U.S. ready to issue grants for renewable energy

WASHINGTON (Reuters) – The U.S. government on Friday said it is now accepting applications for some $3 billion in government grants to boost development of renewable energy projects around the country.

The money, from the economic stimulus package, will provide direct payments to companies in lieu of tax credits to support an estimated 5,000 biomass, solar, wind and other renewable energy production facilities. Projects must begin construction this year or in 2010 to get the grants.

The Treasury and Energy Departments announced the funding guidelines earlier this month. Each project is expected to receive an average of $600,000, but there is no cap on how much a company can get or a limit on the total funds that will be available.

Reuters