COST EFFECTIVENESS : One measure of cost effectiveness is based solely on the comparison between the monthly payment for the amortized costs of the energy efficiency improvements (EEI), and the monthly savings from lowered utility bills. The goal is for the monthly savings to be more than the monthly amortized expense, thus producing a positive cash flow. For example, if the costs for the EEI are $40,000, the 30 year amortized monthly payment (at 6% interest rate) will be approximately $240 per month. When this is compared to the expected utility savings of about $250 per month for The S.E.E.D. Home® , the result is $10 per month positive cash flow.

Another, more inclusive, measure of cost effectiveness is based on the premise that there is a fundamental distinction between the lifelong structure of a home and the finishing products used to “dress” the structure. In this scenario, assume the $40,000 EEI costs do not increase the total construction costs of S.E.E.D.-ing a standard home. This would eliminate both the amortized EEI costs and the negative cash flow of $260 per month in utility expenses. The S.E.E.D. Home® creates this result; it is based on comparing the total construction costs of two homes with the same floor plan; one built with all The S.E.E.D. Home® elements and the other built without them.

If mid-range or high-end finishing products are desired, then a corresponding period of time will be needed to attain cost effectiveness. Most importantly though, the super energy efficient structure of The S.E.E.D. Home® will remain forever, as will the hundreds of dollars of monthly utility cost savings! They will never be affected by inevitable rate increases.