Generating Energy
Alternative energy sources provide green benefits—both sustainable and financial.
By Susan Brown
"Going green" is popular these days, and rising energy costs and pressure to reduce operating expenses has increased interest in alternatives to traditional utility power. But reducing demand should be the first option for businesses. Most utilities offer rebates for energy audits and help fund projects such as high efficiency equipment retrofits.
After investing in reducing energy usage, generating your own can actually be very practical.
Solar PV Shines
Solar photovoltaics (PV), or solar electricity, should be considered first. New utility rebates in Missouri make solar PV an extremely attractive investment.
These new rebates, in combination with a federal tax grant, can reduce the cost of a system by more than 50 percent. Incentives for solar PV in Missouri are:
30 percent federal tax grant (The grant is good through 2010, and then the grant reverts to a tax credit next year. So, the best time to install solar PV is before Dec. 31.)
$2/watt solar rebate (capped at $50,000) for KCP&L (Mo.) customers
33 percent custom rebate (capped at $30,000) for Independence Power & Light customers
Five-year accelerated depreciation
Businesses in Kansas receive the 30 percent federal tax grant and accelerated depreciation, but no other utility rebates—yet.
In addition, Renewable Energy Credits (RECs) may be another source of income as investor-owned utilities, such as KCP&L, are being required to comply with the new Missouri Renewable Portfolio Standard. Energizing Options
So what about other renewable energy options? Solar hot water is a good option if you use large amounts of hot water in your business processes. Solar air heating is appropriate if you use large warehouse spaces, and solar outdoor lighting is good for lighting remote areas.
Wind turbines are not recommended for urban areas, because of the turbulence from buildings and trees. But if your facilities are in areas outside the metro with a good wind resource, wind turbines might be an option. Zoning for wind turbines can sometimes be an issue, especially in urban areas.
Speaking of zoning, most municipalities have ordinances in place that allow for alternative energy. Your installer can help you sort out the details and ensure you comply with all applicable regulations.
If you own your building, you make the decision about renewable energy. But if you lease, what’s in it for your landlord, especially if you are paying the utilities? This can be a difficult sell, but building owners will see an increase in the value of their property and can increase future rents with properties that have lower operating expenses. It’s also great public relations. Buildings with wind or solar get noticed and can attract high-quality tenants. Building owners concerned about damage to their roof because of solar installations can take advantage of new self-ballasted mounting techniques that require no roof penetrations.
Lighting the Way
Finding an experienced installation company can be a challenge. Experience and integrity are extremely important in this emerging industry because most buyers have little knowledge of the product and there is very little consumer protection in place. Reputable installers will help you with permitting, design, engineering, product procurement, construction, interconnection with your utility and maintenance. Be sure the installer you choose is licensed, insured and has adequate staff to perform all these services. Ask for references and visit previous installations.
Renewable energy can be a very good investment for businesses in the right location and under the right circumstances. Because of the current 30 percent federal grant, 2010 is the best time ever to install solar PV.
Susan Brown is vice president of business development with The Energy Savings Store, the most experienced full service wind and solar (including design, engineering, procurement and installation) firm in the region, with offices in Lenexa and Webster Groves, Mo. (816) 877-6760 //
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