The Value of Clean Energy

May 10, 2010
By Craig Axelrod

As a property owner and a landlord you are probably always looking for ways to reduce operating expenses and maintenance requirements. Have you thought about clean energy? Consider that China is a world leader in the use of solar heating tubes for domestic water supplies and many rooftops are used to supply apartment buildings with most of their needs. There is an estimated thirty million units currently in operation in that country, and this has both reduced pollutants and dramatically lowered operating costs for property owners and utility bills for residents.

In the past it was only solar electricity that dominated most minds when the use of solar power was discussed. Now more people are coming to understand the benefits of this energy source. Even governments have recognized the burdens that could be lifted from their shoulders if more and more consumers began using clean energy solutions instead. This is the reasoning behind the excellent financial rewards made available to those who put such things as solar water heaters and PV (photovoltaic) panels to work on their apartment, residential, and commercial properties.

Today, the average landlord or homeowner can receive federal, state and local tax credits for such initiatives, and they can also enjoy accelerated depreciation on all installations too. This means that they won't have to wait a handful of years in order to reap the financial benefits of using solar electricity and solar resources. In fact, most owners are able to get a payback on their capital investment in as little as two years, with most seeing their full return within five years' time.

Naturally, it is important to remember that currently clean energy sources such as wind power or solar electricity are still unable to offer complete supplies. There are issues still connected to solar cells and heat accumulation, and also conversion rates too. For instance, a standard PV panel will lose efficiency when temperatures exceed 75 degrees Fahrenheit. Additionally, some of the technologies, such as amorphous panels, can actually only convert seven percent of the radiation they receive from the sun. When wind power is put to work there must be at least a ten mile per hour wind in order for electrical supplies to be created too.

These technologies can, however, deliver access to options for "net metering" which feed clean stock into the public grid and which earn the owner a tidy profit. For example, the landlord who installs a few small wind turbines on the rooftop might see three or four days of ideal conditions. During that time the supplies may be consumed by the residents, but some may even be "left over" and this excess energy is then sent into the grid. The landlord will then receive a credit or even a check from their local utility company.

There are many ways that someone looking for a few financial breaks could put cleaner or greener energies to work. It might take a bit of effort and initial outlay of cash, but the payback period is going to be extremely short and the benefits for the environment substantial.