Why ‘Clean Energy’ Should Be In The Minds Of Property Owners
As a real estate owner and lessor, you are presumably constantly searching for for strategies to lower your operating and maintenance costs. So have you carefully reviewed your clean energy options? It may interest you that China leads the world in the installation of solar heating tubes for heating water. Several roof areas in China are installed with solar heating tubes to supply residential buildings with most of their heating requirements. In China, there are around thirty million solar heating systems, currently installed. This has effectively decreased not only electric power charges for residents and tenants, and operating costs for commercial building owners, but the level of air pollution in China too.
Before, it was only solar electricity that people understood was the purpose of having solar power in homes and commercial buildings. But today solar energy is being widely used for heating water . Moreover, even national governments have recognized the social and economic benefits for their country, if more and more consumers began implementing clean energy heating systems. Hence, attractive financial rewards were made available for people who implement solar heating systems and photovoltaic panels in their homes and commercial properties.
Today, the average landlord or homeowner can receive federal, state, and local tax incentives. Property owners can also avail of accelerated depreciation. This means that they won’t have to wait for a number of years to realize the financial incentives of using solar electric power and solar hot water equipments. As a matter of fact, most owners are able to get a return on their invested capital in as little as two years, with most property owners seeing a total return on his or her investment in 5 years.
But it is important to keep in mind that the latest clean energy sources, like wind power and solar electric power are still unable to provide the total energy required by the property owner. Improvements are still needed on the efficacy of the following solar technologies: conversion rates of solar to electric energy, heat storage, and solar cells. For instance, a common photovoltaic panel will will not run as efficiently when temperatures go over 75 degrees Fahrenheit. Plus, some of the technologies, such as amorphous panels, can only convert seven % of the energy they receive from the sun. And with wind energy, at least a ten mile per hour wind is required in order for electrical power to be produced.
The installation of clean energy through ‘net metering’ can also provide resident and commercial property owners the chance to bring in revenue by putting in their excess stock of electricity into the local power grid. For instance, a landlord sets-up a few small-sized wind turbines on his roof space, and due to 3-4 of great wind conditions, he generates a greater quantity of energy than what his tenants need. The building owner can then transmit into the power grid, his surplus or unutilized electric power for this period. And for this, the landlord will be given credit or even a check by their local utility company.
Hence, with clean energy there are many ways that homeowners and landlords can utilize green energy or clean energy to have a few tax breaks. It may require a bit of work and research and initial investment on the solar equipment and installation, but the returns on your investment can be enjoyed in a few years; and most importantly, benefits to our natural environment are substantial.
Craig Axelrod is a principal for Emmy Energy, a NY solar power company delivering solar heating tubes & solar pv systems in the North East.
