Let’s Talk Energy, Power and Money

Let’s Talk Energy, Power and Money

March 12, 2012

Energy is quite literally, Power.  Because of the broader implications of that statement it is necessary to look at Energy with that understanding.  Money is also Power and the relationship between these three is very important when discussing the deployment and utilization of Energy whether we’re talking fossil fuels or renewable energy. 

While Renewable Energy promises and “Unending Resource”, building an infrastructure to harness Renewable energy does cost Money.   The United States Federal 1603 and subsequent ITC 30% tax credit programs under President Obama has been a real boon to renewable energy but in order for there to be real Return on Investment the States need to augment the federal program with local programs such as the SREC programs in NJ and Massachusetts and the new ZREC program in Connecticut and the Feed in Program in California. Keeping these programs stabilized is something we’ll talk about in a later blog.

To give you an idea of the economics, the Money, you first need to understand ROI or Return on Investment.  It’s the basis for any business transaction.  If I pay 1 dollar for a widget and want to sell it for $2, I need to know how much it cost me in time and expense to get my 2 dollars and how much it’s worth by the time I get it.  The uncertainty of knowing whether or not a profit is going to be realized is the real threat to renewable energy being deployed as quickly as we’d like and hope.  But in either case it’s this return that is the real Power behind the successful growth of renewable energy.  It’s this Power we need to look at to continue to power the growth of renewable energy.

From a much broader view the other important thing to understand is that the “Green” initiative in this country and the world is not a fad or an independent wave, its part of the 100 year old energy wave that includes oil, coal and natural gas.  It’s a part of the growth and expansion of mankind on this planet and our insatiable need for Energy. 

Gadgets are golden, and light is something we take for granted and are hard pressed to live without. 

Yes renewable energy is here to stay and will grow even when the ROIs seem dim and States don’t have a great program.

Rene Reyes

Rene Reyes is the owner of Alquimi Innovations and the co-owner of Alquimi Solar in New Jersey.

www.alquimisolar.com

914.523.5910