Increasing demand for 'green' products has prompted the Bermuda Air Conditioning Group of Companies (BAC) to create a new entity called Bermuda Alternate Energy Ltd (BAE).

The company will provide energy efficiency, energy conservation and renewable energy solutions to residential, commercial and institutional customers on the Island.

Asked why BAE had been created, BAC general manager John Plested said: "I don't think we have a choice. The world is going green.

"As an air conditioning company, we have to resolve to lead out customers in the right direction. And they can save a lot of money by going that way."

BAC has been promoting energy and water conservation for years, but the group believes the time is right to focus its 'green' offerings under the BAE banner.

"When oil peaked in 2008, that raised a lot of eyebrows," said Chris Nash, a professional engineer with BAC, who was instrumental in establishing BAE.

"Oil is a finite resource and there is a lot of pollution associated with it, whether it's oil being burned by Belco, or spilling in the Gulf of Mexico.

"We want to be a part of the solution to move Bermuda away from oil-based energy. Renewable energy and energy conservation are two aspects of that."

Among BAE's products are solar photovoltaic panels, wind turbines, heat pump water heaters, solar thermal collectors, thermal storage tanks and controls — all selected to perform well in Bermuda's unique environment.

BAE Ltd. also installs the alternate energy systems they sell to ensure they stand the test of time. Moreover, the company sells insulation, pipe, fittings, weather stripping and CFL light bulbs so that consumers and commercial clients have access to the materials they need for any green building product.

Mr. Nash said BAC tried to differentiate itself from rivals by looking at the whole picture — helping customers to cut their electricity bills through conservation, before investing in renewables.

One of the most affordable and practical devices BAE sells is a heat pump water heater. It is a small box — measuring 16in by 15in by 20in — which pulls heat from the surrounding air to heat water.

Mr. Nash said the device, known as the Geyser, made by North Road Technologies, could save around two thirds of water heating energy costs. It has the additional benefits of cooling and dehumidifying the air around it. It costs less than $3,000 installed.

BAC offers energy audits to households and businesses to help them assess where they can make savings.

Solar panels and wind turbines can also help to cut electricity bills. While turbines could keep generating electricity through the night, unlike solar panels, they were site specific, he said and dependent on exposure to a steady breeze, rather than the swirling effect present in a valley, for example.

A 3KW wind turbine would be sufficient to generate more than 75 percent of the electricity requirement of a typical household, Mr. Nash estimated. To achieve the equivalent from solar energy, the house would need 40 to 50 3ft by 5ft solar panels, he suggested. The turbine would cost between $28,000 and $32,000 installed, he added.

Mr. Plested said the downturn in construction would make the green part of his business more important.

"A lot of the sales going through our showrooms now are about renewing rather than new buildings," he said. "Becoming green and reducing your carbon footprint is becoming more important."

Mr. Nash said he hoped the Government would provide more financial incentives for consumers to "go green" in its imminent White Paper on energy.

For more information, go to BAE's website at www.bae.bm.