Public financing for wind can help rural America become a leader in the new energy economy.
Small wind
State-level financing
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Kansas offers no rebates, property tax, or sales tax incentives for installing wind turbines at homes, farms, schools, or businesses.
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Nor does Kansas offer net metering the ability for customers to sell the electricity they generate back to the grid. Net metering is also an incentive for customers to install renewables, since it helps them pay back the cost of the turbine.
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Kansas does not have a mandatory Renewable Energy Standard (RES). These policies require utilities to produce a certain percentage of their electricity from renewables. Many states allow utilities to use distributed generation to help make up this amount. In turn, utilities then offer customers incentives for installing renewables.
Federal financing
AWEA supports the passage of an Investment Tax Credit, the small wind equivalent of the Production Tax Credit (see below). The ITC would offer a federal incentive for small wind installation, on the basis of power generated.
Community and Municipal Wind
The Energy Division of the Kansas Corporation Commission offers assistance to communities wanting to apply for some of the following programs.
Clean and Renewable Energy Bonds (CREBs)
Available to entities not eligible for the federal Production Tax Credit (PTC), such as state and local governments, municipalities, rural electric cooperatives, and nonprofits. When the bonds are issued the federal government pay their interest in the form of tax credits.
USDA Rural Development REAP funds
Formerly known as 9006 grants, REAP stands for Rural Energy for America Program, which is part of the Farm Bill. It provides grants and loans for energy efficiency and renewable energy to farms, ranches, livestock operations, rural small businesses and rural electric cooperatives.
Utility Wind
Production Tax Credit (PTC) - The PTC has been the major engine for wind development in the United States. It offers a tax credit of 2 cents per kilowatt (kW).
The PTC helps put renewable energy incentives on similar footing to traditional energy, which receive substantial subsidies.
The PTC has not received consistent support from Congress, however. Right now it is due to expire on December 31, 2008. AWEA estimates that 76,000 wind industry jobs and $11.5 billion in investment is at risk as a result.
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