Grants

• The most common type of financial assistance given for alternative heating systems comes in the form of grants. Although grants specifically are usually reserved for businesses and schools involved in green building or retrofitting older buildings, numerous other financial opportunities exist for alternative home heating grants. DSIRE.org--the Database of State Incentives for Renewables and Efficiency--maintains a database of local, state, utility and federal incentives and grants promoting energy efficiency and renewable energy.
  
  

Types

• Many financial incentives for homeowners consist of rebate and federal tax credit programs. Some states like California offer property tax incentives for the installation of solar heating systems, photovoltaics (convert solar radiation into direct current electricity) or a solar mechanical energy system. Santa Monica, California, and a number of other U.S. cities offer a building permit fee waiver for solar projects. In New York, homeowners can acquire Property Assessed Clean Energy (PACE) financing for a variety of alternative home heating projects from energy-efficient furnaces to geothermal heat pumps.
  
  

Tax Credits and Rebates

• When you obtain a renewable energy system for your home, you may be eligible for a federal tax credit. Often, you can qualify for tax credits or utility company rebates with the purchase of eligible energy-efficient products.
  
  

Solar Energy Grants

• The Federal Money Retriever tool is a free online grant search tool that professionals use to research solar energy grants. You can use the tool to search by subject categories, keywords, eligibility or federal agencies, and it has been around since 1994. The Kresge Foundation is a privately funded national foundation that searches for ways to improve the quality of life for future generations through its contributions to nonprofit organizations in six alternative fields, including the environment and education and human services. The foundation awarded $181 million in grants in 2008.
  
  

Tax Incentives Assistance Project

• The Tax Incentives Assistance Project offers tax credits to businesses and individual homeowners, who install and use qualifying solar equipment and heating systems. In contrast to many other consumer incentive programs, the home does not have to be your primary residence, as second homes are eligible as well but not rental properties. The tax credits amount to 30 percent of the cost for the system. For any system installed prior to January 1, 2009, the maximum credit for individual homeowners is $2,000 for photovoltaic systems and $2,000 for solar energy water heating systems. For systems installed after December 31, 2008, there is no limit.