Value of an Energy Efficient Home

Uncover the connection between energy efficiency and home value. See why investing in energy-savings is essential for every homeowner today!

Value of an Energy Efficient Home
Published on Aug 4th, 2025

As summer temperatures climb and energy bills follow suit, energy efficiency is no longer just a "nice to have" for homeowners; it's a real driver of property value. With home buyers increasingly prioritizing sustainability and lower utility costs, a well-optimized home can stand out in a crowded real estate market. Enhancing the energy performance on your home during the summer can lead to immediate savings and a long-term appreciation in value.

Why Summer Energy Efficiency Matters

During the summer months, cooling accounts for a significant portion of a home's energy consumption. Air conditioners run for longer periods, refrigerators work harder, and people tend to use more water and electricity overall. In addition to benefiting the environment, an energy-efficient home saves money while providing comfort, both key selling points in today's real estate market.

More importantly, energy-efficient features signal to buyers that the home is modern, well-maintained, and likely to have lower operating costs. These benefits translate directly into higher property values and quicker sales.

The Direct Link Between Energy Efficiency and Home Value

Several studies and real estate reports indicate a clear connection between energy efficiency and home value. For instance:

  • Homes with energy-efficient certifications (such as ENERGY STAR® or EnerGuide) sold for 3-5% more than similar homes without them.
  • 90% of home buyers considered energy efficiency "very important" in their purchasing decisions.
  • Homes with upgraded insulation, high-efficiency HVAC systems, and double- or triple-pane windows consistently appraise higher and often spend less time on the market.

These data points are particularly relevant in summer when buyers are more aware of cooling costs and comfort levels during showings or inspections.

6 Top Summer Energy-Efficient Upgrades That Increase Value

If you're thinking of selling your home or want to boost its long-term value, consider these impactful summer-focused energy efficiency improvements:

1) Upgraded Insulation and Air Sealing

Insulation isn't just for winter. Proper insulation and air sealing help maintain consistent indoor temperatures, reducing the load on your cooling system. Homes with effective attic and wall insulation are more comfortable in the summer and use less energy.

Value Boost: Improved insulation can cut cooling costs by up to 15%, making it a strong selling feature.

2) High-Efficiency HVAC Systems

Central air conditioning is often a must-have, especially in hot markets. Replacing an old HVAC system with a high-efficiency model (such as one with a SEER rating of 16 or higher) can significantly reduce energy use.

Value Boost: A modern HVAC system signals reliability and energy savings, which are key concerns for savvy buyers.

3) Smart Thermostats

Smart thermostats offer both convenience and efficiency by learning user preferences and optimizing cooling schedules. They can reduce energy consumption without sacrificing comfort, especially during peak summer months.

Value Boost: These devices frequently appear on top-10 lists of "most desired smart home features" among buyers.

4) Energy-Efficient Windows and Doors

Old or poorly sealed windows and doors can result in significant energy losses. Replacing them with ENERGY STAR-rated products improves comfort and curb appeal while reducing cooling costs.

Value Boost: New windows typically recoup 70-80% of their cost in increased resale value, enhancing the perceived quality of a home.

5) Cool Roofs or Reflective Roofing Materials

These roofing systems reflect more sunlight and absorb less heat, keeping your home cooler. They reduce the need for air conditioning and help extend roof life.

Value Boost: Cool roofs are especially attractive in sunny regions and often stand out as a standout feature in home listings.

6) Ceiling Fans and Ventilation Upgrades

Effective airflow can reduce reliance on AC. Installing ceiling fans, attic fans, and energy-efficient ventilation systems helps maintain comfort without high energy use.

Value Boost: Small upgrades like this are low-cost and can make a big impact on buyer impressions.

The Role of Home Energy Certifications

Certifications such as ENERGY STAR, LEED, and EnerGuide (Canada) are more than just labels; they provide third-party validation of a home's efficiency. Homes with these certifications often sell faster and for more money because they offer reassurance to buyers.

In competitive markets, especially during summer sales periods, certified homes can attract more attention and stand out among other listings for sale. REALTORS® often use these certifications as selling points, highlighting the long-term financial benefits and environmental advantages.

Energy Performance Disclosure and Buyer Expectations

Increasingly, buyers are requesting energy usage histories and home energy audits before making an offer. In some jurisdictions, energy disclosure is mandatory at the point of sale.

This transparency empowers buyers and puts pressure on sellers to optimize their homes before listing. A summer-ready, energy-efficient home will perform better in these disclosures and provide compelling data that can help justify the asking price.

Local Incentives That Sweeten the Deal

Across Canada, numerous rebates and programs support homeowners making energy-efficient upgrades. These include:

  • Canada Greener Homes Grant (up to $5,000 for eligible retrofits)
  • Provincial utility incentives
  • Municipal programs for home energy audits and smart thermostats

These incentives reduce out-of-pocket costs and can even be highlighted during home sales to show recent investments and potential savings for future owners.

Energy Efficiency and Appraisals

Home appraisers increasingly take energy upgrades into account. When comparing homes, features such as solar panels, upgraded HVAC systems, and energy certifications are noted as "adjustments" that can increase the appraised value.

In summer markets, where demand often outstrips supply, these value-added features frequently result in higher selling prices and competitive offers. While not every upgrade will yield a dollar-for-dollar return on investment, the overall impression of a "green" home can justify premium pricing.

Real Estate Marketing Advantages

REALTORS® can market summer-ready, energy-efficient homes more effectively. MLS® listings, real estate agents, and staging professionals often use energy-efficient features to create compelling narratives:

  • "Stay cool for less all summer long."
  • "Monthly bills as comfortable as your indoor temps."
  • "Certified energy-efficient and eco-conscious living."

These messages resonate strongly with younger buyers, families, and environmentally minded individuals. These groups comprise a significant portion of the current market.

Practical Tips Before You Sell

Want to prepare your home for sale this summer and maximize value through energy efficiency? Here's where to start:

  1. Get a home energy audit to identify areas for improvement.
  2. Document your upgrades (receipts, contractor info, product specs).
  3. Stage smart: highlight energy-efficient appliances, smart thermostats, and comfort-enhancing features.
  4. Promote your summer savings by showcasing past utility bills to highlight your cost-effectiveness.
  5. Work with an agent who understands green features and can effectively market them to potential buyers.

Summer energy efficiency isn't just about reducing your monthly bills; it's a strategic investment in your home's comfort, appeal, and resale value. As buyers become more conscious of operating costs and sustainability, homes that prioritize efficiency will continue to outshine the competition.

Published courtesy of Royal LePage® Benchmark on Aug 4th, 2025