By: Jack Troast
March 2008
In recent years corporations have been aggressively seeking incentive packages offered by state and local governments. These typically involve a combination of tax credits, funding for infrastructure, and workforce training packages. With increasing pressure to promote energy efficiency, some of the best incentives may be energy programs and initiatives offered by state governments. The best part is that along with the rebates come measurable savings for corporate users- and you don’t have to threaten to leave the state.
Often the problem with change is that our traditional ways of thinking obscure the facts. The criticism typically directed at building to a LEED building standard is that it is too costly. But corporate users are finding that the investment is paying off.
"T3 Advisors can help support your corporate goals to make smart energy investments."
Over the course of 5 years Adobe Systems has invested approximately $1.4 million on energy conservation projects, benefited from $389,000 in rebates from local utilities, state and local governments, and reduced their annual operating costs by $1.2 million. This equates to a payback of nine and a half months and an ROI of 121%! Randy Knox, Director of Corporate Real Estate says that in addition to the economic benefit, the investment serves as “an endorsement of how Adobe does business.”
The Commonwealth of Massachusetts has developed a number of programs and incentives to promote energy efficiency.
As is often the case with incentive programs, the opportunities are spread across a myriad of state agencies, quasi- public institutions, and industry providers. Finding the best options and implementing the program is the real challenge. T3 Advisors can help corporate clients navigate this complex environment with a team of experienced professionals that can assist in the evaluation of programs including:
Energy efficiency programs and rebates- Many states have created cash rebate programs offered through the local utility companies. These programs offer a suite of options for investments in lighting, mechanical equipment, and process devices.
Renewable energy programs and rebates- Further incentives are directed at promoting clean energy technologies and supporting the growth of sustainable markets for electricity generated from renewable sources. States have programs that provide financial support for businesses making investments in wind, solar, hydroelectric, and biomass. Massachusetts just launched a renewables program that provides rebates to businesses, nonprofits, public entities, and other organizations for design & construction of solar photovoltaic (PV) energy projects that are up to 500 kilowatts in size. The state renewable rebates can be further leveraged by federal tax credits available for a variety of investments.
Understanding and managing energy incentive programs is a complicated process. The optimal solution should include a review of a number of alternatives in an effort to structure a range of options. Energy policy is also in flux with many new programs and policies pending on both the state and federal levels. T3 Advisors can help support your corporate goals to make smart energy investments. |
