RULES OF THUMB
Every project and economic circumstance is unique—and you should definitely calculate costs and benefits yourself—but there are some common rules of thumb for wind and solar projects:
➢ Residential projects have longer time horizons for economic “payback.”
➢ Commercial projects, because of more favorable tax treatment, are typically better investments—and save larger amounts of energy.
➢ Solar thermal is typically the best renewable investment—provided you have a demonstrated need for hot water.
➢ In urban areas, most sites are limited to solar thermal or solar electricity.
➢ In rural areas with good conditions, wind becomes a more desirable option at investment levels above $50,000.
➢ All payback calculations include the unknown factor of future price increases for energy. If energy costs explode, your renewable investment gains economic value rapidly.
➢ Installation of a renewable system “fixes” your energy costs over the life-cycle of your equipment (less maintenance), which, in most cases, means 30 years or more.
➢ If and when the United States adopts a carbon emissions policy–whether “cap and trade” or a straight tax–the amount of clean energy you generate could become a commodity sold on the free-market.
“PAYBACK”
Energy Concepts strongly believes that judging projects—especially residential ones—solely as a “Return on Investment” (ROI) betrays a deeply flawed understanding of the value of renewable energy.
There are other, equally valid reasons our customers invest in wind and solar technologies. Among them:
➢ Promoting a sustainable lifestyle as a fundamental human principle
➢ Contributing to a healthier, more stable environment for future generations
➢ Realizing energy independence, price security and peace of mind
➢ Investing in local goods and services to strengthen the local economy
➢ Producing domestic energy to prevent dangerous resource conflicts abroad
➢ Reducing fossil fuel consumption to lessen the impact of future energy shocks caused by Peak Oil
➢ Enhancing their leadership image around “going green” and thereby enhancing the appeal of their organization or business
RENEWABLE ENERGY: SMART AND SECURE
Security, independence, peace of mind, civic leadership, responsible life-choices, faith in local control, branding a business as environmentally aware—the rewards of investing in solar and wind are manifold and profound. They enrich us on a personal level, ethically and spiritually, even more than in dollars and cents.
That said, the economic benefits of renewable energy are real and continue to grow and expand as policymakers grapple with today’s environmental and energy realities. It is a fluid sector and public policy initiatives will continue to influence market conditions, for better or worse.
Energy Concepts is committed to securing you every economic benefit, rebate and tax credit as you move forward with your investment in renewable energy.
