The Treasury and Energy Departments revealed guidelines for a plan that will provide $3 billion toward the development of renewable energy nationwide. The plan is expected to spur investment in clean energy by companies in the private sector (in both urban and rural America), create jobs, and allow the U.S. to meet its goal of doubling renewable energy production over the next three years.
The money, which will come from the economic stimulus package, will fund approximately 5,000 renewable energy-fueled facilities (including bio-mass, wind, solar-powered facilities). Each project will get an average of $600,000, paid directly to the company responsible for the project.
Historically, funding for renewable energy projects in the private sector came from tax credits, for which companies had to wait. These credits covered a portion of the costs of the projects. The new plan, however, will provide monies almost immediately (in lieu of tax credits), which will cover a portion of the property expense for the projects. The financing will also be easier to obtain than funding available in the private sector, which is limited, in the current economy, by tight credit. Companies will apply to obtain funding in upcoming weeks. The Obama administration has made the terms and conditions of the project available online.