Treasury Cash Grants Could Reach Developers in the Fall
The Treasury Department has details on its much awaited clean energy financing program — (scroll down to see a copy of the application). The funding is part of the $740 billion green-focused stimulus package signed into law by President Obama earlier this year.
The clean tech sector has been counting on these government funds to provide liquidity to a sector where funding across the board, both bank loans and venture capital, dried up when the economy tanked.
Treasury only released details on the $3 billion direct cash grants. The program allows clean energy developers to tap government monies to support 10-30 percent of a project cost if these are either under construction or already in service. The funding window is scheduled to stay open for three years.
Treasury will start accepting applications from developers at the end of the month and could start allocating funds in early fall.
These direct cash grants are only one of three government financing options. The others are Investment Tax Credits (ITC) and Production Tax Credits (PTC), which will also be available for the next three years. However, developers will only be able to apply to a single funding source over that time period.