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Alternative
Energy Report: A
Look At Funds And Opportunities |
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Alternative
Energy, A Guide To Alternative Energy Funds and Sources...
As
it's becoming more and more apparent that we need to embrace
alternative energy sources, we would like to look at equally
alternative ways in which we can promote cleaner air and a healthy
planet.
We're
taking a look at some inventive yet very effective ways through
business and alternative energy funds to achieve those goals.
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Alternative
energy funds may seem increasingly attractive in a world where natural
energy sources are being depleted or used at an alarming rate. True,
there are some alternative energy companies which have actually
prospered. However, they are few and far between. Even so, investors
are drawn to alternative energy |
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funds,
seeing them as a
potential source of profit in the future, similar to investors who took
a chance on a little known company named Walmart (years before it
became famous) and made a huge profit.
Research
is being done into alternative fuels and energy. However, who knows
which companies will come out the winners? Which ones will fall by the
wayside? Investors should also consider another primary risk: there is
little to use as a comparison between companies. They are still
relatively new. Yes, there will be a demand for cleaner fuel. But how
long before this becomes a reality?
Check
to see how long alternative funds have been offered and the answer is
that there is little history or financial info out there. This can make
it hard to obtain the information necessary to arrive at a wise
investment decision. Many companies can fold ,even after having initial
and early success. The technology can be hard for investors to
understand. Even if investors look at one source of alternative energy,
such as wind power, it can still be hard to find the companies and/or
funds which are going to reap a financial windfall.
So
how can investors become more aware of the actual and real risks of
investing in alternative energy funds? The first step, of course, would
be to do their homework. Follow some investment funds and see how many
of them drop in price or go through very bumpy cycles. Investors also
need to know their own level of comfort with investments. Alternative
energy funds are not for the weak-hearted.
Again,
research, research and research some more. Ask questions about the
funds. Find out if investing will be done with pooled money and which
companies will be considered. Investors are often drawn to the rewards
of socially responsible investments and companies that work for cleaner
environments or which reduce pollution. But alternative energy funds
may or may not be the same as socially responsible funds.
Another
point to keep in mind? Oil companies have a considerable amount of
money at stake and are likely to put up quite a fight against
alternative energy funds. Those who do invest in them should be ready
to hang on for the long term. Again, these are not meant to be used for
short-term profit. Alternative energy funds may be a long shot way of
diversifying a portfolio but for those who want to sleep well at night
and aren't comfortable with a rocky investment ride, these might not be
ideal choices.
One more risk? Making sure that the focus of the fund manager and the
fund is in line with investor goals. There are many different types of
alternative energy funds. Some may use production techniques or other
resources which investors might not like. For those who still wish to
check out alternative energy funds, be sure to check top sites for
financial information, particularly when it comes to risk versus reward.
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Before
investing in an alternative energy fund, it is important to understand
the various options and what types of investments make up these funds.
In general, alternative energy funds allow people to invest in stocks
of companies which focus on either alternative energy or related
companies (those who support the |
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main
companies) Examples of such companies could be those which provide
solar, wind or geothermal power. They can also be companies which help
save energy or offer more efficient ways of using power for heating
homes or lighting rooms.
But how do investors understand which alternative energy funds are the
best options for them? It can see like a complicated or confusing
process. There are many preliminary questions which potential investors
can ask, ones that will help narrow their choices. These include such
questions as: what sort of fees will be charged? What are the names of
the companies in the fund and what is their track record?
What sort of research and data is available on the fund? Where can I go
to learn more?
Investors should also realize that alternative energy funds can be
called by such names as solar energy mutual funds and renewable energy
mutual funds. Options can include clean energy, alternative
heating or conservation companies and more. Also, some
alternative energy funds are more focused on socially responsible
investing than others while some companies focus more on other aspects
of investing. It is very important to know the various options and
types of companies involved.
Clean energy funds, environmental funds and clean water funds may all
have separate primary goals. Investors in alternative energy funds
should be clear about both their investing and other goals. Do they
want to put their money specifically into a fund that will help provide
cleaner water? If so, they should focus on those funds. There may be a
trade off for choosing one fund over another (lower initial returns,
for example) but that may be offset by the investors' comfort level
with both risk as well as the fund desired.
Most alternative energy funds focus either on clean energy or on the
environment. As noted before, there are pros and cons to each type of
alternative energy fund. In general, funds which focus on clean energy
have very little to do with water while environmental funds may have a
greater impact on clean water. Getting even more specific, there are
funds which impact the development of solar power, with the potential
to lower carbon emissions.
It is an excellent idea to focus on the primary type of fund desired,
being aware of those already listed. After that, investors can start
weighing various funds, including such notables as Firsthand
Alternative Energy Fund (Altex) or Winslow Green Growth Funds. These
are just two examples of alternative energy funds. After comparing
funds, investors should then hone in on costs, the possibility of
putting funds into IRA or retirement accounts and other factors that
can help determine their comfort and risk level for the best
alternative energy fund option.
Just think - if investments are diversified, many think it is only a
matter of time before alternative energy funds have their shining
moment, with the potential to reap great rewards for investors. If so,
they can be an excellent hedge against much more conservative
investments. But do consider the major factors above to select the
right investment option.
