Summary
Alternative Energy is expensive today and needs serious attention. New standards to be enforced by the federal government could create the alternative energy industry, require alternative energy to be present at new and renovated commercial and residential dwellings, where it is economically viable. New dwellings, warehouses need to be equipped with some form of alterntative energy to begin with.
Analysis
While today we all know that not only a solar panel, or water heater, but an high efficiency water heater is, in general non-recoverable investment, there is a lot of work that could be done by the federal government to enforce usage of alternative energy by creating additional tax credits, developing the industry of solar panels, wind turbines, etc.
As of today, there are only 5 countries in the world that enforced a stanadard which requires a new construction to have some form of alternatvie energy. These are Israel, Australia, Spain, Germany, Austria. Apparently, about 50% of all alternative (solar) installation take place in Germany, followed by Austria.
We all understand, that alternative energy will not replace the traditional one, but it can easily supplement it. Without having a standard alternative energy will remain on the back burner of the traditional one, instead of becoming its "add-on". Having appropriate incentive and standards in place, not only the actual manufacturing base could grow, providing this country with new jobs, but also its service part, such as installation, maintenance, repair and replacement, which is equally vital. Having more installations in place, the industry will be able to invest in research and development of better materials, which will ultimately will drive the cost of the products down, just like it did in other industries. Itis relevant not only to solar and wind, but to geothermal (earth and water based) heat pumps.
Again, the alternatice energy is not a remedy, but needed improvement, and it can realistically take about 5% of the energy balance, if appropriately developed. Needless to say, it can become affordable to an average consumer, that is willing to make its contribution, but cannot afford it at the moment.
