Alternative Energy Incentives - Green Energy Derivatives


Alternative Energy Incentives

Alternative energy incentives accelerate grid decarbonization via tax credits, rebates, net metering, and grants for solar, wind, storage, power electronics, microgrids, and smart grid upgrades, reducing LCOE and supporting EV charging infrastructure.

 

What Are Alternative Energy Incentives?

Incentives—tax credits, rebates, net metering—finance clean electrification, grid upgrades, and storage to cut costs.

✅ Lowers LCOE for solar PV, wind, and battery storage projects

✅ Supports grid modernization, smart inverters, and microgrid controls

✅ Enables EV charging, demand response, and power electronics R&D

 

Alternative energy incentives encourage companies to pursue non-fossil-fuel energy as a way to consume power. Different countries have different alternative energy incentive programs available for businesses and residences through country, state/province, or municipality levels. However, in this article, alternative energy incentives for business take the center focus. For background on definitions and technologies, see this overview of what constitutes alternative energy and typical market drivers.

In the U.S., two alternative energy incentives available are the investment tax credit and the production tax credit (both can be claimed on a taxpayer’s federal income tax return). A third incentive is a grant program that gives businesses opportunities to receive cash payments from the government for purchasing alternative energy property. Detailed federal and state guidance on credits is summarized in this resource on renewable energy tax credits for common project types.

The investment tax credit, the energy production tax credit or the federal energy grant cannot be claimed in tandem, meaning that a taxpayer can only choose one of these alternative energy incentives. Obviously care will need to be taken in deciding which alternative energy incentive will be best for a specific taxpayer.

Many businesses model total installed cost and depreciation using these alternative energy cost references before selecting an incentive.

While incentives are available They are available for both businesses and individuals; and they can be found at the federal, state and local levels, as well as with utility companies and product manufacturers. A concise primer on renewable alternative energy helps stakeholders align technologies with applicable programs.

 

1. Alternative Energy Incentives - Investment Tax Credit

A taxpayer can claim a tax credit equal to thirty percent of the cost of qualified eligible energy property placed in service. For credit calculations and eligibility nuances, consult this guide to alternative energy tax credits and common compliance pitfalls.

Property eligible for this alternative energy incentive are:

  • Solar property,
  • Geothermal property,
  • Qualified fuel cell property,
  • Stationary micro turbine property,
  • Combined heat and power system property,
  • Qualified small wind energy property, and
  • Geothermal heat pump property

    The federal tax credit is not considered to be taxable income; however, the cost basis of the energy property will need to be reduced by one-half of energy credit claimed. The investment tax credit is also subject to an alternative minimum tax limitation. The credit cannot reduce a taxpayer’s regular tax below the taxpayer’s alternative minimum tax. Any unused credit can be carried back one year and forward twenty years. Case studies of successful deployments in solar, CHP, and wind are profiled among these alternative energy projects to illustrate basis and credit interactions.

    A percentage of the investment tax credit will have to be recaptured if the energy property is disposed of within five years of being placed in service.

 

 

2. Alternative Energy Incentives - Production Tax Credit

A taxpayer can claim a tax credit equal to a percentage (between .0075 cents and 2.1 cents per kilowatt hour) of energy generated from qualified energy resource property placed in service. The credit can be claimed for a ten year period starting with the date that the energy resource property is placed in service.

Eligible energy resources for this alternative energy incentive include:

  • Geothermal or solar energy,
  • Wind,
  • Open-loop biomass,
  • Closed-loop biomass,
  • Marine and hydrokinetic renewable energy

     

  • Small irrigation power,
  • Qualified hydropower production, and,
  • Municipal solid waste

    Unlike the investment tax credit, the cost basis of energy property does not have to be reduced by the production tax credit claimed. In addition, for facilities that generate electricity, there is no alternative minimum tax credit limitation for the first four years that a facility is placed in service.

    Similar to the investment tax credit, an unused energy credit can be carried back one year and forward twenty years.

 

 

3. Alternative Energy Incentives - Grant For Specific Energy Project Investments

This grant program offers cash payments to eligible taxpayers who place in service specific energy properties. Only taxpayers that are in a trade or business can qualify for this grant, which means that a residential energy-efficient property does not qualify. Application procedures and deadlines are outlined in these alternative energy grant resources for business applicants.

The grant is in lieu of the aforementioned alternative energy incentives, meaning that a taxpayer can apply for the grant or claim one of the business tax credits, but not both.

