Boulder, Colo.’s Solar Grant Program is offering nonprofits organizations and low-income residents grants to cover up to half the costs of a solar array. It’s more than the city and county offered in the past, and the funding level increased because of the popularity of solar in the region.

The city started out the new year by funding the program with more than $100,000—with more funding likely to come later in the year. That’s a significant jump considering the city started offering the program in 2008—it’s offered up a total of $270,000.

In the past, the program has supported grants of up to $30,000. The funds have thus far led to the installation of approximately 435 kilowatts of photovoltaics and two solar thermal systems, according to the city. Under the Boulder ordinance that created the fund in 2006, there’s no limit as to how big the array can be, said Kara Mertz, manager of Boulder’s Local Environmental Action Division (LEAD).

The growing number of people installing solar in the region is actually funding the incentives for the nonprofits and low-income residents.

“The grant pool comes directly from sales and use taxes that are paid to the city when a solar system is purchased and installed,” Mertz said.

Some tax revenue goes to dedicated funds, a portion is given out in sales tax rebates and a portion is set aside for this grant program.

“The fact that $100,000 is available this cycle is due to the fact that more solar has been installed in the past year,” Mertz said. “There is also a statute of limitations for folks to claim their sales tax rebate, and so if that period passes, the unclaimed rebates are transferred into the grant fund as well.”

The city could also offer more to such entities and people in 2012.

“There are two grant cycles throughout the year, subject to fund availability,” Mertz said. “If all $100,000 in grants are awarded and used, then at mid-year, we will assess the 2011 solar tax fund and determine the funds that may be available for the second grant cycle.”

If some of the money from the first cycle it will be put back in the next grant award cycle.

The deadline for the program is April 2, but funds are limited and likely to go fast.