Increase Your Real Property ValueA renewable energy system increases the value of your home, business, or public building. A conservative estimate would be 50% of the system's cost immediately after it is installed. The ICF Consulting study in The Appraisal Journal estimates the improvement value to your home or business at $20 for every $1 you save in annual energy costs. This increase in property value can dramatically reduce the payback period. You should consult a licensed appraiser for more information.
The cost for a renewable energy system can vary widely between $5,000 and $50,000 or more. Let's compare the improvement value of a renewable energy system to that of a new residential kitchen. While the recovery rate immediately after installation for a new kitchen is higher (generally between 70% to 90%), you won't receive tax credits and rebates like you would for a renewable energy system. In addition, most other home improvements don't generate electricity the way a renewable energy system will and a renewable energy system is also property tax exempt, unlike a kitchen.
This chart will give you a general estimate of the cost of a new kitchen versus a new renewable energy system. It does include the additional savings on a renewable energy system due to property tax exemption available in some states.
| Kitchen | Renewable Energy System | |
| Cost | $45,000 | $45,000 |
| Home Value Increase | $40,500 | $22,500 |
| 2009 Federal Investment Tax Credit | $0 | $13,500 |
| Energy Savings over 5 years | $0 | $6,000 |
| Net Cost | $4,500 | $3,000 |
The next time you think about spending money on a home improvement or a new car, imagine that it came with a 20 year warranty and that it could last 40 plus years and had no maintenance other than occasionally rinsing it off with a garden hose. Imagine that it helped to keep our air clean, rather than pollute it. Imagine that it actually produced energy, rather than consume it. Imagine that the longer you owned it, the less it would cost you and that after a few years would actually pay for itself. Imagine owning a renewable energy system by Akari Energy.
Low Financial Risk
In an article called, A Better Return than Stocks - with Negative Risk, Rick Nevin says, "The risk of investing in energy efficiency is actually negative because homeowners are already subject to the risk of changing fuel prices and weather patterns that can dramatically increase utility bills. In financial markets, investors accept lower returns from lower risk investments, but energy efficiency investments provide a higher return than stocks and reduce your overall financial risk by reducing the potential variation in your utility bills."
Tax Credits, Rebates & Financing
If you are looking for ways to increase your net worth over a short period of time, or find additional home equity, a renewable energy system may be the answer. With the 30% Federal Tax Credit, additional state tax credits and utility provider rebates available in some areas, you may see a break even point of your asset versus liability within a few short years. Click here to learn more about tax credits, rebates and financing options.
There are also other credits and rebates available for energy efficiency improvements. The U.S. Department of Energy has published a Database of State Incentives for Renewables & Efficiency (DSIRE). Click here to go to their website.
Residential Tax Credits
Tax credits are now available for home improvements and Akari Energy will help you through the process of learning which credits you may be eligible for and helping you through the process of earning them. Here at the some eligibility qualifications:
- To apply for the federal tax credit, your system must be "placed in service" by December 31, 2016
- Must be for taxpayer's principle residence, except for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes and rentals qualify)
- Must have a Manufacturer Certification Statement to qualify
- For record keeping, save your receipts and the Manufacturer Certification Statement
- Improvements made in 2011 will be claimed on your 2012 tax return (filed by April 15, 2012) - use IRS Tax Form 5695
Commercial Tax Credits
A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of up to $0.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. These tax deductions are available for systems "placed in service" from January 1, 2006 through December 31, 2013.
Save on Your Electric BillA properly designed and installed renewable energy system for your home, business, or public building, will get you on your way to generating electricity you can use. You do not pay for the electricity your system generates. If it generates more electricity than you need, that surplus may be sold back to the utility company in a process called net metering. The higher the energy costs rise over time, the more money you will save.
With a renewable energy system, your utility company will continue to provide you with power at night or on cloudy days. This is an automatic process that your system is designed to handle, so that you can enjoy green energy without any intervention.
Contribute to the EnvironmentBy installing an Akari of Green you help to reduce carbon dioxide (CO2), NOX and SO4 emissions into the air we breathe. Carbon dioxide emissions are created when fossil fuels are burned to generate the electricity you use. Fossil fuels are non-renewable because they take millions of years to form and are being depleted faster than they are being generated. This reduction in supply will create an upward pressure on energy prices over time.
Fossil fuels are burned so extensively that the process is creating an over abundance of greenhouse gases. There are greenhouse gases in our atmosphere that the earth uses to absorb heat and keep the planet warm. This process is called the greenhouse effect. Without greenhouse gases, the earth would be covered in ice. Burning fossil fuels is generating enough heat that it is disrupting the greenhouse effect and causing global warming. Global warming melts the ice caps on the poles, causes flooding, storm activity and creates other environmental concerns.
In some states, renewable energy systems are exempt from property taxation. This can save you a great deal of money year over year when you compare it to other types of improvements. We can tell you what renewable energy system property tax benefits are available in your state.
We stand by the quality of our work and that is why we offer a 10 year warranty from project completion on workmanship for an Akari SolarPower System. We also warrant that all roof penetrations made in connection with a project and the surrounding area within a 5 inch perimeter of each roof penetration shall be free from damage to roof and against water infiltration for a period of 5 years from project completion.
We provide a 5 year warranty from project completion on workmanship for any other renewable energy system. Manufacturer's will also provide their own product warranty on components installed. Ask for more details.
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