Archives: 2008 November

With energy prices rising higher and higher with no end in sight, these days, the question of how does solar power work is firing up the curiosity of many money-conscious families and individuals. A major concern for people considering going solar is the cost of equipment and installation, but federal and state grants to help defer these costs are becoming increasingly available. Notwithstanding what may seem like a high installation cost, using solar power in the home is a great option for the long term and the ongoing savings will soon off-set the initial outlay.

In both residential and commercial applications the basic concept of how does solar power work is exactly the same with the only difference being the scale of the installation requirements. A factory or warehouse is obviously going to require a larger amount of energy hence a more complex and more expensive installation would need to be in place.

Solar panels are lines with a semiconductor than generates electricity when the suns rays come in contact with it. Solar panels can also be constructed to heat both your water and air coming into the structure through your ventilation system. The electricity generated by the solar panels is then routed to your controller/regulator where the voltage/amperage is adjusted to your system’s needs then routed to your electrical system or storage system.

The essential parts of a solar power system consist of: 1. PV panels which are the solar or photovoltaic panels. 2. Current regulator which is a device for controlling the voltage or amperage of the electricity produced by the solar panel. 3 A storage system which is usually a group of batteries that will reserve for later use the power produced by the solar panels when the sun is up.

Part I

During the insane summer run-up in crude oil prices, I did a series of articles on the inevitability of a crude oil price pullback.

Who knew that it would be this hard and this fast?

I’d bet that if we asked 100 oil business execs and oil analysts in June if crude could be trading in the 50s in less than five months that 100% of them would have said, “No way.” And then they would have looked at us like we had just suggested a plan for immediate peace in the Middle East. Or a way for the Cubs to win the World Series.

Yet here we are, $57 and change with price in a downward spiral.

Why the monstrous drop? Is it the demand drop that everyone has been talking about this morning? Demand has fallen at least 1.3 million barrels per day globally (that estimate seems very conservative to me; crude supply and demand numbers are notoriously fudged because most of the world’s output is controlled by central governments). But with the OPEC countries producing around 30 million barrels per day, that certainly can’t be the main reason for the 60% drop in crude prices.

How about the fact that the U.S. dollar has strengthened considerably in the last few months as currency has undergone a “flight to quality”? Here’s a weekly chart of the US Dollar index.

See charts at oneminutetrader.com

As high gas prices continue to skyrocket out of control, help still does not seem to be on the horizon. No one appears to be holding these oil companies accountable, and despite the immense public outcry, it does not appear that anyone is coming to save us from these astronomical gas costs. When it costs 2 to 3 thousands of dollars extra per year just to get to work and school, you know you are paying far too much.

That is why it is incredibly important for people to become aware of the alternative fuel sources that are currently available. By knowing about these alternative ways to power your car, you can help save money at the gas tank, you can reduce our dependence on foreign oil, and you can help the environment as well.

Hydrogen gas technology has been around for a while, but scientists had numerous problems trying to harness it for everyday use. The cost of creating a hydrogen fuel cell can be as much or more that 2 or 3 gas tanks, and although it may be useful for the environment and for reducing our dependence on foreign oil, it is going to be quite a long time before this type of technology is ready to be released, if ever.

For relatively little out-of-pocket cost, you can turn your car into a water / gas running hybrid in less than a few hours. It is by far the best and most convenient option at the moment since it is doubtful that many Americans will begin to walk, ride a bike, or take the bus to and from work.