Energy Conservation: The 5th Fuel
October 26th, 2007 | by Naimp | Posted in Finance | No Comments »Energy-efficiency is back in the news again. Programs which started back in the 70’s and than began to fade, have been steadily increasing since 1998. Has this become a top issue once again? U.S. spending on energy-efficiency doubled in 2006 from what it was in 1999 according to the American Council for an Energy-Efficient Economy. In 2005 the Energy Policy Act was created to provide tax credits to home builders. They receive up to $2,000 for exceeding energy-saving standards by 50% on new homes or up to $500 to improve efficiency on existing homes. State governments have joined the cause as well by their consideration to expand or add new tax incentives to consumers who buy energy-saving products.
Our government is not the only one riding the energy-saving train as companies have picked up on this concept as well. Wal-Mart recently announced a campaign to sell 100 million compact fluorescent bulbs by the end of 2007 which would save $3 billion in electrical costs.
So what brought about this current change? Factors include higher energy prices, higher demand for energy, and concern for the environment, just to name a few. Demand is expected to increase 19% over the next decade, while incentives for building new plants decreases. Coal-fired plants may be subject to high taxes because of the carbon-dioxide emissions, nuclear plants face public opposition, renewable energy is not dependable at all times of the day, and natural gas prices are volatile. Consumers prefer cheaper standard light bulbs over their more expensive, energy-saving cousin, the compact fluorescent bulb regardless of the fact that the compact fluorescent bulbs last 5 times as long as use 70% less energy.
So what is the answer? Technology will most likely have to step in and take over. Within a few years we can expect tiny little computers installed inside of everything to monitor its energy. We may have air conditioners programmed to run during the times of the day when energy is cheaper and cut back during the times that energy prices rise. It’s my belief that once the benefits of energy-efficiency are presented completely to the public that we will see a shift in energy-saving for the better. Check out http://www.easymoneyadvice.com which features a section called “Save on Energy” that lists tips and hints we can all use.
Check out http://www.easymoneyadvice.com for more ways to save on energy and more.