Virginia’s burgeoning clean energy sector got a big boost Tuesday when Gov. Tim Kaine announced that the state has received $40 million in federal stimulus money to fund energy-related initiatives.
“Energy efficiency and conservation, along with renewable and alternative energy production, will lower utility bills for consumers, decrease our dependence on foreign energy sources, reduce greenhouse gas emissions, and provide a safer and cleaner environment for Virginians to live, work, and play,” Kaine said in a statement.
To start, $15 million dollars will go toward rebates of up to 20 percent on approved energy efficient products and equipment — or up to $2,000 for individuals and up to $4,000 for businesses.
Another $15 million will fund rebates on solar and wind energy systems. Individuals can receive a rebate of up to $2,000 per kilowatt, up to 10 kilowatts, or $20,000 in total. Businesses can receive a rebate for systems up to 200 kilowatts in size. The rebate is up to $2,000 per kilowatt for the first 10 kilowatts installed and reduced by $250 for each additional 10 kilowatts.
A $1,000 kilowatt rebate is available for solar hot water systems for both residences and businesses.
The money will be divvyed out over three years. Purchases made after June 25 of this year will be eligible for the first round of funding, which only makes available $1 million for photovoltaic systems and $1 million for wind energy systems. For the next two years, $3 million a year will be available for each.
Applications are expected to be posted soon, and with a limited pool of money up for grabs this year, Charles Bush of Energy and Environment Inc. expects it to go quickly.
“It’s going to be a race for sure,” Bush said.
Bush said he has several customers for solar energy systems that have been waiting for the incentives to be announced before pulling the trigger.
“I have intent letters from about eight people, about $600,000 to $700,000 worth of work, all waiting for applications to come out from the Department of Mines, Minerals and Energy,” said Bush.
The energy grant also makes $10 million available for biomass and waste-to-energy projects.
Kaine also announced an additional $9.7 million available to localities to pursue green projects.
For more information, check out the fact sheet from the governor’s website.
Al Harris covers green energy for BizSense. Please send news tips to Al@richmondbizsense.com.
