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Funding

The University of Houston will not be the first university or public institution to have these kinetic tiles but in order for this project to beneficial it will be very important for meticulous research to be conducted on the efficiency of the tiles, the pros and cons of the tiles, and the environmental impacts of installing and maintaining the kinetic tiles. By reaching out to various government institutions that provide research grants for renewable energy research we will be able to obtain large sums of money to fund the project. There are several initiatives in the United States that use not only government money but private sector investments in order to provide grants for research purposes. Some of the clean energy funds that are very active in this space include: Climate Change Fund, Clean Energy Financing Partnership Facility, and Renewable Energy, Energy Efficiency, and Climate Change. By reaching out to these energy funds as well as government funds such as the Environmental protection Agency enough grants can be obtained by the professors and researchers at the University of Houston to fund a good portion of the project.

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Another option on how this project can be funded is through the use of government subsidies as well as tax benefits that can be provided to Universities that are engaging in innovative renewable energy projects. The government provides what are known as subsidies to groups that are engaging in renewable energy projects. So far there have been a majority of subsidies available for oil and gas companies to allow them to be competitive against other countries where oil is nationalized. However, slowly more and more money is being put aside for renewable energy companies so that it can be possible for renewable energy to compete with the oil and gas market. Federal renewable energy subsidies are usually given in the form of a tax credit or an investment from the government in the project. About $6 billion dollars are given out in subsidies for renewable energy projects every year and we can tap into the government in order to further make the project cheaper.

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The final component of raising capital for this kinetic tile project is to be able to ask for donations from private donors as well as private energy companies who would like to conduct a case study on a university. A lot of private donors would be interested in bringing the energy program at the University of Houston to the forefront of research. By reaching out to private companies in the United States who themselves may be conducting research on how to manufacture their own kinetic tiles more capital may be raised as they use the University of Houston as their case study in order to further understand the way that Pavegen’s tiles work. Using a combination of subsidies, grants, and donations it will be possible to fund the project and make it cost effective for the University to install the kinetic tiles. 

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Funds and loans could also come from the following two sources:

 

1. The Federal Financing Programs for Clean Energy supports the development of clean energy projects in the U.S. by providing loans to eligible clean energy projects. For instance, in 2009, the Department of Energy issued a $5.9 billion loan to the Ford Motor Company to upgrade 13 facilities that resulted in improving fuel efficiency in more than a dozen popular vehicles.

 

2. Sustainable Energy Fund aims to aid school districts financially to reduce the consumption of energy from non-sustainable resources. In 2015,  Sustainable Energy Fund committed $3,952,871 towards renewable energy and energy efficiency projects.

 

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