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Incentives for Renewable Energy

Benefits
  • Increase piece of mind by shifting to safe, clean, reliable energy
  • Reduce your energy costs after you have recovered your initial investment
  • Protect and improve the planet for future generations by reducing the production of green house gases and air pollutants
  • Demonstrate responsible corporate stewardship and commitment to sustainable business practices
  • Support new, green jobs in a viable and emerging technology
  • Lock in a fixed cost for some of your energy needs, reducing the impact of rising utility energy prices
  • Improve our national security by shifting to a local power source that is expected to last 5 billion years

 
 

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Government
Incentives

  • Federal Tax Credits and Accelerated Depreciation
  • Net Metering laws that require utility companies to reduce your bill based on the renewable energy your system produces
  • State Grants, such as those available from the New York State Energy Research and Development Authority (NYSERDA)
  • Grants from the USDA
  • Ohio Energy Efficiency Revolving Loan Fund
  • Ohio Air Quality Development Authority
  • Some states offer peak demand shaving via Time-of-Day metering

Return On Your Investment

As the efficiency of renewable energy systems improve and the costs continue to decline, they are becoming an increasing attractive investment capable of saving significant money. Most solar electric systems last 40+ years, solar thermal systems last 30+ years, and wind systems typically last 25 to 30 years. So once you recover your initial investment, you can realize substantial savings in energy costs over the life of a system. 

 

SOLAR ELECTRIC
Typical Return On Investment Period
If you can take advantage of the available Federal tax incentives and qualify for a state grant, the payback period is approximately 2.5 to 6 years for businesses. With the 30% Federal investment tax credit and sale of solar renewable energy credits, it can be 8 to 12 years for residential installations. The actual payback period depends on solar irradiance at the site, module efficiency and utility rates.
WIND
Typical Return On Investment Period
If you can take advantage of the available Federal tax incentives and qualify for state grant, the payback period is approximately 6 to 12 years for businesses. It is 8 to 16 years for residential installations. The actual payback period depends greatly on the average wind speed at the site, the efficiency and output of the turbine, and utility rates.
SOLAR THERMAL
Typical Return On Investment Period
The payback period is typically 5 to 9 years. Certain investments are able to pay-back in less than three years! Especially quick for sites requiring a large amount of hot water during summer months. Outdoor pool systems often provide the quickest payback of all renewable energy systems.

The figures above reflect net-metering systems displacing energy that would otherwise be purchased from a utility company.

 

When available, State grants and Federal tax incentives can offset 40% to 60% of a residential system’s cost. For commercial and farm systems, the offset can be much larger due to the Federal tax incentives, often more than 90% of the system cost. See the below presentation for details and examples of each type of system.
 

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