- The average ‘green’ home now sells at a premium of over 100% relative to average home prices across a broad selection of U.S. cities
- Despite annual energy cost savings of $1,587, homeowners often opt to forgo installing residential solar panel systems due to their elevated upfront costs
- The recently passed Inflation Reduction Act will provide homeowners with a 30% tax credit to assist with the upfront cost of installing renewable energy home systems
- The lower upfront costs, coupled with lower utility bills and a ‘green’ premium applied to residential home sale prices could lead to added demand for the likes of GeoSolar Technologies
In St. Petersburg, Florida, the average “green” home sold for $734,502 over the past year, a premium of 159% relative to the average home in the city. However, this “green” premium was hardly confined to sunny Florida alone. Environmentally friendly homes across broad swathes of the United States were habitually found to sell for over twice as much as the average property in their home cities, in locations ranging from Virginia Beach and New Orleans all the way through to Chandler, Arizona (https://ibn.fm/2b7a7). In fact, a study carried out by Consumer Affairs found that 70% of American homeowners reported an increase in home value following the installation of solar panels, with three out of four homeowners stating that they would not buy their next home if the property did not boast solar or some type of eco-friendly feature. Nevertheless, current property owners across the United States, more often than not, opt to forgo installing solar panels and other environmentally friendly appliances within their properties, with 22% citing elevated costs as the key rationale underpinning their decision.
GeoSolar Technologies (“GST”), a Colorado-based climate technology company, has sought to combat this trend through the introduction of its proprietary SmartGreen(R) Home system – an environmentally friendly, renewable energy focused technology designed to harness energy from the earth and sun to power and purify homes and automobiles without the use of fossil fuels. With 30% of total greenhouse gases originating from households, addressing rising home emissions has rapidly emerged as a key priority within the global climate change agenda. GeoSolar has looked to capitalize on this trend, revealing that the average GeoSolar-powered home could result in a negligible carbon footprint with homeowners disbursing less than $100 per annum in utility bills – a key consideration within an environment of rapidly rising energy costs (www.GeoSolarPlus.com).
Nevertheless, initial installation costs remain a daunting obstacle for many current homeowners. Replacing high energy consuming appliances such as refrigerators, dishwashers, washing machines, and televisions with more energy efficient models can run into the thousands of dollars. Meanwhile, the lowest price of a residential heat pump can run close to $2,000, with the price of the typical home solar panel system ranging ever higher, at between $17,000 and $34,000, as per home-improvement digital marketplace, HomeAdvisor (https://ibn.fm/F775s). However, help may be on the way.
The U.S. Government passed the Inflation Reduction Act in early August, representing the most ambitious climate-spending package in U.S. history – most critically perhaps, it will look to assist American homeowners with the upfront costs of installing renewable energy home systems, with households improving their energy efficiency poised to reap financial benefits. The package will inject $369 billion into measures to fight climate change, boost energy security and lower electricity costs for consumers. For the most part, the investments will take the form of tax breaks or rebates for qualifying households and businesses.
The average household could save about $170 to $220 a year in electricity costs – representing a cumulative $209 to $278 billion over the next decade – due to the bill’s policies according to think tank, Resources for the Future (https://ibn.fm/dzhjW). This is in addition to the average reported savings of $1,587 in annual energy costs, according to customer review company, Consumer Affairs.
Adding on to the utility cost savings driven by the bill, the Inflation Reduction Act will also contain a 30% federal tax credit applying to the installation costs of residential solar panels up until 2034 – a measure the White House believes may drive 7.5 million more homeowners to install panels over the period. Overall, residential consumers could qualify for up to $10,000 — or more — in tax breaks and rebates, depending on the scope of their purchases.
However, and while homeowners have long sought to add solar panels to their properties in a bid to save on utility bills or to lower their carbon footprints, it is the latest home price data which is likely to play the biggest role in promoting renewable power sources. Previously, studies revealed that homeowners could make a return on the investment on their solar panels in a little over seven years, on average. Nonetheless and with green homes now often selling at a premium of over 100% to the average property in their respective locations, going green may be the easiest way for a property owner to boost their home’s value. GeoSolar Technologies for one, is looking to help them do just that.
For more information, visit the company’s website at www.GeoSolarPlus.com.
NOTE TO INVESTORS: The latest news and updates relating to GeoSolar Technologies are available in the company’s newsroom at https://ibn.fm/GST
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