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 | Jun 2, 2021
Dept. of Energy releases EnergyPlus and OpenStudio updates
New features include Python Plugin features and additional tabular reporting options.
Codes and Standards | Jun 1, 2021
Federal plan to double Canadian lumber tariffs draws intense criticism
Builders advised to stock up to deal with shortages.
Codes and Standards | Jun 1, 2021
Passive House standards proving their worth in multifamily sector
Energy performance beats conventionally built by 32% to 58%.
Codes and Standards | May 27, 2021
Pittsburgh combats construction fraud
Crackdown on tax, insurance, and workers’ comp malfeasance.
Codes and Standards | May 26, 2021
Proposal to add photovoltaic panels to the R2 Standard for electronics recycling
Hundreds of facilities in 33 countries could begin recycling PVs.
Codes and Standards | May 25, 2021
International Energy Agency lays out roadmap to net zero
Focus is on energy generation, but building efficiency also plays a role.
Codes and Standards | May 24, 2021
Biden Administration will make new investments in building energy efficiency
Focus on grid-interactive buildings; Energy Star expansion; new targets for energy, water reduction.
Codes and Standards | May 20, 2021
Solar panel trade group issues guidelines to rid use of components built with forced labor
Growing concern that PV industry is dependent on work camps in China.
Codes and Standards | May 19, 2021
Smart electric panels can aid transition to renewable energy
Allow customers better control of circuits; utilities can better manage demand.
Codes and Standards | May 18, 2021
Cross-laminated timber performs better than expected in shear test
Tests conducted in support of new criteria for design of CLT diaphragm.