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Recently the alternative energy programs such as wind and solar energy are reaching a peculiar maximum. Loosing the assistance of several large tax credits of the last ten years, the looming crisis of affordability lingers at the door. It is possible the solar and wind energies are becoming compatible with the fossil fuels. After years of incentives, research, development, and government assistance the alternative energies are offering competitive rates. Homeowners with ambitions manage to install solar power in their homes that return power to their power grid. The term living off the grid is having serious meaning to many who choose to live with alternative energy.
The price of maturity and leaving the safety net of Federal assistance programs, is off course the real world. The arena differentiated, a different arena with giants like Exx oil company compete with once micro alternative energy companies.
Project these profit margins towards the future is a difficult task, since forecasting quantity skills are a large component of this analysis of future energy consumption. Consider the factors of additional tax incentives signed by President Obama in favor of strong alternative energy funding,for a gas hungry economy. Recall OPEC has claimed a 42% long term unemployment rate for the U.S., that is for people unemployed longer than two years. Purchasing of solar and wind, installation rebates, consumer sentiment and overall growth.
None the less the alternative energy is reaching a production milestone is significant in itself. People reach further than before to solidify a potentially endless energy supply are reaping benefits from the increase of alternative energy.
Alternative energy investment funds are popping up in several areas including carbon funds and energy derivatives. Pricing in this matrix may create a important new derivatives market as more of the government incentives are removed and many of the major developers choose to enter into the energy market without federal assistance. This can represent an increase in short term returns, or a corresponding risk and loss as these new companies attempt to navigate the waters of regulation and loss of federal support networks, such as tax and consumer incentives.
In pricing and forecasting energy products and renewable, investigate the total breadth of the products interdependency both with the federal 10 year tax rate and consumer incentives.
According to the UNEP, United Nations Energy Program, in specific energy insurance programs and derivatives developed to compensate the wind farmer with wind weather derivatives , an example to insure a continued profit tool and risk aversion placement. These derivative products utilized in both developing and developed countries. Off setting potential loss with the weather derivatives, an excellent tool for guaranteed project development and recovery. These tools, including carbon foot printing will facilitate long term secure growth in these alternative markets.
This model of growth enables an investigation from risky investment to a risk less return using several government derivatives packages to insure safe growth and development.