Energy sustainability funding opportunities for businesses in 2024
There are currently numerous decarbonization funding opportunities available to businesses, provided by federal, state and local governments, as well as through utility programs.
In 2022, the Inflation Reduction Act (IRA) was unveiled as the most substantial carbon reduction investment in U.S. history, allocating $369 billion in federal funding for climate change and decarbonization initiatives. A portion of this historic investment will be realized through a multitude of incentives for businesses, including government grants and tax credits. This funding will enable businesses to plan their decarbonization investments with greater certainty of recouping their investment while reducing greenhouse gas emissions.
Where can you get funding?
A large number of funding opportunities are currently available for businesses seeking to lower their carbon footprints, with more options becoming available as we move further into 2024. Here are just a few examples of the resources available for businesses.
- The IRA delivers direct incentives for businesses, including:
- The Greenhouse Gas Reduction Fund – This is a multifaceted $27 billion investment slated for 2024 that provides funding for clean energy technologies, underfunded communities and solar access.
- Green banks – These mission-driven financial institutions provide low-cost capital through direct loans and/or credit support for local lenders for energy efficiency and clean energy projects.
- Industrial Assessment Centers – This Department of Energy program offers energy assessments and funding for small and medium-sized manufacturers.
- State energy programs – A significant portion of federal funding will be distributed to state and local governments to develop and oversee the implementation of various energy efficiency and carbon reduction programs.
Information on more potential funding options can be found on the ENERGY STAR® website.
Why should businesses tackle their carbon footprint?
Businesses can boost their attractiveness to investors by embarking on decarbonization projects and demonstrating their commitment to reducing greenhouse gas emissions. Companies that begin mitigating climate-related operational and financial risks will be better positioned to maintain their revenue and client base during climate events.
How do you go about it?
Consider this action plan:
- Create a short list – Determine the three most impactful carbon reduction projects for your business.
- Prioritize – Order the chosen projects based on their strategic significance.
- Define scope – Detail the scope of work for each project listed, including deliverables, milestones, reports and expected final outcomes.
- Plan for action – Develop detailed plans outlining specific actions to be taken for each project.
- Establish timing – Create timelines to guide the implementation and ensure project milestones are met, including start/end dates, tasks, deadlines and dependencies.
- Apply for funding – Initiate the funding application process and solicit bids from relevant stakeholders.
Our rebate and incentive management services can help companies identify such project opportunities and then research and apply for available incentives and funding from a variety of utility, federal, state and local government programs.
Final note: Act soon
While funding is still available for most IRA programs and through other sources, we recommend starting sooner rather than later. There is the large amount of money allocated for decarbonization efforts, but funding is still limited and will run out. Early applicants are the most likely to receive the full benefits available.
