Originally Posted by
ShootStraight
Ive crunched some numbers as I'm involved in a family business that build "green" homes and the economics are different for retrofits as they are for new building.
New "green" homes only cost 10-15% more to build than their traditional counterparts. This is utilizing smaller homes with much better insulation, geothermal, solar, community wind, renewable materials, and water permeable concrete. People are willing to pay 20-25% more for such homes and they cost 60% less to operate as well as higher resale values. You also get better zoning considerations usually, allowing for more coverage.
Economies of scale play a large part in making it a profitable venture that you just dont get from retrofitting older homes with newer technology. However, there are new innovations coming that might make retrofits more appealing and cost-effective though they will still be less competitive than their new-built counterparts. Its best to time, plan, and do any of those installs to coincide with a major remodel of the house as it will pretty much require that anyways - just prepare for an extra $100k-$200K depending on what youre going to put in. Whatever you dont amortize will likely be extracted on sale as people are willing to pay premiums for it, and homes sell quicker.
-SS