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.
The Environmental Concerns
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.
One of the most dramatic effects of global warming could be that the polar ice caps melt. If they do, and the sea level rises, then lots of what is land is at the moment could end up underwater. Something that might be even more serious though is if the ecosystems are disrupted and we can’t grow enough food anymore.
The problem is therefore very clear, if at the moment still unproven (in terms of the consequences). It is certainly something that we should be dealing with in any case, but how?
Dealing with the Problem of Climate Change
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.
If the economy collapsed then many people wouldn’t have the money that they need in order to buy things like food, and all of the other things that they need to survive. So this would produce the sort of suffering that we are trying to avoid.
All that we can hope to do, then, is replace the energy that we get from fossil fuels with alternative energy sources that will provide clean and renewable energy. And of course we do have the technology available to do that, so why hasn’t it happened yet?
The Economics of Alternative 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.
They also have the renewable heat incentive coming out soon which is going to make getting things like heat pumps and solar thermal systems in to a better investment. These schemes, while not making the initial installation cheaper, do make them better investments. So there have been more solar installations since the feed in tariff came in to effect.
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.
At the moment then it is necessary to subsidise renewable energy, but in the future that should not be necessary. In fact eventually it should even be able to survive taxation.
If you are interested in discovering more about solar energy, it is possible to do so at alternative energy sources, where Luke Roberts has written more on this subject. This site is also the place to go should you do have an interest in receiving a free quotation for a solar installation.