How can you get government and non-government incentives for green building?

1 Types of incentives

Different types of incentives are available for green building, depending on the goals, criteria, and funding sources. Grants, which are non-repayable funds awarded to eligible applicants, can cover the costs of design, construction, certification, or retrofitting. Tax credits reduce the amount of taxes owed based on an investment in green building. Rebates are refunds or discounts for certain green building products or systems. Loans provide borrowed funds with lower interest rates or more favorable terms than conventional loans. Lastly, awards recognize excellence or innovation in green building and come with monetary or non-monetary benefits.

2 Benefits of incentives

Incentives for green building have a range of advantages, not only financial but also environmental and social. These include lower costs, increased value, a competitive edge, environmental impact, and social impact. Reduced costs can be achieved through receiving incentives, leading to a decrease in the initial investment and payback period for green building, as well as savings on energy and water bills, maintenance, and insurance. Additionally, by improving the building's performance, appearance, and comfort the marketability, occupancy, rentability, resale value and return on investment can be increased. Demonstrating a commitment to sustainability and social responsibility can differentiate you from other developers, attracting customers, investors and partners who share your values and vision. Moreover, reducing greenhouse gas emissions, waste generation and resource consumption can contribute to mitigating climate change, preserving natural resources and improving air and water quality. Finally, creating healthier, safer and more inclusive spaces for occupants can improve their well-being, productivity and satisfaction while fostering social equity and diversity.

3 Sources of incentives

Green building incentives are available from both public and private sectors. Government sources, such as the Department of Energy, the Environmental Protection Agency, the Department of Housing and Urban Development, and the Internal Revenue Service, often provide incentives to promote their policies and programs on energy efficiency, renewable energy, water conservation, and other environmental issues. Additionally, non-governmental organizations like foundations, associations, and institutes offer incentives to support their missions and initiatives on sustainability, innovation, and education. Examples of these organizations include the U.S. Green Building Council, the American Institute of Architects, the Energy Star program, and the Database of State Incentives for Renewables and Efficiency.

4 How to apply

The application process for incentives for green building can vary significantly, depending on the type, source, and requirements of the incentive. To begin, you should research the incentives that apply to your project by using online tools such as DSIRE database, Energy Star rebate finder, and LEED incentives database. Additionally, you can consult with your local utility company or green building consultant for more information. After identifying the incentives you are interested in, plan your project accordingly. You may need to meet certain criteria or provide documents to prove eligibility and compliance. When ready to apply for the incentives, follow the instructions and deadlines of the funding source. You may need to pay a fee or provide a match. Upon receiving the incentives, you may need to report on your project's progress or impact and submit periodic reports or invoices. Acknowledging the funding source and displaying a logo may also be necessary.

5 Tips and best practices

To increase your chances of getting incentives for green building, you should start your research and application as soon as possible, as some incentives may have limited availability. Additionally, explore different options and combinations that suit your project's needs and goals. Be strategic about which incentives you apply for, focusing on the most relevant and beneficial ones. Additionally, don't underestimate the complexity of applying for incentives; do your homework, gather your data, and prepare your documents. Be organized, accurate, and thorough. Lastly, be proactive, responsive, and courteous to increase your chances of success.

6 Here’s what else to consider

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