Government Grants for Going Green

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Installing a more efficient hot water heater could be paid for by a government grant.

Grants to support activities to use sustainable energy --- also known as green energy, or going green --- can be obtained from a number of government sources. Individual homeowners planning to make changes to their home or appliances, as well as businesses and energy professionals who hope to modernize their energy systems and save money in the process, all may be eligible for government grants depending on what programs are offered in the prospective applicant's geographic region. Check out DSIRE, the U.S. Department of Energy's database of renewables and efficiency grants, to see what programs are offered in your state (see "Resources").

  1. Construction Grants

    • Washington State builders are in luck: the state's Puget Sound Energy Efficiency Grant Program for New Commercial Construction offers incentives to builders who not only meet but beat building code energy efficiency requirements. A number of restrictions apply, but for builders who plan to make green building approaches a core business strategy this grant could be a way to save money on a number of projects.

    System Grants

    • In the state of California, a $350 million incentive program, AB 1470, has been running to award grants to incentivize installing solar water heating systems to replace electric and natural-gas-powered water heaters. The program was developed by the California Public Utilities Commission. Installation of single-family residential systems and commercial and multifamily residential systems are all eligible for compensation under the program, which has been running since mid-2010; new systems displacing natural-gas-powered systems will be compensated at a higher rate than those displacing electricity-powered systems.

    Grants to Low Income Home Owners

    • A number of state and city governments offer grants to help low-income home owners defray costs of energy efficient improvements. For example, in many areas of New York state single-family owners who meet income eligibility guidelines can qualify for grants of up to $5,000, while those who own a two to four unit building can recieve a subsidy of up to $10,000 if the tenants also meet household income eligibility requirements. This program, which runs through mid-2011, requires homeowners who want to apply to contact a contractor or community organization, which in turn will perform an assessment of the home to determine what measures would improve the home's energy efficiency.

    Infrastructure and Hardware Grants

    • Many programs also award funding for specific structural changes that will improve the home's use of energy. For example, the city of Tallahassee, Florida, offers energy-efficiency grants to support installation of better ceiling insulation and to make HVAC efficiency improvements such as cleaning out evaporator coils, repairing refrigerant leaks and repairing duct leaks. Grants of up to $500 are awarded for each type of improvement. To be eligible residents of the city must qualify as low-income.

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  • Photo Credit shower series. goofy in the shower image by Alexey Stiop from Fotolia.com

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