Start Investing in Alternative Energy with Government Grants
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Energy used to be the sole property of utility companies, but now entrepreneurs are getting in on the alternative energy business.
Earlier this year, the federal government distributed millions of dollars in economic stimulus money to fund alternative energy projects. The grant program that resulted provides funds for renewable energy such as wind and solar, and subsidies are plentiful for alternative energy projects. This is an opportune time to invest in such projects.
The purpose of the grants is to grow the economy and encourage research into renewable energy sources. The grants are therefore targeted toward businesses, but there is grant money available for homeowners as well.
Most such grants are issued on the state level, so one place to start gathering information is your local business bureau. There are also many resources online. Here are some of the places you can find information on start-up grants.
1. Database of State Incentives for Renewables and Efficiency (DSIRE)
This is a geographical database whose website (dsireusa.org) features a clickable map. Simply click on your state to see a listing of the grants available in your area. If you don’t see a grant package that suits your needs, check back – the database is updated frequently and changes from day to day.
2. The office of Energy Efficiency and Renewable Energy (EERE)
Also a database, EERE’s website (apps1.eere.energy.gov) provides options for searching for grants by topic or state.
3. Local resources
As mentioned above, check with your local business bureau, or your state’s office of alternative energy. Your state’s website may have a link to your local department of energy. Because alternative energy is no longer an obscure topic, it is not difficult to find information on the local level.
How much can you expect from a grant?
Again, this depends on the state where you live and the scope and nature of your project. For example, one of the largest alternative energy grants as of September 2009 went to the Pyron Wind Farm in Roscoe, Texas and totaled $121.9 million.
On the opposite end of the grant scale, the average grant amount awarded to families who applied for solar panels is about $10,000. During the application process, you enter details about your project’s needs in order to determine the amount available to you.
How do you apply?
Applications for federal grants (given in lieu of a tax credit) are available at the U.S. Department of the Treasury’s website. (nrel.gov) The above resources will also help guide you through the application process for your particular funding needs.
