Biomass Energy - Green Power Solutions


Biomass Energy

Biomass energy converts organic feedstocks into renewable power via combustion, gasification, and anaerobic digestion, enabling CHP systems, grid integration, carbon-neutral generation, improved thermal efficiency, and dispatchable biofuels for resilient electrical infrastructure.

 

What Is Biomass Energy?

Biomass energy produces electricity from feedstocks through combustion or digestion, enabling CHP and grid reliability.

✅ CHP raises electrical efficiency to 70% with heat recovery

✅ Gasification feeds syngas to turbines or SOFC for power

✅ Dispatchable output supports frequency and voltage stability

 

Biomass energy comes from biomass feedstock (crops and residues, farm animal wastes, industrial wood, etc.). The heat from this substantial renewable resource can generate electricity, fuel and other forms of energy. It has been estimated that just one eighth of the total biomass energy produced annually could provide all of humanity’s current demand for energy. For a deeper overview of how biomass fits within the clean energy landscape, see this guide on biomass renewable energy and its practical applications today.

Some forms of biomass fuels (or biofuels), derived from biomass feedstock, can be solid, liquid, or gas. Kitchen scraps, sewage, the leftovers of the food processing industries, paper, sawdust, and lawn clippings are some of the available biomass energy sources. Biomass energy has received a lot of attention because an opportunity to convert waste into something very valuable has presented itself. These pathways are often discussed alongside other forms of alternative energy that leverage different feedstocks and conversion methods.

 

Biomass Energy – How can we use it?

Biomass energy can be converted to generate electricity, fuel vehicles and heat buildings using biofuel technologies. At the moment, biomass energy sources used in power plants include agricultural and farm residues, food processing residues, wood residues and methane gas from land fills. Biomass energy producers hope to significantly expand the supply of biomass energy by using trees and grasses as well. In power markets, biomass can contribute to renewable electricity portfolios alongside wind and solar resources.

Currently, there are more than 350 biomass energy plants generating 7,000 megawatts of biomass power in the United States. The producers who own these plants are quite diverse; they range from the electrical utilities, independent power producers, the wood manufacturing industry, and the pulp and paper industry. Such facilities are part of broader trends in renewable power generation that emphasize reliability and grid integration.

Biomass energy is considered a renewable energy source because it can replenish itself (regrown), unlike fossil fuels such as coal and oil, which when used, are gone. And, unlike coal and oil, biomass energy is an alternative energy source because it doesn’t hurt the environment with harmful chemicals, such as carbon dioxide, which cause greenhouse gas emissions (GHG). Using renewable biomass resources not only reduce greenhouse gases, but they also reduce air pollutants and landfill wastes. This classification aligns with definitions of alternative energy that prioritize low emissions and resource sustainability.

As policies evolve, many jurisdictions frame biomass within broader renewable alternative energy strategies that support decarbonization goals.

 

Biomass Energy in Today’s Marketplace

Within the spectrum of renewable energy sources, biomass competes and collaborates with wind, solar, and hydro depending on local resource availability.

  • High costs in handling and transportation, as well as high moisture content, have long outweighed the low price of biomass energy feedstocks. Fuels that are filled with moisture are hard to burn properly and heat release is slow and hard to control. However, fuel upgrading options, such as pelletization and drying remedy this situation, thus making biomass energy more economically attractive.
  • Biomass energy can also make be useful in blending and co-firing applications with coal because of the low SO2, NOx, and metals emissions from biomass energy fuels, and their CO2 neutral status.

 

Biomass Energy – Benefits of Cogeneration

Cogeneration, the practice of producing both electricity and useful heat, is a great way of improving energy efficiency. Some sawmills, for example, use a lot of heat from boilers powered by biomass energy to supply energy to their kiln-drying operations. But any extra heat can help gasify biomass energy fuels so they can be used in a gas turbine, which is more efficient than a simple steam boiler. Additional savings can be produced by using combined cycle technology, which takes additional waste heat from the gas turbine to give power to a steam-driven turbine.

 

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Alternative Energy Power - Green Energy Technologies

Alternative energy power drives renewable grids using solar PV, wind turbines, and hydroelectric sources, optimized by power electronics, inverters, battery storage, and microgrids for efficient, resilient distribution and grid integration.

