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All of Pennsylvania can take advantage of the 26%
Federal Tax Credit, which will allow you to recoup 26% of
your equipment AND installation costs for an unlimited amount.
There may still be other local rebates from your city, county, or utility. Check below!
Pennsylvania Solar PV Rebates & Incentives
Data from DSIRE. Last updated: 06/02/2023
Name | Administrator | Budget | Last Updated | End Date | DSIRE ID | Summary |
---|---|---|---|---|---|---|
Sustainable Development Fund Financing Program (PECO Territory) | TRF Sustainable Development Fund | 07/20/20 | 06/02/23 | 498 |
The Pennsylvania Public Utility Commission created the Sustainable Development Fund (SDF) in its final order of the PECO Energy electric utility restructuring proceeding. The Reinvestment Fund, Inc. (TRF), which was formed in 1985 to build wealth and opportunity for low-wealth communities and low- and moderate-income individuals, administers the SDF. The SDF later received additional funding and responsibilities as a result of the PECO Energy/Unicom merger settlement. That settlement added funding for new wind development, for solar photovoltaics and for renewable energy education, as well as a lump-sum payment and an increase in SDF's core fund. In total, the fund has received approximately $31.8 million in income over its lifetime.
The specific terms of the financial support are flexible and are determined on a case-by-case basis. SDF also has a lease-financing product for large nonprofit institutions (schools and hospitals) and commercial real estate owners for energy conservation improvements.
The SDF 2019 Annual Report to the Pennsylvanian Public Utilities Commission (PUC) contains information about past and current program activities. For more information on financing opportunities, visit the program website above. | |
Penelec SEF of the Community Foundation for the Alleghenies Loan Program (FirstEnergy Territory) | Community Foundation of the Alleghenies | 06/13/18 | 06/02/23 | 623 | FirstEnergy (formerly GPU) established the Metropolitan Edison Company Sustainable Energy Fund and the Penelec Sustainable Energy Fund in 2000. The Community Foundation for the Alleghenies in Johnstown, Pennsylvania administers the Penelec loan and grant components of the Fund, which has assets of approximately $9.1 million. The majority of funding available from the fund takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments. The program is open to any individual, organization, governmental entity, or corporation. Penelec Sustainable Energy Fund and Metropolitan Edison Sustainable Energy Fund share an advisory committee and are commonly referred to in the singular as the Met Ed / Penelec Sustainable Energy Fund. The fund is designed to promote:
As identified on the program web site, specific types of projects eligible for loans may include renewable electricity generation projects for on-site use or grid supply; projects involving the development of a sustainable energy technology (e.g., solar panel manufacturing); businesses that use renewable energy in the operation of a business; and businesses that enhance energy efficiency and conservation. Examples of projects funded in the past are available on the program web site, along with details of the investment guidelines. | |
Business Energy Investment Tax Credit (ITC) | U.S. Internal Revenue Service | 12/09/22 | 06/02/23 | 658 | Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including expanding the eligible technologies, extending the expiration date, modifying the scheduled step-down in its value, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 48 of the Internal Revenue Code and replaces it with a new technology-neutral tax credit under section 48E of the Internal Revenue Code. The summary below describes the current section 48 tax credit as modified by the Inflation Reduction Act, and below that, the new 48E tax credit. The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently and most significantly by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full 30% tax credit. The Department of the Treasury issued Initial Guidance on these requirements on November 30, 2022 . According to law, the labor provisions apply to projects for which construction begins 60 days or more after Treasury publishes its guidance. Given the publishing date of November 30, 2022, the effective date for the labor provisions is January 30, 2023. The credit for different project types and available bonus credits is described below. Base Credit Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 30% tax credit. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit of 30%. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines (January 29, 2023) and no later than January 1, 2025 will receive a base tax credit of 6%. However, projects can qualify for the full 30% tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for 5 years after project completion are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. Bonus Credits Projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States can qualify for the Domestic Content Bonus. for projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Domestic Content Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Domestic Content Bonus increases the tax credit by 2 percentage points. Projects that are located within an energy community can receive the Energy Community Bonus. To qualify, a facility must be located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. For projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Energy Community Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Energy Community Bonus increases the tax credit by 2 percentage points. Solar and wind facilities less than 5 MW may also be eligible for low-income bonuses. A project built in a low-income community as defined by the New Markets Tax Credit or on Indian Land can receive an increased tax credit of 10 percentage points. A project associated with a low-income residential building project or a low-income economic benefit project can receive an increased tax credit of 20 percentage points.
