The Cambridge Alternative Power Company may be the only store in the nation powered by its own merchandise.

The Concord Avenue store, scheduled to open November 4, sells alternative energy equipment ranging from small wood-burning stoves to solar collectors, and will use the products it sells--as well as a large windmill--to meet its own energy needs.

A book section of the store sells literature on alternative energy sources and the philosophy behind them.

"The basic philosophy behind the store is that 'small is beautiful'," Tim N. Malarkey, general manager of the company, said yesterday.

The "small is beautiful" philosophy, as it applies to energy use, favors decentralization of power and the capital used to create it, the use of portable fuels like oil and wood, and individual energy self-sufficiency, he said.

A wood-oil burner heats the company building, which used to be a gas station. A set of solar collectors supplies hot water, and a windmill will create most of the electricity necessary to light the store. Insulation and roof windows cut down on the need for artificial heat and light.

"It's like a museum of science," Malarkey said. "People can come here, touch the pipes, and feel that they're really warm, that the merchandise really works," he added.

More people will be coming to touch the pipes soon, because a plan calling for federal income tax credit for energy-conscious homeowners who install alternative energy equipment goes into effect this month.

Valerie A. Dow of the Washington Solar Lobby said if a taxpayer spends $2000 on a solar collector, his income tax will be reduced by $600. An additional 20 per cent credit is awarded on the next $8000 spent. A consumer can amass up to $2200 in tax credit, she said.

Alternative energy is economical in other ways as well, Malarkey said. Savings in heating and lighting expenses will more than equal the costs of installing the equipment, Malarkey said. He estimated that the wood-oil heater will pay for itself in five to eight years, the boiler perhaps in three, and the windmill in 12 to 15.

"The windmill is more a symbol than a solution to the practical energy needs of today," Malarkey added. Though the company is not officially open yet, Malarkey is pleased with the volume of business. The store has sold several space-heating boilers, and has attracted many browsers.

Waiting it out

Jeffrey N. Brauer, of the Massachusetts Solar Action Committee, said that until recently alternative energy businesses had difficulties making sales because potential buyers were postponing their purchases until the tax credit plan went into effect.

One Washington-based retail business, for example, failed with $150,000 in back orders. "People just didn't want to pay until the tax credit was approved," Dow said.

There is no indication that Harvard students will get tuition credit for stocking up on alternative power sources, but students who believe that "small is beautiful" can put that belief into practice by buying firewood for their fireplaces at the store at $3.50 a bundle.