Alternative Energy Projects - Home Energy Systems

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.

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• Alternative Energy Channel

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 Channel

Alternative energy solutions leverage renewables like solar PV and wind turbines, with battery storage, smart grids, power electronics, and advanced inverters enabling grid integration, microgrids, load balancing, and high-efficiency electrical systems.

What Are Alternative Energy Solutions?

Systems using renewables, storage, and power electronics to provide efficient, reliable, grid-integrated electrical power.

✅ Power electronics: MPPT, inverters, converters for grid-tied PV and wind.

✅ Energy storage and EMS for frequency regulation and peak shaving.

✅ Smart grids, microgrids, protection, SCADA, and IEC 61850.

Why are alternative energy solutions so important? Fossil fuels, such as coal and oil, continue to contribute to the ever-growing pollution in the environment by producing carbon dioxide and other harmful chemicals, which causes further damage to Earth's atmosphere by increasing the hole in the layer of the upper atmosphere (the ozone layer). The ozone layer, which protects Earth's inhabitants from the sun's radiation, prevents the snow in the Northern and Southern atmospheres from melting. These increased atmospheric temperatures, known as global warming, is a concern for governments all over the globe because flooding could occur on such catastrophic levels (much of North America, Europe and other parts of the world would be under water and countless lives would be lost). So, many of the world's nations are rallying together to reduce their fuel consumption and dependency on fossil fuels and find other alternative energy solutions. For readers new to the topic, see this overview of what constitutes alternative energy to understand how these technologies differ from conventional fuels.

According to the U.S. Department of Energy, fossil fuels currently give the U.S. more than 85 per cent of all consumed electric power and almost all of consumed transportation fuels. DOE points out that the likelihood that America's reliance on fossil fuels will continue to increase over the next two decades as the economy expands--even with aggressive development and deployment of new alternative energy technologies. In parallel, DOE and industry roadmaps highlight the role of renewable alternative energy in moderating long-term demand growth.

What does this mean? Energy is essential to economic growth. Without adequate energy supplies, a world population of six to ten billion people would not be possible. Every human life and every sector of the economy requires energy and even the most basic needs of humanity (such as food and water) could not be supplied without adequate energy supplies. Diverse renewable energy sources can help meet these fundamental needs while reducing environmental and supply risks.

For any alternative energy solution to be successful in today's marketplace, it must provide more energy than other large energy sources (fossil fuels and natural gas), which presents a formidable challenge. Why? Most of today's energy sources are already considered difficult to satisfy current demand. The difficulty doesn't exist in the resource being too small, but the challenge is to maintain a high rate of growth necessary to keep up with demand. How is this to be done? Here are some alternative energy solutions. For a broader primer on technology categories, explore the principal forms of alternative energy described by industry educators.

Alternative Energy Solutions - Hydro Power

Hydroelectricity is a well-established and cost-effective form of alternative energy. This alternative energy solution has helped support energy-intensive industries like rely on cheaper forms of electricity. Hydro Electricity also plays an important role in energy storage, but, hydro energy's potential won't be enough to power the global economy on hydroelectricity. However, hydro-electric energy projects will continue to be deployed wherever the resource is readily available. Readers can compare hydro with other options by reviewing key alternative energy sources and their typical applications.

Alternative Energy Solutions - Solar Power

Solar energy hasn't gone large scale mainly due to cost and distribution issues, but that hasn't stopped solar energy companies from making investments. In fact, recent expansions have resulted in 265 megawatts of energy and more than two billion dollars of investment in the U.S. economy. When cost isn't such a major factor, it's expected that solar energy will play a larger role in the world economy. Solar energy, particularly in thee electricity sector, will have to become much more cost efficient before it can compete with other energy resources. While there is no obvious floor to the price of solar energy, progress in the last few decades has been slow. Another factor affecting cost is electricity storage, which, at present, is not currently available to meet immediate high energy demands. But, if cost becomes roughly three times cheaper than other electricity sources that satisfy immediate demand, then solar energy stands a chance of becoming a major energy source. It's expected that prices will decrease dramatically with emerging solar technologies, such as photovoltaic cells. It remains be seen, however, if these reductions can give solar energy the competitive edge in the world economy. For technology pathways and case studies, see this guide to alternative energy solar power and its emerging cost trends.

