What Is LEED Certification? Requirements, Costs, and Criteria
An increasing percentage of homeowners, businesses and construction crews have adopted more sustainable practices over the past decade. From recycling to using green building materials, there are numerous things you can do to protect the environment. Keep in mind that sustainability can also help reduce energy costs.
In the construction industry, it’s possible to create a green and sustainable building with the Leadership in Energy and Environmental Design (LEED) certification. While there are several other green building rating systems you can use, LEED is the most widely respected one. It can be used for nearly all building types if you want to create a cost-saving and efficient structure.
While the LEED rating system was founded in 1998, it started as a movement on sustainable architecture nearly 10 years earlier. In 1989, Bob Berkebile requested that the American Institute of Architects (AIA) allow him to study how architects might design environmentally friendly buildings while still upholding the integrity of the profession. The resolution was unanimously passed by the AIA, which resulted in the formation of the AIA Committee on the Environment (COTE).
Eventually, the committee collaborated with the Environmental Protection Agency to develop sustainable design guidelines in the form of Leadership in Energy and Environmental Design (LEED). Since 1998, LEED has become the primary rating system across the globe for constructing environmentally sound buildings. If you want to know how to use these guidelines for your project, the following article goes into detail about “What is a LEED certification?”
LEED Certification Criteria
If you want to earn a LEED certification for your building, you’ll need to adhere to specific requirements during your project’s planning stage. The type of building you’re constructing determines what these conditions are. Once you meet these requirements, you can begin the certification process.
If you’ve hired a designer for your project, they can decide which LEED certification level they’d like to target. The credits that you can earn for your building are spread out over nine categories. Your credits can eventually be converted into points, which determine what level of LEED certification you receive. The credit categories that you can focus on while designing your building include the following:
- Location and Transportation
- Sustainable Sites
- Water Efficiency
- Integrative Process
- Materials and Resources
- Energy and Atmosphere
- Innovation
- Indoor Environmental Quality
- Regional Priority
Keep in mind that some credits have more value than others. Let’s say that you focus on the Location and Transportation category. Your building could obtain a credit if it has a certain number of on-site electric vehicle charging stations. This credit is equivalent to one point. On the other hand, the credit you earn for proximity to public transit is worth up to six points.
LEED Certification Levels
There are four LEED certification levels that you can earn for your building, which include the following:
- Certified: 40-49 points
- Silver: 50-59 points
- Gold: 60-79 points
- Platinum: 80+ points
You earn points based on the sustainable design elements and systems you implement in your building project. You can obtain up to 110 points for a single building. A higher point total means that the building is environmentally friendly and sustainable. When you reach a new certification level, this indicates that your building has met all prerequisites, which include everything from optimizing indoor air quality to reducing CO2 emissions.
LEED Certification Requirements
While it’s possible for any new building to qualify for a LEED certification, meeting the requirements can be complicated. You’ll need to follow highly detailed guidelines that require you to maintain comprehensive documentation and perform complex mathematical calculations. There are five categories that most buildings can be certified with, which are:
- Sustainable sites
- Water efficiency
- Materials and resources
- Energy and atmosphere
- Indoor environmental quality
For example, the water efficiency category awards points for appliances that help to reduce a building’s water consumption. You can earn a credit as well as a point by installing permanent water meters that can effectively measure the amount of potable water that’s used in the project.
If you’re building a private residential home, you have more opportunity to earn a LEED certification. There are nine categories of improvements that can award points, which include the following:
- Sustainable sites
- Materials and resources
- Water efficiency
- Indoor environmental quality
- Energy and atmosphere
- Awareness and education
- Locations and linkages
- Innovation and design
- Regional priority
How to Obtain LEED Certification
To obtain a LEED certification, you must first choose the right rating system. Different types of buildings can have their own rating systems. For example, let’s say that you’re constructing a data center. This type of building can be certified with different rating systems depending on the stage of the building’s lifecycle.
