Green building value proposition, target market, and sales channels

Green Value

Green Home Building

Green building: Value, assumption, sales, and distribution

Value proposition

Jason Hartke of the U.S. Green Building Council has said America has the opportunity to offset 85% of the country's incremental energy demand by 2050 provided it adopts a more aggressive stance towards subsidizing green building structures (Lefkowitz 2009). The new administration has heard his call: green building provisions in the stimulus bill have made more funds available than ever before for the green construction of new buildings, including $9 billion for school construction; $2.2 billion to state energy efficiency programs; as well $5 billion for weatherization of existing structures (which will cover an estimated 1 million homes) and additional billions for renewable energy that can be used in green applications such as solar panels on residential rooftops (Lefkowitz 2009).

The assumptions about the target market in green home building

Although green building does result in long-term savings, the structures can be more costly in terms of their initial outlay. Consumers for green building are likely to be forward-thinking, conservative financially (given that they have not over-leveraged themselves during the housing boom), young, liberal in terms of social policy and live in areas of the nation where green building is a cultural or practical concern (such as Arizona and California's drought-ridden areas or areas with high seasonal energy needs such as New England or the Southeast). They are money savvy even though saving money on upfront costs are not their first priorities. They are also more likely to be highly educated, have two-income families, and to live near city structures, given the commuting demands of their jobs.

Sales and distribution channels of green home building

Many local and regional organizations exist to educate the public about the benefits of green building and can thus raise demand for these structures, as well as provide networking opportunities between contractors, architects, and other individuals within the industry. Additionally, The U.S. Green Building Council is a non-profit organization that provides certification for officially 'green' structures. The Environmental Protection Agency and U.S. Department of Energy provide information about Energy Star products in their website, including a list of products that can go into the refurbishment or construction of a greener home, such as energy-efficient windows.

The role of the Internet and any global alliances in green home building

The U.S. Department of Energy and Environmental Protection Agency both advocate the use of green improvements, as well as building materials on their websites. The World Green Building Council is an international organization that provides links to green builders and organizations around the world with a commitment to sustainability.