The following persons are not eligible to receive payment:

  • Federal, state or local governments,
  • Non-profit organizations,
  • Cooperative electric companies.

     

    Property eligible for this alternative energy incentive are:

  • Solar property,
  • Geothermal property,
  • Qualified fuel cell property,
  • Stationary micro turbine property,
  • Combined heat and power system property,
  • Qualified small wind energy property, and
  • Geothermal heat pump property

     

The cost basis on which the payment is based upon is its original cost and, which includes all costs. These costs, such as installation and cost of freight, are part of property’s depreciable basis.

The investment tax credit, which is similar to the above alternative energy incentive, the cost basis of the energy property has to be reduced by fifty percent of the grant received. In addition, to the extent that specified energy property is disposed of within five years of being placed in service a percentage of the grant will need to be recaptured.

 

Related Articles

Related News

Alternative Energy Solar Power Explained

Alternative Energy Solar Power converts sunlight via photovoltaics into electricity using PV modules, inverters, MPPT, and battery storage for grid-tied systems, microgrids, and off-grid resilience, improving efficiency, reliability, and decarbonization.

 

What Is Alternative Energy Solar Power?

A renewable electrical system converting solar irradiance to AC via PV modules, MPPT inverters, and optional storage.

✅ PV arrays generate DC; power electronics regulate voltage and current.

✅ Inverters with MPPT perform DC–AC conversion, grid sync, and protection.

✅ Battery storage and EMS enable peak shaving, backup, and microgrid control.

 

Alternative energy solar power is, perhaps, the first energy source that comes to mind when most people think of alternative energy sources, but — unlike wind — alternative energy solar power is still a long way from being considered a mainstream source of electricity generation. In fact, it accounts for less than one per cent of the world’s electricity production. For readers new to the topic, what is alternative energy clarifies key definitions and the role solar plays among emerging options.

Two main ways to harness the sun's energy to generate alternative energy solar power include: photovoltaic (PV), where solar cells directly convert sunlight into electricity, and solar-thermal power. PV is a proven alternative energy solar power technology that is most appropriate for small-scale applications to provide heat and power to individual houses and businesses. Sunlight falls on a layer of semiconductors, which excites electrons. This, in turn, creates an electrical current that can be transmitted via electrical cables to serve useful applications. Alternative energy solar power solar PV cells are already cost effective for powering houses and businesses in some regions. As with alternative energy wind power, costs have reduced in the past few years thanks to technological developments. But, unlike alternative energy wind power, however, large scale electricity production using alternative energy solar power costs about 22 cents per kilowatt-hour, significantly more expensive than its fossil fuel generation competitors and nuclear power. Comparative cost and performance data across technologies are summarized in alternative energy power, which details where PV is most competitive.

Solar-thermal energy is a completely different technology. It collects and concentrates the sun's rays to heat up fuel such glycol or any other liquid that heats up easily. The heat trapped within this medium is then used transferred through a heat exchanger so that heated water can be used for regular hot water applications like bathing and space heating and heating swimming pools, etc. Fossil fuels are sometimes used as a back-up to heat the water in the boiler if the sun is not shining and cannot heat the system. There are three different methods for concentrating the sun’s rays:

  • Parabolic Trough — This method uses long, parallel rows of glass mirrors in the shape of a trough to concentrate the sun’s rays directly at the “absorber tube," which is often filled with oil, to achieve maximum effect.
  • Power Tower — Similar in principle to parabolic-trough technology, the mirrors are placed in a circular pattern. At the center of the circle is a tower, at the top of which is a receiver filled with water, air, liquid metal or molten salt that moves to a power block and is used to power a steam turbine.
  • Parabolic Disk System — In this system, dishes rather than troughs are used to concentrate the power of the sun.

To see how these concentrating approaches integrate with storage, controls, and grid interconnection, alternative energy systems offers design-level guidance for practitioners.

 

Advantages of Alternative Energy Solar Power

In spite of its cost versus other sources of energy, alternative energy solar power is attracting interest due to the following:

  • Alternative energy solar power makes use of a renewable natural resource that is readily available in many parts of the world.
  • The process used to generate alternative energy solar power is emission-free.
  • Costs have greatly reduced thanks to technological advances in solar power technlogy to a point that it can compete with fossil fuel alternatives in specific circumstances.
  • The technology is scalable in that it can be used for domestic heating purposes or on a larger scale for commercial electricity generation, as solar water heaters are an established technology, widely available and simple to install and maintain.

For a deeper dive into real-world performance benefits, case studies in advantages of solar power highlight emissions reductions and lifecycle savings.

