$3 Billion in direct payments in lieu of tax credits for renewable energy

The U.S. Department of the Treasury and the U.S. Department of Energy announced they are accepting applications for a new program that will make direct payments to offset the cost of renewable energy facilities. The two Departments estimate distributing at least $3billion in financial support for solar, wind, and other types of green energy. The funds will be made available through the American Recovery and Reinvestment Act. If accepted into the program, applicant must forgo any future income tax credits related to the approved project. The objective of funding the renewable energy projects now is to stimulate the economy and create jobs in the renewable energy field.

"As we move quickly to get our economy back on track and to repair the financial system, we must make investments that lay the foundation for a stronger economic future," said Treasury Secretary Timothy Geithner.  "Too many renewable energy projects have stalled due to a lack of financing.  The Recovery Act program will lead to investment in our long-term energy needs, move us towards energy independence, increase jobs at energy-specific businesses, and protect our environment."

Said Secretary Chu: "This program will play a major role in encouraging private sector capital to invest in clean energy development, creating new jobs that can't be outsourced.  It is an investment that will continue to help our economy grow and ensure advancement in clean and renewable energy development."