How quick is my ROI when switching to LED lighting?
Generally, the return on investment is one of the shortest returns when compared to other energy investments, although it depends on the how much the lights are being used. Commercial clients usually see the quickest returns due to more hours per day lights are being used. In addition to a typical reduction of energy output by 20% to 50%, LED lights lifespan is much greater than other options as well. Most LED lights have around a 50,000 hour life span compared to 12,000 hours that incandescent lights typically have. This adds to the ROI by not replacing lighting at the same rate as previously required.
How much will it cost?
MSE will provide an upfront, no-cost estimate before work starts so there are no surprises at the end of the job.
Is Magic Sun Electric bonded and insured?
YES. Always make sure you hire a licensed contractor for any type of work you do. Make sure the contractor has insurance and verify it by asking the electrician for his/her policy number and name of company so that you may contact them and make sure the policy is active. It is crucial for a contractor to carry liability insurance (they are working in your home/office).
To Calculate the 30% Solar ITC:
Homeowners calculate the 30% on the net installed cost; i.e., after you’ve deducted the value of any state or utility rebates. For example, say the total cost for your solar installation was $15,000 and you received a utility or state rebate of $3,000, your total upfront expense is now $12,000. Example: 30% x $12,000 = $3600 tax credit that you can deduct from your tax liability to the IRS.
For businesses installing commercial solar projects, the rebate is calculated on the gross installed cost of the solar system; i.e., before deducting for any local or utility rebates. Example: 30% x $15,000 = $4,500 tax credit the business can use toward Federal business tax liability.
The reason for the credit difference is that the IRS views the $3000 utility rebate for business use as “earned income” (which the business has to pay tax on); whereas the IRS considers the $3000 as a “reduction in value” for residential use, and therefore it is not taxable.