Renewable Energy in the Mainstream
Guest blogger Garth notes:
In the past, many people spent the extra dollars on green products mostly so they could feel good about themselves. That changed with the economic down turn and the number of green purchasers dramatically dropped.
Here’s my take on this: only a small percentage of people will pay more for green products purely to feel good about themselves – and you’re right: the worse the economy, the smaller that number is. But renewable energy and sustainability more generally will soon rule the day, due to a convergence of laws and incentives from the public sector, and an enormous amount of investment from the private sector, including the Global 500. The handwriting’s on the wall. Even the Chevrons of the world are working their butts off to develop new energy solutions. Only the lunatic fringe sees sustainability as a subject for the anti-capitalist counter-culture. I honestly believe that it’s on its way to becoming a paradigm for all things in our modern world — at both the consumer level: e.g., shopping, eating, vacationing — and business: R&D, manufacturing, supply chain logistics, etc.
Yet so many important questions remain. The confluence of constantly improving technologies, macro- and micro-economic issues, and power politics — in Washington and around the world — makes this whole thing an extremely complicated calculus. That’s why I find this so interesting — there are hundreds of different vectors hitting it from all sides.
More here.
I agree that people who have money are more likely to save it during an economic downturn than spend it for anything, renewable energy (RE) investments included. I’ll accept that many who bought renewable energy devices / equipment did so to feel good about themselves too.
If the poster means that fewer people are signing up for the additional cost of “green energy” from their utility companies, I can see how that would be so when money is tight. I personally think that if you own a dwelling that you can alter without someones permission (think condo associations and the like here), paying extra for green energy is not the best way to invest in green energy. It would be better to add renewable energy to your property and start reaping the benefits by lowering your utility bills. This way you are definitely supporting companies that are producing, selling and installing RE equipment.
If the poster means that fewer people are making investments in the stock market for renewable energy, it could be that more people are wary of the stock market itself. Our system has had a lot of bad press lately.
I occasionally work for a company that licenses and develops small hydro run-of-the-river when the environmental nexus is small but can be mitigated and in some cases the results are better for the fish. At this time this company has two licensed projects between 4.5 and 7 mws waiting for investors. The cost of licensing these projects is around a million dollars and takes over three years due to the NEPA requirements. That being said, I stick to my original blog in that at this time most of the country invests in green because of personal feel good reasons; if it was other wise we would have investors coming out our ears. These projects have a long life, minimum maintenance, 20 year payoff with a 12% return during the payback period. I’m sure when the economy improves these projects will be jumped on by VC investors but at this time interest is slim. Ironically these hydros don’t have the variability issues of wind and solar and have a lower installed cost; there should be investors flocking to them.
Low-profile, commercial, industrial, institutional and agricultural are the mainstream. That’s where the numbers are (electic peak power, GHG).
They need light on the shop floor, heat & power in process and space conditioning. They will be able to get those benefits from their own roof if the roof becomes a solar array. PV PPA’s are one way, but subsidy dependent. Daylighting and solar thermal are already economic, which is why they appear to be orphans. There isn’t a lot of money to be made for big players. There is a lot of money to be saved, though.
Mark I agree with your statement.
However the political state the country is in at this time with folks crying “there’s too much government” if and when either regulation of legislation invokes mandatory carbon limits that raise people power bills that cry will only increase. Its hard to get people to invest in something that is costing them more of their paycheck. For investors and developers green energy is a cash cow but I think they are watching what the government will do with energy legislation before they invest.
The Question is: Become Fantastically Wealthy from Green Energy Techn, well it depends on your def of Wealthy? To save our Planet? or Save Mankind? To everybodies dismay, that question goes hand-in-hand! In the 60’s Earth Day was established, for a reason. In the 80’s the EV-Electric Vehicle concept was stopped just like then it started in 1898, it was only 12 hours difference between the learning curve on Gas vs Electric. And we know the winner of that.
