Business Startup

The earth?s climate is predicted to change because human activities are altering the chemical composition of the atmosphere through the buildup of greenhouse gases ? primarily carbon dioxide, methane, and nitrous oxide. The heat-trapping property of these gases is undisputed. Increasing concentrations of greenhouse gases are likely to accelerate the rate of climate change. It is clear that this issue is of a global nature, potentially affecting everyone. Potential causes for the build of the green houses gases is the burning of organic fuels for the production of electricity. However, it is clear one must recognize human desire for improved living standards. A realistic solution is to try and change the energy mix, through the replacement of oil and gas by alternative and renewable forms of energy. The gap between electrical demand and the inability of providing electrical grid connections for houses located in remote locations presents an opportunity for a sustainable energy entrepreneur to tap this potential market. However, electrical suppliers also currently encourage sustainable energy solutions. In most states, consumers can install small, grid-connected renewable energy systems to reduce their electricity bills using a protocol called net metering. Under net metering, electricity produced by the renewable energy system can flow into the utility grid, spinning the existing electricity meter backwards. Other than the renewable energy system, no special equipment is needed.

Even in the absence of net metering, consumers can use the electricity they produce to offset their electricity demand on an instantaneous basis. But if the consumer happens to produce any excess electricity (beyond what is needed to meet the customer's own needs at the moment), the utility purchases that excess electricity at the wholesale or 'avoided cost' price, which is much lower than the retail price. Net metering simplifies this arrangement by allowing the consumer to use any excess electricity to offset electricity used at other times during the billing period. As the renewable energy market expands and growing environmental concerns there will be ever increasing opportunities for small business ventures.

Business Plan Template for Renewable Energy Entrepreneurs

A renewable energy contractor will provide the following services:

• Energy audit of residence to determine load requirements for sustainable energy systems
• Costing of the renewable system
• Supply of raw materials
• Installation of the renewable energy product
• Provide service maintenance for sustainable energy system

The Business plan will furnish comprehensive details regarding the legal structure of the business. The contractor will provide solutions and design the renewable energy system for a particular requirement. Depending on the electrical load requirements for a household the contractor will recommend the sustainable energy solution. The contractor will act as a distributor for sustainable energy products. Sustainable energy power solutions offered by the contractor will range from wind, solar, hydro turbines, or biomass depending upon site locations and environmental conditions. The business will be located in close proximity of their clients.

SES has developed a business plan template for prospective entrepreneurs. The business plan will address the needs and concerns for prospective energy entrepreneurs; the contents will encompass details for a feasible business operation during the life of the business and will provide potential lenders with detailed information on all aspects of the entrepreneurs operations and future projections.