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Incentives/Policies for Renewables & Efficiency

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Renewable Energy Grant Program   

Last DSIRE Review: 11/06/2014
Program Overview:
State: Alaska
Incentive Type: State Grant Program
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Hydrothermal, Waste Heat, Transmission or Distribution Infrastructure, Anaerobic Digestion, Tidal Energy, Wave Energy, Fuel Cells using Renewable Fuels, Geothermal Direct-Use
Applicable Sectors: Commercial, Local Government, Utility, Tribal Government, Only Available for In-State Projects
Funding Source:State appropriation
Expiration Date:6/30/2023
Web Site:
Authority 1:
Date Enacted:
A.S. 42.45.045
Authority 2:
Date Enacted:
H.B. 152
Authority 3:
Date Enacted:
Expiration Date:
H.B. 250

In May 2008, Alaska enacted legislation authorizing the creation of a renewable energy grant fund. The legislation recommended that the Alaska Energy Authority (AEA) administer the program. The grant program is intended to provide assistance to utilities, independent power producers, local governments, and tribal governments for feasibility studies, reconnaissance studies, energy resource monitoring, and work related to the design and construction of eligible facilities. In order to be eligible for a grant, a project must be located within Alaska and be a new project not in operation on Augusty 20, 2008, or an addition to an existing project made after the same date.  Projects should be constructed and operated for the public benefit. The list of eligible technologies includes solar, wind, geothermal, hydrothermal, certain types of biomass, biogas, wave, tidal, waste heat utilization, river in-stream power, and hydropower. Also eligible are: fuel cells that use hydrogen generated from an eligible renewable resource or natural gas; certain natural gas projects located in small communities; and, electricity or natural gas transmission and distribution infrastructure projects that link an eligible project to related infrastructure.

The AEA will not actually approve projects; it will issue recommendations to the state legislature, which will make funding decisions. The AEA evaluates projects on the public benefit of the project using an economic model for consistent parameters and assumptions between projects. There is usually one round of funding per fiscal year, and the first solicitation took place in September 2008. The most recent solicitation, Round VIII, closed on September 22, 2014. Solicitations accepted during one fiscal year are funded in the following fiscal year.

The original enabling legislation stated an intention to provide $50 million in funding annually to the program for five years. HB 250 (2012) extended that intention to provide $50 million in funding annually for each of the 10 fiscal years until the program expires on June 30, 2023, but this amount is subject to legislative appropriation. Through FY 2014, the legislature has authorized $250.3 million in grants. The allocation plan recommends that 20% of the funding go to reconnaissance, feasibility and resource studies, and the remaining 80% be awarded to final design, permitting and construction projects. In 2013, AEA also established a target allocation for heat projects to compose 30 percent of the total funding recommendation. AEA has put forth the following funding limits per grant:

  • Reconnaissance, and Feasibility and Design studies: 20% of anticipated construction costs, not to exceed $2 million
  • Final Design, Permitting, Construction and Commissioning: $4 million per project in "Low Energy Cost Areas" and $8 million in High Energy Cost Areas

Applications with matching funds will be looked upon favorably.

See the program web site for additional details, including information on funding and eligibility questions.

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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.