panels, EV charging stations, and smart lights also bring seller benefits, so they may be worth exploring.

Whether you're making major upgrades or just starting small, every step toward sustainability can pay off — in comfort, savings, and long-term value.

---

Sources:

1. Statista, “Residential electricity price growth in the U.S. 2020 - 2025,” October 24, 2024.

2. Energy Information Administration, “U.S. Electricity prices continue steady increase,” May 14, 2025.

3. U.S. Department of Energy, LED Lighting.

4. U.S. Department of Energy, Programmable Thermostats.

5. U.S. Department of Energy, Tankless or Demand-Type Water Heaters.

6. IRS, Energy Efficient Home Improvement Credit.

7. Zillow, “Listings Highlighting Eco-Friendly Features Sell up to 10 Days Faster,” April 18, 2022.