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US announces $3 billion in cash incentives for renewables

Solar rooftop project (credit: Southern California Edison)

The US Treasury and Department of Energy (DOE) are joining forces to make available $3 billion of funds from the American Recovery and Reinvestment Act (ARRA) for renewable energy projects.

The funds will be available in lieu of tax credits for companies installing renewable energy systems. Tax credits for renewable energy projects have proved successful since their introduction in 2006, reaching $550 million in credits to 450 businesses. The economic downturn has seen the rate of new renewable installations fall off.

The new scheme, which will make direct cash payments to companies establishing renewable energy systems after January 1, 2009, will support an estimated 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities.

“This partnership between Treasury and Energy will enable both large companies and small businesses to invest in our long-term energy needs, protect our environment and revitalize our nation’s economy,” says Treasury Secretary Tim Geithner.

The Treasury and DOE expect the new funding mechanism to drive development in both urban and rural areas – and help achieve the Administration’s aim of doubling renewable energy capacity over the next few years.

“These payments will help spur major private sector investments in clean energy and create new jobs,” commented Energy Secretary Steven Chu.

To encourage uptake of the funds, the Treasury and DOE have issued guidelines and a sample application form to help businesses through the process.

For further information:
www.energy.gov/
www.treas.gov/recovery/1603.shtml
www.recovery.gov

13 July 2009

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