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Summer 2009
Announcement
Waller Financial Planning Group is proud to announce that it has been selected by Wealth Manager Magazine as a “Top Wealth Manager.” The magazine has recognized Waller Financial Planning Group as one of the top advisory firms in the United States, and will include the firm in its July/August 2009 issue.
Quote
"If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome.”
- Anne Bradstreet
Inside
Announcement
Waller Financial Planning Group is proud to announce that it has been selected by Wealth Manager Magazine as a “Top Wealth Manager.” The magazine has recognized Waller Financial Planning Group as one of the top advisory firms in the United States, and will include the firm in its July/August 2009 issue.
Quote
"If we had no winter, the spring would not be so pleasant; if we did not sometimes taste of adversity, prosperity would not be so welcome.”
- Anne Bradstreet
Inside
Solar,Inc.
The expected impact of the green energy market
The renewable energy market is booming in response to spikes
in the prices of current energy supplies and increased national
awareness of environmental issues. As a result, new technology
is changing energy production in America, but at what cost
to consumers?
Congress is currently considering “cap-and-trade” legislation to regulate greenhouse gas emissions. The legislation will require companies to purchase credits for carbon emissions. Energy production, 50% of which is driven by coal, will be heavily impacted as power plants will become more expensive to operate.The net effect is a likely increase in the cost of electricity for consumers.
The U.S.Departmentof Energy explains “an explicit cap on greenhouse gas emissions adds an additional cost to the generation of electricity from carbon emitting sources. To lower emissions, the industry turns to more expensive resources and allowance purchases to cover remaining emissions. Therefore, electricity generated from fossil fuels becomes more expensive, while higher priced low-emitting sources, such as nuclear, renewable energy, and coal with carbon capture and sequestration, become more cost-competitive. As a result, the cost of generating electricity increases.”*
Congress is also considering a requirement to mandate that renewable resources generate a percentage of the country’s energy supply. While wind and solar energy are widely used today, neither is as cost effective as coal. According to a New York Times article citing the Electric Power Research Institute, “wind energy would cost nearly one-third more than coal and about14 percent more than natural gas.The cost of solar thermal electricity, made by using the sun’s heat to boil water and spin a turbine, would be nearly three times that of coal and more than twice that of natural gas.”**
In spite of anticipated energy price increases, continued public support of environmental renewable energy solutions makes legislative action highly likely. Consumers, however, are not without options for lessening the impact of higher energy costs.
The economic stimulus package provides an increased federal tax credit for energy efficiency improvements made to the home. Qualifying home improvements performed in 2009 and 2010 allow homeowners to receive a tax creditfor 30 percentof the cost of the improvement up to $1,500. These improvements include:
The full financial impact on consumers of the use of renewable energy and the reduction of carbon emissions will notbe known for several years. With smart planning and proactive changes to energy consumption, consumers can mitigate impending price increases, while also making a positive change for their environmental future.
Contact your financial advisor today at 614.457.7026 if you wish to discuss investing in energy efficient products for your home. You may also visit www.energystar.gov/taxcredits for additional tax credit details.
*Annual Energy Outlook 2009 with Projections to 2030. (March 2009). U.S.Departmentof Energy. Energy Information Administration. Available online at http://www.eia.doe.gov/oiaf/aeo/issues.html.
**Wald, M. (March 28,2009). Cost Works Against Alternative and Renewable Energy Sources in Time of Recession.The New York Times. Available online at http://www.nytimes.com/2009/03/29/business/ energy-environment/29renew.html.
^Partnerships for Home Energy Efficiency Report. Energy Star. Available online at http://www.energystar.gov/ia/home_improvement/PHEE_Report_final.pdf
The expected impact of the green energy market
The renewable energy market is booming in response to spikes
in the prices of current energy supplies and increased national
awareness of environmental issues. As a result, new technology
is changing energy production in America, but at what cost
to consumers? Congress is currently considering “cap-and-trade” legislation to regulate greenhouse gas emissions. The legislation will require companies to purchase credits for carbon emissions. Energy production, 50% of which is driven by coal, will be heavily impacted as power plants will become more expensive to operate.The net effect is a likely increase in the cost of electricity for consumers.
The U.S.Departmentof Energy explains “an explicit cap on greenhouse gas emissions adds an additional cost to the generation of electricity from carbon emitting sources. To lower emissions, the industry turns to more expensive resources and allowance purchases to cover remaining emissions. Therefore, electricity generated from fossil fuels becomes more expensive, while higher priced low-emitting sources, such as nuclear, renewable energy, and coal with carbon capture and sequestration, become more cost-competitive. As a result, the cost of generating electricity increases.”*
Congress is also considering a requirement to mandate that renewable resources generate a percentage of the country’s energy supply. While wind and solar energy are widely used today, neither is as cost effective as coal. According to a New York Times article citing the Electric Power Research Institute, “wind energy would cost nearly one-third more than coal and about14 percent more than natural gas.The cost of solar thermal electricity, made by using the sun’s heat to boil water and spin a turbine, would be nearly three times that of coal and more than twice that of natural gas.”**
In spite of anticipated energy price increases, continued public support of environmental renewable energy solutions makes legislative action highly likely. Consumers, however, are not without options for lessening the impact of higher energy costs.
The economic stimulus package provides an increased federal tax credit for energy efficiency improvements made to the home. Qualifying home improvements performed in 2009 and 2010 allow homeowners to receive a tax creditfor 30 percentof the cost of the improvement up to $1,500. These improvements include:
- Windows and doors
- Insulation
- Metal and asphalt roofs
- HVAC systems
- Non-solar water heaters and biomass stoves.
- Geothermal heat pumps
- Solar panels
- Solar water heaters
- Small wind energy systems
- Fuel cells^
The full financial impact on consumers of the use of renewable energy and the reduction of carbon emissions will notbe known for several years. With smart planning and proactive changes to energy consumption, consumers can mitigate impending price increases, while also making a positive change for their environmental future.
Contact your financial advisor today at 614.457.7026 if you wish to discuss investing in energy efficient products for your home. You may also visit www.energystar.gov/taxcredits for additional tax credit details.
*Annual Energy Outlook 2009 with Projections to 2030. (March 2009). U.S.Departmentof Energy. Energy Information Administration. Available online at http://www.eia.doe.gov/oiaf/aeo/issues.html.
**Wald, M. (March 28,2009). Cost Works Against Alternative and Renewable Energy Sources in Time of Recession.The New York Times. Available online at http://www.nytimes.com/2009/03/29/business/ energy-environment/29renew.html.
^Partnerships for Home Energy Efficiency Report. Energy Star. Available online at http://www.energystar.gov/ia/home_improvement/PHEE_Report_final.pdf