by jboullion | Dec 31, 2009 | Uncategorized
Though written in 2007, an analysis by RENEW’s executive director Michael Vickerman may be even truer today an a few years ago, given the risk involved in “traditional” investments. The analysis shows that an investmnet in a solar hot water system generates a better rate of return than putting money in the bank:
I wrote a column which was highly critical of using payback analysis to figure out whether installing a solar hot water system on one’s house makes economic sense. In almost every example you can imagine, the payback period for today’s solar installations ranges between long and forever. For my system, which started operating in January 2006, payback will be achieved in a mere 19 years using today’s energy prices, though by the time 2025 rolls around, half of Florida might be under water and the rest of the country out of natural gas.
But there’s no reason to let payback length rule one’s ability to invest in sustainable energy for the home or business, especially if there are other approaches to valuing important economic decisions. One way to sidestep the gloomy verdicts of payback analysis is to do what most companies do when contemplating a long-term investment like solar energy — calculate the internal rate of return (IRR) on the invested capital. The definition of IRR is the annualized effective compounded return rate which can be earned on the invested capital, i.e. the yield on the investment.
By using this familiar capital budgeting method, I’m able to calculate an IRR of 6.1%for my solar water heater if natural gas prices rise a measly 3% per annum. That yield exceeds anything that a bank will offer you today. It will likely outperform the stock market this year, which is due for a substantial downward adjustment to reflect the slow-motion implosion of the housing market now underway. And, unless you live in a gold-rush community like Fort McMurray, Alberta, your house will do well just to hold onto its current valuation, let alone appreciate by six percent.
While all investments pose some degree of risk, the return on a solar energy system is about as safe and predictable as, well, the rising sun. Fortunately for the Earth and its varied inhabitants, the center of our solar system is situated well beyond the reach of humanity’s capacity to tamper with a good thing.
by jboullion | Dec 30, 2009 | Uncategorized
From The GreenLaCrosse.com Promise:
Every little bit together – can make a big difference. We encourage everyone to do whatever they can to make their own green choices.
My GreenLaCrosse.com Promise:
1. I will reduce my fuel consumption by carpooling, riding a bike, using public transportation, walking etc.
2. I will use more green cleaning products.
3. I will eat more local and organic foods.
4. I will write a letter to my Representatives and Senators to express my green ideas
5. I will buy more local products within a 150-mile radius from my home to support the local economy and reduce transportation overhead.
6. I will dispose of my yard waste in accordance with the law. I promise to never burn my yard waste and to compost or re-use it whenever possible.
7. I will purchase and install a programmable thermostat to save money and energy on heating and cooling.
8. I will pick up litter when I see it and dispose of it properly.
9. I will recycle as many types of materials as possible including paper, aluminum, plastic and cardboard.
10. I will dispose of hazardous wastes in accordance with the law. This includes paints, household chemicals, electronics, fluorescent light bulbs and NiCd and Li-Ion batteries.
by jboullion | Dec 30, 2009 | Uncategorized
From an article by Bob Geiger, staff writer for Finance & Commerce:
Last week, there was a minor change to the web site of Xcel Energy – an unobtrusive box picturing a wind turbine along with the words, “Learn more about Xcel Energy’s climate action.”
But the minor graphic signals a major effort at the Minneapolis-based utility – to promote its renewable energy efforts, as well as its support for a proposed federal policy aimed at limiting greenhouse gases.
The site lays out Xcel Energy’s game plan for dealing with climate change, and includes an endorsement of a uniform federal policy for a cap-and-trade system that is intended to reduce emissions of carbon dioxide.
The U.S. Environmental Protection Agency (EPA) has started the process to cap carbon dioxide emissions as a pollutant under the Clean Air Act, established more than 30 years ago to deal with local and regional pollution.
In posting its support of a cap and trade system that charges polluters for emissions of greenhouse gases, Xcel Energy is taking the corporate position that such a system encourages technological change to lower such emissions.
In the meantime, Xcel itself is “looking to reduce our carbon dioxide emissions in Minnesota by 22 percent from 2005 levels” by 2020, said Betsy Engelking, director of resource planning for the utility.
by jboullion | Dec 30, 2009 | Uncategorized
From an editorial in the Sheboygan Press:
Gov. Jim Doyle’s 2006 campaign promise of having four University of Wisconsin campuses completely “off the grid” by 2012 and get their energy needs from renewable sources was an ambitious one.
Unfortunately, it has turned out to be an impossible task.
Doyle said that campuses at Oshkosh, River Falls, Green Bay and Stevens Point were to work toward energy independence as a way to show that it can be done. Doyle has pushed hard for Wisconsin to research and implement alternative energy sources, especially renewable sources — wind, solar and biomass. The goal is to reduce the reliance on fossil fuels, especially oil bought from foreign countries.
The four schools were to start producing their own electricity or buy it from utilities using the renewable sources of energy, Doyle said in 2006. The challenge also would spark energy conservation on the four campuses.
But with just two years to go, the promise far outshines the reality.
Still, there has been significant progress.
UW-Green Bay, which specializes in environmental education, has reduced its energy use by 26 percent since 2005.
UW-River Falls is studying the use of wind turbines on the campus farm to generate electricity. . . .
If the governor deserves any criticism for his promise, it is that he set an unrealistic timetable and did not ensure that there was adequate funding.
But Wisconsin must continue to do the research and find the technology that will not only reduce reliance on fossil fuels, but also ensure that energy in the future will be less costly.
by jboullion | Dec 30, 2009 | Uncategorized
From an article by Bob Geiger, staff writer for Finance & Commerce:
Last week, there was a minor change to the web site of Xcel Energy – an unobtrusive box picturing a wind turbine along with the words, “Learn more about Xcel Energy’s climate action.”
But the minor graphic signals a major effort at the Minneapolis-based utility – to promote its renewable energy efforts, as well as its support for a proposed federal policy aimed at limiting greenhouse gases.
The site lays out Xcel Energy’s game plan for dealing with climate change, and includes an endorsement of a uniform federal policy for a cap-and-trade system that is intended to reduce emissions of carbon dioxide.
The U.S. Environmental Protection Agency (EPA) has started the process to cap carbon dioxide emissions as a pollutant under the Clean Air Act, established more than 30 years ago to deal with local and regional pollution.
In posting its support of a cap and trade system that charges polluters for emissions of greenhouse gases, Xcel Energy is taking the corporate position that such a system encourages technological change to lower such emissions.
In the meantime, Xcel itself is “looking to reduce our carbon dioxide emissions in Minnesota by 22 percent from 2005 levels” by 2020, said Betsy Engelking, director of resource planning for the utility.
by jboullion | Dec 29, 2009 | Uncategorized
From a news release issued by Governor Jim Doyle:
OCONOMOWOC – Governor Jim Doyle announced today a $190,570 grant for Roundy’s Supermarkets to help complete energy efficient lighting projects at its facility in Oconomowoc. The funding through the state’s Focus on Energy program builds on Governor Doyle’s efforts to make Wisconsin a national leader in renewable energy and energy efficiency.
“Wisconsin has a tremendous opportunity to be a leader in clean energy,” Governor Doyle said. “With this funding, we will be able to help Roundy’s become more energy efficient, so they can retain their competitive edge, reduce energy costs and carbon emissions, and create jobs.”
The project will save Roundy’s nearly $400,000 annually in energy costs and conserve enough energy to power 450 homes each year. It will also significantly reduce carbon emissions. Roundy’s recently replaced nearly 2,000 metal halide fixtures with high bay fluorescent fixtures. Nearly 1,600 of them have occupancy sensor controls to dim when the area is not in use.
