GLS Logo.jpg (25630 bytes)

Great Lakes Solar & Wind Energies

Return On Investment

 

 

Back to Home Page


wpe829.jpg (8951 bytes)

  

The latest Federal Tax Credits information.  For all the details go to :

Recovery and Reinvestment Act

Guidance to Convert Tax Credits to Payments

Terms and Conditions

Application Forms

dsireusa

Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar Electric Technologies
Applicable Sectors: Residential
Amount: 30%
Maximum Incentive: Solar-electric systems placed in service before 1/1/09: $2,000
Solar-electric systems placed in service after 12/31/08: no maximum
Solar water heaters placed in service before 1/1/09: $2,000
Solar water heaters placed in service after 12/31/08: no maximum
Wind turbines placed in service in 2008: $4,000
Wind turbines placed in service after 12/31/08: no maximum
Geothermal heat pumps placed in service in 2008: $2,000
Geothermal heat pumps placed in service after 12/31/08: no maximum
Fuel cells: $500 per 0.5 kW
Carryover Provisions: Excess credit may be carried forward to succeeding tax year
Eligible System Size: Fuel cells: 0.5 kW minimum

The U.S. House and Senate has passed H.R.1424. This significant renewable energy bill will dramatically increase the use of renewable energies.  President Bush signed the Bill into law on October 3rd, 2008.  For the individual, this Bill will improve the Return on Investment calculation and may be the difference that allows you to move forward on a Solar system.

Key provisions of this legislation that affect individual home owners will: 

  • Extend the investment tax credit for residential and commercial solar installations for eight years (it was previously set to expire at the end of 2008)
  • End the $2000 cap on the investment tax credit for residential solar electric installations placed into service after December 31, 2008
  • Allows filers of the alternative minimum tax to claim solar investment tax credits
  • Establishing a new tax credit for purchasers of plug-in electric-drive vehicles
  • Extends research and development tax credits

Click here to find the full text of H.R.1424. or see the bill summary.

Great Lakes Solar and Wind Energies on Return on Investment

Ever since the oil crunch of 1974, this country has talked a lot about renewable energy and relieving our dependency on foreign oil.  Oil went above 0.50 cents a gallon for the first time in 1974 and we are still a long way from an energy solution.  With gasoline prices running between $3.50 and $4.00 a gallon in the spring of 2008 its time for the individual to take another look at what they can do to help resolve the problem.  It's our belief that individual actions can make more change for good than all the politicians in Washington.  So lets discuss the value of going "green".

One of the first questions we get, because renewable energy is a significant investment, is what's the payback.  On average, a system that costs $31,000.00 has an annual return on investment of about 6% annually, forever.  If costs stayed the same as they are today that's about a 16 year payback.  We know energy costs will continue to rise so the real payback will be a shorter period of time.  Before you let this number scare you, think about the payback for;

  • A big screen TV
  • A new SUV
  • The latest computer
  • Junk food
  • Unnecessary car usage
  • Lights left on

Well, we think you get the idea.  These items have no payback.  On the other hand, a renewable energy system will start putting dollars back in your pocket the moment it is operational and it will continue to do so day after day and year after year.   It will not depreciate but instead appreciate the value of your property.  It will continue to save you more dollars as energy prices continue to rise.  Remember, you will be paying the electric company a lot less, or possible zero, based on the system you select. That will be a significant offset to the monthly payment for your renewable energy system.

Give us a call or e-mail us, we can provide a proposal that will allow you to make an intelligent decision. 

(906) 428 3300 or E-Mail us