Under the American Recovery and Reinvestment Act, the federal government offers businesses a cash grant worth 30 percent of the cost of qualifying renewable energy systems, provided they’re installed in 2009 and 2010. The grant option is designed to provide direct payments in lieu of the 30-percent federal renewable energy tax credit. Until recently, details on the grant application and approval process were murky.

No longer: the Treasury and Department of Energy (DOE) have released the guidelines. All told, the $3-billion grant program is expected to provide payments to an estimated 5,000 commercial solar and other commercial renewable-energy generation facilities. As reported by Solar Industry,

“The renewable energy program provides another important avenue for the Recovery Act to contribute to economic development in communities around the country,” said Treasury Secretary Tim Geithner. “It will provide additional stimulus to economies in urban and rural America by helping to develop domestic sources of clean energy.”

… the news of the guidelines’ release was eagerly welcomed by major solar players.

“This is something we’ve been waiting for,” Chris O’Brien, head of market development at Oerlikon Solar, told Solar Industry. “It will be an important catalyst for accelerating the U.S. market.”

“The collapse of the tax-equity market had certainly been a big factor in slowing market growth in the U.S.,” he noted, adding that he anticipates a “significant pickup in demand” as a result of the Treasury’s program.

And here’s an excerpt from the Treasury website, outlining what’s available now, and what’s to come:

The Treasury Department is not accepting applications for this program at this time.

However, to help facilitate the timely flow of program funds to eligible businesses, we are publishing several key documents in advance in order to give ample time for businesses to prepare applications and expedite implementation of this program.  Posted here are the guidance document, terms and conditions, and a sample application form.  Please read each of the documents carefully.

A notice, with further instructions, will be posted here when Treasury is ready to begin receiving applications via a web-based application designed to further expedite program implementation.

Thank you for your interest in this program.

Want to take advantage of this added stimulus program? To get started on your commercial solar project, tell us about your company’s energy use.

UPDATE: A Treasury official said the grant program may start accpeting applications August 1.