Eligible Technologies
Credit Monetization Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed. Clean Electricity Investment Tax Credit (48E) Section 13702 of the Inflation Reduction Act created a new tax credit, the Clean Electricity Investment Tax Credit to replace the traditional ITC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the ITC, but is not technology-specific. It applies to all generation facilities and energy storage systems that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, but will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. | |
Residential Energy Conservation Subsidy Exclusion (Personal) | U.S. Internal Revenue Service | 07/20/22 | 06/02/23 | 666 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |
Modified Accelerated Cost-Recovery System (MACRS) | U.S. Internal Revenue Service | 08/21/18 | 06/02/23 | 676 | Note: The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. Such property currently includes*:
In addition, for certain other types of renewable energy property, such as biomass or marine and hydrokinetic property, the MACRS property class life is seven years. Eligible biomass property generally includes assets used in the conversion of biomass to heat or to a solid, liquid or gaseous fuel, and to equipment and structures used to receive, handle, collect and process biomass in a waterwall, combustion system, or refuse-derived fuel system to create hot water, gas, steam and electricity. Marine and hydrokinetic property includes facilities that utilize waves, tides, currents, free-flowing water, or differentials in ocean temperature to generate energy. It does not include traditional hydropower that uses dams, diversionary structures, or impoundments.
Bonus Depreciation Bonus Depreciation History
The 50% first-year bonus depreciation provision enacted in 2008 was extended (retroactively for the entire 2009 tax year) under the same terms by the American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009. It was renewed again in September 2010 (retroactively for the entire 2010 tax year) by the Small Business Jobs Act of 2010 (H.R. 5297). In December 2010 the provision for bonus depreciation was amended and extended yet again by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853). Under these amendments, eligible property placed in service after September 8, 2010 and before January 1, 2012 was permitted to qualify for 100% first-year bonus depreciation. The December 2010 amendments also permitted bonus depreciation to be claimed for property placed in service during 2012, but reverted the allowable amount from 100% to 50% of the eligible basis. The 50% first-year bonus depreciation allowance was further extended for property placed in service during 2013 by the American Taxpayer Relief Act of 2012 (H.R. 8, Sec. 331) in January 2013. The Tax Increase Prevention Act Of 2014 (H.R. 5771, Sec. 125), extended these provisions through to December 31, 2014, and thus retroactively for the 2014 tax year. | |
Met-Ed / Penelec Sustainable Energy Fund | Berks County Community Foundation | 11/01/21 | 06/02/23 | 678 | FirstEnergy (formerly GPU) established the Metropolitan Edison Company (Met-Ed) Sustainable Energy Fund in 2000 with an initial contribution of $5.7 million. The fund later received an additional contribution of $2.5 million as a result of the merger between GPU Energy and FirstEnergy, bringing the total to $8.2 million. The fund is administered by the Berks County Community Foundation. The majority of funding available from the Metropolitan Edison Company SEF takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments, but a limited number of grants are available each year for specific purposes. The fund has since joined and share an advising committee with the Pennsylvania Electric Company Sustainable Energy Fund. They are commonly referred to as Met-Ed/ Penelec Sustainable Energy Fund. Since inception, the Met-Ed/Penelec SEF has approved 213 grants totaling $4,139,373; 47 loans totaling $24,488,724; and 3 equity investments totaling $1,600,000. Grant Opportunities include:
The Met-Ed / Penelec Sustainable Energy Fund provides grants, loans, and equity investments to promote:
Examples of projects funded in the past are available on the program web site, along with details of the grant guidelines. | |
