Archives: 2009 February

Is an energy-independent home a myth or reality? Many households are looking for opportunities to implement energy conservation tips, which decrease overall dependence on fossil fuels while trying to reduce the monthly cost of electricity. Solar panels can achieve these goals while providing a fun project for the Do-It-Yourselfer.

Solar panels harness the power of sunlight to generate electricity through the use of photovoltaic (PV) cells. If money is no object, a contractor can be hired to obtain and install a solar system for you. For those of us in the “other” category, there are other less expensive options. These include purchasing solar panel kits, refurbishing used solar panels, and the ultimate DIY of making panels from component parts. Solar panels can create a more self-sufficient household in which they meet your all or most of household electrical energy needs. The ideal scenario would have the electricity generated will exceed the needs permitting electricity to be sold back to the Grid.

While more sophisticated systems require a greater number of components, there are four key elements of a homemade solar panel system, which include: Solar panel; Charge controller or regulator; Battery; and Inverter.

The solar panel: While we see the system as a solar panel, the total voltage is the sum of the voltage of all the photovoltaic cells in the system. To determine how many panels are needed we need to look at and average out the energy usage that appears on our bills.

The charge controller / regulator: The charge controller helps to maximize the life of the battery by the prevention of overcharging. It also follows the discharge status of the battery day and night.

The energy crisis is becoming big news. In fact, everyone seems to agree that global warming actually exists. We’ve come to a point where it’s too late to lay blame or figure out who made the biggest mistakes. At this point it is time to begin finding alternative sources of energy to power our homes and our country. We need to find energy sources that are clean burning and do not add to the problems we are already experiencing.

We have the pleasure of much easier lives due to technological advances, however, if you look around you will see the Earth has a way to take care of all of our energy needs. Alternative energy sources have been largely overlooked up until this point. The continued use of fossil fuels has helped to create the global crisis we are now facing. It’s past time for blame, now we each need to start taking personal responsibility. This can be small changes you can do yourself.

But first, do you know the available renewable sources of energy that surrounds you. It is everywhere. Look up and there is the sun that produces solar power. The sun’s rays are converted into electricity through solar cells, solar thermal panels, parabolic mirrors and other medium.

Look underneath. Did you know that the heat coming from the ground can also be turned into energy resources? There are holes that are being drilled in certain regions to find steam that are being produced by the heat underneath. The steam is purified to be used as power to electric generators.

The price movement of United States Oil Fund LP Units ( USO ) roughly tracks the movement in the price of spot crude oil on world markets. The strategy behind USO is stated as follows on the E-Trade website:

“The investment seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The fund will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil. The fund is non diversified.”

Buying shares in USO presents a good way to invest in oil price movements without getting involved in crude oil futures contracts and the required futures contracts margin requirements and potential margin calls.

The 52 week range of USO is 25.1667 – 119.17. As I write this on February 15, 2009 the price is 25.60. Crude oil prices have collapsed since last July from a high of $147 a barrel. The collapse is certainly related to the worldwide recession currently underway, perhaps depression in some countries, but is also heavily related to the unwinding of long oil positions by hedge funds, investment banks, and large speculators due to forced selling across all asset classes to meet margin calls in falling markets.