 

What Is Alternative Energy Power?

Alternative energy power delivers renewable power using electronics, storage and controls for efficient grids.

✅ Power electronics: MPPT inverters, VSCs, and converters

✅ Grid integration: protection, stability, and harmonics

✅ Storage: Li-ion, BESS sizing, EMS, frequency response

 

What alternative energy power technologies will make the largest impact? Alternative energy technologies have progressed so much in the past decade. However, some studies are starting to show that conventional power sources (such as fossil fuels and natural gas) will continue to have the lion's share of the world's energy mix for the next two decades. One study, conducted by the Boston Consulting Group, reports that forms of alternative energy power sources, such as wind power, will continue to provide smaller amounts of alternative energy power generation while other alternative energy power sources are ready to make a huge economic impact. Who? Let's take a look at the sources and their technologies. For readers new to the topic, this overview of what is alternative energy provides helpful context and definitions.

 

Alternative Energy Power - Solar Photovoltaic Technology

The BCG study predicts that solar PV (photovoltaic) will reach its cost competitiveness by 2015 to 2020 in the sunny regions of the world. However, the intermittency of PV's energy generation won't reach its full potential until technology breakthroughs are made in energy storage.

For practical insights, see how solar power in alternative energy is being deployed across different regions today.

Taking a look back into the last five years, it's clear that solar PV has significantly grown (up from 1.1 gigawatts in 2004 to 7.3 gigawatts in 2009, which is a 46 per cent annual increase). Today, solar panels are divided into two applications. Individual or small groups of panels can be used for distributed solar generation and larger groups of panels can be used to create utility-scale projects (also known as solar farms.) The underlying economics of the two applications are not that different, although solar farms can produce electricity at cheaper rates. Comparative data on renewable power generation helps benchmark PV performance against other resources.

 

Alternative Energy Power - Concentrated Solar Power Technology

Concentrated solar power (CSP) is another alternative energy power technology that is on its way to becoming a cost-competitive option - and soon (between 2015 and 2020). The beauty of this alternative energy power technology is that it can provide on-demand power through cost-effective thermal storage. Limitations to infrastructure and deployment barriers are significant, but surmountable.

Understanding the spectrum of renewable power sources clarifies where CSP complements wind and PV.

The generation potential of this alternative energy power solar resource over land is more than 100 times the total global demand for electricity. Solar energy without storage capacity technologies, such as thermal storage or hybrid solar-natural gas configuration, isn't reliable enough to be a sustainable energy source. However, CSP allows solar energy to play a larger part in the global electricity market and puts the alternative energy power source ahead of its alternative energy power counterparts. This perspective aligns with broader trends in renewable alternative energy adoption as grids adapt with storage and hybridization.

CSP is still small in terms of global power-generation capacity, but installed GSP capacity is expected to rise eightfold from 2009 (roughly one gigawatt) through 2015 (to more than eight gigawatts). Costs must drop for this alternative energy power technology to reach its full potential.

Cost curves are also influenced by policy and financing innovations within alternative energy solutions that scale deployment efficiently.

 

Alternative Energy Power - Smart-Grid Technologies

Many alternative energy power sources are capped due to their intermittent nature, but technologies like smart grid helps to accelerate their growth in the global energy marketplace.

A comprehensive view of the many forms of alternative energy underscores why flexibility is essential for balancing supply and demand.

By definition, a "smart grid" is a collection of equipment, infrastructure and information technologies designed to optimize the production, transmission and usage of electricity.

Incentives for smart-grid technologies include utility cost reduction, generation optimization and intelligent demand-response management. Smart-grid technologies improve the ability to integrate distributed generation and the ability to implement demand-response programs in intermittent energy sources such as wind energy and solar energy. Both factors are key enablers to expanding deployment in solar PV and wind technologies.

 

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Forms Of Alternative Energy Explored

Forms of alternative energy span solar, wind, hydro, geothermal, and biomass, engineered with power electronics, inverters, and grid-tied systems for efficient generation, storage, and distribution across smart grids and microgrids.

 

What Are Forms of Alternative Energy?

They include solar PV, wind, hydro, geothermal, and biomass, converted via generators, inverters, and grid storage.

