Solar and Wind Power

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.

One of the major downturns in the economy has been reduced consumer and small business spending on green products, causing loss of jobs and closure of businesses in the sector. The smart business are investing in new product development and reducing the cost of current products. This means a cost savings to you when buying alternative energy products.

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.

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.

So how does all this help you? Simple: businesses that sell alternative energy or green products are more willing to negotiate price, the government is allowing for large tax credits, and energy costs are skyrocketing again. Together this means you can put something in place now to reduce your electrical bill that will last for 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