Bloom Energy Fuel Cells a Clean Energy Alternative, But at What Cost?

Bloom Energy fuel cells are a clean energy alternative, but at what cost? Many are hailing the Bloom energy servers as “revolutionary”, claiming that they will forever change the landscape of how we get electricity for our homes.  However, the innovation – albeit novel, does have some quirks that many are overlooking.

How much will the Bloom Energy fuel cells cost?

Right now, the energy servers currently being used are about the size of a parking spot and cost nearly three quarters of a million dollars.  Yes, that’s right – between $700,000 and $800,000.  However, for large companies such as Google, Walmart, or Staples that cost may pay for itself over time in reduced energy costs.

Fortune Magazine reported back in February about the overall number crunching involved in making a business decision to install the Bloom Energy Device.  It’s been cited that the cost of a kw hour of electricity is 8 to 10 cents, which is lower than the coal power electrical grid.

However, that total includes huge government subsidies and incentives from the state of California.  I’d venture to say that the incentives won’t be there forever, and so the Bloom Box may not be as cost effective years down the road.

In addition, the energy servers come with a 10 year warranty, and Bloom Energy maintains the box.  However, if you lose power you will have to re-connect to the grid in order to get energy again.  This comes at a cost to the consumer.

Still yet the innovation shows promise.  It may not all-out replace the electrical grid, but it will go a long way in supplementing it.  In order for one of these units to be viable for a residential home, it would need to be cut in price by over 90%. Even at $3,500 you’re looking at about two to three years of energy costs for the average household.

Photo Credit: Bloom Energy