Making Your Business "Green" Can Help You Stay in the Black
By Wendy Simmons, Prism Energy Services
Whether you’re a business owner, a real estate developer, OR a building owner, manager or tenant, being “green” can be more than just the right thing to do for the environment. It can also be the right thing for your budget. Did you know that utility companies, the
Massachusetts Technology Collaborative (MTC) and State and Federal Government will reward you for the “greening” of your leased space or building? Did you also know that at the same time you are accepting their “green” (no pun intended) incentives, you could be lowering your business’ energy consumption and/or costs AND helping the environment? Lastly, did you also know that commercial tenant fit-up, capital improvements and other maintenance and construction projects can be designed in such a way that they result in energy savings for your business while qualifying you to receive these significant financial incentives?
If you answered yes to all those questions, take the rest of the day off! For the rest of you, we have a few more questions. Do you want to be environmentally responsible? Do you want to lower your utility bills through energy efficiency or by installing renewable energy sources like solar? Do you want to take advantage of financial incentives (from a variety of sources) for building projects you need or want to do anyway? If you answered yes (or even maybe) to any of these questions, read on.
Utility companies want you to improve the energy efficiency of your office or building. Why? Because it is less expensive than building new power plants. In
Massachusetts, public utilities are also mandated to do it by the state. The money they provide as incentive has been collected from rate payers (yes, you) on their energy bills. Utility companies will provide or recommend Energy Efficiency Vendors to assist you with an energy audit and proposal for your office or facility, as well as the implementation of energy efficiency measures. The utility company will also contribute financially toward the cost of the project and in many instances provide 0% financing for 12-24 months. Because you immediately save money on your energy bill, the typical payback period is 2 years or less, a very sound financial investment!
The Massachusetts Technology Collaborative (MTC) manages the state’s Renewable Energy Trust and offers grants for feasibility studies and implementation of renewable energy projects such as solar, wind or other. The Trust’s funding comes from ratepayers (yes, you again) of investor-owned utilities. Projects can be renovation of existing buildings or new construction, including green buildings. Grants for feasibility and design can be up to $100,000. Grants for construction can go up $250,000 for solar and $400,000 for other projects (all projects must meet strict eligibility guidelines). Improved technology and lower implementation costs, combined with grants and tax incentives have made renewable projects, particularly solar, more financially viable than ever before.
The
Commonwealth of
Massachusetts and the Federal Government are putting their money where their mouths are in terms of you “greening” your business. Both offer tax deductions, tax credits and accelerated depreciation for eligible projects for your business. Eligible projects include energy efficient products (like lighting, double-pane windows, insulation and efficient heating & A/C) and the installation of renewable energy alternatives such as solar. The tax benefits to for-profit companies typically improve the return-on-investment (ROI) and the overall financial feasibility of proposed projects. Even if a project isn’t intentionally “green”, you can often take advantage. Most construction projects will include energy efficient windows, insulation and relatively (if not very) efficient heating and cooling equipment (mostly because they are all the industry standard now). A little attention to selecting and documenting efficient products can yield a nice tax break on your upcoming return. Consult your tax accountant on how to access these tax incentives under the Energy Policy Act of 2005.
To be competitive these days requires trimming expenses, doing more with less and guarding (not just watching) the bottom line. Energy efficiency and renewable energy choices can help keep your business out of the red. Green, after all, is the new black.
Wendy Simmons is President of Prism Energy Services, and is an Athena PowerLink® and Citizens Bank Peak Performance for Small Business award winner. Prism assists business customers lower operating costs through energy efficiency, renewable energy alternatives and wise energy purchasing. For more information contact Wendy at (617) 328-9896 X14 or at wendys@prismconsultinginc.com
