For Business

If you truly believe your people are your most valuable asset, which is certainly true in terms of costs, then investing in them would be one of the smartest things a business can do. By making the built environment where your employees do your business cleaner and more comfortable, your employees will be healthier and happier, and thus more productive. Getting the most you can out of your people is an important part of efficiency for any business.

Efficiency can also mean reducing cost by using simple best management practices such as just-in-time inventory management or utilizing information technology. As energy costs continue to rise, and renewable and efficiency technologies come down in price, these measures will more and more be thought of as simple best management practices. Ignoring them will put your business at a competitive disadvantage, just like businesses that were slow to embrace computers. While these various technologies are still in the early stages of market penetration, forward thinking businesses that get in now will get first mover advantages over their competition.

When considering the life-cycle costs and benefits of these measures it is important to remember to consider the impact of rising energy costs. Investments in renewable energy and energy efficiency lock in what you pay for their respective lifetime energy values, reducing your exposure to rising energy prices, and even potential shortages and price spikes, taking you out of the energy speculation business. This hedging against future price increases allows you to more closely couple your business’ fate with the execution of your core competency, not the whimsical global energy market.

For building owners, investments in renewable energy can in the right markets provide an extraordinary opportunity for return. For example, a property owner who installs 50 kW of solar electric panels in Montgomery County, Maryland will pay approximately $400,000. The federal rebate would be about $133,000 in tax credits plus the benefit of 5 year MACRS depreciation, the sales value of the SREC (Solar Renewable Energy Credits) produced would be more than $300,000, plus the more than $20,000 in Maryland state incentives. This gives you more than 10% unlevered ROI as soon as you can fully capitalize on the tax incentives. That does not account for the more than $7,500 a year worth of electricity produced based on current rates. As most solar panels have 20-30 year warranties and generally last from 40-50 years, the lifetime value of the energy produced should exceed half a million dollars.

For more information on how your business can put your tax money to work for you, while hedging future costs, and creating an ‘eco-friendly’ image, contact us today. Do not worry about jungles of red tape and mountains of paperwork, KGC Development’s turnkey services takes care of it all for you. All you have to do is just say yes.