The Real Cost of Green Building

Green building is one of the hottest topics in the home building industry right now and it is definitely one of the trends of 2010 that is going to extend into 2011 and beyond. One of the challenges that builders face today is communicating the real cost of green building to our customers and helping them find ways to get the payback from their initial investment.

Building green into your home or office building often comes with a pretty high price tag. From recycled materials to tankless water heaters, the resources used for sustainable construction are more expensive than their traditional counterparts. So what is the true payback and how does that affect the cost of going green?

Let's look the example of tankless water heaters:

Tankless water heaters are both cheaper to operate, especially if they are gas based, and they have a service life that is double that of tank-based systems. If you are staying in your home for an extended period of time, you will definitely realize the payback of a system that is 20-40% more efficient than a tank-based system and will last a good 20 years. Tankless heaters also take up less space in the home. Additionally, state and federal rebates or tax savings can be realized with the installation of Energy Star rated products. Some utility companies offer rebates on first purchases as well. The up front cost? Tankless heaters are 2-3 times more expensive than traditional tank heaters - anywhere from $600 - $1500.

Is the investment worth it? It may not be for everyone, so be sure to do your homework and work with your builder or remodeling contractor to understand the type of system you are interested in, how it will work with your electric or gas system and what the rebates are for your product.

Other energy-savings products that will make your home more efficient are insulation, HVAC systems and windows. Talk to your builder not only about the products, like spray foam insulation and e-glass, but about the techniques as well. If you have sticker shock on some of the highest energy rated products, make sure that your builder is following best practices in the installation process - like making sure the duct work and windows are properly sealed and that the HVAC system is the right size for your home. 

Everyone wants to go green, and we should. It's the responsible, long-term solution to become a cleaner, safer and more efficient society. Just be aware that the cost of building a green, sustainable home with the latest products and technology can come with a hefty price tag that can add thousands of dollars to your project's bottom line. Ask yourself if you are ready to pay for the gold standard in high-performance, sustainable building practices; and ask your builder about the best ways to achieve your goals and help you make your home affordable and efficient.