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 | Jan 18, 2022
Greater emphasis on building materials needed to achieve net-zero carbon offices
Engineered wood, straw, and bamboo can be keys to achieving goal.
Codes and Standards | Jan 17, 2022
AISC seeks comments on draft earthquake standard for steel buildings
Includes new limits for cross-sectional slenderness of steel columns based on latest research.
Codes and Standards | Jan 12, 2022
California’s wildfire building code significantly reduces structural loss
As other states consider upgrading their codes, Golden State provides useful model.
Codes and Standards | Jan 12, 2022
Regulator holding back climate-friendly, energy-saving equipment deployment, critics say
Heat pumps, solar power could be made more accessible for low-income communities in Massachusetts.
Codes and Standards | Jan 11, 2022
Cost hikes drive nearly one million renters out of homeownership qualification in 2021
Household income needed to pay a mortgage rose to $62,872 from $55,186.
Codes and Standards | Jan 10, 2022
New ratings services focus on climate risk for homeowners
Efficacy of models used in risk assessment varies.
Codes and Standards | Jan 6, 2022
Virginia contractors having a tough time finding diverse subs to meet state goals
Survey of primes may indicate similar issues at federal level.
Codes and Standards | Jan 5, 2022
Boston drops parking requirements for affordable housing
Measure expected to spur new projects.
Codes and Standards | Jan 4, 2022
Dept. of Energy Better Climate Challenge aims for 50% GHG emission reduction by 2030
Program offers technical assistance and peer-to-peer knowledge sharing.
Codes and Standards | Jan 4, 2022
Architects at New York firm take steps to unionize
Support for unionization reported at two other New York firms.