How much does it cost to build a green home? Zero energy ready homes may cost more to build/buy, but far less to operate. Once built, a green | sustainable home delivers a lifetime of energy savings. Here’s a look at the trade-off. Perhaps the value of a sustainable home is more than simply a ROI calculation. Maybe it should be a Return on Green = ROI + ROH + ROL + ROF (Investment, Health, Life and Future).

Depending on the size of the home, the capacity of the PV system and other key components, recent studies have found that a Green Home | Zero Energy Home will:

• Cost 12% to 20% above a home built to minimum code before rebates and tax incentives.
• Cost about 5% above a home built to minimum code after rebates and tax incentives.
• Result in $1,500 to $1,800 total cost savings annually – energy savings offset by any higher financing costs.

The bottom line for long-term housing costs is that lower energy costs for a green home allow homeowners to recoup the higher purchase price in four to eight years. That’s a very short payback time! From that point forward, homeowners get the best of both – a green home and lower total expenses for mortgage and operating the home.

The thirty-year financial analysis reveals significant savings for the net zero residential options. The chart above slhows the cumulative 30-year capital (green and purple), operating (blue), and finance (red) costs. The dashed line shows the approximate cost for a net zero building with a 30% federal tax credit for the PV system. Net zero residential options are a cost-effective investment today and provide substantial savings over code buildings.

When buying an older home, it is important to remember future costs when updating the house. In colder climates, this generally means re-insulation.