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While
alternative energy companies can certainly be appealing and attractive
for those who are eager to jump on the renewable energy bandwagon, it
can be challenging to find the rightcomany. Even so, Ted Durkee and
Brandon Gador , affiliated with University of Wisconsin-Madison,
decided to make their dreams a reality. They started a company called
Powered Green |
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in
September 2008. The
two spent as much time as possible outside when young and were
naturally drawn to renewable energy, hoping to make a difference in the
world and do some good. Powered Green was able to stop more than
1,228,000 pounds of CO2 from reaching the atmosphere - and they did
this in well under a year. They also sell Powered Green gear and
support Energy Seal approved computers.
Donations to Powered Green help build new jobs, reduce the need or
dependence on fossil fuels, supports rural farmers and even helps
create wind turbines which won't hurt birds. Powered Green also has a
strong focus on reducing the effect of laptops on the environment.
Laptops use an enormous amount of energy so any improvement in reducing
environmental impact can make a huge difference for the environment.
How does Powered Green Work? Simple. By public support. This is
necessary because renewable energy is so expensive. Durkee and Gador
work hard to achieve their goals, finding ways to receive bulk
discounts and making a very modest profit. Most money received is put
right back into the company, while other funds are used for such items
as seals indicating that people are using energy friendly computers,
ones which have less impact on the environment.
Even though the company is still young, they have sold over 300 seals
and been featured or involved with many famous businesses. Seventy five
to eight five percent of donations go directly to renewable energy
oreco-friendly projects. The rest goes to administrative costs. Ted
Durkee and Brandon Gador intend to make the Green Movement visible in
every place possible. They want people to go beyond buying reusable
water bottles and grocery bags and to make a commitment to larger
support for alternative energy.
Imagine a computer that is carbon neutral for a lifetime. That is just
one of the products available through Powered Green's site. Others
include wristbands, organic shoulder totes, organic tee shirts and
direct donations. Where does the money go? In addition to the uses
discussed above, it is used to help spread public awareness. BothDurkee
and Gador sit on boards of Green Coalitions and help plan for renewable
energy on campus as well as in the larger community.
Perhaps most importantly, Durkee and Gador realize that support for
alternative and renewable energy has to go beyond technological
solutions. It is also tied to public awareness. It is a social movement
and this is where they put much of their own action. They reach out to
people, network with companies to find alternative energy solutions and
keep the Powered Green website going to help raise social
consciousness. They also have a multitude of suggestions for how to
live green, from buying local products, using compact fluorescent
bulbs and unplugging appliances when not in use.
With all the success that Durkee and Gador have had so far, their
alternative energy company shows great potential for future success!
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Armed
with the information here, both business owners and individuals can
discover how the Department of Energy (DOE) is providing extra
motivation for alternative energy use. Homeowners can receive tax
credits by buying specific products. In many cases, business owners can
also receive tax credits if they buy vehicles, specific windows or
doors, |
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roofing
materials or roofs, geothermal heat pumps and more.
When it comes to alternative energy incentives for homeowners, many
states will offer these for Energy Star appliances. These appliances,
however, must meet specific qualifications and homeowners should ask if
a certified Energy Star installment specialist is required. At least
$300 million dollars has bee offered through the American Recovery and
Reinvestment Act of 2009 and the rebate are good through
February of 2012. However, the money could go quickly so consumers are
encouraged to take advantage of these alternative energy options as
soon as possible.
Each state will have specific requirements but potentially acceptable
items for rebates or tax incentives include alternative energy items
such as boilers, water heaters, air conditioners,
refrigerators, heaters (including furnaces, both oil and gas),
freezers, dishwashers, washing machines and more. This is an incredible
way for consumers to have more energy efficient homes and save money at
the same time.
Energy efficient mortgages are also being offered and more people need
to know about them. The Federal Housing Administration's Energy
Efficient Mortgage Program allows homeowners to pay for energy
efficient items as part of the purchase of a new home (through the
FHA) or while refinancing a current home. In order to take
advantage of alternative energy options, homeowners need to contact an
FHA approved lender. One can be found through HUD.gov.
Homes which already are energy efficient may pre-qualify for special
mortgages. Residential Energy Services Network, also known as RESNET,
provides info on how to determine a home's energy rating s well as how
to find lenders who know how to complete the paperwork for energy
efficient mortgages, especially for homes which use alternative energy.
But what about business owners? The Department of Energy keeps them in
the loop, too, with a number of incentives for using alternative
energy. The Net- Zero Energy Commercial Building Initiative focuses on
commercial properties and structures which work to attain net-zero
energy commercial buildings by 2025. What are net-zero energy
buildings? They are simply structures, which produce as much energy as
they consumer through more efficient technologies as well as
alternative power generation.
Both large and small businesses are encouraged to use alternative
energy through the Department of Energy. At this time, businesses which
are home based may be able to combine the homeowner tax rebates with
those for business owners. Department of Energy rebates and tax
incentives for larger businesses are still in progress. Businesses can
get special deductions for new or renovated structures or properties
which save at least 50% of yearly energy costs for heating, cooling and
lighting (as contrasted with national standards for less efficient
buildings). Partial deductions are available in other instances.
Federal tax credits may be combined with state, local and utility
credits. IRS forms applicable to the Department of Energy's Alternative
Energy Incentives include Residential Energy Efficient Property Form
5695, New Homes Form 8908, Vehicle Incentives Form 8910 and Commercial
Solar Incentives Form 3468. Many of these forms will provide
information about the specific guidelines and requirements.
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