Government Grants for Wind Farms
Concerns about greenhouse gas emissions and climate change have renewed government focus and spending on clean energy sources, such as wind farms. Building a wind farm is a significant undertaking; requiring initial investment of about $20 million, land with minimum average wind speeds of 11 to 13 miles per hour as well as access to existing transmission lines, and multiple permits at the state and local level. Government grants and tax incentives are available to support development of wind energy.
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Clean Energy Grants under the 2009 Economic Stimulus Package
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As part of the American Reinvestment and Recovery Act of 2009, energy companies can elect to receive a cash grant to help fund renewable energy projects. In the past, companies were eligible for tax credits. Now companies can receive immediate reimbursement of up to 30 percent of a project's cost. By September 2009, the U.S. Treasury and Department of Energy awarded approximately $1 billion in cash grants through this program. Wind farms in Texas, Iowa and Missouri were among the grant recipients. Total funding for this program is expected to be at least $3 billion.
DOE's Wind and Hydropower Technologies Program
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The U.S. Department of Energy offers grants through the Wind and Hydropower Technologies Program to fund the development of technologies to make wind energy more affordable, reliable and effective. The focus is entirely on research and development rather than the financing of wind farm installations.
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USDA's Rural Energy for America Program
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The U.S. Department of Agriculture Rural Energy for America Program provides grants and loan agreements to farmers to fund renewable energy and energy efficiency projects, including wind projects. For fiscal year 2009, Congress funded the program at $55 million. Funding increases in subsequent years, reaching $70 million in 2011 and 2012.
Finding a Federal Grant that Fits Your Needs
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Grants.gov is a comprehensive, searchable list of only federal grant programs. The website explains eligibility, how to apply for grants and tracks a grant application.
A comprehensive and searchable list of available federal grant and other assistance programs is available through the Catalog of Federal Domestic Assistance (CFDA). In addition, the CFDA website provides guidelines for writing grants and explains the differences between grants, loans and other types of assistance programs.
Finding Assistance Closer to Home
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Many states offer tax incentives and government grants to support the development of wind energy. However, most programs target small wind projects rather than large wind farms. The Database of State Incentives for Renewables & Efficiency offers a searchable state-by-state listing of available financial incentives for wind energy.
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