How to Pay For a New Alternative Energy System for Your Home or Business
In this edition of Green Products, let’s turn to financing. Many people are going through some hard times and some not so hard. You still want to go green in every way you can, but affording it right now may not be as easy as before. After taking a hard look at this challenge, here are some thoughts:
First, how is the seller/manufacturer of green products affected during a downturn? Businesses that produce alternative energy/green products are facing the same (if not more) pressure than the average consumer. This means that most alternative energy businesses will be more willing than ever to negotiate price, and may have discounts or incentives in place.
The next incentive to look at is the one that began on February 17, 2009 when President Obama signed into law the American Recovery and Re-investment Act of 2009. This new law set aside money in the form of tax credits to offset the cost of installing alternative energy systems and green products.
What this means to you is a 30% tax credit when installing a wind powered turbine, solar array, solar water heating, fuel cell, and/or geothermal heat pumps. In addition, if you have a small business, this new law allows you get cash in the form of grants instead of a tax credit as an extra incentive.
Third - what about your energy cost savings? Spending money on green products during this time may make more sense than you think. With businesses willing to negotiate, tax credits and a reduction in your energy costs, you are putting money in the bank over the long haul. If you plan well, your investment could pay for itself in months, not years.
Finally, many states have a variety ofl incentives in place, including tax credits, rebates, and even buy-back or cash reimbursements when you have negative energy usage (that is, you produced more energy than you consumed, and have added power to the state’s power grid).
With this in mind everybody wins; you win by saving money and reducing our dependence on foreign oil; the businesses win by producing and selling green products and the economy wins by helping to keep people employed.
Michael
