“How much more will it cost?”
That’s always the first question from someone just beginning to explore green building. The answer will always be: “It depends.” A comparable question could be, “How much does a car cost?” That answer also requires more information. Is it a Hyundai or a Mercedes?
While size and materials used can significantly shift the price of a home, recent studies suggest the costs of building green as opposed to using standard methods aren’t necessarily a lot higher.
The following variables have the largest impact on cost.
• How green do you want to be?
The answer to this question requires that you identify exactly what green building practices or products you will use that differ from conventional construction. This process means gathering detailed data from consultants, vendors and subcontractors and then value-engineering based on selections.
All major green building programs offer various levels of green certification to meet the consumer’s desires. The National Association of Homebuilders’ National Green Building Program offers four levels of certification: Bronze, Silver, Gold and Emerald.
A recent study conducted by the NAHB on a home in Texas compared the cost of a home built to minimum building code as compared to the green program. The costs to achieve the minimum level of green certification under the NAHB program were 1 percent to 2 percent higher. Comparatively, to achieve a higher level of certification, the Gold level, construction costs increased by 7 percent to 8 percent for the NAHB program. Additional information on the building program is available at www.nahbgreen.org.
• Builder/designer experience
The adage “experience is the best teacher” certainly holds true for green and energy-efficient construction. A builder’s first “green” project will be the most expensive — some studies suggest as much as 5 percent higher. Reasons for this include the lack of readily available sustainable building materials, mistakes and subcontractors that charge a premium for using new materials and techniques.
Proper planning for green features early in the design process, selecting locally available materials and hiring subcontractors that have an environmentally friendly attitude can reduce green building costs to be about the same as conventional construction. For example, a slight decrease in size combined with better up-front design may be a break-even proposition, or better windows and insulation may be offset by reductions in the size of the mechanical equipment.
Part of this learning curve is to incorporate green design early in the process. To make the home as energy-efficient and cost-effective as possible the house needs to be sited so that the majority of its windows face south. Passive solar heating can reduce heating bills by 30 percent to 50 percent with little or no additional cost. The cost premiums, when they exist, will disappear as energy prices increase and the value of green becomes more apparent.
It is my experience that a policy of “practical green building” — incorporating building features into a home to make it more energy efficient, more durable, with healthier indoor air quality — results in costs from 1 percent to 5 percent higher than conventional construction costs. The resulting energy and water savings on monthly utilities make green building economically efficient and can result in a payback in five to eight years.
Studies show that green buildings are frequently more efficient buildings and have higher resale values. It is a pretty safe bet that energy prices will continue to rise over the life of the home, making energy-efficiency investments in a home the best investments you can make today.
Scott Allred is chairman of the Triad Green Building Council and the owner of Precept Construction. He can be reached at scott@preceptconstruction.com or 286-6811. For additional resources on green building, visit www.preceptconstruction.com or www.triadgreenbuilding.org.
