Discover how Midwest campgrounds can see value in implementing solar energy for their business.
Financial Advantages for Midwest Campgrounds Adopting Solar Energy
Campgrounds can reap numerous financial benefits by adopting solar energy in their business. There are four key financial factors to consider when switching to solar energy solutions: energy savings, tax credits, depreciation, and the USDA REAP grant.
The first key financial factor is the savings from solar energy. Given that Midwest campgrounds operate primarily in the summer, finding ways to reduce expenses is crucial. Often, energy consumption is not entirely within the campground's control. Implementing solar energy can make energy use more cost-efficient.
The second financial factor involves the available tax credits. Campgrounds should take full advantage of eligible tax credits, which can range from 30% to 50% depending on location and system components. Additionally, there are depreciation benefits through a 5-year accelerated depreciation schedule.
Lastly, most campgrounds qualify to apply for the REAP grant, which can cover up to 50% of the system costs. Although not guaranteed, receiving this grant can significantly offset the overall cost and enhance the campground's bottom line.
Our solar expert, Allen Bonthuis, talks about why Midwest campgrounds should implement solar energy within in their business.
Challenges Faced by Midwest Campgrounds in Energy Usage
Midwest campgrounds face several challenges when it comes to energy usage. One of the main challenges is the high demand for electricity during the summer season. Campgrounds experience an influx of visitors, leading to increased usage of electrical appliances, such as air conditioning units, refrigerators, and lighting. This surge in electricity consumption can put a strain on the campground's power infrastructure, leading to potential power outages or insufficient supply.
Despite these challenges, campgrounds in the Midwest have the opportunity to overcome them by implementing energy-efficient practices and exploring alternative energy sources like solar power.
Benefits of Implementing Solar Power in Campgrounds
Implementing solar power in Midwest campgrounds offers numerous benefits. One of the primary advantages is the potential for significant cost savings. Solar energy is a renewable resource that can offset the need for traditional grid electricity, reducing utility bills for campgrounds. By generating their own electricity through solar panels, campgrounds can become more self-sufficient and less reliant on external power sources.
Implementing solar power can serve as a marketing advantage for Midwest campgrounds. Promoting the use of renewable energy can attract a broader range of campers who prioritize sustainability. It showcases the campground's commitment to environmental responsibility and can differentiate them from competitors.
Finally, as campgrounds close for the winter, most states in the Midwest implement a distributed generation policy. This policy provides bill credits with your utility company for months when you generate excess electricity, helping to offset costs during high energy demand periods.
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