Grants for Businesses Going Green
A conversion to a green business model requires a fundamental operational shift on how a company does business. Going green affects how a company conducts its shipping and receiving, it changes how documents are produced and how buildings are heated.
Businesses going green require a financial investment to cover the costs incurred during these energy conversions, building improvements, power installations and equipment purchases. In the effort to encourage green technologies and renewable energy, federal and state governments offer businesses financial incentive through green grant programs.
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Program 1603
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Businesses installing solar, wind or hydro energy generators on their properties may qualify for a US Treasury grant program called Program 1603. The grant payment program provides money based upon the energy produced by the new equipment--$1,500 per 0.5 kilowatt of energy for a solar fuel cell production and $200 per kilowatt for wind turbine systems. The grant pays up to 50 megawatts of power or the equivalent of 5 million kilowatts.
To encourage businesses to go green, the government is allowing businesses in the construction phase of their energy projects to apply for the grant as long as they include all paid invoices and binding construction contracts with their grant application. For more information on Program 1603 visit business.gov or ustreas.gov.
Rural Energy for America Program Guaranteed Loan Program
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The Rural Energy for America Program Guaranteed Loan Program (REAP LOAN) is a government grant loan program overseen by the US Department of Agriculture. REAP LOANs are designed to encourage commercial banks to finance renewable energy and energy efficiency projects. A federal government grant guarantees loans up to 90 percent. Projects using bio energy, geothermal energy, hydrogen research, solar, wind or hydro power qualify for REAP LOANs.
Businesses developing these technologies or refitting their organizations have an opportunity to get a guaranteed loan for up to $25 million. The US government offers this and other energy grant programs through energy.gov, grants.gov and business.gov web portals.
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State Grant Initiatives
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All 50 states offer grants to help businesses go green. There are so many state opportunities for green grants and loans that North Carolina State University has created the Database State Initiatives for Renewables and Efficiency (DSIRE) search engine for those seeking green grants and loans. At DSIRE, businesses and consumers can find energy grants from all 50 states. The Golden Valley Electric Association’s Business Sense program is an example of a grant for businesses going green. Business Sense is an Alaskan program designed to provide businesses with the incentive to replace their existing lighting with energy efficient lighting. The business must submit a proposal to GVEA for review but if approved they will receive lighting rebates for up to $20,000.
Other states offer similar rebate programs and green grants to encourage businesses to refit their companies with more energy efficient lighting, manufacturing tools, heating systems and other energy efficient products. Information on specific state grants and programs are available at dsireusa.org.
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