Fuel cells have traditionally been associated more with granola-crunching environmental purists than with the average American consumer. But with the country's energy crunch expected only to worsen, consumers may turn to fuel cell technologies simply to keep the lights on.

The first commercial fuel cell generators are scheduled to go on the market in the fall, analysts say, and though they aren't expected to be a huge commercial success initially, the development of residential fuel cell generators will likely play a part in alleviating America's power crisis in the near future.

"I think that fuel cell generators will be commercially viable soon," said Ethan Cohen, senior analyst for Aberdeen Research. "The demand for fuel cells used to be driven by the fact that they produce electricity in an eco-friendly manner, but now that power is becoming so expensive, the cost of mass grid electricity will drive consumers to go out and buy these units."

Distributed energy sources, as opposed to the large energy grids that power entire cities, have long been a dream of utilities and local governments. In an ideal world, when the power grid reaches capacity, or even during peak hours, households would be able to switch to their own generators.

Thanks to emerging fuel cell technologies, this dream may be only a year away.

A fuel cell works by converting the energy of a fuel (usually hydrogen, natural gas, or methanol) and an oxidant (air or oxygen) into electricity. Unlike traditional fossil processes that combust fuels to make energy, fuel cells don't produce chemicals, so they don't contribute to the creation of smog, acid rain, or other forms of pollution.

However, with America's energy in short supply, fuel cells' ability to produce electricity in a highly efficient manner makes them even more attractive.

Efficiency -- defined as the amount of energy produced compared with the amount of energy stored in the resources used -- typically runs above 60 percent when it comes to fuel cells, analysts say. Traditional generators, which most often run on diesel or gasoline, produce electricity with only about 20 percent to 30 percent efficiency.

The market for fuel cells is expected to reach $1.3 billion by 2003, up from an estimated $355 million in 1998, according to a report by the Business Communication Company.

Fuel cell manufacturers are ramping up in anticipation of this future demand.

On May 24, fuel cell maker Plug Power sold 75 residential generators, each capable of producing 5 watts of power, to a public utility company for research and development. With fuel cell generators selling for $93,000 per unit, the company acknowledges that it will have to slash production costs to make its products accessible to a mass market. However, Power Plug says it will have a similar generator ready for consumer use, at consumer prices, by next year.

Ballard, the world's largest fuel cell maker, will start selling residential 1-kilowatt generators, which provide both electricity and heat, before Christmas. The units will work in conjunction with the power grid, switching to the grid when electricity usage exceeds the fuel cells' 1-kilowatt capacity. Ballard has not yet listed prices for the generators.

Analysts warn that the industry must overcome many hurdles before fuel cell generators can come to a neighborhood near you.

First and foremost, the infrastructure and services needed to support household fuel generators still need to be built, analyst say.

"Infrastructure is probably the main barrier to taking these products to market, not price or the technology," Cohen said. "What do you hook your fuel cell generator up to? Not everyone has a hydrogen gas line going into their house."

When your heater doesn't work you call a repairman," he continued. "But who in the phone book would help you fix your stationary fuel cell unit? Right now, no one."

Another hurdle is winning the trust of the business community. Companies that rely on power -- a data center or a cinema, for example -- may be afraid to buy fuel cell generators because their reliability hasn't been proven.

"For someone whose business depends on power, it's unclear whether they'll be willing to buy a fuel cell power unit, even if it is competitively priced," said Namirta Kapur, an equity research analyst with Adam, Harness and Hill. "I'm not sure business owners will gamble thousands on an unproven technology when there are generators on the market that have been proven to work without fail."

However, once infrastructure and services are built and fuel cell generators are proven to be reliable, analysts say there's no doubt fuel cells will become a significant source of electricity. Promising to save power, money, and the environment at the same time, fuel cells just may be the killer app the struggling tech sector has been searching for.