Why hasn’t renewable or sustainable energy been utilized in the United States as a mainstream source of power yet? Italy, Germany and Sweden and China are miles ahead of the U.S. in their quest for sustainable energy. Michelle Melio for The Examiner reports that the United States invented much of the modern solar technology, while the rest of the world (even developing countries) is creating much more power from it than we are.

However, there are a number of factors that favor the growth of solar and wind energy both in the United States and overseas, including:

• DuPont has invested $120 million in solar energy; they also anticipate that the photovoltaic market will grow rapidly over the next several years
• Solar panels are getting cheaper (however, sales have slowed because of tight credit markets)
• The energy and Treasury departments said they’d give $2.3 billion in tax credits to clean energy equipment makers, says Keith Bradsher for The New York Times
• Wind energy now supplies 2% of U.S. power and grew 60% in 2008, making the United States the world leader, according to a U.S. Department of Energy report
• Wind projects accounted for 42% of new electric capacity in 2008

There’s a growing number of alternative energy ETFs available. Among them:

• Claymore Global Solar Energy ETF (TAN): up 0.91% year-to-date

• First Trust ISE Global Wind Energy Index (FAN): up 24.7% year-to-date

• PowerShares NASDAQ OMX Clean Edge Global Wind Energy (PWND): up 36.8% year-to-date

For more stories about alternative energy, visit our alternative energy category.

And it’s not just here. The efforts span across borders, in developing nations such as China. R.M. Schneiderman for The NewYork Times reports that the jobs involved in cleantech, such as solar panel production and manufacturing, are local jobs that create work within the community. Keith Johnson for The Wall Street Journal reports that the Chinese government will boost subsidies for solar power in a bid to juice the development of about 500 megawatts of solar energy in the next two or three years.

The Chinese focus on renewable energy has focused on wind power, but the push has turned toward solar power. The digression of solar power development is dependent upon government support, so subsidy plans are in the making. As a result, solar ETFs are moving higher today.

On our own turf, alternative energy sources come from sunlight, wind, rain, tides and geothermal energy and produce energy. The U.S. government is strongly supporting the use of renewable energy through legislation and is hoping to eventually commercialize these power sources as mainstream energy for the public’s use, reports Ron DeLegge for ETF Guide.

Thus far, the main roadblocks to the plans are falling natural gas prices and empty credit markets, as the start-up and smaller companies need capital to move forward. The less expensive fossil fuels and oil becomes, the less interest there is in alternative energy power sources.

However, the job creation aspect of renewable power sources is great, but is it enough to support cleantech efforts? Although many of the tasks involved in production can be done by machine, the human labor is actually less expensive.

Just a few of the growing number of ETFs that focus on various aspects of renewable energy:

• PowerShares Wilderhill Clean Energy Portfolio Fund (PBW): up 14.5% year-to-date

• Claymore/MAC Global Solar Energy (TAN): up 4.2% year-to-date

• First Trust ISE Global Wind Energy (FAN): up 18.8% year-to-date

For more stories about alternative energy, visit our alternative energy category.

The American Wind Energy Association (AWEA) recently issued a “B” rating for the United States’ progress toward making 20% of the country’s electricity supply from wind energy by 2030, according to Power Engineering. However, the country received a “C-” for electricity transmission. Other areas graded include an “A-” for technology, “B+” for manufacturing and “B” for siting.

The AWEA expects wind farm development to slow down this year and cited some policy moves that would beneficial to this sector, which include a renewable electricity standard and energy legislation that cover transmission.

In Texas, Billionaire investor T. Boone Pickens says he will be delaying a $10 billion “Pampa” wind energy project till 2013 when Texas completes a $4.9 billion transmission line, as stated in Houston Chronicle. Once the grid is improved, wind and solar power may replace electricity generated from gas and coal.

Picken’s Mesa Power LLP previously ordered 667 wind turbines, which produce up to 1,000 megawatts, and starting in the first quarter of 2011, the turbines may be either installed or thrown out.

Fortunately, both available wind ETFs have a global allocation – the United States is not the top country weighting in either.

