By Amanda Day, Grants Development Consultant (State & Local Government)
Generally speaking, clean energy is regarded as more environmentally friendly when compared to traditional fossil fuel resources as it typically leads to lower levels of air and water pollution than combustible fuels like coal, natural gas, and petroleum oil. Renewable sources like wind, water, and sunlight generate power without emitting harmful carbon dioxide, a major contributor to climate change. This, in turn, mitigates various environmental and social issues such as droughts, wildfires, flooding, poverty, health risks, and species loss. And while renewable and nonrenewable energy sources require land for infrastructure, renewable energy systems often have a smaller footprint than traditional fossil fuels. For example, solar panels can be built on existing structures, and wind turbines are suitable for agricultural land without affecting crop placement.
Because cost can be a barrier to getting started in the clean energy sector, grants serve as crucial drivers of innovation and integration. These funding opportunities typically target a wide range of recipients, including businesses, educational institutions, municipalities, and non-governmental organizations. Typically sourced from governmental entities, non-profit organizations, or private foundations, these grants encourage the advancement and deployment of renewable energy technologies like solar, wind, hydro, and geothermal power. Various federal agencies, including the Department of Energy (DOE), the Department of Agriculture (USDA), and the Environmental Protection Agency (EPA), have created grant programs to support renewable energy research, development, demonstration, and deployment efforts. These programs aim to stimulate innovation, increase renewable energy deployment, and accelerate the transition to a low-carbon economy. They include a wide range of initiatives, including the installation of solar panels, wind turbines, hydroelectric systems, and geothermal plants, as well as the research and development of innovative technologies for renewable energy production and storage. Additionally, these funds may be used to support educational programs, workforce training, and community initiatives related to renewable energies.
These grants spur economic growth by creating jobs in the renewable energy industry while reducing greenhouse gas emissions and mitigating the impacts of climate change. Investments in renewable energy technologies can contribute to building a more sustainable and resilient energy infrastructure for future generations.
The DOE offers various grant programs to support renewable energy research, development, and deployment. For example, the Energy Efficiency & Conservation Grant Program provides $550 million for state, local, and Tribal governments to reduce fossil fuel emissions, reduce total energy use, and improve energy efficiency in the transportation sector, building sector, and other appropriate sectors. The State Energy Program (SEP) provides $60 million to states to increase energy efficiency; develop, and implement energy security; resiliency, and emergency preparedness plans; reduce energy costs and carbon emissions; and increase investments to expand the use of clean energy resources and infrastructure. Other programs include Solar & Wind Interconnection for Future Transmission (SWIFTR), Clean Energy Technology Deployment on Tribal Lands, and Small Innovative Projects in Solar (SIPS) Program, just to name a few.
The USDA also provides grant funds for renewable energy initiatives. The provides $1.1 billion in grants and guaranteed loans to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements. Renewable energies include wind, solar, renewable biomass (including anaerobic digesters), small hydroelectric, ocean, and geothermal. The Empowering Rural America (New ERA) program assists rural Americans in the transition to clean, affordable, and reliable energy. By reducing air and water pollution, New ERA funding improves health outcomes and lowers energy costs in rural communities. The New ERA program has been appropriated $9.7 billion through September 7, 2031, through grants and guaranteed loans. In addition, the USDA administers the Powering Affordable Clean Energy (PACE) program. This program provides $1 billion to support clean, reliable, and affordable energy growth across America, specifically in communities that have previously been left out of the clean energy economy, including rural, disadvantaged, distressed, and tribal locales.
The EPA also invests in clean energy financing. Funded through the Inflation Reduction Act in 2022, the Solar for All program provides $7 billion to states, municipalities, Tribal governments, and eligible nonprofit recipients. Funds will provide residential distributed solar generation and energy storage, including rooftop residential and residential-serving community photovoltaic (PV) solar and storage. For projects that may implement hydropower, there are the WaterSMART Water & Energy Efficiency Grants. This program invests $15 million in projects that conserve and use water more efficiently; increase the production of hydropower and mitigate conflict risk in areas at an elevated risk of future water conflict. This program is available to western, drought-ridden states where water resources are threatened.
State-level programs alongside private and corporate foundations provide additional funding. State-sponsored renewable energy grants foster sustainable development and support applicants by reducing carbon emissions within local communities. These grants, often administered by , provide financial support to individuals, businesses, non-profits, and municipalities seeking to adopt renewable energy technologies.
In the evolving landscape of renewable energy funding, there is a clear trend towards increased prioritization and investment in sustainable solutions. Governments, corporations, and philanthropic organizations recognize the urgent need to invest in the transition to renewable sources to mitigate climate change and ensure energy security for the future. As a result, funding is likely to increase, encompassing several initiatives such as research and development, infrastructure projects, community-based renewable energy programs, and encouraging the adoption of clean technologies by state, local, and tribal entities. Collaborative efforts between the public and private sectors are expected to foster innovation and improvements in renewable energy deployment, creating a more resilient and sustainable energy future.