- Included in The American Recovery and Reinvestment Act of 2009 is a program for renewable energy grants run by the Treasury. The grants are awarded for construction of qualified systems that include wind, solar, geothermal, fuel cells and combined heat/power systems. According to the Treasury website, qualified systems are to be in service by 2010, with some exceptions if construction begins before the end of 2010. Using this grant means losing eligibility for the renewable production tax credit. Applying for this grant is done through an online application process.
- The U.S. Department of Energy's (DOE) Tribal Energy Program awards federal grants for alternative energy and energy conservation measures on tribal lands. The nature and amount of these grants can change periodically but according to the DOE's Tribal Energy Program website the purpose of the grants is "evaluation and development of renewable energy resources" on tribal lands.
- The United States Department of Agriculture's Rural Energy for America Program (REAP) distributes renewable energy grants to farmers and rural small business owners with financial need. Systems designed to produce virtually any type of energy considered renewable may be eligible. Their website states grants can be up to 25 percent of eligible project with a monetary maximum of $500,000 and a minimum of $2,500. Using this grant also means losing eligibility for the renewable production tax credit.
- Availability and type of state grants vary widely depending on the state. Some target manufacturers and/or production while others are for end-users. California is a leader among states, while others have followed its lead in providing funding to kick start solar power. Local governments and utility companies around the U.S. have chipped in, providing some of their own programs. The Database of State Incentives for Renewables & Efficiency has excellent accounting of various state grants.
- Government grants for alternative energies, like many other government programs, are subject to change. Funding amounts and grant specifics may change even if the grant itself is still available. Looking to obtain a grant requires keeping up on specifics of the programs and meticulous record keeping of the exact nature and expenses of the system you are using.
