Every day brings new reports of tens of millions of Federal, state and private dollars being pumped into Alternative Energy initiatives. But very little appears to be popping up at our local stores in the form of solutions.

With a $4 to $6 billion budget deficit, is this the right time to experiment or fund companies with “ideas” opposed to products ready to use?

Companies are springing up from every direction with their hands out for free development money to break into the alternative energy market. But are they really trying to break into the market or just get some free money for a few years. I’d estimate that less than 2% off all funding will actually result in technologies that will be available to the end consumer that will actually “reduce” their current energy costs and just as important have a green impact on their lives. Whereas 70% of the funding dollars will actually produce products that will increase our costs as direct consumers and in the short term create more damage to our environment.

A recent stimulus bill, 21.5 billion into science and technology, is the largest R&D investment in our nation’s history with a promise from Obama’s office to continue to build on these by expanding budgets for key agencies and making permanent the federal R&D tax credit to encourage private-sector investment in innovation, and launching a major increase in funding to support this growth industry opportunity.

Maybe a few of these companies will hire some engineers and possibly ramp up for a product run but I’m very skeptical on how many actual companies will sustain to the point of a real product on the market. If the funding ran out today would these companies continue forward? I doubt it. America is a country of opportunity. Though grants and easy funding definitely qualify as an opportunity, I think they send the wrong message at the wrong time. I don’t even think it could be considered robbing Peter to pay Paul. It’s simply robbing Peter, the everyday taxpayer.

In my opinion if there is a “true” market and demand for “green” technology no stimulus money is needed, companies have all the incentive they need to build a good, reliable and cost effective product. That is the American way!

Recent DOE investment activity

U.S. DOE handing out $40M for two biorefinery projects

US DOE offering $33.8M for cellulose

U.S. gov't doles out another $23m for cellulosic ethanol

DOE putting up $114M for small-scale biorefineries

Bosch gets DOE funding for flex-fuel vehicle

U.S. DOE putting up $60M for solar thermal

and lots more...