You are here

Financial Opportunities

The Water Power Program focuses on technological development and deployment of innovative technologies capable of generating electricity from water. The program funds research and development activities through competitive solicitations.

In 2014, Congress appropriated funds for Hydroelectric Production Incentives under Section 242 of the Energy Policy Act of 2005. Qualified hydroelectric facilities– existing powered or non-powered dams and conduits that added a new turbine or other hydroelectric generating device– may receive up to 1.8 cents per kilowatt hour, indexed for inflation (approximately 2.3 cents per kilowatt hour today) with maximum payments of $750,000 per year for hydroelectric energy generated by the facility during the incentive period.

The Energy Department is currently accepting feedback on revisions to the draft guidance for Section 242 of the Energy Policy Act of 2005 the "Hydroelectric Production Incentive Program." Public comments on the initial Section 242 Draft Guidance were accepted in July, 2014 and have been implemented into the revised Draft Guidance that is now being released for additional comments. Following the posting of a Notice of Availability in the Federal Register, comments on the draft guidance are being accepted from October 20, 2014 to November 4, 2014. The Energy Department anticipates that it will accept applications in late 2014 for electricity production in calendar year 2013.

For information on federal grants and tax incentives for the purchase and operation of water energy systems, please see the Related Opportunities page.

There are currently no open Water Power Program funding opportunities. To explore previous funding opportunities, please visit the Past Opportunities page.