Sustainable Energy Fund (SEF) Loan Program (PPL Territory) | Sustainable Energy Fund of Central Eastern PA | 08/07/20 | 06/02/23 | 679 | The Sustainable Energy Fund (SEF) promotes and invests in energy efficiency and renewable energy projects, and energy education initiatives in the state of Pennsylvania. Financial incentives are offered as loans to promote clean energy technologies and for projects where energy savings are measurable. Eligible clean technology applications include a wide range of energy efficiency and renewable energy projects. Financing is available to commercial, industrial, municipal, agricultural, and nonprofit entities. Special features of the loans include: no prepayment penalty, subordinate lien positions, 100% financing, and interest only period payments. The SEF also provides financing to non-profits through its Energy Savings Agreements program. The program functions as an Energy Service Performance Contracting (ESPC), where the SEF will finance energy efficiency upgrades at a non-profit facility, which are paid back through bill savings. The SEF has also developed a Solar Power Purchase Agreements designed for specifically for the needs of non-profit organizations. The program provides technical assistance to non-profits who are looking to purchase or install solar energy. The SEF was founded in November 1999 as a result of the Pennsylvania Public Utility Commission electric utility restructuring proceedings. The SEF was a key component of the joint settlement with PPL, Inc. (now PPL Electric Utilities Corporation) and the PUC. The fund has collected slightly more than $25 million since opening through a rate surcharge on PPL ratepayers. The surcharge expired and was not renewed at the end of 2006. | |
West Penn Power SEF Commercial Loan Program | The EMS Energy Institute of Pennsylvania State University | 09/20/22 | 06/02/23 | 682 | WPPSEF Offers Conventional Financing that ranges from $25,000 to $1,000,000 and ACT 129 Micro Loans that range from $10,000 to $50,000. For more information on these programs please visit the website above. | |
Residential Energy Conservation Subsidy Exclusion (Corporate) | U.S. Internal Revenue Service | 05/19/23 | 06/02/23 | 727 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |
Renewable Electricity Production Tax Credit (PTC) | U.S. Internal Revenue Service | 09/09/22 | 06/02/23 | 734 | Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including extending the expiration date, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 45 of the Internal Revenue Code at the end of 2024 and replaces it with a new technology-neutral tax credit under section 45Y of the Internal Revenue Code. The summary below describes the current section 45 tax credit as modified by the Inflation Reduction Act, and below that, the new 45Y tax credit. The federal renewable electricity production tax credit (PTC) is an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The duration of the credit is 10 years after the date the facility is placed in service. Originally enacted in 1992, the PTC has been renewed and expanded numerous times, most recently by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full value of the tax credit -- 2.6 cents per kilowatt-hour (kWh) for wind, closed-loop biomass, and geothermal energy; 1.3 cents per kWh for open-loop biomass facilities, small irrigation power facilities, landfill gas facilities and trash facilities. In late-2022 or 2023, the Treasury Secretary will issue guidance for these new labor provisions. The credit for different project types and available bonus credits is described below. Base Credit Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 1.3 or 2.6 cents/kWh (depending on the facility type) tax credit. This amount may be adjusted annually for inflation. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines and no later than January 1, 2025 will receive a base tax credit of 0.5 cents/kWh. However, projects can qualify for the full tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for the entire 10-year PTC period are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. Bonus Credits The Domestic Content Bonus increases the credit amount by 10% for projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States. Note, the required percentage of domestic manufactured products for offshore wind facilities is 20%. The Energy Community Bonus increases the credit amount by 10% for projects that are located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. Credit Monetization Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed. Clean Energy Production Tax Credit (45Y) Section 13701 of the Inflation Reduction Act created a new tax credit, the Clean Energy Production Tax Credit to replace the traditional PTC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the PTC, but is not technology-specific. It applies to all generation facilities that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, and all technologies that satisfy the labor requirements will be eligible for the full value of the tax credit as adjusted for inflation. The credit will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. | |
Energy-Efficient Mortgages | 08/05/20 | 06/02/23 | 742 |
Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.
