Stocks declined 20% in one week in October of 2008.
Banks failures are happening throughout the world at an alarming pace.
Real estate markets have crashed with real estate prices dropping by 30% in 12 months.
Where can you put your money where it will give a good return and be safe?
Banks are paying 2% to 4% on CD's, but the industry is troubled, braced up by FDIC.
Let me show you how a prudent investment in a Wind Turbine, can give you high cash returns, increased property values, lower taxes, and good safe investment characteristics.
We will use as an example, a small "home" sized unit (although larger units are more efficient and profitable).
Most homes in Texas use about 60 to 80 kWh of electricity per day.
A 5 kWh wind turbine, that we offer, can produce, at optimum rated winds, 120 kWh per day. Even in "fair winds" it can produce 70 kW per day, even at 60% efficiency, it can take care of the electric needs for most homes.
Over a 10 year period, it can produce 43,200 kWh per year, an using the Texas average cost for electricity of 14 cents, this means $6,048 per year, or over 10 years: $60,480.
Federal Investment Tax credit gives you 30% of your cost, or about $10,000 the year you invest from the U.S. government.
Production credit (if you select to use this) can give you 2 cents per kWh or $864 per year or$8640 over 10 years.
You can depreciate the turbine over 5 to 7 years for another $27,500 credit.
Your property will appraise for a higher price because you will have no electric bill, increasing your appraised value by an estimated average of $66,000.
Estimates of utility pricing indicates that the second 5 years of ownership rates should give you additional income production of $2,800 per year, or $28,000 over 10 years.
TOTAL POSITIVE FINANCIAL RETURN:
- $ 8,640
Grand Total: $170,620.
All of this on an investment of $29,900. Add in $3,500 for installation or other fees and your total investment is $33,000. Now, $170,620 divided by 10= $17,620 per year, average annual benefit. $17,620/$33,000= 53% average annual return on investment.
Now these assumptions are based upon high wind speeds and good conditions, and of course these can and do vary. But even if you knock your assumptions down by 30%, it is still safer, more stable, of lower risk, and has more advantages than most investments you can find in our world today.
Now let's look at the numbers like this. What is my investment return over a 10 year period, if I have gained a financial advantage of $170,620 with an initial investment of $29,500 ($33,000 including installation)? Annual return of 53%. Now the results will vary with your tax bracket and with wind speeds and with the costs of electricity. But we assume that the costs for electricity will continue to rise, and that the wind will continue to blow, and that taxes in general will continue to increase.
So, you have it. Which is better? 20% decline in value in one week in stocks? 30% decline in value in one year in real estate? Or a stable, above average return on your money annually, with something that you can see and feel, right on your property. Something that will actually increase your property value, increase your tax deductions, while increasing your income, and lowering your expenses.
53% return (after all tax benefits, grants, and incentives are calculated). Safe. Solid. Right on your property. 53%, and in the process do something to help our nation's needs.
But there are risks. Storms, break downs, or interrruptions. You must be sure your turbine is insured and allow for periodic days down to service the equipment. Sometimes equipment fails, and time elapses while parts are found and installed. But all in all, the numbers for wind power make sense.