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How to Reduce Upfront Costs of Renewable Energy Installation
- Jan 26, 2021 2:37 pm GMT
Do you want to use renewable energy for your home or business? If so, you might already know that upfront costs can be steep. The expense can deter buyers — but you can lower the price tag with different tactics.
Take a look at how you can install renewable energy like solar and wind at cheaper initial prices.
What Are Renewable Energy Expenses?
The average costs for renewable energy projects differ by type. For example, you can expect to pay from $10,000 to $30,000 for a geothermal heating and cooling system. It all depends on what you choose.
Why are renewable energy capital costs expensive? It’s mostly because hardware, labor and installation differ from traditional energy sources. After all, you have to implement a completely new system. If you have a unique property, you can expect additional costs.
It’s also essential to think about availability. Americans can now access more renewable energy options than they could previously — but you’re probably aware that certain alternatives aren’t as widespread as fossil fuels. The cost of renewable energy decreases every year. That said, you might still pay a hefty price tag.
Here’s how you can manage initial expenses for your renewable energy project.
1. Get More Than One Opinion
The first supplier you see won’t always be your best choice. That’s true for every renewable energy alternative available. Therefore, you need to make sure you keep your options open.
Try to do online research to get multiple perspectives. There might be a better option for you. Take wind power as an example. If you live somewhere like Texas or California, you could benefit more from a turbine than geothermal energy.
This effort can help you save thousands of dollars. There’s likely a better option than what you’re currently considering for either your home or your business. After all, you never know what deals companies are offering.
2. Strive for Energy Efficiency
The average house requires up to $30,000 worth of solar panels to create enough electricity. That’s a significant number. The solar company may take your current usage into account when giving you a quote for your system. Therefore, you should aim to make your home as energy efficient as possible before you install them.
You can try tricks like:
- Using LED bulbs
- Installing a smart thermostat
- Sealing leaky windows
- Insulating rooms properly
- Changing HVAC unit filters
As a result, you should be able to see a reduced energy bill that subsequently saves money on upfront costs.
3. Pursue Tax Incentives
There are various ways to benefit from tax cuts when you use renewable energy. The government offers breaks on federal and state levels to encourage people to switch to renewable energy. These programs can help you cut capital costs.
The investment tax credit (ITC) works as a prime example. This incentive allows businesses to deduct money from their upfront renewable energy investments. It mainly benefits those who choose solar power. However, you can explore other options, as well.
You may have to wait to see decreased expenses. For instance, you might not be able to obtain your savings until you get your tax return. That’s still money you wouldn’t have enjoyed otherwise.
Be sure to explore your options beforehand so you can meet whatever qualifications are required.
Renewable Energy Isn’t as Expensive as It Seems
If you combine these three points, you should find that renewable energy isn’t as costly as you first thought. The prices for systems like solar and geothermal decrease annually. That said, you can further your savings by using certain tricks, making installation much more affordable as a result.
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