The LEED Rating System explained

In this article, we provide an in-depth look into the LEED rating system, including how it works, the different rating systems available, how buildings earn a LEED certification, and why it's important for building owners. We will also delve into how LEED ratings are assessed, how long they last, and what building analytics can do to improve a commercial building's rating. Additionally, we will provide tips on how to make your commercial building more energy efficient, how to improve your building's LEED rating, and which rating system has precertification.

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What is the LEED rating system?

How does the LEED rating system work?

What are the different LEED rating systems?

What are the LEED certification levels?

Latest updates to the LEED v4 standards (2024)

What is LEED v5?

What areas of performance can earn LEED points?

Why is the LEED rating system important for building owners?

How long does a LEED rating last?

How much does LEED certification cost?

How can I improve my building's LEED rating?

How can building analytics help improve my LEED rating?

Which LEED rating system has percentification?

What is the LEED rating system?

LEED, which stands for ‘Leadership in Energy and Environmental Design’, is a rating system developed by the U.S. Green Building Council (USGBC) to evaluate the environmental performance of buildings and measure their sustainability. The LEED system provides a framework for healthy, efficient, carbon and cost-saving green buildings. It is widely recognized as the industry standard for green building in the United States, and used in over 160 countries worldwide.

How does the LEED rating system work?

The LEED rating system is based on a point system, with buildings earning points for meeting certain criteria in categories such as energy efficiency, water conservation, and indoor environmental quality. The more points a building earns, the higher its LEED rating will be. There are four levels of LEED certification: Certified (40-49 points), Silver (50-59 points), Gold (60-79 points) and Platinum (80+ points).

To achieve LEED certification, a building must go through a rigorous review process conducted by Green Business Certification Inc. that includes a pre-certification review, a construction review, and a post-construction review. The building must also meet certain minimum requirements in each category and earn a certain number of points.

One of the key aspects of the LEED rating system is its emphasis on energy efficiency and renewable energy. Buildings can earn points for using energy-efficient equipment and systems, such as high-efficiency HVAC systems, LED lighting, solar panels, and data analytics platforms. They can also earn points for using renewable energy sources, such as geothermal, wind, or hydroelectric power.

Water conservation is another important aspect of the LEED rating system. Buildings can earn points for using water-efficient fixtures and appliances, such as low-flow toilets and showerheads, or for using greywater and rainwater harvesting systems. Indoor environmental quality is also a key aspect of the LEED rating system. Buildings can earn points for providing optimal indoor air quality, natural light, and thermal comfort. They can also earn points for incorporating green cleaning and pest management practices or for providing access to green spaces.

LEED certification is becoming increasingly important for building owners and developers, as more and more companies are looking to reduce their environmental impact and meet the growing demand for green buildings. Obtaining LEED certification can also help to increase a building's value, marketability, and interest from quality investors.

What are the different LEED rating systems?

The LEED (Leadership in Energy and Environmental Design) framework consists of various rating systems tailored to different types of buildings, spaces, and communities. These rating systems provide guidelines and criteria for assessing the sustainability of a wide range of projects. Below are the primary LEED rating systems:

LEED for Building Design and Construction (BD+C)

• Focus: New construction or major renovations.
• Applications: Includes commercial buildings, schools, healthcare facilities, data centers, warehouses, and more.
• Key areas: Energy performance, water efficiency, sustainable site development, and materials selection.

LEED for Interior Design and Construction (ID+C)

• Focus: Interior fit-outs of existing buildings.
• Applications: Commercial interiors, retail spaces, hospitality spaces.
• Key areas: Indoor environmental quality, energy efficiency, materials and resources, and innovation.

LEED for Building Operations and Maintenance (O+M)

• Focus: Existing buildings undergoing improvement work.
• Applications: Includes commercial buildings, retail, hospitality, schools, and residential buildings.
• Key areas: Building performance, water efficiency, energy use, indoor air quality, and occupant health and comfort.

LEED for Neighborhood Development (ND)

• Focus: Sustainable land development projects.
• Applications: New neighborhoods, urban infill projects, and redevelopment projects.
• Key areas: Smart location and linkage, neighborhood pattern and design, green infrastructure, and buildings.

LEED for Homes

• Focus: Single-family homes and multifamily residential buildings.
• Applications: Single-family homes, low-rise multifamily buildings, and mid-rise residential buildings.
• Key areas: Energy efficiency, water efficiency, indoor environmental quality, and sustainable site development.

