Millennial Homebuyers Embrace Renewable Energy
Millennials are expected to make 50% of home purchases in 2020, according to the 2020 Housing Forecast from Realtor.com. And among this cohort of first time homeowners, many care about sustainability. According to Gallup, 67% of people aged 18 to 29 and 49% of those aged 30 to 49 are concerned about climate change.
It is possible to choose a home that’s both a good investment and meets your sustainability goals. And if you’ve already moved into your dream home, it’s possible to make simple upgrades that can have a significant positive impact. Here’s a quick guide to what first-time homeowners need to know about renewable energy and how to choose the solution that’s right for you.
Energy-efficient Homes Are in Demand among First-time Homeowners
One of the biggest trends that first-time homeowners are focused on is choosing energy-efficient homes and making investments that are environmentally responsible. In a study conducted by the National Association of Home Builders, 75% of millennials want access to energy-efficient appliances with an ENERGY STAR® rating.
According to that same survey, 70% of millennials are interested in lighting solutions that are more efficient than traditional lightbulbs and 53% want to source building components locally.
When you’re thinking about how to be more sustainable at home, don’t overlook the importance of renewable energy.
What Are the Benefits of Renewable Energy?
Homeowners can capture a number of renewable energy benefits, including:
- Reduce your footprint: If you’re focused on sustainability, choosing renewable energy can help you achieve your goals. Grist reports that purchasing renewable energy can help reduce your carbon footprint.
- Lower bills: Choosing a renewable source of energy can help you reduce your energy bills. Energy generated by a clean source, such as a solar or wind system installed on your property, can reduce or eliminate monthly energy costs.
- Improve home value: Across the U.S., homes with solar energy systems typically sell for an average of 4.1% more than homes without them; for a median-valued home, Zillow estimates that translates to an additional $9,274 in sales price.
- Tax credits: Investing in renewable energy may earn you a tax credit. For example, investing in a solar energy system can not only help you power your home with renewable energy, but it’s a great way for a first-time homeowner to see potential tax benefits as well. The solar Investment Tax Credit (ITC) potentially enables homeowners to claim a tax credit of up to 26% of the cost of a solar solution in 2020 or 22% of the cost of a system in 2021.
What Types of Renewable Energy Can I Consider?
As a homeowner, there are two major sources of renewable energy to consider:
- Purchasing renewable energy directly from your utility company: Increasingly, utility companies allow homeowners to pay a surcharge to source some or all of the power they buy from the power company from renewable sources.
- Installing a solar system: Solar energy is one of the most accessible forms of renewable energy. While there are a small number of wind turbines and hydroelectric solutions on the market, they're not practical or accessible for the vast number of homeowners. Solar systems can be used by most homeowners, however. Panels can be placed on rooftops or independent of structures and use photovoltaic cells to transform sunlight into energy.
- When paired with a battery storage solution, solar energy can power homes 24/7 while providing an independent energy solution should a disaster occur. It’s one of the most widely accessible choices, as it doesn’t require large plots of land or specific weather conditions (for example, wind) to be effective.
How to Assess What’s Right for You
Choosing the right source of renewable energy requires understanding your needs and goals. Conduct an assessment where you determine:
- How much energy you use, and whether it’s likely to change over time.
- What setup your home can support (for example, wind and hydroelectric power require specific conditions to really thrive).
- State and local regulations regarding what types of clean energy you can use, such as zoning regulations.
- Your long-term goals, including whether you want a solution such as a solar-supported emergency power system or if you have other unique needs.
- Your budget, and whether the availability of incentives such as renewable energy loans and tax credits impact the financial decisions that you’ll make.
The Popularity of Solar
Buying your first home is an exciting time. By looking for solutions that help you meet your financial and environmental goals, first-time homeowners can choose properties and energy-efficient enhancements that fit their needs. Solar systems are a cost-effective, convenient way to power your home with renewable energy and keep your footprint sustainable for future generations.
Solar benefits also include integrated emergency power options, financial incentives such as possible tax credits, and even the potential of increasing your home’s value. If you’re purchasing your first home this year, explore how renewable energy solutions can make your property more financially and environmentally sustainable.
Energy efficiency has become a key consideration for first-time homeowners looking to live sustainably. To learn more about how homeowners can reduce grid dependency, lower energy costs, and save the environment, head to Panasonic's Green Living Blog. And contact Panasonic for more information about how their home solar system and battery storage solutions can help in your green home goals.