Sustainable Construction Practices and Utility Incentives

What Developers Should Know About Utility Incentives for Sustainable Construction 

With climate change causing unprecedented weather events and creating urban environmental challenges, it is increasingly crucial for developers to improve their building construction, particularly their energy utilization.

Sustainable construction practices, such as energy resources and efficiency, are essential during planning and construction and during occupancy and maintenance. They help address many operational hurdles, provide alternatives to nonrenewable resources, and, in many cases, act as financial boons. 

Why Should Developers Choose Sustainable Construction Practices?

As sustainable practices in construction become more mainstream, developers and contractors are reaping the advantages. Here are some of the benefits of green construction, particularly in utility:

Higher Market Value

Due to their rising popularity and the shift in people’s mindsets toward eco-friendly practices, sustainable buildings fetch more value on the market. In the U.S., green certification promotes a positive approach toward potential rent increases of about 10% for certified spaces compared to conventional ones. In addition, 63% of realtors said mentioning energy efficiency in their listings was valuable. 

Waste Reduction

A building using alternative energy sources, like thermal or solar, or promoting recycled water practices allows better resource optimization and dispensation. This reduces waste and improves utility efficiency in the building.

Customer Satisfaction

In a 2021 study, 78% expressed concerns about the environmental impact of their homes. Buildings with sustainable features like better ventilation, natural lighting and renewable resources promote healthier living standards, improving tenants’ satisfaction with the development.  

Financial Efficiency 

Sustainable buildings prioritize green practices, building long-term energy and water efficiency. They also reduce maintenance and repair costs for developers and management throughout the building’s life cycle. Sustainable projects also qualify for various incentives, including utility-focused ones, to assist construction and maintenance.

How Can Utility Incentives Benefit Construction and Business?

Utility incentives can greatly help developers throughout a project’s life cycle. They can also improve operations and project management.

When a development project is incentivized, the cost is reduced, significantly improving cash flow and capital expenditure. It also allows better risk mitigation since the developer invested less than intended with the implementation of incentives. 

Utility incentives usually require adherence to a specific set of green goals. Some incentives are prescriptive, where the initiative decides the amount of incentive the project is eligible for. By qualifying for these incentives, projects have a better chance of improving compliance with sustainability targets. 

Some utility incentives also require projects to use cutting-edge innovation and technology. This allows projects to stay ahead of competitors while creating an avenue for their growth and expansion. 

How to Look and Apply for Utility Incentives

To receive incentives for their projects, developers must undertake different strategies. Below are steps to ensure the right incentive for the project and maximize results:

  • Identify the measure: The developer must first recognize the initiative they want to implement, as well as its cost, resources, and desired results. This will help them search for and win the right incentive more efficiently. 
  • Look for incentives: Many databases house comprehensive lists and details about incentives from both the government and private sectors. Despite its popularity, green roof incentive uptake remains scarce among properties, with only 14 receiving tax breaks since 2011 in New York. This means developers have vast opportunities for untapped incentive potentials that they can apply for. Use these to collect information and prepare any needed eligibility and compliance documentation.
  • Hire green consultants: This is optional, but a green consultation could help identify the correct initiative for the project, prepare documents and apply for incentives.
  • Follow application steps: Pay attention to requirements, deadlines, fees, if applicable, and other details. 
  • Adhere to periodic progress reports: Depending on the incentive, the developer may need to submit reports, invoices or data to show compliance with the initiative. 

Incentives Can Help Improve Sustainable Construction Practices

Dynamic approaches like incentives and aids can help authorities further improve green practices in the construction industry. Developers must recognize their projects’ potential when paired with green utility technology. These utility incentives could pave the way for developers to decarbonize their operations and improve their business ethics via sustainable practices.