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Renewable Energy Grant Program

Investor-Owned Utility
Local Government
Municipal Utilities
Cooperative Utilities
Tribal Government
Savings Category 
Solar Water Heat
Geothermal Electric
Solar Photovoltaics
Wind (All)
Geothermal Heat Pumps
Combined Heat & Power
Fuel Cells using Non-Renewable Fuels
Landfill Gas
Geothermal Direct-Use
Anaerobic Digestion
Fuel Cells using Renewable Fuels
Program Info
Sector Name 
Alaska Energy Authority
Funding Source 

State appropriation

Expiration Date 


Program Type 
Grant Program
Rebate Amount 


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.