Obama Stimulus Package Stimulates Renewable Energies Across the Nation
Written by Jacklyn Rome on Tuesday, April 28, 2009
While you probably have heard about the Stimulus Package and President Barack Obama’s push toward increased usage of renewable energies, you may not be aware of how this initiative can help your business and where the money is in fact going. The following information will explore the specific allocations of the Energy Stimulus and how you, as a business or as a consumer, can take advantage of this unique opportunity.
The following outlines the specific initiatives the energy stimulus money will be dispersed to:
Historically, companies have been reluctant to invest in renewable and clean energy technologies, because they require tremendous economies of scale to be profitable. Since these systems require large capital outlays upfront, it takes a long time to see return on investment. The Stimulus Package aims to combat these hesitations toward switching to renewable energy systems. The initiative will benefit various members of the energy sector from large utility companies upgrading energy grids to small businesses installing solar panels. It also benefits end consumers striving to make their homes more energy efficient through tax breaks and government subsidies.
Federal Involvement will Spur Investment, Growth, and Job Creation
The influence of government grants, loans, and tax breaks, will help encourage progress for both the supply and demand side of this sector. On the supply side, the government will provide research grants and funds for investing in promising existing and new technologies. On the demand side, the Stimulus Package will help companies and homeowners purchase new green energy systems by making them more affordable. The Stimulus Package will also create thousands of new jobs across the nation fulfilling these initiatives, helping to fuel unemployment and the overall status of the economy. According to Nancy Pelosi, investment in the green sector will create close to 500,000 jobs in 2009, 67,000 of which will be in the solar and wind power installation sector. Ultimately, the energy portion of the stimulus package will reduce American reliance on foreign nations for fossil fuels, generate domestic jobs, and promote innovation and adoption of new renewable energy technologies nationwide.
Access to the Allotted Funds
Whereas other areas of the stimulus package will be distributed through company applications and competitions to receive the funds, the money attributed to the energy sector will be primarily dispersed through tax credits and purchase incentives. For example, within solar and wind energy, the government is now offering a 30% tax credit to offset the cost of installing a solar energy system or wind farm, whereas previously the tax credits had a cap of $2,000 and $4,000, respectively. Some additional credits include up to $7,500 for buying a plug-in hybrid electric car or a 50% tax credit for gas stations or other businesses that install alternative fueling pumps. For more information on the specific types of grants or tax credits offered, please find more information at the following website: http://www.greentechmedia.com/articles/obama-signs-stimulus-package-5736.html.
So What Does This Mean for You?
If you are involved in the clean energy sector, Growthink recommends additional research into the specific provisions of the stimulus to see if your business will qualify for federal subsidies or research grants. Additionally, Growthink suggests putting together a strong marketing campaign that highlights government support and tax credits for purchasing your products. This will educate the many unaware businesses and consumers that believe switching to alternative energies is outside of their affordability. Additionally, it is a wonderful way to draw positive publicity for your business. Growthink is happy to provide you with complimentary feedback on your current marketing program. We can also assist you by utilizing our expert group of marketing professionals to work with you on creating a Marketing Plan to target your customers in the most effective way possible.
Contracting, Construction, Eco-Friendly Transportation, and Electrical Infrastructure Companies
If you own a contracting, construction, eco-friendly transportation, or electrical infrastructure company, Growthink recommends seeking additional information on how you may bid for funds allocated to electricity grid design, weatherization, environmentally friendly transportation development, energy efficient housing, and building renovations. Growthink can help you with conducting this research and help articulate how your business is the most suited to perform the specified work or receive a government grant.
As a consumer, you can reap the benefits of the energy sector stimulus by utilizing the tax incentives to switch to renewable energy systems, such as installation of a solar or wind energy system in your home. The government is also offering customer rebates for those who purchase energy efficient appliances for their homes.
The Obama Stimulus Plan is an unprecedented program that has created unique opportunities for tremendous innovation and growth within energy efficiency. Please contact Growthink for more information on how we can help you position your company to benefit from the billions of dollars allocated to this sector and within your reach.
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