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One of the most frequent questions I hear at Green Products is, “How do we pay for the new green technology?” It may not be as hard as you think! Let’s break it down into some of the incentives offered to you.

The first place to look for incentives is the manufacture. They are a business, and they are influenced by the economic downturn just like everyone else. They need to turn inventory to stay in business and that is why some are offering price reductions and rebates on green products.

Second, what effect has the American Recovery and Re-investment Act of 2009 had on renewable energy? One area of focus covered by the new law is renewable energy and the development of new technologies and green products. It improves the 2008 tax credit already in place and removes “cost caps”.

It works this way: After you install the system, the IRS will allow you to deduct 30% of the total cost of product and installation costs from your next tax bill with no stated limit. This also means you can install multiple units or a combination of energy products. For example, a solar array and a windmill to supply energy to your home or business.

One of the great things about all this is the money that you will save for years after your initial investment is recapture using green products. For example, solar energy is passive and requires little maintenance unless you use a battery store (then all you have to do is schedule the replacement of batteries every five years).

At last count, 30+ states offer tax incentives, rebates and cash-back programs. The cash back programs require the utilities to reimburse you when you generate more electricity than you use.

This is a win-win situation for everyone involved. You get cheap electricity, the local business get installation contracts, the manufacturers sell a great product, the government gets payroll taxes and doesn’t have to pay for unemployment, and the environmental impact has been reduced with the use of green products.

Michael