Optimizing energy efficiency in buildings obviously saves money on utility bills, but there are several other ways that green initiatives can boost ROI.
Government programs
Several government programs (the Low-Income Housing Tax Credit program, for example) reward projects that have sustainability features and document energy reduction. Many states and local governments offer tax incentives for green building certification. Nevada, for example, offers property tax incentives for new and existing multifamily or commercial buildings that achieve a certification from LEED or Green Globes.
Access to better financing
Improved energy efficiency can pave the way to better financing. For instance, Fannie Mae and Freddie Mac have begun offering green lending programs (known as Green Rewards and Multifamily Green Advantage) that can translate into savings of up to 39 basis points for borrowers who commit to implementing energy efficiency or water efficiency measures.
Lease premiums
Many companies are concerned with corporate environmental and social responsibility, and consider energy and water efficiency when choosing to lease or purchase property. According to surveys, some commercial renters say they are willing to pay a premium for green office space.
Related Stories
Codes and Standards | May 8, 2018
Powerhouse coalition builds energy positive buildings
The goal: build buildings that provide more power than they cost to build, run, and demolish.
Codes and Standards | May 7, 2018
Plan advances in Los Angeles for Climate Emergency Mobilization Department
Would oversee efforts to reduce greenhouse gas emissions across the city.
Codes and Standards | May 3, 2018
Data collection, machine learning boost building efficiency
Sensors, software algorithms squeeze out waste.
Codes and Standards | May 2, 2018
Energy Department releases Updated EnergyPlus and OpenStudio building energy modeling tools
The tools can now accept input in epJSON format.
Codes and Standards | May 1, 2018
ASHRAE publishes new energy simulation-aided design standard
Requires building energy modeling during schematic design.
Codes and Standards | Apr 30, 2018
CALGreen projects pre-approved for streamlined LEED v4 requirements
Reduces need to run additional energy models.
Codes and Standards | Apr 26, 2018
New standard supports community resilience
ASTM International guidance supports cost-effective ways to withstand and recover from disasters.
Codes and Standards | Apr 25, 2018
Lessons learned from decades of Superfund cleanups guide contaminated land reuse
Sites repurposed for residential, commercial use, and solar energy generation.
Codes and Standards | Apr 24, 2018
Vibrant downtown core the key for urban multifamily development
Nighttime activity makes the difference.
Codes and Standards | Apr 19, 2018
ILFI launches new Zero Carbon Certification
Offers greater flexibility around project fuel types and offsetting renewables.
