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The Challenges in Marketing Renewable Energy

Updated on June 19, 2013

Renewable energy has made it into the market, because companies that make it a business to sell energy came up against a few hard facts. They have realized that the rapid depletion of finite natural resources that they use to produce energy has led to increasing costs of obtaining them, which in turn has increased the cost of the energy they are trying to sell. The increased consciousness of the general public to environmental damage caused by the production of energy using these resources has also led to social awareness that companies have to be careful of nowadays.

Areas of Renewable Energy

The areas of renewable energy that that are steadily increasing their market share of energy producers are:

One great advantage of these sources of renewable energy is that the source of the power is endless and free. This leaves only the capital cost of setting up the equipment that can harness such energy , and then confining oneself to the costs of distributing it and maintaining the equipment.

Problems in Marketing Renewable Energy

Presently energy is produced using gas, oil and coal to produce a steady source of energy that can be distributed in grids that are set up for the purpose. Energy companies have only to worry about setting up permanent avenues of such energy sources, besides setting up the plants and distribution systems. Once a steady supply of energy is assured to customers, the selling of energy rarely requires much of marketing other than adjusting to market forces of supply and demand that can affect prices.

Renewable energy from any of the sources that have been listed above is intermittent and thus not as reliable for assuring customers in the market. Wind power is highly dependent on the weather and seasons. Solar power is only available in daylight hours and can also be affected by clouds. Geothermal power requires tapping of wells, whose capacity is again rarely steady and guaranteed. Hydrogen power for cars is more dependent on technologies that are yet beyond the affordable ranges that people are used, to and is only in use in very high end cars. Ocean power is again depending on the weather and winds and the enormous cost of setting up facilities has led to most of these projects no becoming viable.

Thus one of the main problems in marketing renewable energy is to ensure a steady supply that keeps interested customers happy at all times. Companies that are only into renewable energy are therefore rare, and such efforts to use renewable sources are mainly used by power companies to augment their existing methods of producing power.

Incentives That Do Help in Marketing Renewable Energy

Environmental factors as well as economical ones have led to governments all over the world looking to promote renewable energy. While a lot of money is plowed into research to reduce equipment and other costs for renewable energy, a number of energy companies also encourage customers to set up their own plants, and offer to buy back any power that is not needed by them. This does help a person to offset costs, while encouraging the feeling of remaining environmentally aware. This has been widely applicable to wind and solar energy.


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