Financing Renewable Energy

From LoveToKnow GreenLiving

Sure, we are all for conserving our resources, recycling plastic and newspapers, and using alternative methods to heat and cool our homes, but what about financing renewable energy? How are we going to help those who are investing their time and capital in renewable energy so that they can continue with their research? After all, the companies eager to promote a more green society will benefit all of us. Thanks to their research, they will be the leaders in the progression toward a eco-friendly world.

Companies need to help farmers make corn production for fuel profitable.

Defining Financing Renewable Energy

Renewable energy comes from sustainable resources, such as the sun and wind. An example of renewable energy is that of a wind turbine. The wind, a natural resource, generates the turning of the turbine so that the turbine's blades can produce electricity. No energy has been wasted nor has any pollutant been released into the air. Renewable energy does not harm the environment nor does it damage the health of humans and animals.

The five renewable sources used most frequently are:

Biomass
Water or hydropower
Geothermal
Wind
Solar

Questions Concerning Financing

However, who is going to fund the material (towers, generators) needed to build and run the turbines? Soybeans are used to produce a clean-burning fuel alternative called biodiesel. Who is going to encourage the farmers to grow soybeans which can be used for environmentally friendly fuel sources? When people purchase vehicles that run on ethanol, who will make sure there are adequate ethanol pumps or service stations so that the drivers of these energy-efficient cars will be able to refuel?

The Energy Bill

The new bill issued in December 2007, includes a number of clean energy mandates. It requires that all cars get at least 35 miles to the gallon by 2020. Other aspects of this bill include:

To gradually move electric lighting away from less energy efficient incandescent bulbs
Subsidies for power plants that avoid, sequester, or reduce greenhouse gases
Corn-based ethanol and next-generation biofuels are increased

Corn-based ethanol looks bright for the future.

Tax Cuts To Help With Financing Renewable Energy

The Small Agri-Biodiesel Producer Tax Credit was established as part of the Energy Policy Act of 2005. This tax credit program is a volumetric based income tax credit for the production of biodiesel that is made from first-use vegetable oils and first-use animal fats.

The Renewable Energy Finance Network

With the desire to assist project developers and entrepreneurs who are needed finances as well as those investors looking for financing vehicles, the Renewable Energy Finance Network Directory contains a wealth of information. Under each funding source the following are included:

Program terms
Sectors served
Contact information

There is also a listing that includes information on the following:

Project debt
Project equity
Mezzanine financing
Venture capital
Federal agencies
State agencies
Foundations
Local agencies

ACORE

The US Department of State, assisted by The American Council of Renewable Energy, also known as ACORE, will hold the Washington International Renewable Energy Conference 2008 on March 4-6, 2008. This conference will be the third global event on renewable energy policy. Previous events were the Bonn Renewables held in 2004 and the Beijing International Renewable Energy Conference hosted in China in 2005.

What Can Citizens Do?

Communities can get on board. Texas, as well as many other states, has an active group of people wanting to learn more about conservation and is actually implementing programs to educate children in elementary, middle and high schools. Others can learn from Texas so that every citizen in the United States will be aware of green and energy-saving tips.