February 4, 2011 § 3 Comments
. . . What time is it now?
The centennial of Ronald Reagan’s birth is February 6, 2011. Ronald Reagan was the 40th President of the United States, and he is idolized today by admirers for his conservative leanings. The impact of his fiscal, social, and foreign policy agenda is still unfolding, and it will take another 30 years for scholars the write the book on his presidency and its aftermath.
The Reagan period is symbolized by his 1984 reelection campaign and his television spot: It’s Morning in America. It’s a highly acclaimed political campaign television commercial . . . pure Hollywood and pure Reagan.
So, if it was morning in 1984, what time is it now? In terms of U.S. energy policy, it’s Dawn in America! Ten years after the 1973 Arab oil embargo, the supposed energy ‘wakeup call’ for U.S. energy policy makers, we celebrated morning; now, nearly 30 years later it’s dawn, but remember dawn is not dusk! It’s just time to move in the other direction. America does not do well with wake up calls
The above EIA chart does not need interpretation. The 2008-2010 downturn is related first to $4.00 gasoline and then to The Great Recession. Of course, oil prices are rising again.
Here is what we know: so many of the social, health, economic, trade, foreign policy, fiscal, and environmental issues confronting America are related to the lack of a cohesive long-term energy strategy. Over and over, the status quo, intransigent politicians, and vested interests prevail.
So, let’s move up the clock – just a little. In terms of energy: IT’S SUNRISE IN AMERICA.
We cannot expect policy makers and their flock of insiders to solve our energy issues. It just will not happen. This is America; we are empowered by independence, individual choice, and economic freedom. So, if you like the way things are . . . perfect, nothing to think about. But, if you would like to make a difference . . . you are the catalyst, you are the movement, you are the solution; and your politicians will follow in line after the fact.
If you are connected to the electricity grid, consider PV solar electricity for your home or business as a supplement to your electricity consumption. In a small-scale, become your own independent power producer (IPP). Produce a portion of your electricity using light as a fuel with your own PV system, and purchase the balance of your electricity from your electric utility. It’s that easy.
PV solar electricity is a groundswell popular movement, not a government policy. It’s renewable and sustainable, affordable, a hedge against rising energy costs, and an attractive long-term investment for your home or business.
Say no to political folly. Say yes to taking charge . . . to clean and affordable solar electricity. Light from light. It’s an economic choice today!
It’s sunrise in America.
Chet Boortz, CEO
January 19, 2011 § 2 Comments
For a residential user, the installation of a PV grid-tied system has significant tax advantages that are rarely considered in determining the costs and benefits of a PV system.
By installing a grid-tied PV system, the system owner generates electricity that is consumed on the load side of the electricity meter. The result is a lower electricity bill. This, of course, is the economic benefit of solar electricity. The difference between the before PV and after PV electricity bill is an avoided cost. This is a cost you do not have to pay . . . a cost you have avoided! The avoided cost has an ‘after tax’ benefit, because you do not pay income taxes on the avoided cost. When you pay your electricity bill, you do so with ‘after tax’ dollars. Your electricity bill is not deductible for tax purposes, so it takes after tax dollars to pay your bill.
So, here is the impact. If your cost for electricity is 12.02ȼ kWh (EIA, the August 2010 U.S. residential average); and you use 1,000 kWh per month, your monthly electricity bill is $120.20. If your marginal federal income tax rate is 25%, it takes $160.27 of before tax earnings to pay your electricity bill:
$160.27 (before tax) x 25% (tax rate) = $40.27 tax liability
$160.27 (before tax) – $40.27 (tax liability) = $120.27 electricity bill
Why $0.1097 for a residential PV System? Click here…
The above analysis is not intended to be tax advice. Your circumstance may vary, so always consult your tax advisor for specific tax matters.