ThePaperGreenBuildingInstituteofEngnrs Final

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Incentivising the Green Building Practise

A PAPER

For the Symposium on Eco Friendly Materials and Techniques for Green Building

Technology

By

Sumantra Misra,

Practising Architect

Organised by

The Institution of Engineers (India)

Brahmapur Local Centre, Brahmapur, Odisha,

Under Architectural Engineering Division Board, Kolkata.

Under the Sub Theme of

Financial Scenario of Green Building Projects

Date

13h, 14th and 15th September, 2010

INTRODUCTION


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Energy efficient solar buildings are constructed based on the techniques of solar passivedesign with a view to provide comfortable living and working conditions, both in winter andin summer. These buildings can be integrated with renewable energy and energyconservation devices and systems and can save over 30 to 40 % of conventional energy thatis used for lighting, cooling or heating.

Such buildings have been tried out in a few States as a result of the initiatives taken by theMinistry. Finding the concept of solar buildings useful, the state governments of HimachalPradesh, Punjab, Haryana and Nagaland have already made it mandatory to construct allnew buildings in government & public sectors on this concept. Necessary G.O.s have beenissued and the development authorities have been asked to approve building plans forconstruction only if the designs incorporating solar passive features are certified byapproved architects or the experts. Over 40 experts/architects are presently involved in thecountry in practicing energy efficient solar buildings. Bureau of Energy Efficiency (BEE) haverecently introduced Energy Conservation Building Code (ECBC) which includes energyefficient design features. National Building Codes have also been developed by the Bureauof Indian Standards (BIS) which incorporates some of the concepts of energy efficient solarbuildings. Sufficient literature/ publications are also available for design of such buildings.

Efforts are now being made to construct Green Buildings all over the country which not onlytake care of energy conservation but also look into water and waste management,environmental impact, minimum destruction of natural resources and various other aspectsin an integrated way. Building Rating Systems have been quite effective in raisingawareness and popularizing energy efficient and green building design. Most of theinternationally devised rating systems have been tailored to suit the building sector of thecountry where they were developed. In India, a US based LEED (Leadership in Energy andEnvironmental Design) Rating System is under promotion by CII-Godrej Green BusinessCenter (GBC) which is more on energy efficiency measures in AC Buildings. A couple of otherRating systems suitable for Indian conditions e.g. TERI-GRIHA and Eco-Housing System havealso been developed by TERI and Pune Municipal Corporation respectively and are underpromotion in the country.

Keeping in view our climatic conditions, and in particular the construction of non-ACbuildings, a National Rating System GRIHA has been developed which is suitable for alltypes of buildings in different climatic zones of the country. The Rating System was initiallyconceived and developed by The Energy & Resources Institute, TERI. It has been modified asa National Rating System after incorporating various suggestions by a group of architectsand experts. It takes into account the provisions of the National Building Code 2005, theEnergy Conservation Building Code 2007 and other IS codes, local bye-laws, etc. Throughvarious qualitative and quantitative assessment criteria, GRIHA would be able to rate abuilding on the degree of its greenness. It will operate on a 100 point marking system with70 to 80 points to be obtained for 3 star rated buildings and 81-90 points for 4 star ratedbuildings. The rating would be applied to different types of new and existing buildings,whether commercial, institutional or residential.

A Memorandum of Understanding has been entered into between the Ministry and TERI

towards development and operationalisation of the National Rating System GRIHA forGreen Buildings. A National Advisory Council (NAC) has been constituted to provide adviceand directions to the National Rating System. A Technical Advisory Committee (TAC) hasalso been constituted to provide technical oversight towards modifications and constant up-gradation of the GRIHA framework. GRIHA will be operated through GRIHA secretariat whichwill be hosted by TERI. It is understood that large scale promotion of GRIHA will help ingetting the new buildings constructed on the concepts of Green Building design suitable forIndian conditions.


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GOVERNMENT SPONSORED SCHEMES

A GRIHA Secretariat

GRIHA Secretariat will act as an independent autonomous body. It will be registered by TERIunder Societys Act. A seed funding of upto Rs, 1.00 crore will be made available to the

Society for its establishment and infrastructure facility as non recurring grant based on theproposal received from TERI with details of the budget required. However, till the society isformed by TERI the Secretariat will function from the office of TERI at Delhi.

