By Dan McLeister
Most of us assume that using "green" building techniques, while great for the environment, may not be so great on the customer's supply of "greenbacks." New data, however, indicate that might not be the case. Any added upfront costs may be more than offset by long-term savings.
Two formal studies on commercial construction – one by a state government and one by the federal government – actually document that green building, in most cases, does not cost significantly more than other types of construction. In some cases, it actually can cost less than conventional construction.
In October 2003, the California Department of Finance for the Sustainable Building Task Force (www.clwmb.ca.gov/GreenBuilding/TaskForce/) conducted a study which concluded that commercial buildings constructed under the Leadership in Energy & Environmental Design (LEED) program and certified by the U.S. Green Building Council (USGBC) (www.usgbc.org) provide a financial benefit of between $50 and $70 per square foot. That figure is more than 10 times the additional cost associated with building green – an excellent return on investment for both the checkbook and the environment.
The sources for these savings (see chart) include:
- Lower costs for energy, waste and water
- Lower environmental and emissions costs
- Lower operational and maintenance costs
- Increased productivity
- Reduced health-care costs
In 2004, a separate study by the General Services Administration (www.gsa.gov) found that expenses for a new courthouse constructed with green building techniques would range from 0.4 percent to 8.1 percent more than conventional construction, depending on the level of LEED rating achieved. Cost projection figures ranged from +1.4 percent to +8.2 percent for a "green" office building modernization – relatively low cost increases for potentially big savings.
Taking home the green
However, scientific study of upfront costs versus life cycle savings for residential structures has been difficult, since there is no clear definition of what constitutes "green," says Steven Winter of Steven Winter Associates (www.swinter.com), which prepared the report on the GSA study. Currently there are more than 30 different residential green-building programs across the country. Until those local homebuilder standards are aligned, it will not be possible to develop an overall rating system for housing.
However, both the USGBC and the National Association of Home Builders (NAHB) are working on national programs for residential green building. The USGBC has plans for a pilot project early in 2005 and possibly a program similar to other LEED efforts before the end of 2005. In 2004 the NAHB developed Model Green Building Guidelines, which it expects to implement in 2005.
Until then, projections of green-building costs for new homes and remodeling projects are only available as estimates from consultants and industry officials. Rich Dooley, an environmental analyst and land use planner for the Research Center of the National Association of Home Builders (www.nahbrc.org), claims that the national average upfront cost for green building in houses is in the 2 to 5 percent range, depending on a variety of factors.
Consultant David Johnston of Boulder, Colo. (www.whatsworking.com) believes the additional costs for green building are lower: 1 to 2 percent or less for home builders who build to minimum code standards and who offset increased costs for energy-saving techniques by reducing the size of heating and cooling equipment to the lower loads that result.
But for remodeling, the cost for green construction could go higher. Johnston explains that remodeling contractors do not yet have many options, such as cabinets and paints that do not emit volatile organic compounds (VOCs), to offset the increased cost of green alternatives. As a result, the costs of going green for a kitchen remodel could be as much as 5 to 10 percent higher, adds Johnston, who is the author Green Remodeling: Changing The World One Room At A Time and Green Building In A Black And White World (New Society Publishers).
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