Friday, September 22nd, 2017

Economics

What makes a Wise Power System a Wise Investment?

On the ‘learn more’ pages of this site, we reviewed several of the compelling environmental, philosophical, political, and security-related reasons to invest in a renewable energy system. Now that you are mindful of what makes solar and wind power great for the environment and for society – let’s look at the pocket-book issues of why a Wise Power System makes good economic sense.

The financial benefits of investing in a solar or wind powered energy generating system varies somewhat depending on whether the system is being used in a residential or a commercial setting. While there are some unique financial benefits for either home or business owners who generate some portion of the energy they use, there are several benefits that both enjoy. Some of the obvious financial benefits include:

  • Reduce the amount of energy you buy & lower your electric bill
  • Protect yourself against future utility rate hikes
  • Sell any surplus electricity you generate back to the utility company & run your meter backwards
  • Generate no cost electricity for years, once your system has fully paid for itself
  • Take advantage of rebates and tax credits and deductions

* When you generate your own power, you lower your monthly electricity bill. Depending on your usage, and the system size you opt to install, you can either reduce the amount of electricity you buy from the utility company, or virtually eliminate it altogether.

* You have probably noticed on your own recent utility bills the indisputable evidence that supports the news story you have read and heard so much about lately – that utility rates are nearing a 20 year high! As demand for electricity increases and fossil fuels become more scarce and expensive to obtain, it is unlikely that electricity costs will be improving in the near future. Investing in your own Wise Power System today, is like buying a hedge fund that offers protection against future utility rates hikes. Your Wise Power System will supply you with electricity for the next five to twenty-five years (or more), at the price you lock in today!

* If your system is ‘grid-tied’ you can increase your energy cost savings by taking advantage of net metering, a connection which allows you to sell your surplus power back to the utility company! Net metering is a legal arrangement, and is currently available in 40 states. This is a cost-effective and convenient arrangement, as it allows you to use the grid like a battery storage device. When your system produces more than you consume, it pushes the excess electricity out to the grid, and your utility meter actually spins backwards! When your system is not actively producing power, you simply draw energy from the grid source, as your back up.

You can check the US Map of Net-Metering States to see if you live in a state that allows you to supply power to the grid.

* Through lowering (or even eliminating) your electric bill – with, or without net-metering benefits – and by producing energy at no additional cost after initial installation investment, your Wise Power System will pay for itself.

The time required for your system to pay for itself (‘re-capture the investment outlay’) will vary depending upon several factors such as: the system you choose; the size of the system; your energy consumption; and whether or not you choose to finance the purchase. Typically, the ‘break-even’ point is between 5-15 years, after which, all of the electricity you produce is free – and the average life expectancy of a system is in excess of 30 years.

* Meanwhile…various incentives are available, including rebates, tax credits & deductions, which can help to further off-set the out-of-pocket-costs until your system has paid for itself in energy savings and you begin to reap the reward – many years of free electricity. The types and dollar amounts of incentives depend on whether your system is for a home, or commercial space. Check out the options for your system type at the Database of State Incentives for Renewables and Efficiency (it is up-dated frequently).

Great News! The Federal Tax Credits available to Individuals, Businesses, and Home Builders, as an incentive to invest in qualifying renewable energy systems have been re-authorized by Congress. You may be eligible for a tax credit of up to 30% of your installed system cost!

Take Me to the Economics page for Home Owners

Take Me to the Economics Page for Commercial Systems

Clients


U.S. Sen. Tom Carper (D-Delaware) flips the switch on Wise Power Systems just in time.

Wise Power's simple kits could advance Kenya's rural electrification effort.
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