Artistream Energy, Inc.

When does it make sense to employ renewable energy and when is energy efficiency more practical? This is not an easy question to answer. Even after a specific analysis is done there may be trade offs and qualitative decisions to be made. The ideal scenario is to incorporate both energy efficiency measures with a renewable energy power source but this is not always practical. Let’s first take a look at some of the major factors that will guide us in our analysis. The following is a list of a few key considerations that need to be evaluated in order to generate practical options and ultimately make an informed decision:

• Goals – What are the energy goals of the project?
  • Are you looking to save on energy costs?
  • Would you like to change your power generation fuel to a cleaner alternative?
  • Are you interested in a greener building as well as saving money? (How you weight each of these factors will have an impact on your final choices.)
  • Are you planning to utilize the energy solution long term or will the facility / home be sold in the near future?
• Budget / Financing – This area should be explored thoroughly. Most renewable energy installations and energy efficiency implementations will pay for themselves over time. Many will even create a substantial net cash flow for decades. But there is usually an upfront cost and each solution has its own payback calculation. Even with a limited budget, costs can be reduced via government subsidies, grants and tax offsets. In addition, creative financing along with incentives and reduced energy costs can lead to a monthly payment that is less than what you pay monthly for the replaced energy.
• Building Condition – With new construction, energy efficiency and renewable energy (such as solar PV and solar hot water) can easily be incorporated into both the design and financing of the building. With an existing building, an energy audit and site survey (for renewable energy) will be required in order to assess what the viable options are.

Each building assessment is unique and requires investigating and weighing many factors. The traditional wisdom has been that one would first optimize any energy efficiency measures and then implement any renewable energy systems to meet the lower energy loads. However, with the generous incentives that exist today, which will surely be reduced in the near future, it often is more practical to implement solar or other renewable solutions for 60% to 80% of your current energy requirements and look to do energy efficiency projects down the road. Guidance from professionals in the renewable energy and energy efficiency fields can assist you in this evaluation. Their input will save a lot of time and aggravation as you begin the journey of changing your energy footprint.