 

Disadvantages of Alternative Energy Solar Power

The biggest barriers to increasing alternative energy solar power generation are the cost, the amount of land required for large-scale electricity production, and the intermittent nature of the energy source. In terms of the latter, thermal systems do not work at night or in inclement weather. Storage of hot water for commercial or domestic use is simple because only insulated tanks are needed, but further technology advancements are required to improve storage for the higher-temperature liquids required to generate electricity on a large scale and storage of the electricity itself. Emerging roadmaps in alternative energy solutions discuss thermal storage media and hybrid configurations that mitigate intermittency challenges.

 

Outlook for Alternative Energy Solar Power

Although alternative energy wind power is more economical and has been more widely adopted for large-scale power production than solar energy, solar energy is the most flexible in scale and application. It also is widely available and an environmentally benign source of alternative energy. Broader market drivers and renewable policy trends are tracked under renewable alternative energy, providing useful context for long-term solar adoption.

It is currently a $7 billion per year business that is growing at 40 per cent per annum. As part of the wider clean-energy portfolio, the taxonomy in forms of alternative energy situates solar alongside complementary technologies.

 

Related Articles

View more

Alternative Energy Projects - Home Energy Systems

Alternative energy projects integrate solar PV, wind turbines, battery storage, and smart grid controls, using power electronics, inverters, and HVDC to optimize grid integration, reliability, and decarbonization in electrical engineering applications.

 

What Are Alternative Energy Projects?

Projects deploying renewables and storage with power electronics to ensure efficient, reliable grid integration.

✅ Solar PV, wind, and storage integrated via power converters

✅ Smart inverters, MPPT, and grid-forming control strategies

✅ HVDC links, microgrids, and protection coordination

 

Alternative energy projects are technologies that use alternative energy sources (wind energy, solar energy, among others) instead of conventional fossil fuels that damage the environment with toxic greenhouse (GHG) emissions. Natural Resources Canada (NRCAN) and the Department of Energy (DOE) are among some of the North American governmental organizations looking for ways to use alternative energy sources. While using the alternative energy source is important, so is educating the public about ways that they can someday use future alternative energy projects. Here are some energy systems the government is working on for your home: For a concise primer on definitions and policy context, see what alternative energy means to better frame the technologies discussed below.

 

Alternative Energy Projects - Home Solar Photovoltaic (PV) Systems

As one of several major categories, the forms of alternative energy place solar alongside wind, geothermal, and hydrogen options for residential planning.

This alternative energy project is a great way to preserve Earth's fossil-fuel resources and an efficient way to reduce air pollution. Another benefit of home PV systems is that it reduces the amount of power bought from local utilities thus making the residence less vulnerable to fluctuating price increases. A drawback to a home PV system are the extremely high installation costs, however, funding could be available from governments as an incentive to invest in alternative power. Unobstructed and clear access to the sun’s rays for most or all of the day is required throughout the year for well-designed PV systems. Location affects performance meaning that the roof of a house must be facing south (best option), east or west. Flat roofs are great options for solar electric systems because the PV modules are flat on the roof facing the sky or mounted on frames on an optimal angle facing south. One option for commercial application includes building structures that can create provide shade (such as window awnings) or covered parking. For homeowners evaluating PV feasibility, a detailed guide to solar power clarifies system sizing, orientation, and incentive considerations.

 

Alternative Energy Projects - Solar Concentrator System

Solar concentrators are alternative energy projects that track and focus the sun's energy; the sun's energy is then converted to hot water and space heat for day-to-day consumption. These alternative energy projects also have thermal storage, so it can distribute the sun's energy during the night or during a cloudy day. In addition to thermal applications, alternative energy power resources explain how concentrators integrate with broader energy management strategies.

 

Alternative Energy Projects - Hydrogen Electrolyzer

Hydrogen could be a valuable energy source in the future, so alternative energy projects are being funded by governments to heat residential homes. One such project, the hybrid hydrogen electrolyzer/high efficiency furnace system works by generating hydrogen from water using electricity. The generated hydrogen is then used to replace the natural gas that is conventionally used in furnaces. These hybrid energy systems can be installed in a variety of houses, including single detached houses. For system comparisons and component basics, an overview of alternative energy systems outlines how electrolyzers interface with storage and heating equipment.

