The economic value of making your building eco-friendly

It is widely recognized that greenery plays a crucial role in the built environment. Plants offer numerous climate and health advantages. However, incorporating greenery into and onto buildings is not always straightforward. Greening is frequently considered a final line item in the budget, and in the last phase of a construction project, green solutions are sometimes eliminated if the budget becomes constrained. This is an imprudent decision, as they actually generate revenue! In this blog, we elucidate why a green building is an investment that quickly pays for itself.

What are green buildings?

A green building is a structure that incorporates sustainable solutions. Sustainability, environmental friendliness, and resource efficiency are of utmost importance during the design phase (architect), construction phase, use phase, and decommissioning. Green buildings smartly utilize energy, water, and (scarce) materials. Moreover, they aim for a healthy indoor environment, free from light or noise pollution. The emission of CO2 is, of course, out of the question. Prime examples of greenery utilized in or on a building include green roofs, with or without solar panels, or an interior or exterior living wall.

The economic benefits of a Green Building

But what will that investment in a Green Building really yield? We’ve listed the economic benefits for you below.

Your property is worth more

A clear advantage, which is directly measurable financially, is that the value of a green building is between 4 and 12% higher than a building without sustainable solutions. Research into houses has shown that properties surrounded by green and blue elements have a higher market value on average, sometimes even rising to a maximum of 30%.

Decreasing healthcare costs in hospitals

For hospitals, the application of greenery yields many healthcare benefits. For example, scientific research has shown that patients use up to 30% less pain medication when they stay in a greener environment1. It has also been measured that if patients have a view of a green roof from their hospital room, they, on average, stay 1 day shorter in the hospital².

A green view even helps people recover from stress, which in turn can reduce the risk of stress-related illness. Because fewer drugs would need to be used and the length of stay in a healthcare institution is shorter, healthcare costs would fall significantly.

Higher productivity through improved employee wellbeing

When employees work in a green environment, they feel better, and their productivity increases. A study has shown that when employees take a 40-second break while looking at a green roof versus a black roof, those who looked at the green roof make fewer errors in their task³. Another factor that can be very disturbing while working is noise pollution. The combination of vegetation and substrate of green roofs and walls ensures a noise reduction of 10dB4.

For example, less noise nuisance is experienced during work and people can concentrate better. This makes green roofs and facades even more interesting as an application in an environment with traffic noise, railways, and other noise sources. Better concentration and fewer errors lead to higher productivity and, in turn, greater profitability for the company.

Evaporation of rainwater on a green roof saves water treatment costs

On traditional gray roofs, rainwater is discharged directly through the sewage system. Increasingly, governments are enacting laws that require building owners to collect and process all this rainwater runoff efficiently. To reduce the costs of this water treatment, installing green roofs is effective. The plants and the substrate on the green roof absorb water, whereby on average 50% of the rainwater will be released back into the atmosphere through evaporation.

If all roofs in a neighborhood were green, the required sewer overflow volume would also decrease by 50%. This significantly reduces the societal costs for water treatment plants. Not to mention the positive impact of Retention and Detention Roofs. It can therefore be very attractive for authorities, such as municipalities, counties, and water boards, to grant subsidies to their residents for the construction of green roofs, because this allows them to save considerably on the costs of water treatment.

Higher efficiency of solar panels in combination with a green roof: 6% more energy

Solar panels provide 6% more energy per year in combination with a green or green-blue roof. The PV panels function optimally at a temperature of 25°C. On a black roof, the temperature on warm sunny days can quickly rise to as much as 80°C, reducing their efficiency. As long as the plants on the green roof can evaporate water, it will not get warmer than 35°C on a green roof. The investment in solar panels in combination with a green roof is therefore quickly recovered thanks to the increased energy yield of the PV panels.

Grants and Tax Benefits on Green Roofs and Living Walls

Investing in a green building doesn’t only yield money afterwards. At the start of a green project, you often qualify for a subsidy or tax benefits. More and more countries, municipalities, counties, and water boards are granting subsidies for the construction of green roofs or green walls. In some countries, like Poland, property taxes are waived when it is greened with a green roof or living wall. In Germany, reduced stormwater fees or subsidies are granted to green projects. Check with your local authorities about the possibilities. Here are a couple of examples of schemes and subsidies:

• United States
• Poland
• Germany

Investing in a Green Building Yields Money!

It is a missed opportunity that initiatives for sustainable applications such as green roofs and green facades regularly fail in the budget discussion. It is a false assumption that an investment in greenery will not yield any money. Moreover, people are often not aware of subsidies or tax benefits. The summary in this blog outlines the many areas in which economic benefits can be achieved with the implementation of green solutions. In the short term, an investment in greenery will already pay off financially. Not only for companies and consumers, but also for governments.

More Information

Would you like to know more about how your building can become a green building? Let one of our green specialists inform you, no strings attached, they will be happy to help you.

Sources:
1+2) Nature and Health, Health Council, (2004)
3) 40-second green roof views sustain attention, Lee et al. (2015)
4) Sound reduction by vegetated roof tops (green roofs): a measurement campaign, T. Van Renterghem, D. Botteldooren, (2018)
5) Interaction between PV-systems and extensive green roofs, M. Köhler et al. (2007), p 14
6) Summary paper from 2016 with comparison of multiple studies
7) Variations of PV Panel Performance Installed over a Vegetated Roof and a Conventional Black Roof, Mohammed J. Alshayeb and J.D. Chang (2018)
8) Biosolar Roofs: A Symbiosis between Biodiverse Green Roofs and Renewable Energy, C. Catalano and N. Baumann (2017)