Chart: What Buyers Will Pay for Energy Efficiency

Originally published by the following source: SBC MagazineApril 17, 2019
by Sean Shields


The latest study of recent and prospective home buyers (people who purchased a home in the last three years or are planning to do so in the next three years) suggests that the average buyer is willing to pay an additional $8,728 for a home in order to save $1,000 annually in utilities (click image for larger version):

This is a bit misleading in that some motivated buyers are willing to pay in excess of $50,000 for the same annual utility savings.  For those paying more than $500,000 for their home, they are willing to pay on average $10,560 to save $1,000 per year.

It’s probably more helpful to look at the median amount, which is right at $5,000.  Said another way, most buyers expect around a 20 percent annual return on their energy efficiency investments.  To learn more about cost-effective home insulating methods, check out


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