The Obama administration announced plans on 9 July to pump billions of dollars directly into the US renewable-energy market, providing a new avenue for funding that had dried up during the banking crisis.

The programme allows developers to receive cash payments, in lieu of existing tax subsidies, for wind, solar and other renewable-energy projects. Until now, such payments had tended to flow through banks, which provided upfront financing in exchange for tax credits. The new approach, sought by the renewable-energy industry and backed by Congress in its February stimulus bill, allows direct access to the subsidies.

The Department of Energy plans to begin accepting applications in August, and estimates that demand could exceed $3 billion, enabling some $10 billion to $14 billion in projects.