SIDNEY — Electro Green Energy Solutions (EGES) was founded in October 2018 as a subsidiary of Dickman Supply. Our focus at inception was developing a vertically integrated model. Dickman Supply has been an integral part to this development as our primary electrical distributor and assisting with the development of our renewable/solar line card http://www.dickmansupply.com/solar-linecard/. With our unique structure EGES can control our cost and remain competitive in the market, which was essential to our relationship-based market approach.
EGES has been very strategic with our growth model concentrating on building our direct to manufacturing relationships, strengthening current manufacturer relationships, and focusing our sales to a tiered market approach and educating our customers on how to take advantage of the governmental incentives, which is driving the increasing use in solar energy. First, unlike lumber, costs for solar materials have dropped dramatically during the past few years. Second, productivity and efficiencies for solar materials have also improved as costs have dropped. For example, solar modules sold today generate 15-20% more energy compared to solar panels sold two years ago and are 20-25% cheaper.
As costs for solar materials have declined and productivity has improved, the “economics” for on-site power generation quickly become more attractive. In addition, incentives to encourage individuals and businesses to install solar systems are significant and were scheduled to decline during the next three years, but the latest Covid Stimulus Bill included the extension of the Investment Tax Credit (ITC) offering a 26% federal investment tax credit (not a deduction) through the end of 2022, to encourage taxpayers to install solar systems. For solar systems installed in 2020, owners receive a federal tax credit equal to 26% of the total eligible costs associated with commercial solar systems. The rate for the federal investment tax credit drops to 22% in 2023 year and then drops further to 10% in 2024 and beyond for commercial solar systems.
The combination of the federal investment tax credit, additional financial incentives applicable for businesses and commercial systems, the reduction in costs, and increased productivity have created an opportunity to add on-site solar power solutions cost effectively. The combination of the avoided utility expense and incentives also creates a meaningful investment opportunity for businesses. The return on investment created by the solar system and increased value in the real estate often creates meaningful rates of return for most owners.
The owners’ report follows:
Our 2020 sales volume increased significantly, and we finished the year in a cash positive position. As the official Solar Provider of the Indianapolis Pacers https://www.bankerslifefieldhouse.com/news/detail/pacers-sports-entertainment-partnership-brings-solar-power-to-the-st-vincent-center, EGES has delivered projects across the country and most recently completed a large solar carport project in Denver, CO and secured a multi-million dollar contract delivering solar power generation and microgrid technology in Hawaii on 2 islands and 3 sites. Going into 2021 EGES will remain strategic, lean, and committed to delivering solutions focused on complimenting our customers renewable initiatives and offering solutions to drive down their operating expenses.