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How to Profit from a Crisis in Energy

I was thinking through the stages that this crisis is going through, and how it relates to alternative energy.  Here are some thought on that process.

  • As the oil price increases, more investment dollars and policy decisions favor alternative energy.
  • The alternative energy investments are so risky, that people won't make them until the oil price is nearly at a breaking point.
  • Once you make an alternative energy investment, you'll need a trained individual to do the installation, regardless of what it is.

 

So, when oil hits a new peak, we'll see a great demand for electricians to wire the windmills and solar panels.

If natural gas conversion kits start selling fast again, we'll see a demand for mechanics that can install them.

 

When I say demand, I mean installers in the millions.  This is a big deal.  Imagine if a power company found it to be in their best interest to install a solar panel on every home and business.  What if they were to offer $50 per solar panel installed on a customer's rooftop?  Demand would go ballistic for installers.  This model is already the case for satellite dish installation.

 

Here are some players to watch:

  • Enphase makes solar panel wiring literally a 10-minute process.  They also make it financially feasible to install fewer than 5 panels on a roof for the first time.
  • Remote learning can give certifications to electricians and mechanics.
  • Natural gas conversion kits require specific parts and tanks.