Cost and Payoff
The most criticized issue about constructing environmentally friendly buildings is the price. Photo-voltaics, new appliances, and modern technologies tend to cost more money. Most green buildings cost a premium of <2%, but yield 10 times as much over the entire life of the building. The stigma is between the knowledge of up-front cost vs. life-cycle cost. The savings in money come from more efficient use of utilities which result in decreased energy bills. It is projected that different sectors could save $130 Billion on energy bills. Also, higher worker or student productivity can be factored into savings and cost deductions.
Studies have shown over a 20 year life period, some green buildings have yielded $53 to $71 per square foot back on investment. Confirming the rentability of green building investments, further studies of the commercial real estate market have found that LEED and Energy Star certified buildings achieve significantly higher rents, sale prices and occupancy rates as well as lower capitalization rates potentially reflecting lower investment risk.
Read more about this topic: Green Building
Famous quotes containing the word cost:
“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
—Calvin Coolidge (1872–1933)