Alternative Energy Sources: Financial Benefits

Posted under solar power by Finley Brown

At this point, most people are aware of the environmental reasons for using alternative energy sources instead of fossil fuels. However, what about the financial benefits? They have to be there as well if it is going to be a long-lasting alternative.

Environmental Issues

Although most people already know what the environmental reasons are behind using alternative energy sources, it doesn’t hurt to go over them again. And actually not everyone is aware of what the most threatening consequences of global warming might be.

The problem arises from the fact that when we burn fossil fuels in order to cater to our energy needs this leads to emissions of carbon dioxide. This drives global warming, leading to the Earth warming up past the point that it should.

If the planet gets too warm there are a number of consequences that might come about. For example, what most people have heard of is the possibility that the polar ice caps might melt. However what everyone is not aware of is that our food supply might be decimated by ecosystems being destroyed.

So while just about everyone would agree that this is a serious problem, potentially at least, the options that we have to deal with it are limited.

How to Deal with the Problem

Given that this is a very serious situation that we are facing, and that if we continue to pump carbon dioxide in to the atmosphere we might end up not being able to inhabit the planet, why not just stop doing that right away? Unfortunately if we did just turn off the oil spigot, then the economy would collapse right away.

Of course the consequence of an economic collapse would be the same sort of suffering that global warming threatens to cause. We wouldn’t be able to afford to feed ourselves, indeed we wouldn’t have the energy to do so. So that is not really a realistic option.

The only other option, then, is to use alternative energy sources instead. Meaning clean, renewable sources of energy. And of course we have those available, everything from solar energy to wind energy. So why aren’t we doing that right now, considering that the technology is available?

Economic Considerations of Renewable Energy

The real problem with renewable energy right now is that it is too expensive. It’s cheaper to use conventional energy than it is to use renewable energy, that is the problem. When that problem is solved, we will have solved the problem of global warming as well.

In order to help with this situation, the UK government has introduced the feed in tariff. Now, this does not actually help with the cost of the installation, but what it does do is make solar panels in to a much better investment.

While the feed in tariff gets you money for electricity production through renewable means, the renewable heat incentive will make you money for heat pumps and solar thermal panels. The way that both schemes work is by giving you money for each unit of energy that you produce with renewable technology.

What the effect of bringing in incentives of these kind is having is that more people are purchasing the technology. That is, demand is increasing. In order to cash in on the profits, more companies are going to get involved on the supply side. A greater supply means a lower price, and that is the way that the technology will eventually become affordable to most people.

So while at the present time the industry does need to be subsidised, eventually a cycle should be started which will not require any more government intervention. That is when the transition will really be made.

If you’re interested in finding out more regarding solar power, it’s possible to do so at alternative energy sources, which is where author Tyler Roberts writes more on this subject. This is also the place to go if you do have an interest in receiving a free estimate for a solar installation.