 

Alternative Energy Projects - Geo Power

Geothermal Energy is also being used to provide heat to residential homes. One such alternative energy project, known as the Geo Power System, takes heat from the ground and sends it into the house. This tube-in-tube ground heat exchanger, made from polyethylene and aluminum is inserted vertically into a bore-hole in the ground either in the basement or crawlspace of a house. The alternative energy project is supposed to contribute energy during the winter months and absorb energy during the summer months in the ground. For site assessment and retrofit pathways, these alternative energy solutions highlight best practices for efficient geothermal installations.

 

Alternative Energy Projects - Solid-Oxide Fuel Cells

Fuel-cell combined heat and power (CHP) systems are alternative energy projects that can heat houses and provide hot water while electricity is sent to and from the electricity grid. The continued issues this residential alternative energy project faces include grid connection, thermal storage and proper fuel-cell size. To see how residential CHP fits within the wider clean energy mix, a primer on renewable and alternative energy offers context on adoption trends and grid impacts.

 

Related Articles

View more

Alternative Energy Grants - Sustainable Energy Development

Alternative energy grants fund renewable energy R&D, power systems upgrades, and grid modernization, supporting solar, wind, microgrids, battery storage, high-efficiency inverters, and electrification projects for utilities, manufacturers, and engineers, focused on decarbonization and smart grid.

 

What Are Alternative Energy Grants?

Grants that fund renewable power systems, grid upgrades, and storage for electrical engineering projects.

✅ Funds power electronics, inverters, and grid-integration R&D

✅ Supports microgrids, DERs, and smart grid reliability projects

✅ Covers feasibility studies, prototypes, and pilot deployments

 

Alternative energy grants - Wind, solar, geothermal and other alternative energy soures are the new "in" to replace forms of energy that harm the environment such as fossil fuels, so both Canadian and the U.S. governments are giving alternative energy grants (free conditional money) to individuals, businesses and local governments to promote the use and development of alternative energy sources. Here are three alternative energy grants currently offered by the U.S. government. For broader context on the field, the overview at what is alternative energy explains key terms and categories clearly.

 

Alternative Energy Grants - Energy Efficiency and Conservation Block Grant (EECBG) Program

These alternative energy grants help eligible entities in beginning their conservation and energy efficiency strategies. For those interested in applying for these alternative energy grants, they must have reduced their fossil fuel emissions, reduced total energy usage and improved energy efficiency within the company. Furthermore, those eligible must develop and implement an energy efficiency and conservation strategy with the assistance of a third-party technical consultant. Also, eligible entities must conduct regular residential and commercial building energy audits to monitor results and financial incentive programs (loan programs, rebate programs, waive permit fees) with the goal of improving energy efficiency must be in place. Other requirements are also required to be eligible for this alternative energy grant. To identify complementary rebates and policy tools, agencies can review alternative energy incentives relevant to their jurisdiction for alignment with EECBG goals.

 

Alternative Energy Grants - State Energy Program

Ultimately, provinces and states are expected to lower their overall fossil fuel carbon emissions so that the use of alternative energy sources can become more prevalent. Financial support, in whole or in part, may be provided for salaries, materials, and supplies, equipment, travel, publication costs, and services required for deployment of alternative energy activities and initiatives. The states energy program goes to competing states for funding to implement activities relating to a number of programmatic areas such as building codes and standards, alternative fuels, industrial efficiency, building efficiency, and alternative energy technologies. Many states layer alternative energy tax credits on top of SEP funds to catalyze private investment.

 

Alternative Energy Grants - Rural Energy for America Program (REAP)

The REAP program provides alternative energy grants to rural small businesses & agricultural producers for the purchase & installation of alternative energy systems in rural areas. Alternative energy grants are limited to 25 per cent of the project cost or $500,000 – whichever is less. Alternative energy grant applications of $20,000 or less are greatly favored in the competitive, selection process. Projects needing larger grants can improve their chances by simultaneously seeking a REAP guaranteed loan. For the loan seekers, the details are the same as the aforementioned alternative energy grant, but provides 60 to 85% per cent loan guarantees to commercial lenders financing such projects. Loans up to $25 million can be guaranteed. Combination grant and guaranteed loan assistance up to 75 per cent of total project cost; such “combo” proposals may improve a project’s access to grant assistance and speed approvals. Prospective applicants can benchmark typical capital and O&M figures using resources on alternative energy cost to prepare stronger pro formas.

Case studies of farm-scale solar, wind, and efficiency upgrades in the alternative energy projects library illustrate successful REAP financing structures.