✅ Solar PV: MPPT inverters convert DC modules to AC for the grid.

✅ Wind: variable-speed turbines use converters to regulate frequency and voltage.

✅ Hydro, geothermal, biomass: dispatchable sources aid grid stability and storage.

 

Forms of Alternative Energy - Solar Energy

The sun is one gigantic star that constantly radiates an enormous amount of energy (solar energy). How much is "enormous?" Well, let's just say that the sun sends out more energy in one second than Earth has used since the beginning of time. Like most stars, the sun is a huge ball of gas made up mostly of helium gas and hydrogen. As a primer on solar technologies, the resource at solar power fundamentals offers context for how these systems scale.

The Earth, being the third planet from the sun, only receives a small portion of the sun's solar energy, however, that amount is more than enough to supply all our electric power needs. For comparisons across resources, see renewable energy sources to understand how solar's potential relates to wind, hydro, and more.

Two ways to make electricity from solar power are photovoltaic and solar thermal systems. Photovoltaic electric generation is produced using photovoltaic (PV) cells: the sunlight hits the solar cell and converts sunlight into electricity instantly and silently--without the hassle of wearing out any mechanical parts. These solar systems are mainly used to generate power in areas that are a long distance from electric power lines. For configurations and component choices, alternative energy systems guidance explains typical PV setups used off-grid and in hybrid applications.

Solar thermal systems (or concentrated solar power) use a solar collector with a mirrored surface to focus sunlight onto a receiver that heats a liquid into steam and then turned into electric power. The process is in the same vain as coal plants: coal is burned into steam, which is then turned into electricity. Deployment considerations are explored in alternative energy solutions that compare CSP with other utility-scale options.

Solar power is expected to be a global supplier of electricity between 2015 and 2020. Solar power's benefits are phenomenal: it's free, its supply can never deplete, it doesn't pollute, and it doesn't damage the environment. These benefits underpin broader renewable alternative energy strategies that accelerate decarbonization across sectors.

 

Forms Of Alternative Energy - Wind Energy

The sun’s heat reaching the planet earth creates winds, which makes wind a form of solar energy. How does it work? Well, as the sun's rays heat the Earth’s air is heated by the sun, it expands and regions of high and low pressure are formed, these high and low movements create wind energy. For context on definitions and categories, what is alternative energy clarifies how wind fits within the broader mix.

Harnessing wind energy is done using contraptions such as wind turbines. Large wind turbines are built close together to operate on wind farms to produce large amounts of power for electrical utilities. Smaller small wind turbines can be used by homeowners and remote villages who want to generate their own electricity.

Generated Wind power, like other forms of alternative energy, can also be used for charging batteries, pumping water, or grinding grain. All of this can be done without causing greenhouse gas emissions which damage the environment. This form of alternative energy also uses minimal land area, but intermittent wind patterns make it difficult for this form of alternative energy to be a constant and reliable energy source.

 

Forms of Alternative Energy - Biomass Energy

Biomass energy is a way to turn your food waste into electricity. Biomass is any kind of organic matter (anything that was once alive) that can be used as an energy source. Besides food waste, crops, wood, animal and yard waste are examples of biomass. People have used this form of alternative energy for thousands of years - longer than any other energy source.

Biomass feedstock (farm animal wastes, crops and residues, etc.) is the main ingredient of biomass energy. The heat in this form of alternative energy is used to generate power, fuels and other energy options. The biomass fuels (or biofuels), which comes from biomass feedstock, can be used in a solid, liquid, or gas state. Disposed food, paper, sewage, lawn clippings and sawdust, are some available biomass energy resources used for power production.

 

Forms of Alternative Energy - Geothermal Energy

Geothermal is a Greek word: geo (earth) and therme (heat). This form of alternative energy comes from the heat, which is from the earth's core (almost 4,000 miles beneath the earth’s surface). Earth's double-layered core is made from melted rock (hot magma), which surrounds a solid iron center. The heat comes from the slow decay of radioactive particles produce high temperatures that constantly rise to the earth's surface. Geothermal electricity is created by pumping a fluid (oil or water) into the Earth, allowing it to evaporate and using the hot gases vented from the earth's crust to run turbines linked to electrical generators. Further technical detail is summarized in geothermal energy basics for readers interested in plant designs and resource types.

