Commentary: 'Green' power may be next best investment

By 2nd Lt. William O. Horton III, 396th Transportation CoJanuary 19, 2010

CAMP LIBERTY, Iraq (Jan. 19, 2010) -- It is understood that resources do not last indefinitely.

As stewards of the Earth, it is our duty to conserve our natural resources and consume only what is necessary. This is quite a formidable task in these days of increasingly large vehicles, decreasing gas mileage, rising energy costs and unemployment.

A new paradigm, however, is on the horizon - the "green" or self-sustaining home. The green home provides all its own energy through an alternative power source such as solar hot-water heaters, geothermal heat pumps and wind turbines.

You can expect to recoup 30 percent of your investment in an alternative-power source when you file your taxes for the year, as you will receive a 30-percent tax credit, with no ceiling; this improves upon the previous credit as there was a $4,000 cap. The deal may also be sweetened with incentives at the state level, so be sure to check with your state because each is different.

The systems are rated according to kilowatts and you have the option to store excess energy in a bank of rechargeable cells. The systems efficiently create and store environmentally-friendly energy. Wind turbines produce a varying amount of energy relative to wind speed and the energy produced by photovoltaics varies with the intensity of the light source. To reap the benefits of the system in varying weather, I would install a combination of systems.

The typical American household consumes monthly about 1,000 kilowatt hours of electricity. A wind-turbine power-generation system consisting of two turbines can generate enough electricity to power a household for a month with an average wind speed of 15mph. A system constructed to these specifications would cost the home owner about $28,000 installed, or $19,600 adjusted for the tax credit.

Assuming an electricity cost of $.14 per kilowatt, it would take just over 12 years to recoup the investment in the system. But imagine running your home and never receiving a utility bill; what a great day, month, or even year that would be.

Even better, as the system produces more electricity than demanded by the home, the electricity meter begins to run backward and you sell power back to the utility company. So, your alternative power source can become an alternative income source. The systems have life expectancies of 20 to 25 years, so potentially, after the first system has paid for itself, the energy produced during the remainder of the life cycle will pay for the replacement system; talk about dividends!

If you are looking for the next best investment, look no further than your biggest investment - your home. Invest in your environment today and your kids will have one tomorrow. All the extra cash is just icing on the cake.