LEED for Cities and Communities

• Focus: Entire cities or communities aiming for sustainability at a large scale.
• Applications: Municipalities, planned communities, or districts.
• Key areas: Sustainability at the city or community level, including energy, water, waste, and transportation.

LEED for Retail

• Focus: Retail spaces, both new construction and interior fit-outs.
• Applications: Retail centers, standalone stores, and shopping malls.
• Key areas: Location and transportation, materials and resources, energy performance, and indoor environmental quality.

LEED for Healthcare

• Focus: Healthcare facilities, such as hospitals, clinics, and outpatient facilities.
• Applications: New and existing healthcare buildings.
• Key areas: Patient safety and health, energy efficiency, water use, and waste management.

LEED for Data Centers

• Focus: Buildings specifically designed and equipped to handle large-scale data storage and processing.
• Applications: New and existing data centers.
• Key areas: Energy efficiency, water efficiency, and sustainable site development.

LEED for Warehouses and Distribution Centers

• Focus: Facilities used for storage, distribution, and logistics.
• Applications: New and existing warehouses and distribution centers.
• Key areas: Energy use, site sustainability, water efficiency, and materials and resources.

LEED for Schools

• Focus: Educational facilities, including K-12 schools and higher education institutions.
• Applications: New and existing educational buildings.
• Key areas: Indoor environmental quality, energy use, water efficiency, and student health and performance.

LEED for Hospitality

• Focus: Hospitality spaces such as hotels, motels, inns, and resorts.
• Applications: Both new construction and existing buildings in the hospitality industry.
• Key areas: Energy and water efficiency, sustainable site development, and indoor environmental quality.

LEED Zero

• Focus: For buildings, developments, and communities that achieve net-zero goals.
• Applications: Focuses on net-zero energy, carbon, water, and waste.
• Key areas: LEED Zero Energy, LEED Zero Carbon, LEED Zero Water, and LEED Zero Waste.

LEED Recertification

• Focus: Allows buildings that are already LEED-certified to maintain and enhance their certification status.
• Applications: Any LEED-certified building can pursue recertification, which occurs every three to five years to ensure continuous improvement in sustainability.

These rating systems provide flexibility and adaptability to different project types and help ensure that LEED certification is accessible and relevant across a broad spectrum of building and community types.

What are the LEED certification levels?

The LEED certification is structured across four distinct levels, each representing a higher standard of sustainability and environmental responsibility. These levels are Certified, Silver, Gold, and Platinum, signifying an ascending order of achievement in green building practices.

• Certified (40-49 points): Achieving the Certified status signifies that a building project has met the baseline requirements of LEED certification, securing at least 40% of the total possible points. This level demonstrates a foundational commitment to sustainability, encompassing essential practices in energy efficiency, water conservation, and material selection. It's a recognition of the project's initial steps toward minimizing its environmental impact.
• Silver (50-59 points): The Silver certification level indicates that a project has surpassed the basic LEED requirements, achieving more than 50% of the available points. This level reflects a significant commitment to environmental stewardship, incorporating advanced sustainable practices that go beyond the foundational measures. Projects at this level often feature enhanced energy management systems, water efficiency strategies, and sustainable building materials, contributing to a reduced carbon footprint and improved indoor environmental quality.
• Gold (60-79 points): Attaining Gold certification denotes that a building has excelled in its sustainable design and operation, securing over 60% of the LEED points. This prestigious level is indicative of a project's comprehensive adoption of best practices in sustainability. Gold-certified buildings are distinguished by their innovative approaches to energy conservation, water use reduction, and enhanced indoor air quality, among other environmental achievements. These buildings serve as exemplary models of sustainability, showcasing the potential for significant environmental impact reduction through thoughtful design and operation.
• Platinum (80+ points): The Platinum certification represents the pinnacle of LEED achievement, awarded to projects that earn more than 80% of the available points. This highest level of certification is reserved for buildings that demonstrate leadership in sustainability and have implemented cutting-edge green building technologies and strategies. Platinum-certified projects are characterized by their exceptional energy efficiency, minimal water usage, reduced greenhouse gas emissions, and a commitment to improving occupant health and well-being. These buildings not only significantly lower their environmental impact but also set new standards for sustainable design and construction, inspiring others to pursue excellence in green building.

Latest updates to the LEED v4 standards (2024)

In 2024, significant updates were introduced to the LEED v4 standards, specifically focused on raising energy performance thresholds and incorporating new metrics for greenhouse gas (GHG) emissions. Here are the key changes:

1. Energy Performance Thresholds: The minimum improvement required for energy performance has increased, with different percentages set for various types of projects. For example, a general minimum improvement of 10% is now required for most projects, while Core and Shell projects require an 8% improvement.
2. GHG Emissions Metric: A new GHG emissions metric has been introduced alongside the existing energy cost metrics. This change rewards projects located in areas with greener energy grids, thus encouraging the use of renewable energy sources.
3. Compliance Pathways: The update has removed some of the prescriptive compliance options, instead allowing more flexible pathways like those in LEED v4.1. Projects can now document energy efficiency using either the energy cost metric or the newly introduced source energy metric.
4. Impact on LEED Points: Projects registering after March 1, 2024, will see a significant impact on the number of points awarded for energy performance credits. For example, a project that previously earned 12 points for a 30% energy reduction may now only earn 3 points under the new guidelines.

These updates aim to align LEED v4 more closely with the goals of reducing carbon emissions and enhancing energy efficiency, making LEED certification more rigorous and better suited to current environmental goals​.

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What is LEED v5?

LEED v5, represents an update and evolution of the LEED. This newest iteration of the LEED green building certification program marks a significant step in aligning the built environment with the ambitious targets set by the Paris Climate Accord for 2030 and 2050. LEED v5 focuses on critical issues such as equity, health, ecosystems, and resilience, showcasing an evolved approach to sustainable building practices​​.

Key aspects and goals of LEED v5 include:

1. Increased Flexibility: LEED v5 offers more adaptable paths and options for projects to achieve certification, acknowledging the diverse nature of green building projects and the need for a more customizable approach.
2. Performance-Based Outcomes: There's a greater emphasis on measuring actual performance in areas like energy and water use, indoor environmental quality, and material resources. This shift encourages ongoing accountability and improvement beyond the initial certification.
3. Integration of the Latest Technology and Standards: LEED v5 incorporates the latest in sustainable technology and aligns with current environmental standards and best practices. This includes advancements in energy efficiency, renewable energy, water conservation, and materials sustainability.
4. Global Applicability: While LEED has always had a global reach, LEED v5 aims to be even more applicable worldwide, with considerations for different climates, cultures, and construction practices. This includes metrics and standards relevant to international projects.
5. Expanded Scope and Categories: LEED v5 broadens the scope of what can be certified, including more building types and interior spaces. It also revises and expands the categories under which projects can earn points, such as Location & Transportation, Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality, Innovation, and Regional Priority Credits.
6. Enhanced User Experience: The certification process and tools for LEED v5 are designed to be more user-friendly, with digital platforms and resources to aid in the certification process.
7. Commitment to Health and Well-being: There's an increased emphasis on strategies that contribute to the health and well-being of occupants, recognizing the critical role that buildings play in the health of individuals and communities.
8. Sustainability throughout the Building Lifecycle: LEED v5 stresses the importance of considering sustainability at all stages of a building's lifecycle, from design and construction to operation and end-of-life, encouraging a holistic approach to green building.

While the specifics of LEED v5 focus on the continuation and enhancement of the LEED program's goals to promote sustainable, healthful, and efficient buildings, it's important to note that LEED versioning can be subject to change and updates. The U.S. Green Building Council's website and official documentation should be consulted for the most current information and detailed requirements of LEED certification.

What are the areas of performance in which buildings can earn LEED points?

n the LEED (Leadership in Energy and Environmental Design) rating system, buildings can earn points across several key areas of performance, each focusing on different aspects of sustainability and environmental impact. These areas, known as credit categories, include:

Sustainable sites (SS)

Encourages strategies that minimize the impact of buildings on ecosystems and waterways. Points can be earned for protecting or restoring habitats, managing rainwater, reducing heat island effects, and providing access to alternative transportation.

Water efficiency (WE)

Promotes smarter use of water, both inside and outside of buildings, to reduce potable water consumption. Points are available for water-efficient landscaping, reduced water use for irrigation, and installing water-efficient fixtures.

Energy and atmosphere (EA)

Focuses on reducing the environmental impact associated with excessive energy use and promoting the use of renewable energy sources. Buildings can earn points by optimizing energy performance, using renewable energy, and implementing enhanced refrigerant management.‍

Materials and resources (MR)

Encourages the use of sustainable building materials and the reduction of waste during the construction process. Points are earned for using recycled materials, sourcing materials locally, and implementing construction waste management strategies.

Indoor environmental quality (IEQ)

Enhances indoor air quality, lighting, and occupant comfort to create healthier and more productive environments. Points can be achieved through increased ventilation, low-emitting materials, thermal comfort controls, and daylighting strategies.

Innovation (IN)

Recognizes projects that employ innovative strategies or exceed LEED requirements. Points can be earned for exemplary performance in existing LEED categories or for introducing new, innovative environmental strategies.

Regional priority (RP)

Addresses regional environmental concerns by prioritizing credits that are particularly relevant to specific geographic areas. Points are awarded for achieving certain credits that have been identified as particularly important for the project's specific region.

Location and transportation (LT)

Rewards projects for choosing locations that have reduced environmental impact and for providing access to alternative transportation. Points are given for selecting a site with access to public transportation, bicycle facilities, and reduced parking footprint.

Integrative process (IP)

Encourages an early analysis of the interrelationships among systems to optimize performance across all areas. Points can be earned by conducting a preliminary analysis of energy and water systems before design decisions are finalized.

By strategically addressing these areas, projects can accumulate points towards achieving one of the four LEED certification levels: Certified, Silver, Gold, or Platinum.

Why is the LEED rating system important for building owners?

The LEED rating system is a widely recognized benchmark for the environmental performance of buildings, and it is considered to be one of the most important tools for building owners to measure the sustainability of their buildings. The LEED rating system is designed to promote the design and construction of high-performance buildings that are energy-efficient, water-efficient, and healthy for occupants.

One of the most significant benefits of the LEED rating system for building owners is the potential for cost savings. Buildings that are designed and constructed to meet the LEED requirements can significantly reduce their energy and water consumption, which can lead to lower operating costs. 

LEED also helps to promote healthy indoor environments by requiring buildings to meet certain standards for indoor air quality, lighting, and acoustics. This can help to improve the well-being of building occupants, which can lead to increased productivity, reduced absenteeism, and improved tenant retention, all of which can help to increase the value of the building and the return on investment.

LEED certification is also becoming increasingly important for building owners as regulations and requirements for sustainable buildings are becoming more prevalent. Many cities and states now require new buildings to meet certain energy efficiency standards, and LEED certification can help building owners meet these requirements.

In addition, LEED-certified buildings are more marketable, demanding higher rental yields and better quality investment. CBRE studied approximately 2,800 LEED-certified office buildings and 17,700 non-LEED-comparable office buildings in the U.S. It was estimated that LEED-certified office buildings offer an average annual rent premium of 31% or $38 per square foot compared with $29 for non-LEED certified buildings.¹

How long does a LEED rating last?

The LEED rating for a building lasts for a period of five years, after which the building must go through a recertification process to maintain its LEED status. The recertification process is similar to the initial certification process and requires the building team to submit an application and documentation demonstrating that the building continues to meet the requirements of the system.

The recertification process is important, as it ensures that buildings continue to perform at a high level of sustainability over time. It also allows for buildings to adapt to new technologies and best practices in sustainable design and construction, and to earn additional credits in the categories of energy and atmosphere, materials and resources, indoor environmental quality, and innovation and design.

The recertification process is an opportunity for building owners to demonstrate their ongoing commitment to sustainability and to improve the environmental performance of their buildings. By going through the recertification process, building owners can ensure that their building continues to be recognized as a leader in sustainable design and construction and demonstrate to their tenants, customers and the public that their building is committed to reducing its environmental impact.

How much does LEED certification cost?

The overall fees for obtaining LEED certification are based on a project’s rating system and size, and are calculated and paid when the project team submits documentation for review in LEED Online.

However, there are standard fees for registration and a flat fee per building that must be paid in order to get certified.

For Silver, Gold and Platinum level USGBC members, the registration fee is $1,350 and the flat, per-building fee is $4,500. For organizational level members or nonmembers, the registration fee is $1,700 and the flat, per-building fee is $5,600. 

Visit the USGBC's website for a more in-depth look at fees.

How can I improve my building’s LEED rating?