• First Trust Global Wind Energy (FAN): up 10.8% year-to-date; Spain is 26.3%; United States is 17%; Germany is 14.3%

• PowerShares Global Wind Energy (PWND): up 21.4% year-to-date; Spain is 23%; France is 14.7%; Denmark is 12.4%

For more information on wind energy, visit our wind category.

Max Chen contributed to this article.

One such form of renewable energy gaining some additional attention is wind energy.  One reason it is drawing the attention is that it is the largest highly concentrated form of renewable energy on Earth and has the potential to power all civilization.  A second reason is the efficiency of this form of energy.  It requires a relatively little area per person to generate energy, states Katie Howell for The New York Times.

Unfortunately, it isn’t all sunshine and smiles on the wind energy platform.  Some obstacles that need to be overcome include the reliability of wind power. Jet streams are more reliable than winds on the ground, but they don’t provide as reliable an energy source as coal-fired power plants. There are a handful of start-ups working to harness those high-altitude winds, though.

Regardless, most scientists remain fairly optimistic of the future of wind energy and predict that eventually, the technologies will be there within a decade.

Some ETFs to take a look at are the following:

• PowerShares Global Wind Energy Portfolio (PWND): up 25.1% year-to-date

• First Trust ISE Global Wind Energy (FAN): up 14.1% year-to-date

For more stories on green ETFs, check out our green ETF category.

Kevin Grewal contributed to this article.

The task of quantifying savings is almost, if not completely, impossible. The price tag of a new grid is elusive, and estimates that do exist can range from $100 billion to $2 trillion, explains Jenny Gold for NPR. The focus of the problem is that the grid is made up of many little parts, which would be built and managed by different sectors of the energy industry.

Each new system (such as power lines, smart technology and new sources of power) can add hundreds of billions of additional dollars to a total cost estimate. The bottom line is that the upgraded grid will be expensive and cost billions. Then there’s the specter of public opposition because of the costs being passed down to the consumer, as well as political loopholes.

But one step consumers can take is installing a digital smart meter in your home, which costs  $250. As such meters catch on, it can give utilities a better idea of their consumers’ needs and help fund improvements.

The payoff down the line would less dependence on coal, and potential costs would be mitigated for the long term. Here is a grid to take a look at the nations’ systems as it stands today and visualize the potential for improvement. (You can click the other tabs on that map to see solar and wind capacity.)

The purpose of the grid is to enable our systems to take in wind and solar power readily, which would reduce the number of roving blackouts substantially, according to Jeff Brady for NPR.

As this movement toward a more efficient grid catches on, there are numerous ways to play it with ETFs, including:

• Claymore Global Solar Energy ETF (TAN): down 4.9% year-to-date

• First Trust ISE Wind Energy Index Fund (FAN): up 4.6% year-to-date

• PowerShares WilderHill Clean Energy Portfolio ETF (PBW): up 5.2% year-to-date

Among the top-performing ETFs for the month include:

• DJ Wilshire REIT (RWR), up 32.4%
• iShares Dow Jones U.S. Home Construction (ITB), up 27.5%
• iShares MSCI Taiwan (EWT), up 26.6%
• Market Vectors Coal (KOL), up 28.9%
• First Trust Global Wind Energy (FAN), up 22%
• SPDR S&P Metals & Mining (XME), up 26.9%

The weakest ETFs for the month include:

• United States Natural Gas (UNG), down 13.8%
• Market Vectors Gold Miners (GDX), down 10.8%

More than 20 million people across the United States are estimated to have participated in that first Earth Day, which some say is aimed at taking place on a Wednesday every year so that people will walk out of their workday in protest. The first Earth Day was back in 1970 and April 22 has become the official day marking it. Some theorize that that’s because April 22 is the birthday of Vladamir Lenin, the founder of the Soviet Union.

John Roach for National Geographic reports that Lenin’s goal was to destroy private property and this goal is obviously shared by environmentalists alike. Some scoff at this theory, but whichever is true, the best thing is that we have a consciousness about Earth Day. Earth Day is now celebrated every year by more than one billion people in 180 nations around the world.

The Earth Day Network is pushing the Earth Day movement from single-day actions—such as park cleanups and tree-planting parties—to long-term commitments. And now Wall Street is pushing the movement one step further, with a means to help capitalize and fund the technology necessary to a cleaner system of living.