Loan amounts may not exceed the projected savings of the energy efficiency improvements. These loans may be combined with FHA 203 (h) mortgages available to victims of presidentially-declared disasters and with financing offered through the FHA 203 (k) rehabilitation program. FHA loan limits do not apply to the EEM. Borrowers must obtain a home energy assessment by a qualified energy rater, assessor, or auditor using whole-assessment standards, protocols, and procedures.
ENERGY STAR Partnership for Lenders | ||
USDA - Rural Energy for America Program (REAP) Grants | U.S. Department of Agriculture | $600 million for FY 2018 | 08/21/18 | 06/02/23 | 917 | Note: The U.S. Department of Agriculture's Rural Development issues periodic Notices of Solicitation of Applications for the Rural Energy for America Program (REAP) in the Federal Register. The FY 2018 solicitation for the REAP program includes a total budget of approximately $800 million. The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. |
Office of Indian Energy Policy and Programs - Funding Opportunities | U.S. Department of Energy | 02/26/20 | 06/02/23 | 918 | The U.S. Department of Energy's (DOE) Office of Indian Energy Policy and Programs promotes tribal energy sufficiency, economic growth, and employment on tribal lands through the development of renewable energy and energy efficiency technologies. The program provides financial assistance, technical assistance, and education and training to tribes for the evaluation and development of renewable energy resources and energy efficiency measures. DOE's program offerings consist of program management through DOE headquarters, program implementation and project management through DOE's field offices, and technical support through DOE laboratories. Program management is carried out by DOE's Weatherization and Intergovernmental Program, which provides programmatic direction and funding to DOE field offices for program implementation. DOE's Golden Field Office solicits, awards, administers, and manages financial assistance agreements. Program funding is awarded through a competitive process. Click here to view current program funding opportunities, and here to apply for technical assistance. | |
Metropolitan Edison Company SEF Loans (FirstEnergy Territory) | Berks County Community Foundation | 10/04/21 | 06/02/23 | 1051 |
FirstEnergy (formerly GPU) established the Metropolitan Edison Company Sustainable Energy Fund in 2000 with an initial contribution of $5.7 million. The fund later received an additional contribution of $2.5 million as a result of the merger between GPU Energy and FirstEnergy, bringing the total to $8.2 million. The fund is administered by the Berks County Community Foundation. The majority of funding available from the Metropolitan Edison Company SEF takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments. The program is open to any individual, organization, governmental entity, or corporation.
As identified on the program web site, specific types of projects eligible for loans may include renewable electricity generation projects for on-site use or grid supply; projects involving the development of a sustainable energy technology (e.g., solar panel manufacturing); businesses that use renewable energy in the operation of a business; and businesses that enhance energy efficiency and conservation. To apply to the fund, applicants should present a Letter of Intent explaining the core technology, management team, market opportunities, and company operations for further evaluation by Community Foundation staffs. Examples of projects funded in the past are available on the program web site, along with details of the investment guidelines. | |
Penelec SEF of the Community Foundation for the Alleghenies Grant Program (FirstEnergy Territory) | Community Foundation of the Alleghenies | 12/05/20 | 06/02/23 | 1056 | FirstEnergy (formerly GPU) established the Metropolitan Edison Company Sustainable Energy Fund and the Penelec Sustainable Energy Fund in 2000. The Community Foundation for the Alleghenies in Johnstown, Pennsylvania administers the Penelec loan and grant components of the Fund. The fund is administered by the Berks County Community Foundation. The majority of funding available from the fund takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments, but a limited number of grants are available each year for specific purposes. The following are the categories of previously funded grants: | |
Residential Renewable Energy Tax Credit | U.S. Internal Revenue Service | 08/16/22 | 12/31/34 | 1235 | Note: Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date and modified the phase down of this tax credit. It also made stand-alone energy storage systems eligible for the credit, and biomass heaters ineligible for the credit. Biomass heaters are now eligible for the residential energy efficiency tax credit. The summary below reflects the credit after the enactment of H.R. 5376. A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below. Solar-electric property
Solar water-heating property
Fuel cell property
Small wind-energy property
Geothermal heat pumps
Battery Storage Systems (Standalone Systems)
Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies. Energy Storage Prior to the enactment of the Inflation Reduction Act of 2022, the federal tax code did not explicitly reference energy storage, so stand-alone energy storage systems did not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a "qualified solar electric property expenditure," as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit. History Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008. | |
Clean Renewable Energy Bonds (CREBs) | U.S. Internal Revenue Service | 08/15/18 | 06/02/23 | 2510 | Note: The Tax Cuts and Jobs Act of 2017 repealed section 54C of the Internal Revenue Code, which authorized the use of New CREBs. IRS Notice 2018-15 announced that the IRS will no longer process applications for or issue allocations of New CREBs. The summary below describes CREBs before they were repealed, and is here for historical purposes only.
Clean renewable energy bonds (CREBs) may be used by certain entities -- primarily in the public sector -- to finance renewable energy projects. The list of qualifying technologies is generally the same as that used for the federal renewable energy production tax credit (PTC). CREBs may be issued by electric cooperatives, government entities (states, cities, counties, territories, Indian tribal governments or any political subdivision thereof), and by certain lenders. The bondholder receives federal tax credits in lieu of a portion of the traditional bond interest, resulting in a lower effective interest rate for the borrower.* The issuer remains responsible for repaying the principal on the bond. The tax credit rate is set daily by the U.S. Treasury Department. Under past allocations, the credit could be taken quarterly on a dollar-for-dollar basis to offset the tax liability of the bondholder. However, under the new CREBs allocation, the credit has been reduced to 70% of what it would have been otherwise. Other important changes are described in IRS Notice 2009-33. | |
USDA - Rural Energy for America Program (REAP) Loan Guarantees | U.S. Department of Agriculture | 08/21/18 | 06/02/23 | 2511 | The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | |
U.S. Department of Energy - Loan Guarantee Program | U.S. Department of Energy | 09/08/22 | 06/02/23 | 3071 | Note: The Inflation Reduction Act (H.R. 5376) made several changes to this program. It appropriated approximately $11.7 billion in total for the Loan Programs Office (LPO) to support issuing new loans. This, in turn, increased the loan authority in LPO’s existing loan programs by approximately $100 billion. The Inflation Reduction Act also adds a new loan program, the Energy Infrastructure Reinvestment (EIR) Program (section 1706), to help retool, repower, repurpose, or replace energy infrastructure that has ceased operations or to improve the efficiency of infrastructure that is currently operating. Title 17 Program Section 1703 of Title 17 of the Energy Policy Act (EPAct) of 2005 created the Department of Energy's (DOE's) Loan Guarantee Program. The program was reauthorized and revised by the American Recovery and Reinvestment Act (ARRA) of 2009 by adding Section 1705 to EPAct. The 1705 Program was retired in September 2011, and Loan Guarantees are no longer available under that authority. DOE, however, still has authority to issue Loan Guarantees under the old Section 1703 Program. Under Section 1703, DOE is authorized to issue loan guarantees for projects with high technology risks that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects. The Inflation Reduction Act added an additional $40 billion of loan authority to Section 1703 program. The legislation appropriated $3.6 billion in credit subsidy to support the cost of those loans and set aside a percentage of these amounts for administrative expenses to help carry out the program, including monitoring and originating new loans. This new loan authority is open to all currently eligible Title 17 Innovative Clean Energy technology categories, including fossil energy and nuclear energy. The Inflation Reduction Act appropriations also support the expanded activities authorized by the Bipartisan Infrastructure Law that required these new appropriations to go into effect. These expanded activities support projects involving critical minerals processing, manufacturing, and recycling, and removing the innovation requirement for State Energy Financing Institution-backed projects. Click here for more information about how a project that reduces greenhouse gas emissions can be eligible without meeting the innovative technology requirement if the project receives support from a State Energy Financing Institution . Energy Infrastructure Reinvestment (EIR) Program (Section 1706) The Inflation Reduction Act also created a new program under Title 17, the Energy Infrastructure Reinvestment (EIR) Program. The new program targets projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations, or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases. The Inflation Reduction Act appropriated $5 billion through September 30, 2026, to carry out EIR, with a total cap on loans of up to $250 billion. Advanced Technology Vehicles Manufacturing Loan Program LPO initially had $15.1 billion in loan authority to support the manufacture of eligible light-duty vehicles and qualifying components under the Advanced Technology Vehicles Manufacturing Loan Program (ATVM), authorized by the Energy Independence and Security Act of 2007. To date, the program has loaned $8 billion for projects that have supported the production of more than 4 million advanced technology vehicles. Read more about LPO's ATVM portfolio. The Inflation Reduction Act removed the $25 billion cap on the total amount of loans it can award and appropriated $3 billion to remain