It is essential that we find affordable and workable sources of alternative energy before the world completely consumes the already limited stock of fossil fuels. Many countries have started to introduce renewable energy schemes and more still have invested money into researching and even producing different sources of alternative energy. While it is essential that we become less reliant or not reliant at all on fossil fuels, many forms of alternative energy have their disadvantages as well as their obvious advantages. It has to be said though, that the advantages far outweigh the disadvantages in many cases.
Wind Energy.
Harnessing the power of the wind and using it to our ends is hardly a new idea. Windmills have been and still are used for many different purposes and have been for a great many years, but the improvement of turbines combined with the improved technology to turn the motion of turbine blades into an energy source has seen the use of turbines explode.
Wind power is very popular, but in order to provide a reasonable amount of power it may prove necessary to have large amounts of turbines. On windy days, and even not so windy days some turbines make a noise that many residents consider to be unbearable. Areas of open countryside are protected by conservation orders, which means they can't be built there either and if there is no conservation order there are still protestors willing to do almost anything to stop the turbines being built. The only viable option left is to use offshore wind farms and these are being investigated, developed and planned all around the world but it takes too many turbines to create a reasonable amount of power and eventually they will have to be built inland; a matter that will be contested wherever the wind farms are proposed to be built.
Solar Energy.
Solar energy is probably the most common form of alternative powers for everyday people and you can see solar lights ad other solar accessories in many gardens. Governments are beginning to offer grants to assist in paying for photovoltaic roof tiles; these tiles are easily fitted onto your roof and collect the heat from the sun. This heat can either be used to heat water or can even be converted into electricity. The advantage for the consumer is that by including a grid tie system you can actually sell unused electricity back to the grid. Photovoltaic tiles take the place of ordinary roof tiles and can be perfectly blended to fit the look of the outside of your house. With solar energy you too can help the environment.
Biomass.
Ask most people which renewable energy source is the most widely used and they would say either wind or solar, but they'd be wrong or at least they certainly would in America. Since 2000 Biomass has been the most highly produced alternative energy in the United States. Using plant and animal material to create energy isn't without its downfalls. It would almost certainly meet with competition from residents if biomass power stations were to be created in built up areas. The decomposing plants and animal waste creates an awful smell that is incredibly difficult to mask but it is very renewable (there's always plants and animal waste).
Other renewable energy sources.
These are the main three renewable energy sources that the countries of the world are creating at the moment but there are others. Whether nuclear power is a viable alternative or not is a debate that will undoubtedly rage on forever, but it is a renewable energy and some countries already have extensive capabilities to produce it. Modern technology means that nuclear power stations are safer than they've ever been and damage to people, animals or plantation is highly unlikely. However, it takes a long time to develop nuclear power station and even plants that are already being built may take ten years to come to fruition.
Hydropower is used in some countries and uses the motion of waves to create energy. While it is a possibility, the amount of energy produced is minimal and the outlay to set these schemes up is quite large. Without further investigation and improvement in the techniques used it is unlikely that Hydropower will become a major player in the renewable energy world.
Advantages And Disadvantages Of Energy
The majority of businesses will require their own premises and are generally faced with the option of either renting or buying. The obvious choice for many would be to buy, finance allowing however there are advantages and disadvantages to both sides.
Advantages Of Buying
Retention of ownership - most businesses will need to take out a loan in order to purchase property. In the case of taking out a mortgage, the business is able to raise the capital without resorting to selling a share in the company, either to an interested party or by way of issuing shares. In this case the original owners will have retention of both ownership and control. The mortgage lender will have the right to charge interest on the loan amount outstanding however it will have no interest to a share in the business or its profits. The lender has an interest solely in the property and is only permitted to call in the loan in the event of borrower default.
Taxation - Businesses are permitted to make mortgage interest payments with pre-tax money that is deductible for tax purposes as expenses.
Cost and cash flow management - A commercial mortgage allows a business access to finance that would not usually be available. They can offer a degree of flexibility in designing a repayment scheme to suit the needs of the business, which may include fixing the repayments for a set period of time. Mortgage repayments tend to work out lower than rental payments and the borrower in this case will know what the payments will be in advance - this fixed payment can often aid the business with cash flow and managing costs. Businesses that rent a premise can be exposed to market conditions which could result in payment fluctuations on review.
Security of tenure - Businesses and individuals that rent have very few guarantees beyond the end of the current agreement.
Asset appreciation - This of course is by no means guaranteed however property has long been viewed by many as a very sound investment. The business or individual will have an asset which can potentially grow in value, just like residential property - this could subsequently increase the value of the business.
Financial flexibility - Taking out a loan by way of a mortgage to buy a business premises can free up money held in the business for other purposes. Borrowing money outside of a mortgage could prove to be more costly. It may also be possible to remortgage in order to raise finance in the future by using the available equity.
Retirement - Many people decide to hold property in a pension plan which can offer a tax-efficient way of buying the premises and boosting pension benefits.
Disadvantages Of Buying
Financial difficulty - Like any other mortgage, the mortgage lender will hold a legal charge over the property. Nearly all businesses meet financial difficulties at some stage which could potentially result in mortgage payments being missed. In the event of default the lender may take steps to repossess the property - if this happens then it would leave the business with nowhere to operate from.
Relocation - In the event a business needs to relocate, it is relatively easy to terminate a rental agreement. In the case of an owner occupier, the process is of course far more complex.
Flexibility - A business that rents has a far greater amount of flexibility that a business that is tied to a mortgage. Buying would only make sense if the business is confident over its future which encompasses two main factors - relocation & business expansion.
Drain on Capital - When it comes to getting a deposit, this can mean a huge drain on the business capital as this is usually taken from the profits or reserves.
Maintenance and upkeep - The owner of a property has management responsibilities that a tenant would not usually have - maintenance and upkeep of a property is a constant process and can prove to be very expensive.
Both Peter Lenkefi & James Copper are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Peter Lenkefi has sinced written about articles on various topics from Accounting Guide, Home and Mobile Phone Reviews. For more more information about alternative energy please visit http://www.alternative-energy-solutions.com. Peter Lenkefi's top article generates over 450000 views. Bookmark Peter Lenkefi to your Favourites.
James Copper has sinced written about articles on various topics from Finances, Mortgage and Mortgage. James Copper writes on all areas of finance. He works for Any Loans who specialise in commercial mortgages and. James Copper's top article generates over 1220000 views. Bookmark James Copper to your Favourites.
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