Clean Energy and Power

Hydroelectric Production Incentives

Agency NameDepartment of Energy
Funding Amount$125,000,000.00
Bureau Name Energy Efficiency and Renewable Energy
Funding Mechanism Incentive Payment
New? No
Funding Mechanism Incentive Payment

Funding Amount Notes

Period of Availability Available until expended
Recipients Non-Federal owners of qualified hydroelectric or marine energy facilities
Program Description Provides incentive payments for electric energy generated and sold by a qualified hydroelectric facility during the incentive period, to the owner or authorized operator of such a facility. Incentive payments for qualified facilities are based on the number of kilowatt-hours (kWh) generated in calendar year which Department of Energy determines, at a rate of 1.8 cents/kWh with a total ceiling of $1 million per facility
Eligible Uses Incentive payments are provided based on determination of a qualified facility. A qualified hydroelectric facility is a hydroelectric generation facility that: - is located in a State or in U.S. jurisdictional waters; - has a water-powered turbine or other generating device (including conventional or new and innovative technologies capable of continuous operation); - is owned or solely operated by a non-Federal entity; - began producing hydroelectric energy for sale on or after October 1, 2005; and that either: - added generation capability, excluding maintenance, through the incorporation of new equipment, refurbished equipment, or both to an existing dam or conduit that was completed before November 15, 2021; or, - has a generating capacity of not more than 20 megawatts; - for which the non-Federal entity has received a construction authorization from the Federal Energy Regulatory Commission, if applicable; and - that is constructed in an area in which there is inadequate electric service. link
Statutory Location 40331
Federal Cost Share Requirement Not applicable