 

Alternative Energy Grants - State Energy Special Projects

The State Energy Program aims to develop and deploy energy efficiency and alternative energy technologies and practices. The State Energy Program (SEP) makes it possible for states in the U.S. to design and carry out energy efficiency and alternative energy programs tailored to their State-specific needs, while contributing to national energy priorities. The State Energy Program enables the States to address both national energy initiatives and local energy priorities through two funding mechanisms: alterntive energy formula grants and Special Projects grants. States utilize these funds to design and implement energy projects tailored to meet community needs, economic conditions, individual energy situations, and climactic variations. SEP Special Projects funds are awarded on a competitive basis to States from each of the four end-use sectors (buildings, industrial, power technologies, and transportation) and the Federal Energy Management Program (FEMP) for cost-shared technology projects. Special Projects often accelerate alternative energy development by targeting pre-commercial demonstrations and regional testbeds.

For program designers seeking cross-sector approaches, curated alternative energy solutions can inform competitive proposals and stakeholder engagement plans.

 

Related Articles

View more

Alternative Energy Tax Credits - Green Energy Cost Savings

Alternative energy tax credits reduce CAPEX for solar PV, wind turbines, battery storage, EV charging, and high-efficiency HVAC, with IRS incentives, rebates, and depreciation accelerating power electronics upgrades and grid integration for clean energy projects.

 

What Are Alternative Energy Tax Credits?

Fiscal incentives lowering costs for EE-led renewable systems, backing PV, wind, storage, and grid modernization.

✅ Eligible assets: PV inverters, wind generators, BESS, EVSE

✅ Requires NEC, IEEE 1547, UL 1741, and interconnection compliance

✅ Boosts CAPEX ROI via ITC, PTC, MACRS, transferable credits

 

How can I earn money using alternative energy? New financial incentives are available to homeowners and businesses for a number of alternative energy and energy efficiency measures. For a broader overview of current programs, see the resource at alternative energy incentives which summarizes eligibility and timelines.

  • Alternative energy tax credits for residential and commercial photovoltaics, solar water heating systems, geothermal heat pumps, and other renewable technologies.
  • Alternative energy tax credits for homeowners for energy efficiency improvements to existing homes.
  • Alternative energy tax credits for builders of highly efficient new homes.
  • Alternative energy tax deductions for owners or designers of highly efficient commercial buildings.
  • Alternative energy tax rebates for energy efficient appliances

     

    Alternative Energy Tax Credits Using Solar and Renewables For Residential Homes

    If you're new to the space, this concise primer on what is alternative energy helps frame the technologies covered in this section.

    For new and existing homes, alternative energy tax credit limitations have been removed by some country's governments for many alternative energy systems including geothermal heat pumps, solar water heaters, solar photovoltaics, small wind energy, fuel cells and microturbine systems. Qualified products can receive an alternative energy tax credit equal to 30 per cent of their cost. Many homeowners start by reviewing the latest renewable energy tax credits before requesting contractor quotes.

    Some examples of alternative energy tax credit qualified products are:

    When weighing options like PV and solar thermal, this overview of alternative energy solar power clarifies system types, site suitability, and typical payback periods.

  • Solar water heating systems property certified by the Solar Rating and Certification Corporation (SRCC) which provide at least 50 per cent of the system demand.
  • Photovoltaic systems which provide electric power for the residence.
  • Wind energy systems which provide 100 kW or less electric power to the residence.
  • Geothermal heat pumps which satisfy the ENERGY STAR criteria.
  • Fuel cells with a capacity = 0.5 kW and efficiency = 30 per cent.
  • Microturbines with a maximum capacity of 2,000 kW and a minimum efficiency of 26%.

    Alternative Energy Tax Credits For Existing Homes - Energy Efficiency

    To align upgrades strategically, compare technologies using this guide to renewable alternative energy so your efficiency measures complement future renewable additions.

    Qualified products receive an alternative energy tax credit of 30% of their cost, up to the $1,500 limit.

    Some examples of alternative energy tax credit qualified products are:

  • Insulation material which meets 2009 IEEC and amendments.
  • Exterior windows with SHGC = 0.30 and U-factor = 0.30.
  • Exterior doors with SHGC = 0.30 and U-factor = 0.30.
  • Furnaces using natural gas or propane with an AFUE = 95.
  • Geothermal heat pumps (Not subject to $1,500 cap):
  • Hot water boiler with natural gas, propane, or oil furnace and AFUE = 90 per cent.
  • Advanced main air circulating fan used in natural gas, propane, or oil furnace that uses no more than 2% of the total annual energy use of the furnace.
  • Water heater using natural gas, propane, or oil with EF = 0.82 or a thermal efficiency = 90%.
  • Water heater using an electric heat pump with EF of 2.0 or greater.
  • Biomass stoves with efficiency rating of at least 75 per cent and used to heat a home or heat water.

