I don’t think about my home in investment, payback, or IRR terms, but that’s not to say it’s bad to consider these things. For instance, you can renovate an old bathroom to make it usable, beautiful, or more efficient, but you can also renovate the same bathroom to try to capture some kind of future return. If you’re thinking about the $$$ that goes in and comes out of certain green home improvements, perhaps you’ll find this 1BOG infographic useful: So what’s the estimated payback of popular green home improvement projects? 0.6 years – programmable thermostat 0.9 years – high-efficiency showerheads 1.5 years – sealing/insulating ducts 2.5 years – low-E windows 2.5 years – insulated walls 3.2 years – whole house filter 3.8 years – furnace replacement 6.7 years – smart or reflective roofing 7.3 years – radiant floors 7.5 years – thermal mass floors 8.9 years – solar hot water 10.0 years – green roof 10.0 years – geothermal system 10.2 years – large scale water retention/conservation 10.8 years – solar for electricity These estimates reflect an investment at full price and do not factor in savings associated with local or national tax incentives. So there’s a bit of wiggle room to be had by folks industrious enough to find the right incentive or a better price. [+] View the entire infographic at 1BOG .
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Payback of Green Home Upgrades [Graphic]