Small Wind Energy Incentives
The incentive landscape in the US renewable energy market is always shifting and evolving. Unlike some of our European and Asian counterparts we do not have a compelling national feed in tariff (FIT) structure but certain states have chosen to adopt feed-in-tariff policies: VT, ME, HI, CA, WA. What is the feed in tariff? A policy used to encourage deployment of renewable electricity technologies by guaranteeing that customers who own a FIT-eligible renewable electricity generation facility, such as a wind turbine, will receive a set price from their utility for all of the electricity they generate and provide to the grid.
The Rural Energy for America Program (REAP) also provides financial assistance to agricultural producers and small businesses in rural America to purchase, install, and construct renewable energy systems or to use renewable technologies that reduce energy consumption; To learn more about the program and eligibility requirements, visit: United States Department of Agriculture.
On a national scale, the federal government created a corporate tax credit called the Business Energy Investment Tax Credit (ITC). The credit is equal to 30% of expenditures on qualifying projects, with no maximum credit for small wind turbines placed in service after December 31, 2008. Eligible small wind property includes wind turbines up to 100 kW in capacity. Changes to this program are scheduled to take place after December 31, 2016.
For residential projects, the government created the Residential Renewable Energy Tax Credit. A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer.
Other regional incentives and renewable energy programs exist on a regional basis. The best online resources to stay abreast of what is available in your area are as follows:
Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy:
Database of State Incentives for Renewable Energy: