INDIANAPOLIS -- A builder will erect three "green" homes in the city, hoping to attract people interested in paying more up front to reduce energy costs and help the environment.

The homes, which will be built in Indianapolis' King Park neighborhood, will combine inventive architecture and environmentally friendly materials to allow occupants' energy bills to be less than half of those at traditional homes, the developer said.

Casa Verde Builders broke ground for one of the houses Wednesday. CVB's Michael Greven said that because of the materials to be used, the homes' prices will be about 5 percent more than traditional homes.

However, he said, owners will save in the long run on things such as water bills.

"You're talking about a 30 percent reduction in water consumption through low-flow faucets, through dual-flush toilets, (and) through on-demand hot-water heaters," Greven said.

The first house, which will have three bedrooms and a full basement, will have a $335,000 price tag. It will be smaller than homes in its price range, but it will boast better air quality and reduced wastewater usage, the developer said.

Annual heating, cooling and hot-water costs for the homes are expected to be about $1,110, 6News' Rick Hightower reported.

Those interested in conserving resources would also be interested in knowing that some recycled materials are being used in the construction, Hightower reported.

City leaders said the homes are a good start for the future.

"I think these houses are just a perfect example of what we're hoping -- that private companies will look to and realize that this is not only good for our environment ... but good business practices," said Allison Wells Gritton, the city's environmental affairs director.

The first house is expected to be completed in five months.