In some areas on the planet (such as Iceland), there is very hot water or steam that is close enough to the surface where this alternative energy resource can be reached economically with a drill. When obtained, the steam, or hot water flashed to steam, turns a turbine, which then, turns a generator that produces electricity. Many experts believe that geothermal energy only be a minor contributor to the global energy supply because of the scarcity of geothermal sites in the world.

 

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Alternative Energy Cost - Green Energy Premiums

Alternative energy cost analyzes LCOE, CAPEX, OPEX, and grid parity across solar PV, wind turbines, and battery storage, considering efficiency, load factors, and grid integration to optimize system design and lifecycle economics.

 

What Is Alternative Energy Cost?

Alternative energy cost is LCOE-based pricing for solar, wind, and storage, reflecting CAPEX, OPEX, and grid impacts.

✅ Uses LCOE comparing PV, wind, and storage across duty cycles.

✅ Includes CAPEX, OPEX, maintenance, and financing assumptions.

✅ Evaluates grid integration, curtailment, and reliability metrics.

 

Alternative energy cost is determined by how utilities typically set their rates and account for the cost differential between alternative energy and conventional energy sources. Basically, cost recovery of a utility’s investments and operating expenses determine electricity rates. For background on definitions and resource types, see this overview of what is renewable energy to align terminology across programs.

These alternative energy costs include:

Understanding the breadth of technologies captured under renewable alternative energy helps clarify why cost components vary by resource.

  • owning generation
  • owning transmission and distribution assets
  • a return on owned assets
  • purchased power contracts
  • recovery of various operating expenses, including fuel costs, maintenance, and administration.

    Costs for generating, transmitting, and distributing electricity are in a utility’s rate. Because utility costs are bundled together, all generation resources are combined to create a utility “system mix” of generation. In other words, utilities do not normally distinguish between individual generation sources for their customers. Therefore, an equivalent mix of the utility’s generation resources and purchased power is provided to each customer. In practice, product structures for alternative energy power are designed to work within this system mix paradigm.

    For alternative energy cost determination, utilities and regulators are interested in separating the specific alternative energy costs related to securing green power. In this way, green power products are unique, differentiated electricity products. Since customer participation is voluntary, only those customers that choose to sign up for these programs pay the incremental costs. Alternative energy power program participants typically pay the higher alternative energy cost in the form of a premium on their monthly bill. In some jurisdictions, available alternative energy incentives help offset premiums for early adopters.

    Four Main Components In Determinating Alternative Energy Cost

  • 1. The cost of the alternative energy source. This includes the total cost of electricity and/or environmental attributes from all alternative energy resources used in the product, whether from wind, solar, geothermal, biomass, or another source, and whether owned by the utility or acquired through a power purchase contract. For example, cost trajectories for alternative energy solar power have declined sharply in recent years due to technology improvements.
  • 2. Program implementation costs. Any additional alternative energy costs attributed to implementing the alternative energy program, including administration and marketing. Utilities sometimes leverage alternative energy grants to defray outreach and administration expenses.
  • 3. Ancillary services costs. The additional costs incurred to integrate variable output resources, particularly wind, into a utility’s system.
  • 4. Displaced utility generation (and capacity) resource costs. The renewable resource displaces electricity that the utility would otherwise have generated or purchased.

     

    In conclusion, alternative energy costs can be represented as: Alternative energy premium = (1) + (2) + (3) – (4)

    Alternative Energy Cost Determination

    Alternative energy costs are captured through the specific power purchase agreements for alternative energy (in this case, the term alternative energy is interchanged with renewable energy) or RECs (renewable energy contracts), or through the regulatory approval process for utility-owned renewable projects. As long as these are tracked separately from the rest of the generation mix, the appropriate alternative generation costs can be determined. However, generation costs are hard to determine because it's uncertain how many customers plan to enroll in the program and how long they plan to participate. In electric markets that have not gone through restructuring from the electric industry, contracts for generation are typically long-term (10 years or more), and investment in owned facilities is generally considered to be for the life of the facility (20 years or more). For readers new to key terms and market structures, this primer on renewable energy facts provides helpful context for interpreting contract and REC pricing.

