Myth Busting: Are Sustainable Homes More Expensive?

How Much Do Energy Efficient Homes Cost?

Every year, energy-efficient homes meeting net-zero or passive house requirements are built across North America. On average, they cost about 10% more than homes built to code that are energy-hungry and expensive to maintain.

Are Smaller Homes More Energy Efficient?

A 4,000 square foot home lit by LED lights and protected by high-performance insulation will still require more energy to operate than a 600 square foot home that is drafty and continues to use incandescent light bulbs. The size of a home is an essential element of overall sustainability. Not only will smaller homes have a much lower embodied energy footprint, but the operational energy required will also be lower. A well-built smaller home will require less energy to heat and cool, fewer lights to illuminate the house, and easier to maintain. Smaller homes will significantly decrease the carbon footprint and environmental impact of the home and dramatically reduce the cost of the house - both upfront and ongoing.

What Is the Least Expensive Type of Home to Heat?

Heating systems for Passive Houses are less expensive because the heating load is so much lower. The required load can often be met with a simple, low-cost ductless mini-split heat pump. The average house requires a complete furnace or boiler system at a much higher cost. This is the advantage gained in a Passive House through adequate insulation and air sealing.

Do Energy Efficiency Renovations Increase the Value of a Home?

Some families might live in the same home their entire lives. They benefit from the long-term savings that come with renewable energy and other features to improve the efficiency of your home. However, the average American moves over 11 times throughout their lifetime, and most homeowners look at their house as an investment. Rest assured, improvements to a home will often pay for themselves when it comes time to sell. For example, in North Carolina, homes with some green certification sold for 9.5% more than their counterparts.

How Can You Finance Sustainable Home Upgrades?

Things you can do to live more sustainably involve investing and then raking in the savings afterward. For a significant investment like a house or a vehicle, access to financing is critical. Adding a little more to the mortgage to build a better home can save you a lot on operating expenses. Lending institutions like banks and credit unions now recognize this. They are offering 'green energy loans' with something extra, like the ability to borrow a bit more or a reduced interest rate. Look around and see what you can find for special financing deals.

You might find an even better deal with municipal government financing programs for sustainable energy, where they are available. PACE programs (Property Assessed Clean Energy) offered by towns and cities allow you to borrow from the municipality to make energy-efficient improvements to your home. You then pay the loan back through your property tax bill. The interest rate is typically competitive. The big advantage is that if you sell the house, the obligation to finish repaying the loan transfers. For example, you could use a municipal loan program to finance solar panels for your home over ten years. Three years later, you decide to sell the house. At that point, the solar panel's loan goes with the house. Check whether your municipality offers a PACE or similar program.

Are Home Energy Rebates Still Available?

Federal and local governments have implemented rebate and saving programs to assist with the cost of energy-efficient and sustainable home upgrades. Rebates are often divided into commercial and residential and often require certain conditions are met, including income or the requirement of a home energy audit to determine the most impactful upgrades. Programs differ from region to region and utility to utility but often focus on upgrades that reduce your home's overall energy and water usage. Rise has put together a database to find out what rebates your state or province is offering. Find them all here!