To celebrate Earth Day, have a look at some of our green-focused stories, such as why wind energy is catching on, five things happening in the water industry, the outlook for the carbon trading market and where green ETFs are going from here. Then go out and do your part to make the earth a better place to live.

• Claymore Global Solar Energy ETF (TAN)



• First Trust ISE Global Wind Energy Index (FAN)



• PowerShares Wilderhill Clean Energy Portfolio (PBW)
  

Texas appears the be the leader when it comes to wind power, however, Iowa is blowing out the competition past California, generating the most wind energy. According to Dirk Lammers for Associated Press, The Lone Star state’s 7,118 megawatts dwarfs Iowa’s 2,791 megawatts and California’s 2,517 megawatts, but wind power has grown into a key part of the energy infrastructure in Minnesota and Iowa.

Each state generates more than 7% of energy from wind turbines, and many of them are trying to lure energy companies and create a job market to support the alternative energy industry within their borders. Jobs in this industry have jumped 70% to 85,000 since 2008, but there is much more work needed so ensure that this progress does not go by the wayside.

Meanwhile, shares within this industry took a beating in this market, as companies devoted solely to clean energy fell to about $100 million from $2.1 billion, according to New Energy Finance, an industry-research firm.

Green energy investing is an area that’s growing rapidly, though. David Hoffman for Investment News notes that investment offerings seen as environmentally friendly saw their assets grow 640% from 2001 until last year.

• PowerShares Global Wind Energy (PWND): down 0.5% year-to-date

• First Trust Global Wind Energy (FAN): down 3.1% year-to-date

Most alternative energy-focused ETFs are down 50% or more, as the switch to alternative energy has taken a backseat thanks to falling crude oil prices. As oil prices topped $147 a barrel last summer and gas closed in on $5 a gallon, alternative energy saw renewed interest from consumers. Unfortunately, now the sector has a taken a back seat since fuel prices are no longer sky-high.

The Obama administration has made it clear that it aims to reduce our dependence on foreign oil, so once the government takes action on the $15 billion earmark for alternative energy as outlined in the stimulus package, these investments will be the focus, reports Harry Dumash’s Winning Investing.

• PowerShares WilderHill Clean Energy (PBW): This is best for an all-around approach to the altenrative energy sector, and tracks 51 small-mid size companies involved in the business.

• Market Vectors Solar Industry (KWT): Solar stocks may have the best chance to gain, as advancements within the solar industry are the most rapid.

• First Trust ISE Global Wind Energy Fund (FAN): Wind-powered generating equipment is still in its infancy, but this energy srouce has potential and the power to help energy needs.

A top priority for President Barack Obama is the reduction of dependence on foreign oil and the revival in renewable power sources that will ensure “another American century,” reports David Biello for Scientific America. Obama has recently signed off the stimulus package that included $15 billion to a credit-starved alternative energy industry.

The money would be put into projects such as new transmission lines to carry wind energy from the Great Plains. The government may also create a cap-and-trade program that would limit pollution and power plants would be able to sell/buy the right to emit a level of greenhouse gases so as to make alternative energy more profitable.

Green energy advocates think the $15 billion provided in Obama’s plan is a poultry amount and critics say the jobs provided would be of no help to unemployed machinists in the Rust Belt, writes Aaron Task for Yahoo! Finance.

There is no defined alternative energy platform so no one knows how much is really needed to invest in clean technologies. Some consider clean tech a “giant capital pit” and it is noted that investors should focus on technologies that play on existing industries, like hybrid car batteries.

Among the many choices available for investors today include:

• Claymore/MAC Global Solar Energy Index ETF (TAN): down 28.3% in the last month; down 28% in the last three months
  
• Market Vectors Solar Energy ETF (KWT): down 26.8% in the last month; down 24.1% in the last three months
• PowerShares Cleantech Portfolio (PZD): down 14.4% in the last month; down 5% in the last  three months
• First Trust ISE Global Wind Energy (FAN): down 16.4% in the last month; down 11.4% in the last  three months
• PowerShares Global Wind Energy (PWND): down 13.8% in the last month; down 6.7% in the last  three months