Analysis Of A Complete Project

When the team analyzes credits or solutions, there are many synergies that should be reviewed. Many credits and solutions on LEED projects are directly related to other elements within the project. These opportunities provide the team to really accelerate the benefit curves for projects and reduce the life-cycle paybacks of many items.

Figure 8.8

---SKYLIGHTS & FLOORPLATE

Cumulative cash flow EQ Credit 8.1: daylight and views—

Figure 8.8

---SKYLIGHTS & FLOORPLATE

Cumulative cash flow EQ Credit 8.1: daylight and views—

TABLE 8.9 INDOOR ENVIRONMENTAL QUALITY: CREDIT 8 DAYLIGHT & VIEWS

LEED CREDIT

LEED CREDIT

SOLUTION #1

SOLUTION #2 NORTH

INTERIOR AND

FACING SKYLIGHTS

NON-LEED

EXTERIOR LIGHT

AND FLOOR PLATE

BUILDING

SHELVES

RECONFIGURATION

Soft Cost

None

Additional daylight

Additional daylight

Impacts

modeling $10,000

modeling $20,000

Hard Cost

None

1. Exterior daylighting

1. North facing skylights and

Impacts

shelves $80,000

light wells $120,000

2. Interior daylighting

2. Floorplate reconfiguration

shelves $60,000

with additional exterior

3. Reduced

skin $120,000

lighting density

3. Reduced lighting

savings $40,000

density savings $60,000

Life-Cycle

None

1. Energy cost reduction

1. Energy cost reduction

Benefits

$15,000/year

$15,000/year

2. Productivity/retention/

2. Productivity/

absenteeism

retention/absenteeism

enhancement

enhancement

$100,000/year

$100,000/year

TABLE 8.10 EVA BENEFITS

CATEGORY/CREDIT

PLANET

PROFIT

PEOPLE

SUSTAINABLE SITES

Stormwater Design

Yes

Yes

Yes

Heat Island Effect

Yes

Yes

Yes

WATER EFFICIENCY

Water Efficiency Landscaping

Yes

Yes

Yes

Water Use Reduction

Yes

Yes

Yes

ENERGY & ATMOSPHERE

Optimize Energy Performance

Yes

Yes

Yes

On-Site Renewable Technologies

Yes

Yes

Yes

INDOOR ENVIRONMENTAL QUALITY

Construction IAQ Management

Yes

Yes

Yes

Daylight & Views—Daylight

Yes

Yes

Yes

When the team finds credits that align with the owner's Triple Bottom Line Goals, then they can evaluate the level of certification to which the project will aspire. The life-cycle benefits of building green depend a great deal on the inflation of the operational cost factors. Operational costs such as energy, water, and maintenance are trending higher each year. Some operational costs are increasing fast, some as high as 10 percent or more per year. When analyzing the life-cycle benefits of building green, these factors should be taken into account.

We will now evaluate a complete example LEED project. We have evaluated all four levels of certification to produce this data. Soft and hard costs have been calculated just as in the previous examples. Also, life-cycle benefits were calculated for all four levels of certification, for an analysis period of 10 years. The impact of inflation (above nominal rates of 3 percent) on the benefits was also evaluated and is shown for a 0 percent (Fig. 8.9) and 5 percent rate (Fig. 8.10). These examples highlight the importance of factoring in the inflation rates for operational costs when evaluating green building options, since many green building measures involve adding costs upfront to receive a stream of benefits later (such as savings in energy and water costs).

In Table 8.11, you can see the net benefits increase at each higher level of certification. Ironically, the Silver and Gold certification levels yield a faster payoff than just plain Certified, breaking even in the second year. Even the Platinum certified building in this analysis breaks even in the third year, without assuming any inflation of energy or water costs, for example.

Figure 8.9 LEED sample project cumulative cash flow (0% benefit inflation).

Figure 8.10 LEED sample project cumulative cash flow (5% benefit inflation).

Paul Shahriari, GreenMind Inc.

Figure 8.10 LEED sample project cumulative cash flow (5% benefit inflation).

Paul Shahriari, GreenMind Inc.

TABLE 8.11 CUMULATIVE CASH FLOW—0% INFLATION ON BENEFITS (ENERGY COSTS, WATER COSTS, OPERATIONS AND MAINTENANCE, AND SO ON)

LENGTH OF ANALYSIS

CERTIFIED

SILVER

GOLD

PLATINUM

Year 0

$70,500.00

$100,500.00

$145,500.00

$215,500.00

Year 1

$36,250.00

$40,250.00

$72,250.00

$132.250.00

Year 2

$2,000.00

$20,000.00

$1,000.00

$49,000.00

Year 3

$32,250.00

$80,250.00

$74,250.00

$34,250.00

Year 4

$66,500.00

$140,500.00

$147,500.00

$117,500.00

Year 5

$100,750.00

$200,750.00

$220,750.00

$200,750.00

Year 6

$135,000.00

$261,000.00

$294,000.00

$284,000.00

Year 7

$169,250.00

$321,250.00

$367,250.00

$367,250.00

Year 8

$203,500.00

$381,500.00

$440,500.00

$450,500.00

Year 9

$237,750.00

$441,750.00

$513,750.00

$533,750.00

Year 10

$272,000.00

$502,000.00

$587,000.00

$617,000.00

TABLE 8.12 CUMULATIVE CASH FLOW TABLE — 5% INFLATION ON BENEFITS (ENERGY COSTS, WATER COSTS, OPERATIONS AND MAINTENANCE, AND SO ON)

LENGTH

TABLE 8.12 CUMULATIVE CASH FLOW TABLE — 5% INFLATION ON BENEFITS (ENERGY COSTS, WATER COSTS, OPERATIONS AND MAINTENANCE, AND SO ON)

LENGTH

OF ANALYSIS

CERTIFIED

SILVER

GOLD

PLATINUM

0

$70,500.00

$100,500.00

$145,500.00

$215,500.00

1

$36,250.00

$40,250.00

$72,250.00

$132,250.00

2

$287.50

$23,012.50

$4,662.50

$44,837.50

3

$37,473.13

$89,438.13

$85,420.83

$46,945.63

4

$77,121.78

$159,185.03

$170,216.66

$143,317.91

5

$118,752.87

$232,419.28

$259,252.49

$244,508.80

6

$162,465.51

$309,315.25

$352,740.11

$350,759.24

7

$208,363.79

$390,056.01

$450,902.12

$462,422.20

8

$256,556.98

$474,833.81

$553,972.23

$79,463.31

9

$307,159.83

$563,850.50

$662,195.84

$702,461.48

10

$360,292.82

$658,318.03

$775,830.63

$831,609.55

When we assume an increase of 5 percent annually on the benefits side, the breakeven years stay the same, but the Gold project, for example, has 30 percent greater benefits over the 10-year planning horizon (Table 8.12). For an institution or large corporation that has a long-term owner-operator perspective, assessing costs and benefits over a 10-year planning horizon is not unusual. When the benefits are known or can be estimated easily, then the issue is not "should we do this," but "how are we going to pay for it?" In other words, the decisions are financial and not economic in nature, because the economic value is quite clear.

Renewable Energy 101

Renewable Energy 101

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.

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