Alternative Energy Opportunity
for the Alert Entrepreneur

We have suggested that as an Entrepreneur, you should be about your Alternative Energy research and development. It appears that the Economic Stimulus Plan conceived by US Government officials is benefiting Alternative Energy, with particular emphasis on wind and solar.

Now that the language of the U.S. stimulus bill is clear, it is apparent which sectors will benefit. Solar, thanks to strong lobbying efforts, is in a particularly sweet spot.

Investors are now able to take a 30% federal refund on the value of a new installation before deducting any state incentives. So a theoretical $100.00 dollar solar system in a state with a 35% state credit now only costs the investor $35.00—because both federal and state incentives are now calculated from the full price. Best part is, those federal incentives have no cap and the project need only be finished by 2017 to qualify.

This incentive alone will rapidly increase solar demand as homeowners and investors alike rush to get discounts on solar installations on the taxpayers' dime.

There's also $6 billion dedicated to paying the fees on guaranteed loans. This clause is aimed at encouraging banks to make loans for renewable projects. Some estimates say that $6 billion in guarantees will translate into new loans of approximately 10X the guarantees.

And Congress didn't stop there.

They also guaranteed profits for you by setting aside $5.5 billion so federal buildings (including schools) can increase energy efficiency and their use of renewable energy. The U.S. General Services Administration (GSA) estimates that 75% of the projects that receive this funding will use solar technology.

The only catch? To qualify for those incentives projects must use solar panels that are GSA-listed. This is also known as the "Buy American" clause. For those of us that are bright enough, this should tell us where the thrust will be and what areas will benefit the most.

That tiny little "Buy American" clause has some pretty heavy investment implications. While GSA-listed solar panels can also come from the EU, Japan, Korea, and Singapore, it's most likely that the bulk of solar panels installed the next few years will be American-made.

If you’re an Investor, where do you place your money?
If you’re a Manufacturer, what do you build?
If you’re a Contractor, what do you construct?
If you’re a Real Estate Investor, what do you buy?
If you’re a Home Owner, what improvements do you make?
If you’re an Entrepreneur, what Plan do you implement?

These are all valid considerations. We suggest again that you as an Entrepreneur, should be about your Alternative Energy research and development.

Those of us that pursue this Opportunity will look back and grin at what Albert Einstein once said, "In the middle of every difficulty lies opportunity."

With little fanfare, the U.S. passed Germany last year to become the world leader in installed wind energy capacity. Perhaps more impressive, China's wind energy capacity doubled for the fourth year in a row. That neck-and-neck race for green energy leadership will continue.

Entrepreneur, where are you in this race to survive?

I wish you the best success in