Wind Energy Financial Incentives
Federal, state, local, and utility financial incentives may be available for wind energy projects. These incentives can significantly influence project economies and play an important role in enabling the deployment of both distributed and utility-scale wind energy.
The Database of State Incentives for Renewables and Efficiency (DSIRE) is a comprehensive source of information on incentives relevant to renewable energy and energy efficiency. Interested parties can search by Zip code to learn about programs in their area. The following provides an overview of the main federal incentives for wind energy projects.
The federal government has used subsidies and incentives to stimulate deployment for all energy technologies. These subsidies can include:
- Federal programs that provide direct cash outlays to producers or consumers of energy
- Tax expenditures that reduce the tax liability of firms or individuals who take specified actions that affect energy production, distribution, transmission, consumption, or conservation
- Energy research and development (R&D) activities aimed at increasing U.S. energy supplies or improving production and end-use technologies
- Support for federal and rural utilities
- Loans and loan guarantees that provide financial support for energy technologies by guaranteeing the repayment of loans obtained in the private debt market or by lending money directly to energy market participants.
Rural Energy for America Program
The U.S. Department of Agriculture provides farmers and ranchers with loan guarantees and grants for energy development assistance through its Rural Energy for America Program (REAP). Entities such as state, local, and tribal governments; educational institutions; and rural electric cooperatives are also eligible for REAP incentives.
More Information
Learn more about economic incentives.