Alternative Energy Solutions - Wind Power

Wind energy is helping many nations meet their ever-growing energy demands. Today, wind energy provides the U.S. with enough electricity to power over 9.7 million American homes. And, according to the National Renewable Energy Laboratory (NREL), there is a potential of 37 trillion kilowatt-hours of electricity that could be used to power the U.S. annually——nearly 10 times the country’s existing power needs. At the moment, there are over 400 American manufacturing plants that build wind components including blades, towers and other major turbine components. Plus, new wind energy manufacturers are currently coming online, being announced or expanding (over 100 since 2007). However, wind energy requires further development in technologies before they are ready to operate at full scale. Grid planners often analyze how alternative energy power integrates with reliability standards and transmission upgrades.

Alternative Energy Solutions - Geothermal Power

The geothermal potential is very large. At the moment, the technology for this alternative energy solution is limited to special locations (such as Iceland, Kenya and locations in California) with very steep thermal gradients, resulting in very large temperature differentials between the surface and the geological reservoir. For the time being, many of the possible energy resources are simply not large enough to operate at the scale necessary to satisfy a substantial fraction of the world’s energy demand. In some cases, like wind energy, the locations are large enough, but raise serious questions about the environmental impact of large-scale deployment.

What is the best alternative solution?

Governments continue to strive to find one energy solution that can power the world, but it might be that a collaboration of alternative energy solutions is best to saving the world.

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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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• Alternative Energy Channel

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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• Alternative Energy Channel

Alternative energy development integrates renewable generation, photovoltaics, wind turbines, battery storage, power electronics, and HVDC to optimize grid integration, smart inverters, and microgrids for resilient, efficient electrical systems and decarbonized power networks.

What Is Alternative Energy Development?

It is the engineering of renewable power systems—generation, storage, and grid integration—to decarbonize electricity.

✅ Design of PV/wind converters, MPPT, and grid-following/g-forming inverters.

✅ Energy storage sizing, BMS control, and dispatch for frequency regulation.

✅ HVDC, microgrids, protection coordination, and grid integration studies.

Alternative energy developments represent a transformational opportunity to not only attract new global investment and create new jobs, but to reduce the world's reliance on fossil fuels. And, the future looks bright because experts predict that completed alternative energy developments will add 4.5 trillion dollars in value to the economy by 2030. For readers new to the field, the fundamentals of alternative energy help clarify key terms and drivers shaping this transition.

Alternative Energy Development - Wind Energy
Wind energy, as an alternative energy development, is the world’s fastest-growing energy source. In fact, 42 per cent of all new power plants installed in 2008 are powered by the wind. In January 2002, installed world capacity exceeded 24,000 megawatts, of which 205 megawatts (or 0.85 per cent of world capacity) was located in Canada. Over the past decade the cost of wind energy has fallen from 30 cents per-kilowatt-hour to around eight cents per-kilowatt-hour. In major policy reviews, the U.S. Department of Energy and the British government have predicted future wind energy costs of between 3.4 to 5.5 cents per-kilowatt-hour by 2020. A recent assessment of wind’s prospects and impacts released by the U.S. Department of Energy concluded that the United States could supply 20 per cent of the nation’s electricity needs through wind by 2030. This assessment and related analyses found achieving this goal would:

• Reduce electric-sector greenhouse gas emissions by about 25 per cent, relative to a scenario with no new wind additions;
• Reduce electric sector natural gas and coal consumption by 50 per cent and 18 per cent, respectively; and avoid construction of 80,000 megawatts of new coal plants;
• Reduce electric-sector water consumption over 15 per cent by 2030, with nearly one third of the reduction in the arid western states; and
• Increase annual property tax revenues and rural landowner payments to more than 1.5 billion dollars and 600 million dollars, respectively, by 2030.

Positioning wind alongside other resources in renewable power generation portfolios can further enhance grid reliability and reduce overall system costs.

