Funding Opportunity for Renewable Energy Projects

The U.S. Department of Energy and the U.S. Department of the Treasury have announced that they are now accepting applications for a program that will make direct payments to companies that create and place in service renewable energy facilities.  The Recovery Act authorized the Treasury to make direct payment to companies that create and place in service renewable energy facilities beginning January 1, 2009.  These payments are in lieu of tax credits such as the Production Tax Credit (PTC) and the Investment Tax Credit (ITC), and are intended to match the value of the ITC, but can be claimed and paid as soon as the project is completed.  Applicants would agree to forgo future tax credits in favor of an immediate reimbursement of a portion of the property expense.  In the past, the tax credit has been popular, however, since the economic downturn began, projects have become harder to finance and the rate of renewable energy installations has fallen. 

The Departments estimates it will distribute $3 billion in Recovery Act funding to approximately 5,000 biomass, solar, wind, and other types of renewable energy production facilities.  According to Energy Secretary Steven Chu, this investment will have a number of benefits, including providing for the nation’s “long-term energy needs, move us toward energy independence, increase jobs at energy-specific businesses, and protect our environment.”

Companies interested in applying should visit https://treas1603.nrel.gov/ for more information. 

For a link to DOE's news release, please see http://apps1.eere.energy.gov/news/progress_alerts.cfm/pa_id=217.