Department of Energy Government Grants for Solar Energy
The Department of Energy (DOE) funds projects that decrease the cost of solar panel systems and promote widespread use. The DOE provides grants to remove all types of barriers to solar power implementation. Concentrated solar power, system integration and market transformation proposals receive millions of dollars worth of grants. However, the development and proliferation of highly efficient photovoltaic (PV) systems is the real goal of all solar energy granting programs.
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Function
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The function of DOE grants is to provide money to companies, individuals, universities and communities for devices and processes that ease the transition from carbon-based energy to solar power. In 2009, the DOE funded institutions that train solar panel installers. In 2010, manufacturers of grid-tied inverters received funding, facilitating two-way power flow between distributed solar panel systems and utilities. In 2011, DOE grants focused on large-scale storage devices and projects that ease permitting and regulatory burdens for solar power.
Features
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Each grant has very different and very specific requirements. One grant may require successful completion of the first phase in order to receive funds for the second phase. As for applicant requirements, some grants will only be distributed to local government teams, whereas others provide funding to legally incorporated entities.
For example, as of June 2011, $12.5 million is available to 25 local governments that partner with relevant stakeholders in communities with more than 500,000 people to reform permitting processes for solar panel systems. Phase One reforms have to be completed before Phase Two funds are granted. For a different grant, $30 million will be awarded to legal entities that create U.S. manufacturing capabilities and use American products, labor or materials that encourage solar power proliferation at cost-effective prices.
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Cost Sharing
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Some grant opportunities contain cost-sharing requirements, meaning the recipient must contribute funds to the overall cost of the project. Keep in mind that cost-sharing does not necessarily mean providing cash. Labor and equipment can qualify as the recipient's cost-sharing portion. Typically, DOE solar grants contain 80/20 provisions, where the government grants 80 percent of the funds and the recipient provides 20 percent.
Recipients
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There is an art to responding to grant opportunities. DOE solar power grants have strict guidelines outlined in the funding announcement for applicants. Each grant targets different recipient pools to achieve wide-ranging goals for solar power implementation. For instance, Solar America Communities targets community solar infiltration by funding local government projects, whereas SunShot Initiative promotes technological innovation by funding manufacturing entities
Considerations
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DOE is on a mission to create solar electricity for $1 per watt, bringing the cost in line with fossil fuel and/or nuclear power. As a result, there is a lot of money available for devices and processes that can achieve this goal while promoting the proliferation of solar power. Winning grant recipients develop widespread solar power networks by partnering with universities, local governments and/or nonprofits.
Past solar grants funded green workforce training and national grid integration. Future DOE grants are trending toward devices that can store large amounts of solar generated power (battery banks), as well as supporting financial mechanisms that encourage large-scale commercial rooftop solar panel systems.
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References
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