Federal Residential Solar Power Grants
Homeowners who want to install solar panels to cut back on monthly energy bills face initial costs that can reach thousands of dollars. The federal government awards grants and other incentives that can offset parts of those expenses. Although many federal agencies provide grants for businesses and other organizations, the departments of Energy and Agriculture offer residential grant programs.
Other People Are Reading
-
REAP
-
The U.S. Department of Agriculture's Rural Energy for America Program covers 25 percent of the costs, up to certain amounts, to install solar systems. REAP awards three types of grants: up to $500,000 for installing systems or $250,000 for efficiency upgrades, up to $50,000 for feasibility studies, and up to $100,000 for communities to audit energy needs. Except for the audit grants, which are only open to government agencies and other community organizations, the USDA awards the funding to anyone who receives at least 50 percent of his annual income from farming or ranching. REAP is also open to small-business owners. All applicants need to be in communities of 20,000 or fewer people.
High Energy Cost Program
-
Homeowners, as well as businesses, nonprofits and government agencies, who have large energy bills, can pay for solar panels with help from another USDA program, the High Energy Cost Grant Program. The grants are for any projects in communities with energy costs that are 275 percent of the national average. Awards range between $75,000 and $5 million. Several types of solar systems and devices are eligible, including solar water heaters, solar space heaters, solar thermal electric systems, solar thermal process heaters and photovoltaic solar panels. Wind, biomass and hydroelectric projects are also eligible for the program.
-
Tribal Energy Program
-
Recognized Native American tribal governments can apply for a U.S. Department of Energy grant program that helps them install solar energy systems at their residents' homes. The Tribal Energy Program, which is through the department's Energy Efficiency and Renewable Energy office, awards hundreds of thousands of dollars to Native American nations. Recipients can use the money for other forms of renewable energy, such as wind or geothermal. The grants can also pay for tribewide energy or educational outreach programs.
Other Incentives
-
The federal government gives other types of funding as incentives for homeowners to use solar power. One of the largest programs, Energy Star, gives tax credits to homeowners to cover 30 percent of the costs for installing eligible solar panels and other types of renewable-energy systems. The Federal Housing Authority awards incentives to use solar energy through its Energy Efficient Mortgages program. Homeowners, under the program, can increase the size of their mortgage loans to pay for energy-efficiency improvements. Some grant programs, such as REAP, also offer other types of incentives. REAP also offers loans that cover 75 percent of the costs to install a renewable-energy system, up from 25 percent through the grant programs, and the loans increase the maximum amounts from $500,000 to $25 million.
-
References
- Photo Credit solarstrom image by Holger B. from Fotolia.com