B. Buildings rated under National Rating System GRIHA

The scheme is presently confined to commercial and institutional building including housingcomplexes with minimum built area of around 2500 sq.m. All the houses in a complex will beconsidered as single project individual houses are not covered in the Scheme.

Registration-cum-Rating Fee

90% of the fee as given below for projects rated 3 star having built area up to 5000 sq. m.and for projects rated 4 star having built area above 5000 sq. m. will be reimbursed byMNRE. Owners of buildings under design and construction, interested to be rated underGRIHA will get their buildings registered with GRIHA Secretariat. Registration-Cum-RatingFee for the projects registered under GRIHA will be as per below which will be paid to GRIHASecretariat by the owners at the time of registration.

Project size (total built uparea)

Rating cum registration fee

5000 sq m Rs 3,14,000 (fixed cost for projects up to 5000 sq. m.) + Rs3.75/sq m over and above 5000 sq m of built area

Release of Registration-cum-Rating Fee to the owners will be made by MNRE onreimbursement basis through GRIHA Secretariat after validation of Star Rating Post -Construction by the National Advisory Council.

Incentive to Architects/ Design Consultants

To encourage Architects and consultants to design buildings on Green Architecturalconcepts and get them rated under GRIHA, and incentive as per below will be available fromMNRE.

- Rs. 2.50 lakhs for projects upto 5000 sq.m. built-up area with minimum 3 star rating

- Rs. 5.0 lakhs for projects > 5000 sq.m. built-up area with minimum 4 star rating

Procedure for release of the incentives to architects/ design consultants and settlement ofaccount with MNRE will remain same as given in para A above.

Capital subsidy for SPV installations

One of the criteria under GRIHA is to meet 1% of total connected load for interior lightingand space conditioning through solar photovoltaics. It has been decided to support suchphotovoltaic system through capital subsidy which will be made available under Ministrysscheme on Solar Photovoltaic Systems/Devices for Urban Areas.


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C. Other Items

Promotional Activities: A financial support of upto Rs. 2.00 lakh for each activity could beprovided for organizing workshops/ seminars/ training programmes/ meetings of NAC/publications/ awareness campaigns etc. to implementing agencies including GRIHA

Secretariat.Submission of proposals & Release of funds: The proposals on promotional activities couldbe generated by SNAs/ Municipal Corporations/ Govt. bodies/ Reputed NGOs/GRIHASecretariat etc. and submitted to MNRE in the prescribed format. 80% of the CFA sanctionedwill be released in advance on merit and rest on progressive achievements/ completion oftheactivities with detailed reports and utilization certificates/SOE received in the Ministry.Toprivate bodies, the funds will be released on re-imbursement based or on the basis of thebond submitted to the Ministry.

Incentives to Urban Local bodies : A one-time incentive of Rs. 50 lakhs to MunicipalCorporations and Rs. 25.00 lakhs to other Urban Local Bodies will be available to those who

i) announce rebate in property tax for energy efficient solar/green buildings ratedunder GRIHA,ii) make it compulsory to get the new buildings under Govt. & Public Sector rated under

GRIHA

iii) sign an MOU with GRIHA Secretariat in presence of MNRE for large scale promotion ofGreen Buildings in their area.

Submission of proposals & release of funds : To avail the incentive, Municipal Corporations /Municipalities/ Urban Local Bodies will submit an application to the Ministry with a copymarked to SNA giving details of notifications / orders announcing rebate in property tax forenergy efficient solar buildings and mandatory provisions of new Government/ Public SectorBuildings rated under GRIHA. Release will be made directly to them in two parts, oneimmediate after receiving the application complete in all respect and other after receiving

the progress report of Green Buildings after a period of one year.

Institution of Awards / Incentive: Annual awards to green buildings rated 5 Star underGRIHA will be given away by the Ministry in the form of Shields/Certificates. Cash incentiveof Rs. 50 lacs to Municipal corporations and Rs. 25 lakh to municipalities/other Urban LocalBodies (one each to them) will also be given away that perform the best in promoting GreenBuildings in their areas from 2011-12 onwards.

