The Costs and Financial Benefits of Green Buildings

California’s Sustainable Building Task Force commissioned this October 2003 report to assess the costs and financial benefits of constructing green buildings in California. Based on a review of the construction costs of 33 green buildings in the United States, and factoring in the cost of energy, water, and waste disposal in California, the report demonstrates that it costs nearly 2% more on average — or $3 to $5 a square foot — to construct a green building than one using conventional methods. However, that cost premium yields savings of more than ten times the initial investment — or $50 to $75 a square foot — during the life of a building, conservatively assumed to be 20 years.