US$27 Billion in Financial Support Promised By the US Government to Bolster Green and Solar Energy Projects
In a recent announcement, the US government has outlined its intention to empower state administrations and non-profit organizations to tap into a massive US$27 billion fund. This funding has been designated to finance projects that aim to mitigate climate change, allowing these entities to initiate programs that directly address environmental concerns.
The finance is anchored in the Greenhouse Gas Reduction Fund (GGRF), a program borne out of the US government’s Inflation Reduction Act. The fund is separated into two distinct categories. The more substantial portion, nearly US$20 billion, is allocated to the General and Low-Income Assistance Competition.
Under this scheme, non-profit organizations are encouraged to form partnerships with community financing institutions such as green banks, community development financial institutions, credit unions, and housing finance agencies. Together, they can utilize both public funds and private capital to invest in projects that focus on reducing pollution and trimming energy costs for families. A particular emphasis is placed on supporting low-income and disadvantaged communities, thus ensuring equitable benefits. The competition is expected to grant awards to approximately 15 non-profit groups.
The second allocation of the fund, amounting to US$7 billion, is named the Zero-Emissions Technology Fund Competition. In this segment, the Environmental Protection Agency (EPA) will award competitive grants to states and non-profit entities. The purpose is to encourage the deployment of residential rooftop solar power systems, community solar projects, and relevant storage and upgrades, particularly in low-income and disadvantaged communities.
The EPA is invested in making sure that all families have access to clean and affordable energy options. As part of this initiative, it’s expected that up to 60 grants will be awarded under this competition.
US senator from Vermont, Bernie Sanders, commented on the initiative. He expressed that amid struggles to cope with the financial strain and the increasingly severe impacts of climate change, it’s sensible to enable households to install solar panels. These installations allow families to generate their own electricity, reduce carbon emissions, and contribute to job creation.
The EPA plans to release the notice of funding opportunities for these competitions in the early summer of 2023.
Reacting to the details of the initiative, Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA), was positive. She noted that the proposed measures could significantly contribute to the rapid and fair decarbonization of our power grid. According to her, these steps will unlock crucial investments in communities that stand to benefit most from the historic Inflation Reduction Act.
She further explained that the program aims to financially support organizations best equipped to help low-income and disadvantaged communities access solar energy. This access would be facilitated through grants and other forms of financial assistance, particularly for distributed solar and storage technologies.
