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How Firms Make Profits in Alternative Energy Industries

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Business Models:
In an APA styled and formatted paper; summarize how firms make profits in the Alternative Energy Industries (AEI). Based on your financial analysis (including margins), discuss which business models are the most profitable in the industry.

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Solution Summary

The solution discusses how firms make profit in alternative energy industries.

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Firms profit from alternative energy sources in many ways. If they are producers the can reduce
costs associated with producing energy after initial implementation of alternative sources and the
systems require to utilize them. By developing and owning alternative sources, energy companies can
generate more energy and reduce the overall cost, making energy to customers more competitively
priced. First Energy Solutions in one company that is offering rates to customers that are much lower
than those of standard providers throughout the Midwest (FirstEnergy Solutions, 2011). By taking
advantage of various alternative sources like wind companies are able to supplement existing sources
making power available to larger service areas. The greater the number of customers the higher the
revenues.

Another way companies profit is by ...

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Beatrice Martino, MEd
Education
  • MEd, Jones International University
  • BSc, DeVry University
  • MPH, Walden University
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