Conglomerates Watch RP’s Geothermal Industry
Posted on July 28th, 2009
Multinational companies are now showing renewed interest in the Philippines as an investment site for their renewable energy projects, thanks to the Renewable Energy Act of 2009.
Antonio Yee, president of Chevron Geothermal Philippines Holding Inc, said that before the law was enacted, Chevron focused more on Indonesia which has a 10,000 megawatt (mW) untapped geothermal capacity.
However, Lee said, the Philippines is now getting equal attention from Chevron because of the regulatory and fiscal incentives detailed in the RE Act. “The environment was not attractive to develop any green-field project. But with the RE Act, we are actually very interested in evaluating new prospects,†Yee added.
The company is waiting for the Department of Energy’s next geothermal contracting round to check if there are any good prospects. “There needs to be a resource and a market as well to be successful,†Yee said.
He opines that soon there will be a market as demand is expected to grow when the global financial crisis ends and additional energy supplies are needed by rebounding economies.
Yee said they are considering developing a steam field. But according to him they may also look into possibly building, owning, and operating a geothermal plant.
The Renewable Energy Act of 2009 provides multinational companies with fiscal incentives such as one-percent gross income on renewable energy development projects, income tax holiday for 7 years, corporate tax rate of 10 percent of net taxable income instead of 35 percent and duty free importation of equipment.
Under the RE Act, multinationals will also be enjoying a 10-year exemption from tariff cuties, net operating loss carry over, accelerated depreciation and zero percent value-added tax rate.
They will also be given cash incentive for missionary electrification, special realty tax, tax exemption on custom credits and tax credit on domestic capital equipment.
This was a very interesting article. I know geothermal heating and air conditioning is one way to get fiscal rewards back, there is a 30% tax rebate when you get a system installed in your home or business. Click here for more information!
TAX CREDIT/BENEFITS
It’s a great time to invest in geothermal heating and cooling technology. The American Recovery and Reinvestment Act of 2009 recently lifted the caps on tax credits to qualified geothermal heat pumps, which was previously set at $2000. Homeowners who install a geothermal ground loop or ground water geothermal heat pump qualify for this one time of up to 30% of the total investment, as long as the pump meets or exceeds EnergyStar requirements and installed after December 31, 2009. Business owners will receive a credit of 10% of the total investment. Units installed in 2008 are subject to a $2,000 cap, but those installed between 2009-2016 have no cap.
This substantial tax credit is just one of the many benefits of using geothermal technology to heat and cool your home. Geothermal systems use 25-50% less electricity than conventional systems. According to the EPA, geothermal pumps reduce energy consumption up to 44% compared to air-source heat pumps, and up to 72% compared to standard air-conditioning. In humid areas, like Florida, geothermal heat pumps improve humidity control by maintaining 50% relative indoor humidity.
But it’s not just the tax credit or energy savings that should peek your interest, geothermal heat pumps are also extremely durable and reliable. The underground piping carries warranties of 25-50 years, and the heat pumps are known to last twenty years of longer.
So, if you’re looking for a reliable system that will also give you tremendous savings on your energy bill over the long-run, a geothermal heat pump may just be what you’re looking for!
Anyone else looking to benefit off of a tax rebate? If s you should look into geothermal technology.