August 26, 2022

How a Nanogrid Can Increase the Value of your Home


5 Min. Read

A nanogrid can represent a significant upfront investment for a homeowner; however, it is an upgrade that will improve the value of your home.

In a time of skyrocketing energy costs, newer technology such as smart panels, battery storage, whole-home generators, and EV chargers can command a price premium based on cost savings and convenience.

Additionally, independence from the grid and its issues is increasingly desirable to homeowners; green is good, and a nanogrid can get you there. Finally, there is historically strong support in the form of tax concessions from many states for using green technology.

This article will explain and explore nanogrids and how they generate economic value for you.

About nanogrids

A nanogrid is a small, independent power infrastructure that produces and delivers power to a single home.

Typically, the power sources are synchronized solar panels, battery storage, and sometimes whole-home generators. They can exist autonomously from the larger power grid or connect to it, allowing for both a redundant source and the ability to sell excess energy into the larger grid, other nanogrids, or even other microgrids.

In an era of rising costs and declining reliability of utility power, a nanogrid is increasingly appealing to homeowners.

Electrification, including advances in battery storage technology, and the ability to add smart panels for real-time monitoring, load shedding and reduction of energy costs strengthen the value proposition for nanogrids.

Electrified homes command premium prices

Well-designed and implemented smart homes are less expensive and more convenient to operate. As such, they are worth more. A study by the National Renewable Energy Laboratory (NREL) cites the Appraisal Institute’s finding that for every $1 saved in utility costs, a home’s value increases by $20, creating a 20-to-1 return.

In addition, the NREL cites higher home resale values, environmental stewardship, and substantial tax credits for homes as common benefits of solar technology. We’ll introduce more information regarding tax benefits later.

Aside from cost savings, the convenience of EV charging provides valuable convenience.

That said, you should keep in mind that solar works better in certain geographies with higher sun exposure. The logic is simple: more solar energy converts to more electric energy.

According to the Centers for Disease Control statistics, many states, particularly those in the West, rank significantly higher than others in the amount of sunshine received annually. For example, Phoenix, Arizona, is sunny 85% of the year, while Pittsburgh, Pennsylvania is sunny around 45% of the year. Look up your state statistics here.

The orientation of your home is also a factor to consider in solar performance. Homes facing south, southwest, or west perform best with solar. In addition, roof slope matters and it’s important to note that anything more than 45 degrees is too steep for installers to safely traverse.

Finally, it is beneficial to check your energy consumption over time. If your home is particularly energy-efficient, or if you are in an area with relatively low rates, solar may not pay off. Have a look here for the average utility rates in your state.

Energy prices are skyrocketing

The U.S. Energy Information Administration (EIA) predicts increases in electricity costs this summer and anticipates these to continue.

In short, the EIA forecasts an increase this year in the lowest to highest price ranges (by wholesale market) from $41- $51 to $66-$153 per megawatt-hour.

What’s more, the EIA expects these increases to persist into 2023 and beyond as utilities invest heavily in capacity in the coming years.

Such increases can only add value to the potential returns from a nanogrid supported by smart technology.

Grid reliability is declining

Homeowners are increasingly concerned about the declining reliability of the grid, and with justification.

Reliability is expected to decline over the next ten years. In its recent report, the North American Reliability Corporation (NERC) assigned a high probability that in 2022, many parts of the Western United States, including California, will be flatly unable to deliver supply requirements. The result may be rolling blackouts.

Further, the NERC predicts that while certain states in the Northwest, the Southwest, and the Midwest will experience this less acutely, they will still face material shortfalls and periodic shortages.

Climate change and extreme temperatures compound this problem, and utilities are not effectively planning grid expansion.

As a result, residents are increasingly turning to a microgrid or nanogrid for autonomy from unreliable grids.

Homeowners value environmental stewardship

In today’s world, green is good, and homeowners want to do their part to combat climate change. By weaning themselves from fossil fuels with solar, battery storage, and smart panels, homeowners can take pride in doing their part and reap an economic benefit while doing so. Homeowners are highly willing to invest in those technologies and pay more for a smart house.

Tax incentives

The good news about tax incentives is that the federal government and many states offer tax credits and other incentives to homeowners for using green technology. These incentives reduce your costs and increase your ROI.

The federal government offers a 26% credit against the purchase and installation costs of solar panels, smart panels, battery storage, and other components used in a nanogrid.

Florida and several other states (36 states in all) offer property tax exemptions for the cost of installing solar. Florida offers a 100% property tax exemption for residential solar panels, battery storage, and other forms of green energy.

Property tax exemptions are valuable to homeowners because they subtract the cost of the purchase and installation from the assessed value of the home, reducing annual property taxes.

In addition, sales tax exemptions are available in 25 states. These programs eliminate sales tax from the purchase price of solar and other technologies. Examples of this include Colorado and Arizona.

For details on incentives available in your state, you can refer to this easy-to-use site.


To sum it up, rising energy costs, declining utility grid reliability, and state and federal tax incentives make nanogrids smart investments for today’s homeowners. They can save money, free themselves from dependence on grids, and feel good about going green.

And the best news is that you can do it all while also increasing the value of your home!

Because these are significant investments and complex systems, you will need the help of a reliable installation partner experienced in nanogrids. Choosing the right installer is the biggest decision you can make when implementing a nanogrid, as a bad choice can cost you time and a lot of money.

Qmerit, with our Certified Installer Network and deep experience in electrification, is that partner. We will help you navigate the risks and complexity of selecting and installing a nanogrid.

Charge confidently into a green future today! Contact us for more information.

Author: Greg Sowder

Greg Sowder

President, Qmerit Network