For the first time ever, global investors put more money into alternative energy forms than fossil fuels last year. Global investors funneled $250 billion into creating new power capacity. Of that total, green power sources such as wind and solar received about $140 billion, 56 percent of all investments made.

At $51.8 billion, wind received the most investments–but investments in that energy source have grown by only 1 percent since 2007. Solar investments were the next highest at $33.5 billion. Although geothermal energy received only $2.2 billion, this energy source experienced the most dramatic growth with investments increasing 149 percent since 2007.

China spurred much of the growth, especially in wind power. Australia, Japan and Kenya increased their spending on geothermal energy, and Brazil, Chile, Peru and the Philippines are also set to introduce – or have already introduced – laws that will support clean energy.

Despite the investments, alternative energy still accounts for only 6.2 percent of total generating capacity and 41 percent of new total added capacity. Overall investment in green power sources grew very little over the last few years, and in the United States investments actually dropped 8 percent, probably as a result of the economic crisis. In fact, the biggest green power investors in 2008 were developing countries, which increased their alternative energy investments by 27 percent and now represent one third of global investments.

Although the recession may have deterred some from investing in green power, using alternative energy forms doesn’t have to mean personal financial sacrifice. With the new tax credits and rebates under the 2009 stimulus package, you could even save money by investing in green power.

Well, blow us away. Despite the economy, wind energy soared in 2008. The U.S. market for small wind turbines (with capacities of 100 kilowatts or less) grew by 78 percent—17.3 megawatts of new capacity—in 2008, according to the American Wind Energy Association (AWEA). The group expects to produce 1,700 megawatts by 2013. 

The small wind turbine market has blossomed since the implementation of  President Barack Obama’s federal stimulus plan, which gives homeowners a 30 percent tax break (with no cap!) for installing the wind turbine before December 31, 2016. 

The U.S. market for wind energy is growing.  Photo By Diogo Martins/Courtesy Flickr.  

The United States sold almost half of the small wind turbines installed worldwide last year, netting $77 million of the $156 million made globally. Of the 219 companies that manufacture small wind systems worldwide, 35 percent are based in the United States. Many of them predict that the U.S. market will grow 30- fold in as little as five years. 

This fall, Honeywell will up the ante with its EarthTronics’ Honeywell Wind Turbine, which could make residential wind power more practical—and affordable. The $4,500 turbine, a 2009 New Product Launch Spotlight Award and 2008 Green Product Innovation Award winner, uses magnets on the edges of the fan to generate a current instead of using gears. The 95 pound fan-like turbine, which can be mounted on a rooftop, generates 2,000 kWh per year—15 to 20 percent of an average American family’s electricity usage. It will be available at Ace Hardware stores in October. 

Tempted? Wind may be a sweet solution to our dependence on coal and oil, but we urge you to do your homework. This new technology isn’t a slam dunk. Just a few pros and cons: 

The good news 

• According to the American Wind Energy Association (AWEA), a wind turbine can lower your electric bill by 50 to 90 percent. (Curt and Christine Mann, owners of a wind turbine in Atlanta, estimated they’re saving 15 to 20 percent.)

• A wind turbine operates automatically and has a 20-year lifespan.

• A residential wind turbine can counterbalance about 1.2 tons of air pollutants and 200 tons of greenhouse gases over its lifetime.

• A wind turbine pays for itself in 6 to 15 years, depending on the quantity of wind in your region and how much you use your other power source. 

The bad news

• Wind can be turbulent, and the smaller, residential wind turbines lose performance ability in greater turbulence. Also, in greater turbulence, more stress is put on the gears, creating vibrations that make it noisier.

• The Warwick Wind Trials Project found that wind turbines were often shut off because residents were irritated by the noise.

• Wind turbines often work below their rated capacities, according to a study by Environmental Building News (EBN). A 12-foot Windside turbine in Indiana was rated at 10 kWh, but, according to a test by EBN senior engineer David Toso, it produced only 33 kWh in four months—approximately a quarter kWh per day.

• Residential wind turbines are much less cost effective than larger, free-standing turbines. They cost between $6,000 to $22,000 installed, according to AWEA.

Whether or not wind is the answer to our energy needs remains to be seen. What’s exciting right now is that we’re debating options that aren’t coal and oil. Let’s hope the conversation keeps moving in that direction.

This is a cool first. This year, alternative energy companies received more investment money worldwide than fossil fuels. Last year global investors funneled $140 billion—56 percent of their total investment dollars—into green power sources such as wind and solar. 

Investors spent $51.8 billion on wind power in 2008. Last year investments in alternative energy outstripped fossil fuel investments for the first time ever.  Photo by thinkpanama/Courtesy Flickr  

At $51.8 billion, wind received the most investments – but it has expanded by only 1 percent since 2007. Solar investments were next highest at $33.5 billion. Geothermal energy received only $2.2 billion but experienced the most dramatic investment growth, increasing 149 percent since 2007. (Geothermal’s hot.) 

Chinese investors spurred much of the growth, especially in wind power. Australia, Japan and Kenya increased spending on geothermal energy, and Brazil, Chile, Peru and the Philippines are also implementing laws that support clean energy. 

That’s the cool part. The depressing side of this equation is that alternative energy still accounts for only 6.2 percent of our total generating capacity and only 41 percent of new capacity. When averaged out, investment in green power sources has grown very little over the last few years, and in the United States, investments have actually dropped 8 percent since the economy’s tanked. 

What can we do? If we have the means, investing in an alternative energy system ourselves is a powerful option. If we don’t have the means, buying wind energy from your local utility may be. Spending your energy dollars on clean, renewable energy could be the smartest investment you’ll make.

Until recently, few of us associated the word “green” with “major corporations.” Many companies, however, have made a commitment to green practices—and some even get 100 percent of their energy from renewable sources. The Environmental Protection Agency recently released a list of the top green power purchasers in the United States, and the results might surprise you. 

Several large corporations, such as Whole Foods Market, are purchasing wind power.  Photo By WA State DNR/Courtesy Flickr  

For the second year in a row, Intel Corporation secured the top spot, purchasing more than 1.3 billion kWh of renewable energy from wind power. That’s 46 percent of Intel’s total electricity use, and it keeps about 934,000 pounds of CO2 out of the atmosphere—as much as would be emitted from130,000 American homes. 

Although no other company buys as many kilowatts per hour as Intel does, several companies on the list were getting 100 percent of their total electricity use from renewable sources. PepsiCo, number two on the list, and Whole Foods Market, number five on the list, both fall in this category. PepsiCo bought 1.15 million kWh from various sources, and Whole Foods Market bought half a million kWh from solar and wind sources. 

The nation’s top 50 purchasers buy more than 11 billion kilowatt-hours (kWh) of green power annually, offsetting as much carbon dioxide as would be produced to power more than 1.1 million average American homes. The companies work with EPA’s Green Power Partnership, which helps more than 1,000 organizations voluntarily purchase green power. Overall, EPA Green Power Partners buy more than 16 billion kWh of green power annually, equivalent to the CO2 emissions from electricity use in more than 1.5 million American homes. Purchase amounts reflect U.S. operations only and are sourced from U.S.-based green power sources. 

Now that major corporations have jumped on board, why not think about switching to a source of renewable energy yourself? Natural Home’s guide to alternative energy will steer you through the different options available and help you decide which one’s best for you.