Treasury Secretary Tim Geithner and Energy Secretary Steven Chu have announced that the American Recovery and Reinvestment Act (ARRA) has now awarded over $1 billion to companies committed to investing in domestic renewable energy production.
The announcement follows the release of $550 million in new awards through ARRA's 1603 program. This program provides cash assistance to energy producers in place of tax credits.
According to the departments, the 1603 program is having an immediate effect on the renewable energy industry by significantly increasing the availability and liquidity of project capital in three ways.
First, project developers are able to begin construction of additional projects, thanks to the extra capital from the grants they are receiving. Second, by reversing the drop in availability of equity investment available, the 1603 program brings significant private capital off the sidelines to finance more renewables projects.
Finally, large project developers allocate capital across many countries, and the 1603 program is attracting billions of dollars of additional capital towards projects in the U.S.