Photovoltaic Solar Energy Grants

The government, either federal or state, provides most grants for solar photovoltaic (PV) power in the U.S. Solar photovoltaic grants range from those for installing home PV systems to those that provide funds for research into improving PV performance. Getting a grant means knowing how and where to apply. Learning grant specifics, such as how funds are allotted, maximum available funds and how the funding institution makes decisions is also important.

U.S. Department of Treasury

The U.S. Department of Treasury made grants available for photovoltaic projects started or placed in service by the end of 2010. Funds originated from the American Recovery and Reinvestment Act of 2009. Eligibility is limited to commercial, industrial and agricultural sectors. Nonprofits are not eligible for payments. Receiving this grant means nullifying any tax credits that may result from putting the PV project in service. A Department of Energy website explains payments are "generally equal to 10 percent or 30 percent of the basis of the property." Submit applications, which are available on the Treasury's Recovery Act site, before project completion. The deadline is Oct. 1, 2011 and applicant eligibility is determined upon receiving of the application.

U.S. Department of Agriculture

Eligibility for The United States Department of Agriculture's (USDA) REAP grant is limited to farmers, ranchers and rural small business owners who can show financial need. The grant pays up to 25 percent of eligible photovoltaic projects with a maximum of $500,000, according to the USDA Rural Development website. Rural electric cooperatives are also eligible for the grant. The USDA issues "notices of solicitation" when a new round of funding comes in. Watch for these notices on the USDA REAP website, and keep in contact with your local Rural Development Office to apply.

Delaware Green Energy Program

Some states offer grants for solar PV. The Delaware Green Energy Program is a cooperative between the state and various electric providers. Maximum grant amounts vary depending on the provider, but about 33 percent of total project costs are common for photovoltaics, according to the Database of State Incentives for Renewables & Efficiency. Find a contractor certified by the Delaware Green Energy Program, as this is a grant eligibility requirement. Apply through your electricity provider.

Illinois Clean Energy Community Foundation

The Illinois Clean Energy Community Foundation offers grants for nonprofits. They accept letters of inquiry twice a year, with January and July deadlines. Inquiries should describe your PV project, including how much money you're requesting in three pages or less, according to the foundation's website. If your nonprofit passes this stage, next you will submit a full proposal. Photovoltaic systems must earn points toward at least "LEED Silver" status to be eligible. Contact the foundation at 312-372-5191 for more information.

Resources:

Tax Breaks for Businesses, Utilities, and Governments

Department of Energy

Rural Energy For America Program Grants

United States Department of Agriculture

Delaware Incentives/Policies for Renewables & Efficiency

Database of State Incentives for Renewables & Efficiency

How To Apply For A Grant

Illinois Clean Energy Community Foundation: