Homemade Solar Cell

Let’s turn to financing in this edition of Green Products. Why financing? To go green, someone has to pay the initial costs, and sometimes these costs are high. With some of the current economic challenges, 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.

Second, what effect has the American Recovery and Re-investment Act of 2009 had on renewable energy? One area of focus covered by the new law is renewable energy and the development of new technologies and green products. It improves the 2008 tax credit already in place and removes “cost caps”.

With this new law in effect you can realize a 30% tax credit when you install an alternative energy source in your home or business. If you own a small business, you also have an option to get cash in the form of cash grants instead of the tax credit.

One of the great things about all this is the money that you will save for years after your initial investment is recapture using green products. For example, solar energy is passive and requires little maintenance unless you use a battery store (then all you have to do is schedule the replacement of batteries every five 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