Incorporating eco-friendly features into your home raises its value and, at the same time, decreases your cost of living.

Hugging trees may not be for everyone, but building wealth is. Even if saving the environment doesn't appeal to you philosophically, the economic benefits of reducing your home's non-renewable resource consumption should be enough to motivate you to go green.

Put yourself in a buyer's shoes. You're looking for a new home, and have two options at the same price. Option A has gorgeous granite countertops, and Option B has a set of energy upgrades that reduce the annual heating and cooling costs by about $1,500. Which home would you pick? When you're faced with the reality of ever-increasing energy costs, the question is almost a no-brainer no matter how much you love those granite countertops.

Save Energy, Create Value

Energy upgrades that save money make a home more appealing and, therefore, more valuable. As you add value to your home, your home equity and personal net worth also increase. The argument for improving your home's energy efficiency becomes even more compelling when you consider that upgrades can be implemented on almost any budget. Here are some examples, listed in order of decreasing budget size:

• Solar energy system. Upfront costs can range from $10,000 to $50,000, depending on how much energy you want the system to provide. Federal and state tax credits can reduce this cost significantly. Depending on where you live, the right system could effectively eliminate your electricity costs, while adding several thousands of dollars to the value of your home.
• Solar-powered swimming pool heater. These systems cost about $3,000 to $4,000 to install. CostHelper.com estimates that the resulting utility cost savings will pay for the system in seven years or less.
• Solar-powered home water heater. A solar-powered home water heater can be installed at a cost of $1,000 to $3,500. According to the U.S. Department of Energy, you should expect your water heating bill to drop by 50 to 80 percent after installing the solar-powered unit.
• Programmable thermostats to replace analog devices. Costs and savings depend on the size of the home and your temperature preferences. Programmable thermostats modernize your home, while keeping the heating and cooling units off when you're at work.
• Fixing leaky faucets. This is an easy do-it-yourself project that makes your home more appealing and creates big savings. A leak that produces one drop per second can waste about 2,000 gallons of water per year.
• Replacing incandescent bulbs with compact fluorescent ones. Compact fluorescent bulbs qualified by Energy Star will last up to 10 times longer and use 75 percent less energy than incandescent bulbs. They also produce less heat than incandescent bulbs, and can therefore reduce the costs of cooling your home.

The small steps you take today to make your home more energy efficient will produce many happy returns, both to the environment and to your wallet.