Paying Off That New Alternative Energy System for Your Business or Home

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

One of the major downturns in the economy has been reduced consumer and small business spending on green products, causing loss of jobs and closure of businesses in the sector. The smart business are investing in new product development and reducing the cost of current products. This means a cost savings to you when buying alternative energy products.

Another opportunity is the new American Recovery and Re-investment Act of 2009. Renewable energy and the development of alternative energy products were given a big boost by removing "cost caps" from the 2008 alternative energy tax credit and green products.

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.

So how does all this help you? Simple: businesses that sell alternative energy or green products are more willing to negotiate price, the government is allowing for large tax credits, and energy costs are skyrocketing again. Together this means you can put something in place now to reduce your electrical bill that will last for years.

Finally - does your state provide additional incentives? Many states have an energy buy-back policy in place. The utility pays you for any electricity that is produced in excess of what you used. That is cash in your pocket.

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