financial value of green

How much do ‘eco improvements’ such as whole house fans add to the value of your real estate? With a little bit of math, and some financial formulas, we can figure that out. Here is an example of a homeowner who installs one of our 4.4e WHF models. Let’s take a conservative value for energy savings ($500 per year), with a desired return on investment of 8% (you could not get that anywhere else..). What we do is use the financial formulas to figure how much money would need to be invested at 8% interest in order to return $500 per year, over the life of the whole house fan. At the end of the 20 year life span, we assume (also conservatively), that the WHF has no remaining¬† value.

Plugging in the numbers: i = 0.08; n = 20; Savings per Year = $500, yields Present Value = $4909.

Wow! That means that if you paid up to $4,909 the return on investment would be 8%. (we don’t charge that much for the 4.4e…)

Saving Energy is a damned good investment. Who woulda thunk ?