Need Help Getting the Funds to Convert to Off-Grid Living

State Programs

• Most U.S. states now have some type of alternative energy incentive program, such as grants or rebates for installing solar panels. Many of these programs are run in cooperation with the U.S. government, particularly the Department of Energy, and many are run with the assistance and cooperation of local energy providers. A call to a local energy company or your state department of energy should provide a good starting point in tracking down programs available locally.

Federal Tax Incentives

• The federal government, through the Department of Energy, offers a number of tax incentives that will assist homeowners with going off the grid. This includes the Residential Renewable Energy Tax Credit, which can cover 30 percent of the cost of a renewable energy system. This includes wind, solar, geothermal and other systems. This program was originally set to expire in 2008 but has been extended until 2016. Tax credits of up to 30 percent are also available for many home improvements that improve energy efficiency, including doors, windows, insulation, heating and cooling systems. When attempting to go off the grid, improving energy efficiency in the home can reduce the cost of renewable energy systems.

REAP Grants

• For individuals living in rural areas, the Rural Energy for America Program provides assistance in paying for renewable energy systems. REAP is available to rural residences, farms, small businesses and some schools. Because rural properties tend to have more available real estate and can accommodate larger energy systems, it is possible for some rural land owners to not only get off the grid, but possibly derive an income from selling off the power that they don't need.

Home Improvement Loans

• Because improving the energy efficiency of homes, including the installation of alternative energy systems, can substantially improve the value of a home, many banks will offer home improvement loans for these types of improvements. The General Electric corporation is also offering these types of loans. The GE loans are available through contrators, manufacturing companies, local utilities and the Electric & Gas Industries Association. Although this is only a loan, with a more energy-efficient home that supplies its own power, the savings may provide enough to cover the loan.