Tuesday, June 23, 2009

Paying Off That New Alternative Energy System for Your Business or Home

By Michael Edwards

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.

Another opportunity is the new American Recovery and Re-investment Act of 2009. Renewable energy and the development of alternative energy products were given a big boost by removing "cost caps" from the 2008 alternative energy tax credit 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.

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.

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

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