Business Case Analysis of Real Green Building Systems, LLC Technologies
Real Green Building Systems, LLC offers environmentally friendly home designs with five synergistic systems: plumbing-based fire protection, solar thermal heating and domestic hot water, solar electricity, and recycled water. This home design fits with the green construction movement in the United States that has developed to the point where 20 percent of all newly built homes last year were “green,” with an overall $25B market value. The market is expected to grow to between 29% and 38% of new U.S. homes by 2016. Generally, materials and construction costs are somewhat higher (five to ten percent) for green homes, but some localities offer rebates form the state or utility to help offset this. Structural features that are typical include tightly insulated walls to prevent air escape, insulated foundations, and windows designed to capture heat. Other add-on systems include solar or geothermal heating or cooling, and solar electric. A mechanical air exchange system may be needed to ensure good air quality given the tight nature of the house. A green home is desirable to buyers who are looking to save utility bills or reduce dependence on the grid. Often buyers are at or nearing retirement, and such a home can reduce volatility of energy costs long term. Owners may need education on the systems to feel comfortable with the relatively novel active technologies. Passive systems such as thick walls with better insulation need no maintenance or training, and can be quiet, medically safer, and more comfortable. The resale value of a green home appears to be somewhat higher than conventional homes. California data suggest a premium of about nine percent on green home sales prices. One of the key differences in RGBS homes is the fully insulated, fire-protected multi-purpose room instead of a garage. A “garage” in normal houses is not suitable for uses other than storage and parking vehicles. But RGBS designs this area to be conditioned floor space, equivalent to the rest of the home with the only difference being an overhead door. In fact, most home owners do not use a garage to store their car—a recent study showed that about 75 percent of garages are used for other purposes. This is explicitly recognized in the RGBS design, with the conditioned space made fully functional for all uses. A key benefit of this is also that the space can be counted as living space for appraisal purposes, which leads to a lower cost per square foot for the home in addition to increased functionality.