Affordable renewable energy

“If it wasn’t for the cost, I would love to install a solar energy system on my property or in my business.” If that sounds like you, read on! Many grants, incentives, tax credits and rebates make green power more affordable than you might think!

As you know, the sunshine in the CNMI is very plentiful. This natural power provides an average of 5.2 hours of sunshine a day. The amount of solar energy available to the Earth in one minute if captured exceeds global demand for energy for one year on our planet. Incredible! Why not capitalize on this free and plentiful source?

Phil Yorio is the general manager of Micronesia Renewable Energy, Inc.-CNMI. (Contributed Photo)

Having financial stability and security with respect to your utility cost is a must for most businesses and households to curb the high cost of owning a business or a home. With our total dependence on foreign oil, you cannot only own your own power producing energy plant for your business or home, but hedge your energy costs for the short term and know exactly what you will be paying until the system is paid off. Then adding those dollars that you would have paid for energy to the utility back to your bottom line where the money matters most.

Let’s take a look at the main incentives available to businesses and homeowners who want to install solar energy.

Businesses and homeowners are entitled to the Business Energy Investment Tax Credits (ITC). In general this credit is available for eligible systems placed in service on or before Dec. 31, 2022. The credit is equal to 30 percent of expenditures, with no maximum credit. Eligible solar energy property includes equipment that uses solar energy to generate electricity. Usually if you purchase your system out of pocket your payback is within five years and its clear sailing after this point but remember you need to maintain these systems to reach the life expectancy of the system which is 25 years, this would include keeping the panels clean and making sure the inverters are in good working condition.

If you did not have the tax exposure required to make this purchase beneficial then a PPA or power purchase agreement is for you. This finance option is great because there is no out-of-pocket expense, you get to know what you’re paying for energy over the term of the contract, so you are hedging your energy costs and the nice thing is someone is maintaining and insuring the system for you over the life of the contract, while at the same time saving energy costs by purchasing power under the current utility costs.

With the ever-increasing costs of energy, and the destructive measures that is happening to our planet due to climate change the time to go solar is now.

Go Green CNMI!