Energy-efficient upgrades such as solar panels, heat pumps, and smart home tech can boost your home's market value by thousands of dollars. With utility costs rising, more homebuyers are looking for properties that have renewable energy and other eco-friendly benefits that can help reduce electric bills.
So, now is a good time to consider planet-friendly renovations that can make your home stand out to prospective buyers.
Renovations can be investments
Investing in energy-efficient appliances can add a lot of value to your home, potentially increasing the sales price by 2-8% or even more, according to Energy Star. One of the best ways to upgrade your home is with a heat pump from companies like Harvest, which offers heat pump systems with a thermal battery included that further reduces energy bills and the environmental impact.
When you're ready to install one, you could qualify for incentives of $12,000 or more and cut your monthly heating bills by a third. Its smart thermal battery optimizes energy use for your needs and uses grid electricity when it's cheapest, allowing you to save even more. Before you call a contractor, though, make sure to seal up any gaps in your windows, doors, and attic to get the most out of your new system.
According to a study published in Nature, installing a heat pump could make your home worth $10,000 to $17,000 more. The research found that "residents who are environmentally conscious … and live in mild climates are likely to pay a larger price premium."
Which upgrades have the best returns on investment?
Upgrading your home may require hefty upfront investments, but they pay off in the long run. Harvest told The Cool Down that since two-thirds of a home's energy use goes toward heating and hot water, heat pumps offer the biggest return on investment.
Installing solar panels is also another investment that can make your home more attractive to potential buyers. In fact, a 2025 SolarReviews study found that homes with solar panels sold for nearly 7% more, on average, than homes without solar. And with homeowners eligible for a 30% solar tax credit, you'll get to keep even more money in your pocket.
What about the payback periods?
When it comes to heat pumps, Harvest said its high-efficiency systems could have an instant payback period thanks to generous federal, state, and city incentives for eco-friendly upgrades.
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Through the Inflation Reduction Act, homeowners can get a tax credit of up to 30% off purchase and installation costs, and thanks to the smart thermal battery element, that means savings much larger than the typical heat pump maximum credit of $2,000.
Other reasons to upgrade
Besides saving money on utility bills and boosting your home's resale value, there are plenty of other reasons to make eco-friendly improvements. Heat pumps and other efficient HVAC systems make your home more comfortable by reducing humidity levels and improving ventilation, which helps your indoor air quality.
In short, you can't go wrong by making green home upgrades, whether you want to save money, help the planet, or make your home more resilient against the elements.
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