Does eco-friendly actually pay off?

There’s no doubt about it. Building green requires more ‘green’ upfront. A small sacrifice for the environment. But is it worth it for the average consumer from an economic standpoint or is building green just another luxury that only the very few can afford?

How much more depends on which energy efficiency standard you choose. Simply building to comply with the EnerGuide 80 rating costs 1.1% to 1.4% more than conventional construction. A high-performance LEED Gold-standard will likely cost 5% more.

Seemingly small increases, but factored over the cost of the typical 2,200 square foot home, it adds up. At a cost of $150 per square foot, the typical home costs approximately $330,000 to build. Going green adds another $4,620 to $16,500 to the price tag.

Do the math. Green homes boost energy savings of 20% to 90%. Building an Energy-Star certified home will add roughly $4,500, but use 28% less energy. So instead of paying $350 a month for energy, you would spend $250. Meaning the initial investment would be paid off within 4 years.

And there’s more good news for green building. A comparison of home sales showed that green-certified home sold for almost 6% more per square foot than conventional homes. LEED and other third-party certified homes fetched an impressive 10.5% premium.

Indeed, it seems that what’s good for the environment is good for your pocketbook, which is a step in the right direction for eco-friendly building.