Government Loans or Grants for Companies that Promote Green Energy
In economic terms, pollution and resource depletion are negative effects that companies often produce for society through their operations. As government's place is to minimize negative effects that arise from business operations, the federal and state governments of the United States offer incentives to companies that help minimize pollution and resource depletion through the promotion and use of green energy.
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State and Local Loans
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For many businesses, the difference between using renewable energy or simply using the conventional grid may be a matter of up-front cost. For instance, electricity produced from solar panels or wind turbines comes at no continuing cost, but the initial implementation can be expensive. For this reason, various state and local governments offer loan programs to offset this up-front cost by allowing businesses to finance it with what they are saving in monthly energy costs. One example is a finance program offered by the state of Colorado. It issues loans for companies and other parties to install photovoltaic cells, solar water heaters, wind turbines and other renewable technologies.
Federal Loans
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The United States Department of Energy offers a loan guarantee program for companies and other entities that would like to implement renewable energy-generating technology. This means that while the federal government does not actually issue loans to parties that would like to construct photovoltaic arrays, hydroelectric structures, wind turbines and other such renewable energy generation infrastructures, it does stand as a guaranteeing party for such loans, making it easier for borrowers to get money from lenders. The USDA also offers a loan program specifically for individuals and companies involved in rural agricultural projects, called the Rural Energy for America Program. Like the Department of Energy program, rather than directly issuing loans, the USDA guarantees loans for renewable energy projects in rural areas.
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State and Local Grants
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State and local governments across the United States offer grant programs for companies that want to implement renewable energy technology in their operations. The city of Houston, for instance, offers an Energy Efficiency Incentive Program for local businesses in which it will award up to $200,000 for the implementation of energy-saving technology such as insulation, energy-efficient machinery and heat pumps.
Federal Grants
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The federal government offers a series of grants to support the implementation of renewable energy sources. The Department of Treasury Renewable Energy Grants are available to companies in the commercial, agricultural and industrial sectors, and these grants amount to a maximum of $1,500 per kilowatt of photovoltaic solar panel property or $200 per kilowatt of wind turbine property. Another opportunity for businesses is the USDA High Energy Cost Grant Program, which seeks to help expand availability and decrease costs of energy for people in rural areas. The federal government offers up to $5 million per project. While the USDA program is not exclusively for renewable energy projects, such projects can qualify.
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