Difference between Commercial and Non-commercial Sources of Energy

Energy is a key component for most of the consumption activities and production activities and hence plays a vital role in a country’s economic growth and development. It is essential for industries and is now widely utilised in agriculture and related fields such as the manufacture and delivery of fertilisers, insecticides, and farm equipment. It is also required in homes for cooking, lighting, and warmth. There are two sources of energy; viz., Commercial Energy and Non-commercial Energy.

What is Commercial Energy?

The sources of energy which command a price and their users have to pay a price for them, are known as Commercial Energy. This type of energy is usually consumed by commercial entities and industries rather than by individuals or families. It is a non-renewable source of energy. Commercial Sources such as coal, petroleum, and electricity are bought and traded to users. The utilisation of a commercial source of energy can be taken as a sign of the development of an economy.

What is Non-commercial Energy?

The sources of energy which in general do not command a price, are known as Non-commercial Energy. People utilise this type of energy for domestic use. It shows a country’s standard of living. Non-commercial energy is provided to users at no cost and is generally a renewable source of energy. For Example, Cow dung, firewood, agricultural waste, etc.

Difference between Commercial and Non-commercial Sources of Energy

Basis	Commercial Energy	Non-Commercial Energy
Meaning	The sources of energy which command a price and their users have to pay a price for them, are known as Commercial Energy.	The sources of energy which in general do not command a price, are known as Non-commercial Energy.
Utilisation	The sources of energy that individuals utilise for commercial purposes.	The sources of energy that individuals utilise for domestic usage.
Indicator of	The utilisation of commercial energy sources can be an excellent indicator of how well the economy of a country is doing.	The country’s living standards can be determined by the usage of non-commercial energy sources.
Market	Commercial energy is traded in the market(domestic and international); i.e., a price is demanded for these goods.	Villagers often use non-commercial energy as free goods. At best, these goods have a local market. However, currently some of the non-commercial sources such as dried dung and firewood are charged a price in urban areas and are priced to some extent in rural areas as well.
Nature	It is generally an exhaustible source of energy (except hydropower).	It is generally a renewable source of energy.
Example	The main sources of commercial energy are coal, oil, natural gas, and hydroelectricity.	The main non-commercial energy sources include firewood, charcoal, cow dung, and agricultural waste.