Alternative-Energy Firms Don’t Sweat Higher Prices

By Michael E. Kanell, The Atlanta Journal-Constitution

Jul. 5–Higher energy prices are good for some businesses.

Selling solar photovoltaics. Pumping biofuel. Building a better wind turbine or designing hydrogen fuel cells.

And if you can build a house that holds the heat and keeps its cool — you, too, get a boost, despite a deepening sag in the real estate market.

“This year has been at least as good a year as I have ever had. I’ve seen a tremendous increase in interest,” said Robert Soens, owner of Decatur-based Pinnacle Custom Builders, a small renovator and builder that specializes in “green” construction. “I don’t do quite the sweating that the other guys do when we have a downturn, like we do right now.”

Don Dressel, general manager of Midtown’s Moto Bravo Scooters, sees the trend, too. “We definitely see people who are tired of putting $80 of gas into their Suburban,” said Dressel, who sells scooters that get 65 to 80 miles to the gallon.

Gas prices, news of global warming and global politics have combined to nudge Georgians toward energy conservation measures that might have seemed a little panicky a few years ago.

The trend benefits builders like Pinnacle — chosen last week as the Renovator of the Year by EarthCraft House, a “green” building program — as well as the makers of hybrid cars and solar panels.

But alternative energy is still a tiny fraction of the market. Increasing costs for gas and home energy are the most immediate incentives to change habits, but consumers need to be convinced high prices are permanent, say businesspeople who specialize in “green.”

Then, consumers turn first to the quick and easy fix: adjusting thermostats, carpooling, buying efficient appliances or just spending less on other things.

Georgia’s mild climate also makes it a little easier to cope with higher costs.

But the pressure is growing.

“People will pay a little premium — 5 or 10 percent more — if they know they can ‘green up’ the power. It takes time to educate people. But as the prices go up, people look for alternatives,” said Mel Jones, president and chief executive of Norcross-based Sterling Planet, which buys and sells “renewable energy certificates” linked to production of less environmentally harmful power.

Some costs, like spiking gasoline prices, affect drivers quickly. Adjusted for inflation, gasoline prices are below record highs, but a gallon of gas still costs about three times what it did in early 2002.

Since then, “hybrid” has become a household word, Congress has passed higher mileage standards and demand for motor scooters has skyrocketed.

“Sales have grown about 400 percent in the four years I’ve been here,” said Dressel of Moto Bravo Scooters. “Energy costs were not a factor then. Today it’s one of the things our customers talk about the most — reducing their energy costs.”

Also on the rise is solar energy, provided by those rooftop panels that are perhaps, with hybrid cars, the symbol of alternative energy sources.

Residential demand for solar grew 75 percent nationally last year, said Noah Kaye, spokesman for the Solar Energy Industry Association.

“As electric rates have increased and the cost of solar photovoltaics has come down, the demand for solar has greatly increased. What we find constantly is that economics are the most important consideration for consumers going solar,” he said.

But solar hasn’t caught on in Georgia.

There’s plenty of sun, but upfront installation costs are high, typically $28,000 to $40,000 for a house, and energy costs are moderate.

“The Georgia solar market is relatively behind,” said Gil Melear-Hough, spokesman for the Southern Alliance for Clean Energy, a nonprofit advocacy organization. “Electricity is just a lot cheaper here than in other parts of the country. If you are in California, paying 20 cents per kilowatt hour, solar competes a lot better.”

Still, home improvement retailer Lowe’s sees a future in solar panels. Lowe’s doesn’t sell them yet, although competitor Home Depot does.

“There is research we have done that shows our customers are increasingly interested in anything that is eco-friendly. More so than that, they wonder, how can they save money and help the environment too?” said Lowe’s spokeswoman Jennifer Wilson.

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