The Importance Of Clean Energy To Property Owners
As a real estate owner and lessor, you are presumably constantly exploring ways to reduce your overhead and maintenance requirements. Clean energy is one of the effective solutions that you should think about. Are you aware that there are solar heating tubes that can be used to heat water more economically? China is the leading country for utilizing solar water heating technologies. Many roof spaces in China are installed with solar heating tubes to provide residential properties with most of their heating requirements. There are around 30 million solar heating systems currently in operation in that country. This has dramatically decreased not only electric power bills for residents and tenants, and energy costs for real estate owners, but the volume of air pollution in China as well.
Previously, many of us have thought that solar energy applications for residences and apartment buildings were only for producing solar electricity. But today solar energy is being widely used for heating water . Furthermore, even national governments have realized the environmental burdens that could be lifted from their shoulders, if more and more people started implementing clean energy alternatives. Hence, excellent financial incentives were made available for those who install solar water heaters and PV panels in their residential properties and commercial office buildings.
Today, the average homeowner or landlord can receive local, state, and federal tax credits. Property owners can also avail of accelerated depreciation. Hence, they won’t have to wait for several years to realize the financial benefits of using solar electricity and solar water heating systems. As a matter of fact, most commercial landlords and residential owners are able to get a payback on their capital investment as early 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 current clean energy sources, like wind power and solar electricity are still unable to provide the complete electricity needed by the property owner. Efficacy of solar cells, their heat accumulation, and conversion rates, still need to be improved. For instance, a standard PV panel will lose efficiency when temperatures exceed 75 degrees Fahrenheit. In addition, some of the technologies, like the amorphous panels, can only convert 7 % of the radiation they collect from the sun. And with wind energy, at least a 10 mile per hour wind is required in order for electricity to be produced.
Investment in clean energy through ‘net metering’ can also give real estate owners the side-business opportunity to bring in extra credit or money by feeding their excess stock of electricity into the public power grid. For example, a landlord sets-up a few small-sized wind turbines on his rooftop, and because of 3-4 of great wind conditions, he generates a greater quantity of energy than his tenants will use for that period. The landlord can then feed into the public power system, his excess or unutilized electric power for this period. And in return, the landlord will be given a check or credit from their public utility company.
Therefore, with clean energy there are many ways that someone can utilize ‘clean energy’ to avail of a few tax breaks. It might take some effort and initial outlay of cash, however, the return on your investment can be realized in a short amount of time; and most importantly, benefits to the environment are more than the value of your investment.
Craig Axelrod is a partner for Emmy Energy, a NY clean energy operation offering solar heating tube systems & solar electric systems throughout the Northeast.