     

    Alternative Energy Tax Credits For Commercial Buildings

    Owners or tenants (or designers, in the case of publicly-owned buildings) of new or existing commercial buildings may qualify for a tax deduction of up to $1.80 per square foot. The buildings must be constructed or reconstructed to save at least 50 per cent of the heating, cooling, water heating, and interior lighting energy cost of a building that meets ASHRAE Standard 90.1-2001.

    Each of the three energy-using systems of the building — the envelope, interior lighting system, and heating and cooling system — is eligible for one third of the incentive ($0.60/ft) if it meets its share of the whole-building savings goal. Case studies of compliant facilities can be found among curated alternative energy projects that detail design choices and savings outcomes.

    Software meeting federal tax laws for accuracy and consistency determines projected energy savings. Third party inspectors review the plans and verify building parameters to determine compliance.

    Alternative Energy Tax Credits For Businesses

    The business investment tax credit varies from 10% to 30% depending upon they type of system installed. This alternative energy tax credit is possibly available to businesses that purchase solar water heaters, solar photovoltaics, small wind energy, geothermal heat pumps, fuel cells and microturbine systems.

    Combined Incentives For Alternative Energy Tax Credits

    In many cases, multiple tax incentives may be claimed. In the case of a new home for example, the builder may claim credit for the high efficiency home and the homeowner may claim tax credits for solar hot water, photovoltaic, and fuel cell systems. Other financial incentives, such as local utility rebates, further reduce the cost of building or owning a solar and energy efficient home. To supplement credits and rebates, many jurisdictions also offer targeted alternative energy grants that can further reduce upfront costs.

 

 

Related Articles

View more

Alternative Energy Systems - Green Energy Power Conversion

Alternative energy systems integrate solar PV, wind turbines, battery storage, and smart grids using power electronics, inverters, and microgrids to optimize reliability, grid integration, load management, and decarbonization in modern electrical engineering.

 

What Are Alternative Energy Systems?

Renewable power architectures using solar, wind, storage and power electronics for reliable grid-integrated electricity.

✅ Design with MPPT inverters, DC/DC converters, and protection relays

✅ Grid integration via PCC, power quality control, and harmonic mitigation

✅ Energy management: SCADA, EMS, forecasting, and battery SOC control

 

Alternative energy systems - What are solar power systems?

Solar electric technology, an adequate alternative energy system, takes sunlight and coverts it into electricity directly. The technology works best when the sun is at its peak, at which time it strikes the solar electric modules directly. Solar electric technology does not use the sun's heat to make electricity, but there are certain solar alternative energy systems that are used to heat water. Instead, this alternative energy system produces the electricity directly from the electrons that are freed from sunlight's interaction with semiconductor materials that are found in the solar electric cells. For a deeper overview of photovoltaic system types and performance, see this guide to solar power systems for additional context.

The basic building block of solar electric technology is the solar cell, which are then are wired together with other solar electric cells to produce a solar electric module. The power output on these modules ranges from about 10 watts to 300 watts. One or more solar electric modules connected to an inverter means that the solar electric alternative energy system is tied to the utility grid. The inverter switches the system's direct-current (DC) power to alternating current (AC). This current is what is compatible with the utility grid and it powers devices such as appliances, lights, televisions, and computers. This AC output integrates with household circuits as a reliable source of alternative energy power used by everyday devices.

 

Alternative energy systems - What are wind power systems?

Wind is air in motion, which comes from the sun. It's an overly abundant fuel source that doesn't harm the environment. The alternative energy systems for this renewable fuel source deflects or stops the wind, converting the wind’s kinetic energy into potential energy of pressure, thus create wind loads. These wind loads are harnessed by wind electric alternative energy systems such as wind turbines to create electricity. Because wind replenishes naturally, it is a prime example of renewable alternative energy that supports long-term decarbonization.

Here are some of the components that make up a wind turbine:

Ongoing advances in materials, controls, and siting practices are central to alternative energy development that improves turbine efficiency and reliability.

 

  • Blades: Most of the wind turbines of this alternative energy sytems have three blades, though there are some with two blades. Blades range from 30 to 50 meters (100 to 165 feet) in length, with the most commonly-used sizes at around 40 meters (130 feet). A 40 meter LM glass-fiber blade for a 1.5 MW turbine weighs 5,780 kg (6.4 tons) and one for a 2.0 MW turbine weighs 6,290 kg (6.9 tons).

