Using renewable energy sources is better for the planet, and usually easier on your wallet. Many homeowners are seeing how installing renewable energy systems in their homes are increasing home equity, too. If you are interested in cashing in on the benefits of renewable energy, there are a few ways to get started.
What is renewable energy?
Renewable energy is defined as energy that comes from a natural source that is continually replenished. The most common sources of renewable energy are wind, sun, and water. All of these sources can be used to generate energy without removing any natural resources from the planet, making them a cleaner and more sustainable option that non-renewable energy sources.
How can I incorporate renewable energy into my home?
Renewable energy sources can be used to power some or even all of your home, depending on how you incorporate them. Some of the ways people utilize renewable energy include:
- Solar power: panels (generally located on the roof of the home) convert sunlight into electricity.
- Wind power: though this requires significant space, wind turbines can be used to convert wind into electricity.
- Micro hydropower systems: for those who have a water source flowing through the property, the moving water can be harnessed to be converted into electricity by installing a micro hydropower system.
- Geothermal systems: this type of underground system is best for new construction homes, as it uses a pump under the home to heat and cool the it.
There are also hybrid systems, combining two or more sources of renewable energy to maximize the efficiency of the home and the availability of energy sources.
How does renewable energy impact my wallet?
Installing renewable energy systems impacts your finances in a few ways. It lowers, or sometimes eliminates, some of your utility bills. Many people with solar power, for example, no longer pay anything for electricity and are only financially responsible for the cost of the equipment and its maintenance.
Renewable energy can also benefit you financially if you are able to convert so much energy into power that you have a surplus, which you may be able to sell to your local power company. Check with your power company to see whether this might be an option for you.
Thirdly, adding renewable energy systems to your homes will increase its value. Studies suggest a typical home increases by $15,000 just for installing solar panels. Experts from both the Appraisal Institute and the National Renewable Energy Library agree that it is reasonable to expect something like $30,000 in home equity after converting to a renewable energy source. To determine how much you can save, compare quotes from reputable companies in your area; after crunching the numbers you may be surprised to find that it is an obvious decision.
How can I pay for the renewable energy systems?
If you don’t have the cash on hand, or prefer not to use it, to finance the upfront costs of installing renewable energy systems in your home, there are other options. You may be eligible for some tax breaks that will offset the initial cost.
Additionally, you may be able to finance the installation through a home equity loan (HEL), home equity line of credit (HELOC), or cash-out refinance. If you have lived in your home for a few years or think you may have a significant amount of equity in your home which may help in this area.