Unprecedented Government Support

We've all heard about these solutions, but why is it so difficult to implement them?  The U.S. federal government (and many states) have gone public with the promotion of generous incentives to facilitate consumer adoption of alternative energy.  Just take a look at the federal government's incentive program for consumers.  Many states have followed suit with significant savings programs for consumers.  Combined savings vary by state, but can result in up to a 50% reduction/subsidy in the total cost of an alternative energy solution.  These savings, combined with declining costs of materials, have significantly reduced payback periods.

Looking at solar?  You'll probably be talking to an electrician.  But if you want solar shingles, which are more aesthetically appealing than panels, you'll probably need to speak to a roofer.  Geothermal?  You'll probably need to call an HVAC professional.  And how can you be sure that any of these professionals will share with you the key variables that you need to know to make a financially beneficial decision?  Will a solar installer ask you how you the age of your air conditioner?  Will a geothermal consultant ask you about the age of your roof?  The problem with today's solutions is that they are fragmented and do not address energy solutions across the board -- they rely on narrowly focused professionals who frequently understand their area of expertise and not much else. 

The Market for Residential Alternative Energy

Consumers, the media and the government all recognize that a convergence of factors has created a mandate to pursue the adoption of alternative energy.  These factors include:  (i) rising and/or volatile energy prices (oil, natural gas and electricity), (ii) pollution and global warming, and (iii) energy independence and national security.  So it is surprising given the seriousness of each of these factors that there has been virtually no widespread adoption of alternative energy solutions at the residential or small business level.  This is due to high cost and complexity.  Prohibitive cost is a result of low adoption rates of alternative energy solutions for residential consumers, keeping supply small and prices high.  Examples of complexity include the technical language of energy itself, often expressed in electrical engineering terms (in the case of solar or wind) and the widely varying regional variations in applications (solar is more efficient in homes with southerly exposure).  Varying and rapidly changing tax and regulatory laws, both at the national level and at the local and state levels make it difficult for consumers to understand the true value proposition of adopting one or more alternative energy solutions.  Finally, the market supplying these solutions is highly fragmented, typically local and small scale.  

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