Comparing the purchase price of two items – without considering other aspects — rarely gives you a true cost comparison.
As a simple example, one bottle of orange juice may be priced higher than another simply because it’s a larger bottle (with more juice).
Or it may be 100% juice compared to a watered-down version.
Or it may be made from organic oranges with no pesticides.
On top of that, there’s the issue of preference. You may be prepared to spend extra for an orange juice that has the pulp removed. Or because you like the taste of one brand more than another. Or even because you have an affinity with the celebrity who appears in the advertising.
True cost of ownership is a calculation that involves many factors. When it comes to comparing prices of an energy-efficient home vs a standard home, here are some of the factors to consider:
Purchase Price
There is no doubt about it, an energy-efficient home costs more to build. How much depends on the level of efficiency you desire. The construction cost of a Passive House (the ultimate ‘Rolls Royce’ in energy efficiency) can be 5-10% more than that of a standard, custom house. While the benefits are significant, not everyone requires this supreme level of energy efficiency, despite the advantages. Keep reading to discover some of these benefits:
Energy Savings
Energy-efficient homes use significantly less energy than standard homes. So the ongoing expense in heating and cooling is far lower. How much lower?
It’s not uncommon for a genuinely energy-efficient home to use 60%-80% less energy. That could easily add up to a saving of $2,000 a year. Living in the home for 30 years could save you $60,000 in today’s dollars (and even more as energy prices continue to increase).
Sadly, not all energy-efficient homes are equal. Be sure your builder is qualified and experienced to deliver a home that truly is energy efficient. Otherwise you’ll end up overpaying for a home that offers little benefit.
Maintenance Savings
Energy-efficient homes are designed and constructed to a much higher standard and require far less ongoing maintenance. Savings can add up to thousands each year through less painting, less cleaning (especially moisture related issues like mould), and less repairs (e.g. no ceiling leaks, fewer cracks above doorways, no popped ceiling screws etc.). Note: may need to check / add to these.
Longevity and Sustainability
Not only will you save money each year in maintenance, every aspect of your energy-efficient home will look better and last longer. Your kitchen and bathrooms will last longer before needing to be replaced. Doors and windows will operate more smoothly and last years longer.
However, it’s important to seek expert advice in this area. Because not all product claims are true. And some building materials do not provide the sustainability, longevity, and energy-efficiency that they claim. For example, Shou Sugi Ban (burnt) cladding has become a popular product for sustainability. But when you consider the ongoing maintenance (oiling and sealing), other products could be considered far more sustainable and cost-effective.
Resale Value
Energy-efficient homes (particularly Certified Passive Houses) are highly valued and sought after in the Adelaide Hills. This leads to more interest which means faster sales and higher prices at resale.
Aesthetic Appeal
The high-quality construction and attention to detail in an energy-efficient home looks noticeably better than a standard home. You’ll enjoy this premium appearance and feel proud every time somebody visits.
A Comfortable, Healthy Home
The most valued benefits of an energy-efficient home are comfort and health. A combination of the right design, the best building products, and extra thought and attention to detail in an energy-efficient home adds to the functionality, making your home more comfortable and convenient to live in.
You’ll also enjoy a consistent temperature – floor to ceiling, room to room, all year round (with less need for heating and cooling). This more stable temperature, combined with lower moisture levels, keeps your home free from mould. The result is a healthy home that is supremely comfortable all year round.
Free Advice To Ensure You Get The Best Value In Both Purchase Price And Overall Cost Of Ownership
Building a comfortable, energy-efficient home (at an economical price) takes specialised knowledge and experience in design, product choice, and installation. Not to mention integrity to give you accurate, truthful information so you can make informed decisions.
Whether you’re ready to build or still looking at your options in building an energy-efficient home, we’d be glad to show you examples of homes we’ve built. We’ll explain everything about the design, materials, construction methods, and attention to detail that make each house energy efficient. And we’ll walk you though all the details including pricing, scheduling, and true cost of ownership.
