Invest in Green EnergyWould you invest in something that purports to be green energy? What if the cost is higher than the regular price for current technology? How much of your own money are you willing to spend to support the green energy approach? This is the question that many people are asking themselves and many are saying, no, I will only purchase an item or invest in something as long as it is a short term good deal and makes sense in the short term for them. They may be giving up savings in the long term and als not contributing to Green Energy

Green Energy – The Simple Light Bulb

Many customers would rather spend sixty cents on an incandescent light bulb vs. a fluorescent light bulb which may cost several dollars. LED’s are even more expensive and the initial cost is a huge deterrent to going green. Never mind the fact that from a pure economic perspective the LED bulb because of it’s long life and low electrical usage is far superior than the incandescent bulb. Somehow we have to get over the initial cost shock for things that are green energy.

Hybrid Cars

Hybrid cars and all electric cars have the same problem. The sticker price shock is too much for many car buyers when you can purchase the same non hybrid car for much less. This increase in price for these cars makes the economic argument to go green much more difficult to deal with when you have to pay several thousand dollars more for the same car.

Would You Invest in a Green Energy Company?

It turns out that a company who is investing in green energy technology is much more difficult to get off the ground. A software company that starts up in a garage just needs a couple of computers and some smart guys who have a great idea and understand how to program the software.

Green energy technology companies on the other hand are working on technology that costs a lot of money just to get started and develop. In some cases you need millions of dollars to demonstrate how you can save or reduce energy consumption. Venture capital firms are very careful not to sink a great deal of money into these companies, because you can quickly lose a great deal on a technology that does not produce the savings that they are looking for.

Long Term Energy Trends

There definitely is a long term trend to create devices that use less electricity, that generate electricity for consumers and reduce the overall consumption. The same applies to the use of fuel whether it is gasoline, propane or natural gas.

Every time a consumer purchases something that consumes energy, we believe that they should do the quick math to evaluate how long it will take to pay for the item based on savings that they should derive from using this device. If it pays for itself in less time than the expected life of the item then you are ahead of the game. Light bulbs clearly fall into this category as well as high efficiency furnaces and water heaters.

Make an informed decision every time you purchase something to ensure that you are saving yourself money over the long term when you take into account the purchase cost and the operating cost of several alternatives. That’s our view of investing in green energy in 2013.

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