Other Activities: Funds for other activities as felt necessary by GRIHA Secretariat topromote GRIHA as large scale in the country may also be considered by MNRE with theapproval of NAC subject to availability.

The Ministry has incentivised GRIHA to promote large scale design and construction of greenbuildings that includes re-imbursement of registration fee, cash awards, etc. CPWD hasrecently taken a decision that all its constructions would meet requirements of greenbuildings, and they are also revising contracting and costing procedures to accommodatethe special services required for buildings to be green.With an aim to expedite implementation of the rating system, MNRE has recently modifiedprovisions of the scheme to exempt first 100 Govt. / Public Sector Buildings from payingregistration-cum-rating fee in advance at the time of registration.

Akshay Urja Shops


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Soft loan up to Rs. 10 lakhs at 7% from public sector banks through IREDA.

Monthly recurring grant of Rs. 5,000/ month towards manpower, electricity,telephone etc through SNAs.

Incentive of Rs. 5,000/month on minimum turnover of Rs. 50,000/- month during 1styr. & Rs. 1 lakh / month during 2nd yr.

Service charges to SNAs, IREDA and Banks.

Solar Cities

Objective : To encourage & assist urban local bodies in assessing their present energyconsumption and future demand & preparing Master Plans for energy savings & generationthrough energy efficiency measures & Reinstallations

Targets : 60 cities with at least one in each State to a maximum of 5 in a State. Each city toreduce their projected energy demand by 10% over 5 years

Support : Upto Rs. 50 lakhs per city for preparing Master Plan, oversight of itsimplementation, setting up of a Solar City Cell in ULB & organizing promotional activities.

Support for implementation to be drawn from various schemes of differentM

Other Incentivising

SPV Devices & Systems Support Measures

Financial support up to 50 % of system cost

G.O.s by State Govts. to install solar energy devices in Municipal areas especially the streetlights & advertising hoardings wherever possible

Stamp duty exemptions and additional FSI are some of the incentives that Maharashtra andAndhra Pradesh provide for green buildings.

CASE STUDY: KOCHI

The State Government will consider certain incentives such as subsidies to industrial unitsthat comply with the green factory rating of IGBC (Indian Green Buildings Council).

The Government is also ready to go for promotional activities to create awareness for LEED(Leadership in Energy and Environment Design) among the industrial units.IGBC has also decided to institute a Green Award for individuals who have taken up majorinitiatives in the area of implementing Green Building technology. It has been decided thatindividuals will be selected by a panel of experts.

The awards will be presented in five categories government sector, education, tourism,media and industry. Every awardee will get a cash prize and a Green citation. It has alsobeen decided that the individuals, not the institutions, will be given the award because only

enlightened individuals who are aware of the need for immediate action to reduce carbonfootprint can motivate the people and the institutions in the respective field.Another proposal that has been put forward by IGBC in association with Energy ManagementCentre, Thiruvanathapuram is the Energy credit card system. Energy credit card will beissued to all electricity consumers in the State and evaluation will be made on a six-monthbasis. Discussions are on with the KSEB for providing discount in tariffs for the consumerswho have been able to bring about a minimum 25 per cent reduction in the energyconsumption.Existing factories also can apply for rating by incorporating changes.


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Stamp duty exemptions and additional FSI are some of the incentives that Maharashtra andAndhra Pradesh provide for green buildings that need to be provided in Gujarat as well.

ECONOMIC SENSE

The cost of constructing a green building is around 8 per cent higher than the cost of

constructing a non-green building, but the break even period is as low as two to three yearsthrough savings on energy costs. The average annual cost of ownership of a green housecan be as low as 30 to 40 per cent (compared to a non-green one) and makes more senseeconomically due to its high marketability and rentals, he added.Certain parameters such as operational efficiency and human well being index are takeninto consideration, which are visible only when one starts using the building.

BUDGETING METHODOLOGY FOR GREEN

Once there is a clear understanding of the goals and values for the project, as well as thebudget available, it is important to stay on track throughout the entire process. The steps forstaying on track include:

Documentation: Any necessary documentation has to be started as early aspossible, and maintained as the project proceeds.

