Building a new facility in a sustainable way doesn't necessarily mean higher costs. In fact, there are numerous avenues where sustainable design and construction practices can lead to significant financial benefits. By leveraging your strategic partnerships and existing programs, building owners can unlock incentives and rebates that enhance both the environmental and economic value of their projects.
Mortenson and our team of sustainability experts help customers navigate the following programs:
Forming Strategic Partnerships
To maximize the financial benefits of sustainability in your construction project, it's crucial to build strong partnerships with builders, architects, and engineers. They can help you tap into existing programs to aid in financing and unlocking rebates for sustainable projects, which can significantly offset initial investment costs.
Exploring Utility Rebate and Incentive Programs
Local utility rebate and incentive programs offer two primary pathways to financial savings. The first provides financial rebates for upgrading individual pieces of equipment, such as replacing an old boiler with a high-efficiency model. The second takes a holistic approach by evaluating the entire building's performance, including elements like insulation and windows as well as things like the boiler. By bundling these options, design teams can maximize the incentives offered by utility companies.
Navigating Federal and State Grants
While federal and state grants can be complex, they present valuable opportunities for funding sustainable initiatives. These grants are available at multiple levels—state, federal, and local—and require thorough research. Forming a dedicated team to manage the research and application process can yield significant financial support for sustainability projects.
Utilizing Tax Incentives
The Inflation Reduction Act (IRA) and the 179D tax deduction offer additional financial incentives for sustainable building projects. These provisions allow for rebates on individual equipment and offer tax deductions for both new and existing buildings. Moreover, these deductions are retroactive, enabling stakeholders to amend previous tax returns and capitalize on savings.
By exploring utility programs, understanding grant opportunities, and leveraging tax incentives, construction projects can achieve sustainable success without breaking the bank. Strategic partnerships and informed decision-making are key to realizing these benefits, ultimately leading to more sustainable and financially viable construction projects.
Case Study: Successful Implementation
Sustainability mattered to the City of Minneapolis when they were designing their new 380,000 square foot public service building. Mortenson did a full lifecycle analysis (including carbon footprint impacts) to validate whether district energy or a stand-alone system would be more cost effective with the least impact on the planet.
The City collaborated with Mortenson and the design team to select a stand-alone system and utilized the Energy Design Assistance Program through CenterPoint Energy along with rebates from Xcel Energy. They designed a system with higher efficiency and lower lifetime operating costs that resulted in a remarkable $135,000 incentive and 33% reduction in energy costs. These savings not only provided immediate financial benefits but also contributed to long-term sustainability goals.