Alternative Energy Development - Solar Energy
Photovoltaic (PV) technology has become a focal point in solar alternative energy development due to a number of social and economic factors, including the need to reduce greenhouse gas (GHG) emissions, deregulation, and the restructuring of electric power generating companies. PV cells convert sunlight directly into electricity via the photovoltaic effect using specially treated semiconductor materials. Over the past 30 years crystalline silicon has been the material of choice in PV panels Solar PV systems represent a 42-million-dollar industry in Canada, with sales increasing, on average, more than 20 per cent annually over the past decade. In 2000, 1.5 megawatts of modules were sold in Canada, with 98 per cent of this total being used in off-grid or remote applications, and two per cent grid-tied. Based on annual 20 per cent growth rates, the production price of electricity from photovoltaics in Canada can be expected to drop below that of conventional thermal sources by 2020. Each installed kilowatt of PV power has the potential to offset 1.6 tonnes of CO2 per year when replacing coal-generated electricity, 1.3 tonnes per year when replacing oil and 0.7 tonnes per year when replacing natural gas. When integrated into broader alternative energy systems across homes and businesses, PV can provide resilient, distributed capacity for communities and industry.

Alternative Energy Development - Biomass Energy
Biomass, as an alternative energy development, is increasingly seen as a competitive and sustainable energy source. Almost six per cent of primary energy demand is currently supplied by biomass energy (mostly used by the pulp and paper industries, who burn their own residues to turn steam into electricity). The remainder is mostly cordwood, used for residential heating. At the moment, most biomass combustion alternative energy development is concentrated on small-scale cogeneration systems to utilize industrial waste, of around one-megawatt output. Various recent studies have confirmed that extensive biomass resources remain under-utilized across Canada. This includes over five million bone-dry tonnes of lumber and sawmill plant residues, which are being incinerated or landfilled without heat recovery. Successful deployment often depends on well-structured alternative energy projects that align feedstock logistics with local heat and power needs.

Alternative Energy Development - Geothermal Energy
Approximately 35,000 Canadian homes and buildings currently receive heating and cooling through geo-exchange installations. However, policy obstacles still exist which prevent extensive alternative energy development of Western Canada’s high-temperature geothermal resources for electrical generation. The cumulative geothermal resource remains poorly quantified due to a 25 year hiatus in government funding of geothermal science. Through commercial avenues, approximately 100 megawatts of geothermal power potential has been identified as of 2009, although there is still no geothermal power in Canada’s electrical grid. As an under-explored geothermal resource, geothermal projects will represent a pertinent frontier for commercial development in the near future. The corporate and public awareness of geothermal technologies has grown in the recent past through an increased media focus, and a strengthening support for carbon-friendly lifestyle choices. Currently, the Canadian Geothermal Energy Association is leading 33 government policy projects to establish a foundation for the imminent development of geothermal electrical projects. As the effect of recent carbon taxes continues to saturate electricity markets, new geothermal opportunities will be available to fill the void with reliable and clean alternative energy. As part of integrated alternative energy solutions across provinces and territories, geothermal can deliver firm, low-emission baseload to complement variable renewables.

Alternative Energy Development - Tidal Energy
Tidal energy is an alternative energy development that is extracted directly as kinetic energy from a moving stream, whereby seawater is ‘partially impounded’ in its flow through a channel. Local effects on the tidal regime are considered low or negligible, depending on the technology used to extract energy. Tidal current energy is predictable and regular, and will be unaffected by global climate change. Nevertheless the technology for exploiting this resource is still in its infancy, and there are, as yet, no commercial installations anywhere in the world. Tidal current power development is estimated to be one to three years behind ocean wave energy and five to eight years behind wind energy. A clear overview of technologies and site considerations is provided in this guide to what is tidal energy for those evaluating pilot deployments.

Alternative Energy Development - Wave Energy
Ocean wave technology, as an alternative energy development, extracts kinetic energy from the up-and-down motion of waves, using it to generate electricity. Inventors have taken out hundreds of patents for wave energy devices over the years, but concentrated effort in this direction dates from the 1970s oil crisis. The first wave power plants were built near Bergen, in Norway, in the mid-80s. Together, both plants had a combined capacity of 850 kilowatts. The first wave energy plant that was used for commercial purposes was brought online in Islay, Scotland, in November 2000. Today, India, Japan, Australia, Indonesia, Australia, and countries of the European Union have undertaken numerous government-supported projects. BC Hydro, an electrical utility in the Canadian province of British Columbia, has committed to implementing three to four megawatts of ocean wave generating capacity as part of the Vancouver Island Green Energy Demonstration project. In order to develop wave power towards its potential, extensive data collection is needed to pinpoint prime sites. Further research is also needed to assess the impact of heavy storms on installed equipment. These demonstrations illustrate how emerging ocean resources can contribute to diversified alternative energy power mixes when supported by robust data and engineering standards.

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