ULI Philadelphia Blog

A Blueprint for Energy Efficient Construction

Property developers are turning to PECO Smart Ideas to implement high-efficiency building upgrades into their new construction designs. Whole-building approaches, combined with proven energy-saving equipment, can increase property value, improve occupant retention, and lower maintenance costs for a wide range of new construction projects.

To help achieve the benefits of more energy-efficient new construction, PECO offers incentives for building ENERGY STARâ certified homes and LEED certified or high-performance (beyond code) properties, and for the installation of energy-efficient equipment. Whether single-family or multifamily, residential or commercial, all property types can qualify for incentives.
Benefits of Developing Green Properties

Commercial properties that receive Leadership in Energy and Environmental Design (LEED) certification often set the competitive price scale for the real estate market. Rental prices per square foot are 4-percent higher, and tenant retention rates are improved, with increases in occupancy rates of nearly 10 percent.

According to the U.S. Green Building Council, developers who make upfront investments to construct more energy-efficient properties receive, on average, a 4-percent increase in property value. Plus, LEED-certified buildings report almost 20 percent lower maintenance costs than typical commercial buildings. The financial opportunities of energy efficiency, coupled with incentives from PECO, give new meaning to the concept of “green buildings.”

Market demand for energy efficient properties is on the rise for residential as well as commercial properties. Builders of ENERGY STAR or Home Energy Rating System (HERS)-certified properties create better year-round comfort, often resulting in fewer callbacks. Higher-quality equipment and energy savings can also result in greater sale value. A survey of potential homebuyers within the PECO territory found more than 70 percent are likely to pay more for a high-performance home.

Architects who wish to showcase their knowledge of building science best practices, energy efficiency skills, and PECO incentives can be listed on the PECO Smart Ideas for Your Business Contractor Database.

To gain access to additional energy efficiency trainings, exclusive networking events, and a dedicated PECO Smart Ideas Outreach Manager, commercial architects are encouraged to join the PECO Smart Ideas Trade Ally Program. Learn more

Incentives for Energy Efficient Construction

Residentially metered properties qualify for a maximum of $1,750 per unit for ENERGY STAR certified single-family or multifamily homes. Builders who do not meet ENERGY STAR certification can still receive up to $750 per unit for homes that are at least 30 percent more energy efficient than current codes and federal standards require, as documented by a HERS Index score.

Developers of commercially metered properties can receive a maximum of $0.70 per square foot for taking a whole-building systems approach to integrated energy efficient design. Incentives are offered in tiers for whole-building designs, beginning with energy efficiency achievements greater than 10 percent performance over code.

Alternatively, incentives are available on a per-unit basis for commercial developers who install high-efficiency heating, ventilation and air conditioning (HVAC) equipment as well as exterior or interior lighting upgrades.

Interior lighting incentives are calculated by illuminated space, with a maximum of $0.21 per square foot for upgrades. Incentive are offered in tiers beginning with energy efficiencies at least 10 percent over code. Additional incentives are offered for interior occupancy sensors and daylight dimming systems.

Exterior lighting incentives are calculated at $0.05 per kWh saved for properties achieving lighting power efficiencies at least 10 percent better than code. Likewise, additional incentives are available for occupancy sensors and other control systems.

HVAC equipment incentives include $30 per ton for ENERGY STAR ductless mini-split heat pumps, $25 per ton for energy management systems and $25 per ton for demand-controlled ventilation, plus other control measures.

Questions on how a project can qualify for incentives, or for more information about joining the Trade Ally Program, can be directed to:

PECO New Home Rebates (Residential)


(484) 684-5419


PECO Smart Ideas for Your Business




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