Improving your building’s LEED rating involves a strategic approach across several key areas:

1. Enhance energy efficiency: Upgrade your building's energy systems, such as HVAC, lighting, and insulation, to reduce energy consumption. Consider integrating renewable energy sources like solar panels. Implementing building automation systems that optimize energy use can also contribute significantly to your LEED score.
2. Improve water efficiency: Install water-efficient fixtures and appliances, such as low-flow faucets, toilets, and irrigation systems. Consider using greywater systems for irrigation and implementing water-efficient landscaping to reduce potable water use.
3. Use sustainable materials: Opt for sustainable building materials that are locally sourced, recycled, or rapidly renewable. Focus on reducing construction waste through recycling and reusing materials where possible.
4. Enhance indoor environmental quality: Improve ventilation, use low-emitting materials for paints, sealants, and carpets, and ensure ample natural lighting. Providing individual thermal comfort controls for occupants can also boost your LEED points in this area.
5. Optimize site selection and transportation: Choose locations that minimize environmental impact, such as those close to public transportation, to reduce the carbon footprint of commuting. Encourage alternative transportation options by providing bike racks and electric vehicle charging stations.
6. Implement an integrative process: Engage in early design-phase planning that considers the interconnections between various building systems. This holistic approach can uncover opportunities for higher performance across multiple LEED categories.
7. Pursue innovation credits: Explore opportunities to exceed LEED requirements through innovative design, construction techniques, or operational practices. You can also gain points by addressing unique regional environmental concerns.
8. Ongoing performance monitoring: Continuously monitor and optimize the building’s performance using tools like energy management systems and building analytics. Recertifying periodically under LEED for Building Operations and Maintenance (O+M) can also help maintain or improve your rating over time.

Improvements in one rating system can also results in gains for other systems. Raising your LEED rating can also results in efficiency gains for commercial energy performance certificates (EPC) and BREEAM ratings.

How can building analytics help improve my building's LEED rating?

Building analytics can significantly enhance your building’s LEED rating by optimizing performance in key areas such as energy efficiency, water use, and indoor environmental quality. Here’s how:

1. Energy optimization: Building analytics software monitors and analyzes energy consumption patterns in real-time, identifying inefficiencies and opportunities for improvement. By optimizing HVAC systems, lighting, and other energy-consuming processes, you can reduce overall energy usage, which directly contributes to higher LEED scores in the Energy and Atmosphere category​.
2. Water efficiency: Analytics tools can track water usage and detect leaks or inefficient water use across your building’s systems. By addressing these issues promptly, you can reduce water consumption, which is critical for earning points in the Water Efficiency category of LEED​.
3. Indoor environmental quality (IEQ): Building analytics help maintain optimal indoor air quality by monitoring CO2 levels, humidity, and temperature. Ensuring that these parameters stay within recommended levels can enhance occupant comfort and well-being, leading to improved scores in the IEQ category​.
4. Sustainable operations and maintenance: Continuous monitoring and data analysis enable proactive maintenance, reducing the need for reactive repairs and extending the life of building systems. This contributes to better performance under the LEED for Building Operations and Maintenance (O+M) rating system​.
5. Data-driven decision making: Building analytics provides a comprehensive view of your building’s performance, enabling data-driven decisions to improve sustainability measures. This holistic approach can help you identify areas for improvement and strategically invest in upgrades that will yield the most LEED points.

By leveraging building analytics, you can make informed decisions that align with LEED criteria, ultimately improving your building's overall sustainability and boosting its LEED rating.

Which LEED rating system has precertification?

LEED precertification stands as a forward-thinking approach within the LEED rating system, specifically tailored for new construction projects under the LEED for Core & Shell (LEED-CS) development. This proactive step allows project teams to evaluate and demonstrate their commitment to sustainable design and construction practices even before the building is completed. By embracing LEED precertification, developers and building owners can effectively market their projects' green attributes to potential tenants and financiers, showcasing a strong commitment to environmental stewardship and sustainability.

Precertification requires a comprehensive submission of the project's intended sustainable strategies and design elements to the Green Business Certification Inc. (GBCI). The GBCI evaluates the submission against LEED-CS standards, offering feedback and recommendations that help steer the project toward successful LEED certification.

In embracing LEED precertification, developers and building owners take a significant step towards sustainability, setting a precedent for future construction projects.

Ready to take your building's sustainability to the next level?

Get started with PEAK today to see how building analytics can help you optimize energy use, improve indoor environmental quality, and boost your LEED rating.