You have realized that the days of using fossil-based fuels is nearing its end and want to set up your own R & D unit to find alternate energy sources. How do you go about it? First of all, you have to begin your enterprise as a non-profit organization. Then, you would need grants from the state as well as federal governments. One of the points to note regarding procuring government grants for alternate energy research and development is that it has been the sole domain of politicians at the local, state as well as the federal levels. This has more to do with the realization that a time is not far when we would not have access to cheap fossil fuel any more and that it has become imperative that we find alternate energy sources, as the existing fuel sources have done irreparable damage to the environment.  

Be that as it may, there are a wide range of government grants available to help you start your own research and development program for alternate energy sources and application. The most important point to remember regarding government grants is that it is money given to you free, which you do not have to repay or pay any interest on as it is not considered as a loan. Understandably, to qualify for such grants which has direct involvement of the government and which is free would not be a cakewalk. The feasibility of your project depends entirely on how government bureaucrats view it. This is not all - your qualifying does not necessarily mean that you are going to be endowed with the grant. In fact, it might be easier for you to apply and get a business loan sanctioned, though these are never free and you have to repay every penny that you borrow. Above all, you have to keep in mind the huge amount you have to pay by way of interests.