    The long-term nature of the resource commitment severely contrasts with the program subscription commitment required of most customers. Most alternative energy programs do not require that customers enroll for a specific term, much less sign up for 10 or 20 years to match the facility or contract life of the renewable power supply source. Therefore, while the annual cost of renewable energy is straightforward to determine, the utility faces some level of risk that will likely be reflected in the product pricing.

    However, if the utility is also subject to a renewable portfolio standard and is therefore required to procure a certain fraction of renewable energy for its overall load, there may be less risk, because the utility has greater flexibility in managing its overall renewable portfolio between its compliance and voluntary program obligations.

 

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Alternative Energy Sources – Clean Electric Power Options

Alternative energy sources encompass solar PV, wind, hydroelectric, and geothermal generation, leveraging power electronics, inverters, HVDC, storage, and smart grid integration to deliver efficient, low-carbon electricity and resilient microgrids and stable operation.

 

What Are Alternative Energy Sources?

Technologies that convert renewables to electricity using power electronics, storage, and advanced grid control.

✅ Includes solar PV, wind turbines, hydroelectric, and geothermal

✅ Uses inverters, MPPT, converters, HVDC, and protection relays

✅ Integrates storage, microgrids, smart grid controls, and V2G

 

Are there other alternative energy sources besides renewables? There are other alternative energy sources that are used instead of conventional energy sources, such as oil and coal, that produce (or hardly produce) greenhouse gas emissions (GHG) that are harmful for the environment. For a broader definition of the term, see this overview at what is alternative energy to understand key concepts.

 

Alternative Energy Sources – Nuclear Energy

Nuclear energy is one of the few alternative energy sources that can generate a lot of electricity from very little fuel, which makes it a very abundant energy source. Nuclear energy is generated when atoms are either split (fission) or merged (fusion) to create energy from the reaction. It’s a clean energy because, unlike coal or oil, nuclear energy doesn’t introduce harmful gases, such as carbon dioxide, into the environment. However, nuclear energy becomes harmful during the production stage. The leftover waste is highly radioactive (unstable continuously decaying elements with high-energy particles or rays that penetrate and damage anything that it touches), which makes it hard to contain. Nuclear waste has to be stored in a secure location until alternative containing options are determined. Nuclear energy is used to generate electricity, launch space ships, and to power weapons. Comparative context across non-fossil options is outlined in forms of alternative energy for additional perspective.

For contrast with resources that naturally replenish, explore renewable energy sources to see how they differ in fuel cycles and emissions profiles.

 

Alternative Energy Sources – Natural Gas

Natural gas is considered a nonrenewable fossil fuel, but it’s considered clean because it doesn’t produce the greenhouse gas, carbon dioxide. Natural gas’s main ingredient is methane, with all other core elements filtered through an extensive filtering process. Advantages of natural gas include its global abundance, low cost and ease of use (natural gas plants can come online very quickly). However, isolating methane is quite a complex process, which makes it a disadvantage. And, even though natural gas doesn’t introduce carbons into the air, it still produces greenhouse gases. Natural gas can also be used to make electricity. Energy industry experts believe that natural gas will have a bigger role in electricity production as future demand for electricity increases. Within the broader mix of alternative energy fuels, natural gas is often positioned as a transitional option.

Grid planners evaluate flexible generation, storage, and demand-side measures among various alternative energy solutions to integrate resources efficiently.

 

Alternative Energy Sources – Hydrogen Fuel

Hydrogen hasn’t become a money-making venture, unlike other alternative energy sources, because the energy return on hydrogen isn’t very high. In other words, more energy is needed during the manufacturing process than the amount of hydrogen that is actually produced. At this point, hydrogen has proven to be an environment-friendly fuel source for vehicles. Hydrogen fuel is used mostly in batteries, by combining oxygen and hydrogen to produce power. The only waste factor is water vapor, which is a lot friendlier than the greenhouse gas, carbon dioxide. Ultimately, advancements in technology are required in hydrogen production in order for this form of alternative energy to become profitable. Renewable electricity from sources such as solar power can drive electrolysis to lower hydrogen's lifecycle emissions.

For a strategic view of how renewables complement low-carbon options, review renewable alternative energy to understand deployment pathways and tradeoffs.

 

 

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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.

 

 

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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.

 

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