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Frequently Asked Questions – Renewable & Alternative Energy Sources
Questions About Renewable & Alternative Energy Sources...
Where can I find out about energy-related grants or tax credits for my home or business?

How much does it cost to produce electricity with renewable energy?

Where can I find ethanol prices?

Where can I find data on ethanol production and consumption?

Can I generate and sell electricity to an electric utility?

How much U.S. energy consumption comes from renewable sources?
How much ethanol is in gasoline and how does it affect fuel economy?
Where can I find information on alternative transportation fuels and the vehicles that use them?
 
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Question: How much does it cost to produce electricity with renewable energy?

EIA has neither historic nor current data on the cost to generate electricity from existing power plants that use renewable resources.

Generation costs for renewable energy generators depend mainly on the capital costs, installation costs, and the amount of electricity the generator produces. The latter two vary substantially depending on the location of the generator.

Tax credits and other financial incentives also affect the economics of renewable energy projects.

Electricity Demand Projections in the Annual Energy Outlook 2009 include:

  • A comparison of projected levelized costs for electricity (Figure 57)
  • Projected generation of renewable electricity (Figure 61)
Last updated: July 29, 2009
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Question: Where can I find ethanol prices?

There are historical, average annual prices for wholesale ethanol and E85 for a few years, and a forecast out 20 to 25 years, in Table 12 (Reference Case) of our Annual Energy Outlook.

There are also average quarterly prices for E85 on the website of DOE’s Alternative Fuels Data Center.

Last updated: July 29, 2009
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Question: Where can I find data on ethanol production and consumption?

U.S. Fuel Ethanol Data Summary (Billions of Gallons)

Year Production Net Imports Year Ending Stocks Consumption
1990 0.75 Not available Not available 0.75
2000 1.62 <0.01 0.14 1.65
2007 6.52 0.44 0.44 6.89
2008 9.24 0.52 0.60 9.60

Data for 2008 are preliminary.

Detailed historical and most recent data.

Last updated: July 29, 2009
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Question: Can I generate and sell electricity to an electric utility?

You can generate your own electricity. But, in general, you must use a renewable source of energy, like solar or wind energy, to sell electricity to a utility.

The details of how to connect to and sell electricity to electric utilities vary by State and utility company. Many State governments have “net metering” or other laws and regulations that specify the types of small-scale generators that can connect to electric utilities and how generator owners are compensated for any excess electricity they produce. In some, each utility determines if and how they will allow connection and pay for the electricity.

Metering and Rate Arrangements for Grid-Connected Systems  (Department of Energy, Office of Energy Efficiency and Renewable Energy)

Last updated: May 21, 2009
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Question: How much U.S. energy consumption comes from renewable sources?
In 2008, renewable sources of energy accounted for about 7.3% of total U.S. energy consumption and 9% of electricity generation.

U.S. energy consumption by energy source and U.S. electricity generation by energy source

Last updated: July 29, 2009
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Question: How much ethanol is in gasoline and how does it affect fuel economy?

The 138.2 billion gallons of gasoline (3.29 billion barrels) consumed in the United States in 2008 contained about 9.6 billion gallons of ethanol, which displaced about 6.4 billion gallons of “pure” gasoline.

Most of the gasoline now sold has a small amount of ethanol in it, but the exact amount in the gasoline you buy varies by region.  In general it will not exceed 10% by volume.  Gasoline with 10% ethanol content by volume is called E10.  E85 is 85% ethanol and 15% gasoline.  

The energy content of ethanol is about 33% less than “pure” gasoline (although this varies depending of the level of denaturant.)  So your vehicle mileage may decrease by up to 3.3% when using E10. 

Currently, you must have a “flex-fuel” vehicle to use gasoline with an ethanol content greater than 10%.  This may change if research now underway indicates that higher volumes of ethanol can be used without damaging fuel systems of non–flex–fuel vehicles.  Most of the gasoline with more than 10% ethanol is sold in the Midwest.

Last Updated: July 29, 2009
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Question: Where can I find information on alternative transportation fuels and the vehicles that use them? 

In 2007, there were 1,454,683 alternative fueled and hybrid vehicles made available for domestic highways.

In 2007, the Federal Government had 122,288 alternative fuel vehicles in use, State agencies had 79,261 in use, fuel providers had 26,033 in use, transit agencies had 11,280 in use, and private and municipal governments had 456,904 in use.

2007 Alternatives to Traditional Transportation Fuels Annual Report
Historical Data: Alternative Transportation Fuels (ATF) and Alternative Fueled Vehicles (AFV)

Last updated: May 21, 2009
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