 

  • Controller: There is a controller in the nacelle and one at the base of the turbine. The controller monitors the condition of the turbine and controls the turbine movement.

 

  • Generators: Most wind turbines convert the mechanical energy generated from the wind turbine’s rotation into electrical energy using a single AC generator.

 

 

  • Nacelles: The nacelle houses the main components of the wind turbine, such as the controller and the generator.

     

     

  • Rotor: The rotor includes both the blades and the hub (the component to which the blades are attached).

     

     

  • Towers: The towers are usually tubular steel at varying heights starting at about 60 to 80 meters (about 195 to 260 feet). There are some towers with heights around 100 meters (330 feet).

 

Alternative energy Systems - What are geothermal power systems?

Geothermal technology, an alternative energy system that doesn't hurt the environment, produces electricity from hydrothermal (hot water/steam) resources. Hydrothermal resources at high temperatures (between 300 and 700 degrees Fahrenheit) can be used to make electricity. These high-temperature resources may originate from either hot water wells or dry steam wells. These resources can be used by drilling wells into the earth and, at that point, piping the steam or hot water to the surface. Geothermal wells are one to two miles deep. Geothermal stands alongside solar, wind, and other forms of alternative energy that leverage naturally replenished resources.

In a dry steam power plant, the steam from the geothermal reservoir is connected from a well to a turbine generator to make electricity. In a hot water plant, some of the hot water is turned into steam. The steam powers a turbine generator just like a dry steam plant. Then, when the steam cools, it turns into water and goes back into the ground to be used over again. These closed-loop practices exemplify the principles behind what is alternative energy in practical power generation.

 

 

Alternative energy systems - What are wave power systems?

Wave power plants are rare because waves aren't produced on a consistentent basis. However, if harnessed, wave production can supply an adequate amount electricity. This electricity production starts with wave energy converters (WEC), which converts wave energy into mechanical energy, and then uses a power take-off system to generate electricity. The power is generally taken using a turbine driven by pressurized air, pressurized oil, or pressurized water. Many coastal pilot sites evaluate device survivability and grid integration through targeted alternative energy projects across diverse sea states.

There are three categories of wave energy converters, an environmently-friendly alternative energy system, based on how they capture the mechanical energy:

 

  • Point absorbers are devices whose surface area is very small in comparison to the wave length of ocean waves.

     

  • Attenuators are relatively long devices that are placed parallel to the general direction of wave travel.

     

  • Terminators are placed a certain way, so that they can absorb energy from the wave.

     

 

Related Articles

View more

What is Alternative Energy?

What is alternative energy? In electrical engineering, it denotes renewable power sources—solar PV, wind, hydro, geothermal—and enabling systems like power electronics, inverters, storage, microgrids, and grid integration to decarbonize electricity.

 

What Is Alternative Energy?

Alternative energy uses renewable electrical sources and grid tech to cut emissions and boost efficiency.

✅ Includes solar PV, wind turbines, hydro, geothermal, and bioenergy.

✅ Enabled by power electronics, inverters, converters, and smart grids.

✅ Integrates storage, demand response, and grid stabilization controls.

 

What is Alternative Energy? Alternative energy is power that comes from sources which are not going to run out, do not pollute as much as fossil fuels (oil, coal, natural gas), or do not create leftover materials that are harmful to people and the environment.

The term, "alternative," in a sense, is meant to contrast environment friendly energy against forms of energy that hurt the environment (coal power, natural gas, and oil power). Other names for alternative energy include clean energy, green energy and renewable energy. For readers new to the topic, you can explore concise summaries of technologies in the guide to forms of alternative energy to see how they compare.

 

Alternative Energy Vs. Renewable Energy

Renewable energy and alternative energy are often interchangeable, but they do have different meanings. Renewable energy comes from a replinishable energy source (it can never deplete). Electric energy that is generated from the sun (solar), the wind, the ocean (waves, currents or tides), the earth (geothermal), waste (biomass), landfill gas, or water (hydro power) is considered to be renewable energy. Renewable energy falls under the alternative energy umbrella because renewable fuel sources like wind and solar don't hurt the environment. For a broader overview, the relationship between categories like clean power and storage is outlined in the resource at renewable and alternative energy for further reading.

 

Alternative Energy Sources

 

A comprehensive overview of major options, deployment trends, and resource potential is compiled at alternative energy sources for additional context.

