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June 20, 2011: DOE Offers $27 Million to Reduce Costs of Solar Energy Projects

June 20, 2011
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WASHINGTON - The U.S. Department of Energy (DOE) announced the availability of more than $27 million in new funding to help reduce the non-hardware costs of solar energy projects as part of its SunShot Initiative. The funding will support a $12.5 million Rooftop Solar challenge to encourage cities and counties to compete to streamline and digitize permitting processes. Application deadline is August 31 for this program. New funding will also include $15 million for advancing innovations in information technology systems, local zoning and building codes and regulations, and more. Described as removing market barriers, these process improvements are being pursued to help increase U.S. competitiveness in the global solar industry. Application deadline is June 23 for this program.

Both funding opportunities focus on reducing “non-hardware balance-of-system” costs, which generally refer to the costs of installing solar systems that are not associated with the solar panels, mounting hardware, electronics, and other hardware. These “soft costs,” including the capital required to pay for siting, permitting, and installing a solar energy system, as well as the cost of connecting it to the grid, can represent up to 40 percent of the total cost of the system. Navigating the differing and expensive administrative processes of various towns, cities, and counties across the nation, and securing financing for projects, can be obstacles for homeowners and developers looking to invest in solar energy. Funded projects will help standardize some processes, cut upfront fees and paperwork, and reduce the overall costs associated with permitting and installation, making it easier and less expensive for homeowners, businesses, and their local communities to deploy solar energy.

For more information on the SunShot Initiative, visit www1.eere.energy.gov/solar/sunshot/.

Publication date: 06/20/2011

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