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.
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.
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.
Finally - does your state provide additional incentives? Many states have an energy buy-back policy in place. The utility pays you for any electricity that is produced in excess of what you used. That is cash in your pocket.
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
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.
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.
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.
Finally - does your state provide additional incentives? Many states have an energy buy-back policy in place. The utility pays you for any electricity that is produced in excess of what you used. That is cash in your pocket.
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
0 comments:
Post a Comment