So, what do we do know? We can’t continue this road, only to find the end of times. End of times, as in resources, we may have damaged the planet beyond repair. But just as long as wealth is involved, then it’s alright. Think again, you can’t make a stone bleed and there IS NOT another planet to run to. Say HELLO to the New Hell on Earth. We have caused this ourselves and we want to question why should we do anything, becuase its to costly or we can’t make any money doing this. Well, can you say, No More Man Kind As We Know Of It!
This is where God & Mother Nature will teach us or we will not live as a Human Race on this planet. PERIOD! “THIS HAS TO BE DONE”
Like most who read this site, my sentiments are with you.
“…generally will soon rule the day” Umm, not very optimistic on that at the moment. I see our demographics for this topic as breaking out into four buckets.
Financially secure – Basically can afford anything the heart desires in green country. Do you want an electric car? Well just buy one.
Middle class / Getting Along – Not in trouble financially, but can only execute on some endeavors. No Tesla for this one.
Consciously worried – The economic downturn has hit this sector hard. Buying green is usually limited to conservation activities rather than paradigm shifts in any particular process.
Everyone Else – Here’s where we have real trouble. Might be in the 30-40% of total population and has been getting worse as the distribution of wealth continues its modern adjustment upward. These individuals are in the classic trap of having zero discretionary latitude, investing or otherwise.
With energy being *way* too cheap and the probability of that only adjusting in the predictable direction, we will likely create a very strong stratification in our society – those who can afford moving to the “energy of tomorrow” and those who have to reduce their standard of living.
Imo, we will be wildly successful if we adopt renewables at any price. Renewables at a price less than the current market are largely an act of dreaming. I would guesstimate we have perhaps a 50/50 chance for a major science breakthrough that does lower the cost of energy within the next 30 years. In economic terms, societies can come and go in that amount of time.
Investing wise, there is currently plenty of opportunity to bring home better than 10% all day long. No one ever got well off from that kind of return. The “real” money in green? As other writers in this space have noted, the money will move there when there is serious money to be made.
The universal “Renewable Energy” has to be Electricity,
Since 1950 when the percentage of the US connected to an Electric Utility reached 99% Electricity and it’s grid interconnection it has been the most universal energy source for everything in homes and businesses.
At the same time petroleum products have been marketed for vehicles,
But, it is time to unify energy for more efficiency. Bring on the electric cars, And with them the two infrastructures which will be needed:
1. Recharging Stations in the garage often, or on an apartment or condo. parking lot, for daily evening recharging at “Home” then additional recharging stations where people leave their cars for 3 to 5 hour times, at employee parking, The City Parking Garage, and certain refueling and re-charging location along highways, to relieve “Charge anxiety”
However, Also needed, No.2. is a network of service and repair facilities at least 1/3 as extensive as the petroleum vehicle service network. We can help with what, we are trying to open an EV Service and Repair Technician training institute. Seemingly the first of its kind. Inquiries are coming in from all over the USA, Canada, Philippines, Australia, and Europe, Now is the time! Check us out at: http://WWW.E-V-T-I-Inc.com/ A small Investment can give a Great Return. And a Million new jobs are going to be created in the next 10 to 15 years.
What we need is independence in our power needs, something along the lines of Sun Catalyx and the Eestor battery, if these technologies emerge on the scene then we are talking game changing scenarios, everyones life will change, the grid can come down, we won’t need the wires, Sun Catalyx is proposing to make enough power from a few gallons of water to power the average home per day, and the Eestor battery, if it is real, supposedly can be charged in 15 minutes and carry a car 300 miles, if that happens the oil people are in trouble. I have to admit I like the idea of making my own power at home.
i like some of the comments above.
however it is just like people in the United Kingdom, the government should do this the government should do that, what would be nice is for people to take a bit more time and recycle more of the valuble waste that they throw away, and you yanks go for smaller cars as these elecy cars people are talken about are very small, remember the Jap imports and how small they were well think smaller.
Positive changes will occur as more people recognize the economic benefits of employing sound conservation measures…Builders of homes are finding that if they “go green” (improve insulation, install more energy efficient heating and cooling systems, employ more renewable building materials, etc.), they can earn 15% or more profit on each dwelling….Word is getting around that electric bills do decrease when energy saving lighting and appliances are used….Continuing education will speed the process.