Businesses are taking advantage of incentives to reduce
their consumption of energy from the utility grid through both energy
conservation and distributed renewable generation. A number of programs provide grant funding
for part or all of these projects, on top of other incentives like tax
benefits.
The U.S. Department of Agriculture runs several energy
incentive programs under the Rural
Energy for America Program (REAP). These
programs take different shapes; some offer payments or grants, while others
offer loans and loan guarantees. All are
designed to promote the development and commercialization of renewable energy
sources including wind, solar, geothermal, hydrogen, ocean waves, hydroelectric,
biomass, and biofuel (ethanol, biodiesel, etc.)
REAP’s Renewable Energy Systems/Energy Efficiency
Improvement grant program is one funding source for farm and commercial projects. REAP conducts periodic solicitations for
project proposals, and awards grants on a competitive basis. Grant winners can receive up to 25% of their total
eligible project costs, capped at $500,000 per project for renewable energy
systems and $250,000 per project for energy efficiency improvements.
When USDA published its Notice of Funds Availability for REAP
this spring, an estimated $70 million in REAP funding was expected this year,
based on the allocations in the 2008 Farm Bill.
In response to the request for applications, projects were proposed and
selected in every state.
In August 2011, the USDA
announced $183,339 in grant funding for 8 Maine projects. Most of these grant awards were for solar
energy projects; two projects included solar and energy efficiency, while one
focused on a biomass project. For
example, the Bancroft Contracting Corporation in South Paris won $40,000, split
between a rooftop solar array expected to produce 270,050 kilowatt-hours per
year and energy efficiency improvements.
USDA’s REAP program is one tool businesses can use to help
finance innovative and cost-effective energy efficiency and renewable energy projects.
No comments:
Post a Comment