available through September 30, 2028 for the costs of direct loans under ATVM. In addition to amounts supported by currently appropriated credit subsidy, this $3 billion is estimated to provide for an additional ~$40 billion in loan authority for a total estimated available loan authority under ATVM of ~$55.1 billion. Tribal Energy Projects The Tribal Energy Loan Guarantee Program (TELGP) supports tribal investment in energy-related projects by providing direct loans or partial loan guarantees to federally recognized tribe, including Alaska Native village or regional or village corporations; or a Tribal Energy Development Organization (TEDO) that is wholly or substantially owned by a federally recognized tribe federally recognized Indian tribe or Alaska Native Corporation. Under this solicitation, The Inflation Reduction Act increased the aggregate amount of loans available at any time under the Tribal Energy Loan Guarantee Program (TELGP) from $2 billion to $20 billion. It also provided $75 million to remain available through September 30, 2028 to carry out TELGP under section 2602(c) of the Energy Policy Act of 1992. | |
Qualified Energy Conservation Bonds (QECBs) | U.S. Internal Revenue Service | 08/22/18 | 06/02/23 | 3098 | Note: The Tax Cuts and Jobs Act (HR 1) of 2017 repealed the use of tax credit bonds effective January 1, 2018. Issuers of QECBs that elected to receive direct payments from the Treasury issued on or before December 31, 2017, consistent with the Internal Revenue Code (Section 54D), will continue to receive direct payments. The summary presented below is for historical purposes.
The Energy Improvement and Extension Act of 2008, enacted in October 2008, authorized the issuance of Qualified Energy Conservation Bonds (QECBs) that may be used by state, local and tribal governments to finance certain types of energy projects. QECBs are qualified tax credit bonds, and in this respect are similar to new Clean Renewable Energy Bonds or CREBs. The October 2008 enabling legislation set a limit of $800 million on the volume of energy conservation tax credit bonds that may be issued by state and local governments. The American Recovery and Reinvestment Act of 2009, enacted in February 2009, expanded the allowable bond volume to $3.2 billion. In April 2009, the IRS issued Notice 2009-29 providing interim guidance on how the program will operate and how the bond volume will be allocated. Subsequently, H.R. 2847 enacted in March 2010 introduced an option allowing issuers of QECBs and New CREBs to recoup part of the interest they pay on a qualified bond through a direct subsidy from the Department of Treasury. Guidance from the IRS on this option was issued in April 2010 under Notice 2010-35. | |
Solar Energy Incentives Program | Department of Community and Economic Development | $80 million | 07/14/21 | 06/02/23 | 3352 | Note: The deadline for the most recent solicitation under this program has now passed. The program is currently closed, pending revisions to the program guidelines. Please see the program web site for further details. The Pennsylvania Department of Community and Economic Development now provides the Alternative and Clean Energy Program in place of this one.
In July 2008, Pennsylvania enacted legislation providing $650 million to support a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a $80 million grant and loan program for solar energy technologies. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). Program guidelines were first issued in April 2009 although they have been revised since that time. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.).
The individual support mechanisms are described in more detail below. For all types of support, there is a general requirement that applicants provide matching funds equivalent to the funding offered under the program. Energy generation projects must undergo a solar shade analysis which shows annual energy production of at least 80% of optimal. In addition, all PV energy systems must be new and UL-listed and solar thermal systems must be new and SRCC OG-100 rated (or comparable rating approved by the DEP). All systems must be installed in accordance with the applicable construction codes and standards. |
High Performance Building Incentives Program | Department of Community and Economic Development | $25 million (grants and loans combined) | 04/04/22 | 06/02/23 | 3354 |
In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a $25 million grant and loan program for high performance buildings. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). Program guidelines were issued in April 2009 and revised in November 2009. Incentives are available to both in-state small businesses (100 or fewer total employees) and individuals for the construction or major renovation of homes or commercial buildings. Homes must be primary residences in order to be eligible.