Update / Monitor Checklist: Update and monitor the LEED checklist so that there isa clear picture of how the sustainable goals are being met, and whether the LEEDgoal is succeeding.

Energy / Cost Models: Use energy and cost models as design tools. Energy modelsare useful during all design phases to establish the design criteria necessary to meetselected LEED points. Cost models will allow to track cost impacts from anynecessary changes to design or procedure as the project progresses. Energy and costmodels can be combined to make a very effective decision making tool, preferablyearly in design.

The only effective way to budget for sustainable features within buildings is to identify thegoals, and build an appropriate cost model for them. If they are seen as upgrades oradditions, the cost of the elements will also be seen as an addition. It is possible to establishgoals and budgets from the very beginning of the project. Other methods are ineffective andunnecessary.

CONCLUSION

The subsidies and sops offered by the Government of India are reason enough for Architects,Green Entrepreneurs, Construction Agencies and Builders to come forward and accept GreenBuilding Technology wholeheartedly.Kochi and other states like Maharashtra and Andhra Pradesh have led by example. Soonother states will follow in their footsteps too.Further it makes sound Economic Sense to build Green Houses as the Budgeting for buildingthem too can be controlled in the design stage

REFERENCE

DAVIS LANGDON in his Cost of Green Revisited Reexamining the feasibility and Cost Impact ofSustainable Design in the Light of Increased Market Adoption

Kerala Govt plans sops for 'green factories'The Hindu Business Line: August 04, 2009
http://www.thehindubusinessline.com/2009/08/05/stories/2009080552011700.htmhttp://www.thehindubusinessline.com/2009/08/05/stories/2009080552011700.htmhttp://www.thehindubusinessline.com/2009/08/05/stories/2009080552011700.htm


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Solar Energy Technologies & Programmes for Urban Areas a paper by Dr. A. K. Singhal (Director,Urban, Industrial & Commercial Applications Group, Ministry of New & Renewable Energy, Governmentof India) in the 3rd South Asia Renewable Energy Conference 2008 April 24-25, New Delhi

Scheme on Energy Efficient Solar/ Green Buildings Modification of the Building component of theongoing Scheme on Promotion of Solar Thermal Systems for air heating/ steam generatingapplications, Solar Buildings and Akshay Urja Shops for implementation during 2008-09 & rest of11th Plan period

by the Ministry of Non-conventional Energy Sources (Urban, Industrial and Commercial Group),Government of India.

Major Investment in Green Buildings in India over Next Two Years by Divya Trivedi, Ahmedabad, June29, THE NEW ZEALAND GREEN BUILDING COUNCIL(http://nzgbc.org.nz/main/resources/articles/GreenBuildingInvestmentIndiaJune09)

Savvy Infra to invest Rs 400 crore in green buildings in two years by Divya Trivedi, Ahmedabad, June29, The Hindu Business Line. (http://www.credaincr.org/archive_news_details.php?nid=2823&m=6&y=2009)

How to Buy a Carbon Offset, wikiHow, originated by: originated by:Anonymous, Flickety, Krystle,JackHerrick(http://www.wikihow.com/Buy-a-Carbon-Offset)

Carbon offset, From Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Carbon_offset)
http://www.credaincr.org/archive_news_details.php?nid=2823&m=6&y=2009http://www.credaincr.org/archive_news_details.php?nid=2823&m=6&y=2009http://www.wikihow.com/wikiHow:Anonymoushttp://www.wikihow.com/wikiHow:Anonymoushttp://www.wikihow.com/User:Flicketyhttp://www.wikihow.com/User:Krystlehttp://www.wikihow.com/User:JackHerrickhttp://www.wikihow.com/User:JackHerrickhttp://en.wikipedia.org/wiki/Carbon_offsethttp://www.credaincr.org/archive_news_details.php?nid=2823&m=6&y=2009http://www.credaincr.org/archive_news_details.php?nid=2823&m=6&y=2009http://www.wikihow.com/wikiHow:Anonymoushttp://www.wikihow.com/User:Flicketyhttp://www.wikihow.com/User:Krystlehttp://www.wikihow.com/User:JackHerrickhttp://www.wikihow.com/User:JackHerrickhttp://en.wikipedia.org/wiki/Carbon_offset

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