Rebates and Incentives for Renewable Energy: Is it Worth the Cost?

There are many different programs offering rebates and incentives for renewable energy. One of the most popular programs in my area is wind turbine energy, which the public school systems are buying up left and right. At first, the wind turbine energy seems like a good idea, until you realize that the process to put them in place is often more destructive than environmentally-friendly.

For instance, when someone in my area orders a wind turbine, a special truck is hired to deliver it to the destination. This truck, once loaded with a piece of the turbine, is heavy, and when driven, it wears down our highway cement, which is already in shambles. What's worse, a special escort is required to bring it to the destination, and often all traffic is stopped at four-way stop signs for the truck to turn when loaded with the turbine. Rarely do any other such loads come by our highways; just the turbines. In addition, a friend of mine who is a professional in this area calculated how much the turbines cost versus how much they would reap economically. He found out that it would take at least 15 years for the turbine to pay for itself, during which time the schools would need to spend a bundle replacing bad parts, further adding to the cost.

However, the average eco-friendly customer can apply for a smaller wind turbine rebate through their government. For example, in Maine, customers can purchase a $17,000 wind turbine for their home, and the government will pay them back $2,000 in rebates. Not a bad deal, necessarily, but the home owner will have to judge whether they really get enough wind to make the balance between regular energy and renewable energy worth $15,000 or more.

Another example of renewable energy rebates and incentives is the California Solar Initiative. With a budget of over 2 billion dollars from 2007-2016, the state of California is offering residents rebates and incentives on a per watt basis. For small systems, California will pay a lump sum up front when a solar system is installed in the home. How much you are paid per expected performance varies based on your location, shade, etc. and tops off at $3.50 per watt. For larger systems, customers can be paid based on their performance over five years, with the incentives paying up to $0.60 per watt of performance.

While these types of renewable energy rebates and incentives can pay off, it is up to you, the customer to figure out how well you can expect to see results. If your area doesn't receive a lot of wind, it won't behoove you much to buy a wind turbine. Same goes for buying solar panels in Seattle, Washington. If you're in California, however, it would be a much better deal by far. Check with your state to see what personalized options are available for rebates and incentives for renewable energy.

Sources:
http://www.gosolarcalifornia.org/csi/index.html
http://greeninc.blogs.nytimes.com/2009/01/06/more-states-offer-rebates-for-home-wind-turbines/