For years, people have found reasons for why we should avoid making the switch to renewable energy, one of them being that it is expensive. However, when its true value is taken into account, it really does pay for itself. In spite of the protests it has received, renewable energy credits should receive a new tracking system so that they can be better handled. Read on to learn more about a possible future with renewable energy credits.
Investing In Renewable Energy
After a long period of time, people finally became aware of the after effects of global warming and thereby started awareness programs and remedial measures to stop massive combustion of fossil fuels. These kinds of efforts hold a vital part in developing a better national economy, as investments are recouped in accordance with the decrease in cost of alternative energy. After your initial investment, the cost of energy is supposed to come down, but that isn't really true. It can't go that way, even when the initial expenses have been recouped. This doesn't have to do with the huge costs of initial set up, but instead, has to do with the figures that suppliers and agencies report that are varying so widely. It is time that we install green energy systems and stop wasting time in crying over the complexity and confusion associated with alternative energy.
Cost Of Renewable Energy And Maintenance
A 10KW system is generated by wind power at an estimated average cost of $40,000. In the duration of the operation it is possible to save around 50 to 90 percent while needing a minimum of maintenance. The requirement for fees, plans and permits will be around $400 to $1,600. The cost effectiveness of the facility may be influenced by geographical and topographical factors. This type of facility will require around 15 years to recover the costs. Normally a photovoltaic system of 7.76 kilowatt solar power will cost anywhere from $35,000 to $50,000 to erect. This will last for 25 to 30 years. In between, there may be some additional expenditure on account of maintenance. The amount of available sunlight as well as the extent to which you use the whole capacity of the system will determine how cost effective such a system is.
Cost Of Renewable Energy Can Be Recouped
Usually, it is possible to recoup the entire investment in 14 years. Microhydroelectric power is one of the most efficient methods for power generation as long as the current system for this purpose will not cause any harm to the natural systems of river and its tributaries. Comparing with other alternative energy systems, its initial cost requirement is more. The start-up for a costs run about a few thousand dollars for a small system to $10,000 for larger systems. A shed is built to protect the water turbine from weathers which may heighten costs included for pipelines and permits. Drilling is one of the most efficient methods for tapping geothermal heat.
Drilling Cost Of Alternative Energy
Drilling cost varies from $10,000 to $30,000, depending on the depth and position of the system. A large amount of investing for this purpose is expected to gain within a period of 10 years. It has been estimated that to pump 3-ton geothermal heat pumps, it can cost about $7,500. Drilling is more efficient, though, being that it is maintenance-free and lasts from 25 to 50 years. The cost of alternative energy is often overlooked by its propagators. In reality, dollar bills can never equate the environmental destruction and human suffering caused by using non-renewable sources. Some costs just move out of the realm of being affordable.
Climate Change Is Happening
The climatic change worldwide is a growing problem that countries can no longer afford to ignore. They are all vying with each other to encourage their population to use alternative energy. Some of the measures include renewable energy credits also known as Green Tags offered by the Federal tax authority so that people will put up alternative energy systems wherever they can. Once certified, these tax credits are also known as Renewable Energy Certificate (REC) or Tradable Renewable Certificate. The renewable energy credits can be translated into cash in the open market or when sold to commercial power grids.
Renewable Energy Credits Can Be Sold
This is being done for the reasons of keeping the RE generators up to code with its competitors which generally produce energy by fuel burning plants getting subsidy from the government. These renewable energy credits can be sold to state governments which are in binding with specific percentage of RE power for a certain period. Which are found to be difficult to maintain as the environmental conditions are unsuitable. Some power plants like the ones that use fossil fuels can be set up anywhere, however, those that are powered by water, geothermal heat, solar or wind power can only be set up in particular areas where there is an abundance of this alternative energy source.
Renewable Energy Credits Buys Have Lower Rates
RE generators have become the alternative from which renewable energy credits can be purchased by those states that have been limited due to stipulations in terms of laws and their inability to produce RE. In other words, this is considered as the compliance market. The balancing act is carried out by the production of RE in one state and the offsetting of the use of fossil fuels in another. Another way is where buyers who have a chief and inborn concern for the environment, make up the voluntary market. A lower rate is enjoyed by those who buy in this market. The selling and trading of renewable energy credits has resulted in plenty of criticism and controversy.
Energy From The Wind And Sun
Sources such as wind and sun are beyond human control. But green energy advocates disagree and want the RECs to continue their work. There is a desperate need for the renewable energy credits to be monitored in a national registry which would track what is being issued, used and sold. Monitoring will keep track of what has been used more than once so that it can be retired. The renewable energy credits that are being exchanged are now being monitored through a new tracking system. The idea of giving renewable energy credits should be done in additional states and countries since it really works. What has to happen is that tracking and audit systems get better so that climate change is controlled.