It might be a good time to switch to a new electricity provider if you pay:
- More than $9,000 a year on energy, or
- More than 9 cents per kilowatt hour.
Today, these are good “rule of thumb” numbers that indicate it is time. It is time to consider installing Photo Voltaic (“PV”) panels on your farm rather than paying the electric company.
Due to the falling price of a PV system for your farm and the possible future changes to the tax codes, this is an ideal time to take action to improve your bottom line. There are numerous government and utility incentives that can help you reduce the amount you pay for electricity:
- Through the Rural Energy for America Program (REAP), the USDA could pay 25% of the upfront cost for your non-residential system.
- You can claim depreciation on the solar system to reduce your tax liability by approximately 20%.
- The federal treasury offers a tax credit for renewable energy systems, which is currently valued at 30%.
- Some utility companies across the country have programs that will pay you money for installing a renewable energy system.
Even if you do not have a utility program discount offered in your area, purchasing a system that will provide free electricity for the next 25 years will basically be 75% covered by other people’s money.
It could be time to consider making the switch!
If you’d like more information on the cost savings and incentives for a solar system, contact EIM (Energy Improvement Matters) by email at email@example.com or call 317.228.0134.