Alternative Energy Report: A Look At Funds And Opportunities

 

 
 
 
 
 
 

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 
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
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 
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,
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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