The common misconection is that if a project is going to concern itself with energy efficiency, it is difficult to make money. Many developers may fear that following a 'green' agenda will delay project schedules and raise costs.

The reality, however, is that a well-executed energy efficient project performs extremely well financially. In fact the financial reward of green developments are now bringing mainstream developers into the fold at an increasing pace. It is now the norm to do well financially by doing the right thing environmentally.

Reduce Capital Costs

An environmentally responsible project can reduce capital costs in a number of important ways:

• mechanical systems can be downsized or even eliminated through smart energy design
• carrying costs may be reduced from faster approvals
• costs of infrastructure, such as storm sewers, can be lowered by relying on the land's natural features

For example, Wade Williams Young + Architects, the architects for the University of Victoria's Engineering Laboratory Wing, were able to cut capital costs significantly by eliminating the perimeter heating system in the 127,800-square foot project. They did this by designing a high-performance building envelope. The project came in under budget.

Reduce Operating Costs

Most energy efficient projects have far lower operating costs than conventional projects as a result of their greater emphasis on resource efficiency. Savings are usually easiest to measure by looking at the energy saved, but can also be realized through reduced water demand, lower maintenance requirements, and a reduction in waste generation.

Savings in operating costs for businesses flow directly to the bottom line, increasing net operating income. This, in turn, can lead to higher return on investment and the value of the building. Operating savings that are passed on to the tenant can result in favourable leasing arrangements and higher occupancy.

Health and Productivity

Studies have revealed another compelling argument for green development. Improved lighting, heating and cooling typically undertaken for energy savings can make workers more comfortable and productive.

An increase of just 1% in productivity can result in savings that exceed the company's entire energy bill. According to one study, productivity gains of 6 to 16% have been reported, including decreased absenteeism and improved quality of work.

Higher lease rates and greater return on investment can result if the tenants understand the benefits. Most energy efficient design practices are cost-effective just from their energy savings; the resulting productivity gains make them indispensable.

Energy

Energy planning is the most obvious application of end-use/least-cost thinking. By addressing operating energy use up front and considering how to meet energy needs at the lowest total cost, tremendous savings can be realized - not only savings in operating energy bills, but often savings in capital costs as well.