If your building is being designed to use high-density computing equipment for data storage and processing, you should apply for a LEED BD+C certification. This certification is appropriate for new data centers. At least 60% of the building’s gross floor area needs to be completed to receive the certification.
The LEED O+M certification is available to existing buildings that have been operational and occupied for one or more years. There are also rating systems for warehouses, retail stores, schools, and residential homes.
It’s highly recommended that you ensure eligibility by checking the minimum requirements. If you don’t meet these prerequisites, you can’t earn credits or points for a certification.
You can register your project and building with a LEED online form, after which you must submit an application for certification. To complete this process, you’ll be tasked with paying a registration fee and precertification fee.
Once you submit your application, the USGBC’s Green Building Certification Institute will review your documentation. The review process typically takes around 20-25 days. If you meet the program requirements, you should receive your certification after a month or so.
LEED Certification Cost
To earn a LEED certification, you must first pay some fees. If you’ve never earned a LEED certification before, the registration fee will cost $1,700. You’ll also be tasked with paying a precertification fee of $5,600 per building. Silver, Gold, and Platinum members will only need to pay $1,350 for registration and $4,500 for precertification.
The costs associated with reviewing and scoring your building can vary based on the size and type of structure you’re developing. For example, let’s say that you aren’t a USGBC member. In this scenario, you may need to pay between 6 to 6.5 cents per square foot. The minimum spend for this process is anywhere from $2,150 to $20,000 based on the gross floor area. Keep in mind that you can obtain an expedited review of your application by paying an additional $6,000. An expedited review takes 10-12 business days.
Importance of LEED Certification
A LEED certification can be advantageous for buildings and organizations alike. For example, this type of certification often results in lower operational costs for all types of buildings. Between 2015-2018, LEED-certified buildings and projects saved more than $1.2 billion in energy costs. A further $715 million was saved in maintenance costs. While the upfront fees for a LEED certification are high, you’ll save a considerable sum of money over time.
You might also experience a boost to brand reputation and marketability. Many modern consumers only do business with companies that take an earnest approach to adopting sustainable practices. By improving your brand reputation and marketability, you may be able to gain more sales and increase revenues.
These projects offer ample environmental and social benefits as well. For example, certified buildings are able to reduce CO2 emissions by more than 30% in comparison to standard buildings. Sustainable building practices can also reduce water consumption by more than 10% and energy consumption by over 25%. LEED buildings have diverted around 80 million tons of waste into landfills.
LEED Certification Checklist
If you’re interested in earning a LEED certification for your project or building, you’ll need to follow some basic steps. Once you identify the type of project you’ll be working on, register it and pay the necessary fee. Your registration fee is based on the certification level you’re seeking and the size of the project.
While you design and develop the building, make sure you gather and submit all project data that can help you earn credits and points. Data must be provided to LEED voluntarily by project managers. Keep track of all the credits you earn in the categories that apply to your project.
The certification review process takes up to 20-25 days and will be overseen by the U.S. Green Building Council. As mentioned previously, you can cut the duration of the review process in half by paying an additional fee of $6,000. You can learn more about how to obtain certification for your project with this guide to LEED certification.
Conclusion
If you want to develop a green and sustainable building that appeals to modern buyers and businesses, it’s highly recommended that you obtain a LEED certification. Buildings that have this certification benefit from lower carbon emissions and energy use, reduced utility costs, and higher resale values.
By achieving LEED certification, you’ll be able to do your part to protect the environment while also improving your company’s reputation with your target audience. If you’re committed to sustainability and improving your company’s impact on the environment, seek LEED certification for your next project.
Jason Somers, President & Founder of Crest Real Estate
With over 15 years of professional experience in the Los Angeles luxury real estate market, Jason Somers has the background, judgement and track record to provide an unparalleled level of real estate services. His widespread knowledge helps clients identify and acquire income producing properties and value-ad development opportunities.
Learn more about Jason Somers or contact us.