Clean Energy Funds : REAP

Clean Energy Funds

Removing market barriers

Clean energy funds support the development of renewable energy and energy efficiency by helping remove market barriers and educating the public. State clean energy funds are supported through small, mill-rated utility surcharges called system benefit charges.

Programs that are supported through these funds support research and development, provide low-income energy assistance and develop infrastructure and clean energy financing mechanisms. For example, system benefit charges in Oregon are deposited into the independent Energy Trust of Oregon to fund eligible efficiency, wind, solar electric, biomass, small-scale hydro, tidal, geothermal and fuel cell projects through grants, loans, rebates, equity investments and other financing mechanisms.

Today several states, nations and even counties are forming “green banks” that specifically finance energy efficiency and renewable energy projects. These entities pioneer programs that reduce project risk and induce the private banking sector to partner on investments.

The Connecticut Green Bank receives a significant portion of its annual working capital from a system benefit charge of $0.001/kWh of electricity sold in the state each year. The bank now leverages an average of eight private sector banking dollars for every $1 the state loans for clean energy development through the Green Bank. Since 2017, REAP has been working with the state, the Municipality of Anchorage and local banks to establish a green bank in Alaska.

learn about green banks

With REAP’s leadership, Alaska’s Renewable Energy Fund (REF) was established in 2008 to support renewable energy development and is funded through annual legislative appropriations. So far, the Alaska legislature has appropriated $270 million to the REF, attracting additional private and federal dollars to fund many reconnaissance and feasibility studies as well as the construction of over 80 projects, mostly in rural Alaska.

learn about renewable energy fund

With REAP’s leadership, Alaska’s Renewable Energy Fund was established in 2008 to support renewable energy development.