Federal Grants for Solar Electric
You can use solar energy to produce electricity with two types of technology. Photovoltaic solar cells or panels directly convert sunlight into electricity for immediate use or storage in batteries. Solar concentrators focus sunlight on water pipes, raising the temperature and turning the water into steam to drive turbines. The federal government has several grant programs to support solar electric technologies.
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Tribal Energy Program
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The U.S. Department of Energy provides Tribal Energy Program grants to promote renewable energy, including solar energy, in tribal areas. The program, with $10 million dollars of funding in 2011, provides direct grants as well as other forms of support such as loans, technical assistance and educational and training programs. Grant proposals are accepted from tribal governments.
Renewable Energy Grants
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The U.S. Department of Treasury supports the Renewable Energy Grants program, which provides eligible projects with grants in lieu of tax credits. The program, which supports solar energy and other renewable energy projects in the commercial sector, makes project financing easier since grants are provided up front, rather than as a tax credit after the fact. Renewable Energy Grants are authorized by the American Recovery and Reinvestment Act.
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High Energy Cost Grant Program
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The U.S. Department of Agriculture funds the High Energy Cost Grant Program to encourage alternative energy sources like photovoltaic solar in areas with unusually high energy costs. The program provides grants of up to $5 million to governments, businesses, non-profits and individuals undertaking projects in eligible areas where local energy costs are at least 275 percent above national average energy costs.
Rural Energy for America Program
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USDA also funds the Rural Energy for America Program. REAP grants support solar and other energy projects in agricultural and rural communities. REAP funds up to 25 percent of a project's cost and accepts applicants from business, schools, governments, tribes, farms, institutions and public utilities.
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