1. Alternative Energy as Solar Power

The sun has been around, shining on the earth with warmth and light for many, many years. This alternative energy source is available at no cost, and will be available to generate energy tomorrow and for millions of years to come, which explains why scientists continue to strive to figure out new ways on how to capture and use energy from the sun. For system basics, component choices, and siting tips, see alternative energy solar power to understand practical applications.

Long ago, it was discovered that leaving objects in the sun not only increased the object's thermal temperature, but the radiating heat also produced energy. Today, this type of alternative solar power, letting the sun heat something up, is called thermal solar energy. This alternative energy source is used to heat water for people's homes by passing cool water through pipes that are exposed to sunlight. As the pipes heat up, the water gets hot.

Another type of solar energy, known as light solar energy or photovoltaic energy, has only been used since the 1950s. This type of solar power comes from changing sunlight into actual electrical current. Very thin photovoltaic cells, which contain layers of different chemicals, absorb light from the sun and change it into electricity. The photovoltaic electricity is then stored in large batteries for later use, or it is actually sent back through the power lines to the electric company, which pays you for making electricity. Photovoltaic energy is growing in popularity every year. New types of photovoltaic cells, called “thin films”, are making solar electrical systems easier to put into homes, and less expensive than they were before.

Did you know: If one minute’s worth of all the sun’s energy that falls on the Earth was captured, it would be enough to provide the world with enough power for an entire year.

 

2. Alternative Energy as Wind Power

Wind energy has been utilized as an energy source for thousands of years. For example, the earliest sailors realized that putting sails on their boats to catch the wind made their boats go faster. More than 100 years ago, many farms used wind power to pump water from underground up to a container where it could be used for their homes or to water their animals. Today, wind power is used to turn large propeller blades that are put on top of towers. As the blades turn, their movement turns a generator, which changes the movement into electricity, which is sent to power stations or stored in batteries. Today, more people are buying small wind towers that make enough electricity to run their homes.

These days, very large windmills (known today as windfarms) are built in large groups. These windfarms are located miles away from where people live, and when the power is generated, the power is sent back to the cities and towns. Because wind patterns vary from location to location, some windfarms won’t work very well. But in windy areas, windfarms provide an efficient amount of electricity. Integrating wind with storage, efficiency, and grid modernization is covered under broader alternative energy solutions that help scale projects.

 

3. Alternative Energy as Water Energy (Hydro Electricity)

Water energy is another type of alternative energy that has been utilized for many years. Have you ever seen a water wheel next to a mill in an old painting or picture? The wheel was turned by the flowing water in a creek. The turning wheel was connected to a large millstone, which was used to crush grain to make flour and cornmeal. Today, electricity is generated using water. Large walls (dams) are built with tunnels to block flowing rivers so that the water can navigate through them, and, as the water goes through these tunnels, propellers turn a motor, which then generates electrical power. The generated power either is stored in batteries or is sent to a power station. Technology has developed enough that a small home can generate its own hydro power.

If a home is next to a creek or stream, a micro hydro system can turn a very small wheel, which then generates electrical power. Activists, scientists and some government officials have voiced their concerns that building large dams interrupt ecosystems, despite the fact that it generates millions of watts of power. However, the micro hydro technology can be used without hurting a small stream or the plants and animals that live there.

 

4. Alternative Energy as Biomass Energy

The farming industry, among other industries, are using corn and other plants as a biomass alternative energy source that can be put into the gas tanks of cars and trucks that can replace earth-damaging fossil fuels. Further feedstock pathways, conversion methods, and project case studies are outlined under biomass energy to illustrate real-world use.

The oldest type of biofuel is called biodiesel, which was first made out of plants and vegetables. Today, biodiesel is made out of old cooking oil and other types of plant materials that are not needed for other things. When it’s burning biodiesel made out of old cooking oil, the exhaust from a car’s tail pipe smells like french fries.

Ethanol, a second biofuel, is made by distilling plant materials (eg. corn) into grain alcohol, which is then mixed with small amounts of fossil fuel. When finished, this form of alternative energy can be used in cars, trucks and vans. While the farming industry is utilizing this readily available alternative energy resource, studies show that unless farms stop using petroleum-based chemicals for fertilizer and for killing pests, growing crops to make ethanol fuels may be more damaging to the environment than other forms of alternative energy. Comparisons with hydrogen, renewable diesel, and other alternative energy fuels highlight trade-offs in cost and lifecycle impacts.

 

Related Articles

View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.