Energy represents a significant and rising expense for homeowners. This includes heating, cooling and electricity. The average annual cost to heat a home in the Northeast is about $2,300, and the average annual cost for electricity per household in New Hampshire is nearly $1,800.

Energy upgrades and weatherization can help you cut those costs, but homeowners must weigh the investment in those improvements against the long-term return from cost savings. Another important factor you should consider when making those calculations is the value the improvements add to your home.

Below is a summary of what value you might realize from each type of energy-efficiency improvement to your home. Of course, that value will decline with age in most cases. A 20-year-old heat pump near the its end of its life might lower your home’s value, for example, as would an oil-fired furnace past its prime. Poorly installed energy improvements might also hurt you when you sell your house and this is a good reason to use a reputable contractor to perform the work.

Solar panels

Recent research by SolarReviews, an advisory group for people considering solar panels, shows that homes with solar panels sold for 6.8% more on average than similar homes without solar, representing about a $25,000 premium. The report used data on more than 400 sold homes from real estate site Zillow. The benefit from solar varied regionally from about 1.5% (Atlanta) to 9.3% (Seattle). Other SolarReviews research shows that the average cost to install solar panels is $19,000, so you will likely see a good return on investment when you sell your home.

The National Renewable Energy Laboratory (NREL) provides another estimate for how solar panels increase your home’s value. Its “Planning for PV” document says that your home gains $20 in value for every dollar saved annually on your utility bill. Based on my experience with solar panels, this formula estimates that I’ve increased the value of my home by at least $20,000.

Solar systems are very reliable, and monitoring software provides good reporting on their efficiency and how much energy they produce. This data, along with your annual electricity costs, will show potential buyers the value that solar adds to your home.

Heat pumps

More people are considering heat pumps now that good cold-climate options are available. The key to getting the most return on your heat pump investment is installing a system that provides the best possible bottom line on annual heating and cooling costs. This means making sure the system is properly designed for your home. An undersized system will work harder and use more electricity than it should, as will an oversized system due to lower operating efficiency.

Assessing how much value a heat pump adds to your home depends on several variables, including type and age of the system and how well it has been maintained. Studies suggest air-sourced heat pumps can add up to $17,000 to the value of your home, presumably if they are relatively new and properly designed. Ground-source heat pumps are much less common in the region because they are more expensive to install, but they do offer a higher premium on your home’s value as they are more efficient.

If you have a heat pump and are selling your home, it will pay to have it serviced and to address any potential issues. These could include signs of physical damage, loose or exposed wiring, damaged thermostats or anything else that might give a potential buyer pause.

Energy-efficient appliances

I could not find hard data on whether energy-efficient appliances such as an induction stove or a heat pump clothes dryer adds value to your home. Most buyers consider whether they will need to replace appliances in a home rather than how much energy they use. From that perspective, having relatively new energy-efficient appliances would be a plus and remove a potential negotiation point.

Heat pump water heater

Like energy-efficient appliances, heat pump water heaters don’t directly add value to your home. They do contribute to lowering your overall energy costs, which informed buyers will appreciate.

Weatherization

Depending on the current state of your home, weatherization could provide the biggest return on investment in the value of your property. Most buyers will want a home inspection before making an offer, and a key part of that process is assessing how well a home is weatherized. Inadequate insulation, drafty windows and doors and other sources of heat loss are all potentially expensive fixes and will likely become a point of negotiation on price.

Property taxes and energy improvements

Most energy-related updates are not likely to increase the assessed value used to determine your property taxes. Of course, if those updates are part of a larger home-improvement project that requires a permit, then you should expect an increase in your assessment.

Solar panels are a gray area in New Hampshire when it comes to tax assessments. Some towns, such as Peterborough, don’t factor them into the tax assessments. Check with the proper authorities in your town regarding their tax assessment policies before installing solar panels. For most home solar installations, though, it’s unlikely that any property tax increase will significantly reduce your return on investment.

Buyers will take notice of low electricity or heating costs when they view a property’s real estate listing information. If you are selling an energy-efficient house, make sure you explain to your real estate agent what you’ve done and provide them with all relevant energy costs. The agent can then better communicate the value of your investments in terms of long-term savings for the buyer.

Michael Nadeau is a member of the Peterborough Renewable Energy Project.