The individual support mechanisms are described in more detail below. For all types of support, there is a general requirement that applicants provide matching funds equivalent to the funding offered under the program. Eligibility
Terms There is a matching investment requirement of at least $1 for every $1 of program funds awarded. There is a $100 non-refundable application fee due at the time of submission made payable to the CFA. There is a 1% commitment fee on all approved loans.
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High Performance Buildings Incentive Program | Department of Community and Economic Development | $25 million | 07/21/20 | 06/02/23 | 3602 |
In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a $25 million grant and loan program for high performance buildings. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). Program guidelines were issued in April 2009 and revised in November 2009. Incentives are available to both in-state small businesses (100 or fewer total employees) and individuals for the construction or major renovation of homes or commercial buildings. Homes must be primary residences in order to be eligible.
The individual support mechanisms are described in more detail below. For all types of support, there is a general requirement that applicants provide matching funds equivalent to the funding offered under the program. |
USDA - High Energy Cost Grant Program | USDA Rural Utilities Service | $10 million (2021 solicitation) | 07/20/22 | 06/02/23 | 4359 |
NOTE: The most recent solicitation for this program closed July 6, 2021. Please check the program website for information on future solicitations.
This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program. |
City of Philadelphia - Streamlined Solar Permitting and Fee Reduction | 11/19/14 | 06/02/23 | 4744 | Photovoltaic systems of 10 kW or less installed on 1- or 2-family residential units are eligible for streamlined permitting and a fee reduction. PV projects can use a combined electrical and building permit instead of filling out two separate permits if the project meets certain installation and electrical requirements (as outlined on the combined permit form). In addition, electrical and building permit fees for all PV projects are reduced to $25 per $1,000 labor - lowered from the standard $25 per $1,000 of labor and equipment costs. This treatment was established by separate bills relating to electrical permits and building permits enacted in late 2011. Philadelphia has a Solar Installation Guidebook to assist residents and builders in Philadelphia through the process of obtaining the necessary permits and installing solar. | ||
Solar Alternative Energy Credits | 03/07/23 | 06/02/23 | 5682 | Pennsylvania's Alternative Energy Portfolio Standard (AEPS), created by S.B. 1030 on November 30, 2004, requires each electric distribution company (EDC) and electric generation supplier (EGS) to retail electric customers in Pennsylvania to supply roughly 18% of its electricity using alternative-energy resources -- roughly 8% from Tier I technologies and 10% from Tier II technologies -- by 2021. The standard also contains a solar set-aside requiring obligated entities to procure a small percentage of their electricity sales from photovoltaic (PV) systems as part of the Tier I requirement. As with the other components of Pennsylvania's AEPS, the percentage requirement ramps up slowly over time. The obligation was set at 0.0120% for the compliance year running from June 2009 - May 2010, accelerating to an ultimate target of 0.5% in compliance year 2020-2021. Under Pennsylvania law, a solar alternative energy credit (SAEC) represents proof that 1 megawatt-hour (MWh) of electricity was generated by a qualifying PV facility. In many other states the term "solar renewable energy certificate" or "SREC" is used to represent the functional equivalent (i.e., a means of compliance with a solar energy standard) of an SAEC in Pennsylvania. Electricity suppliers must purchase SAECs in order to meet their compliance obligations under the law, or pay a Solar Alternative Compliance Payment (SACP) for any shortfalls in SAEC purchases. In Pennsylvania the SACP varies from year to year based largely on the market price of SAECs traded during the prior compliance year, thus it is only known after the end of a compliance year. The SACP is for a given year is calculated as 200% times the sum of (1) the market value of SAECs of the reporting period and (2) the leveled value of up-front rebates received by sellers of SAECs (see PUC order listed above for a more detailed description). As of February 17, 2022, the SACP was $76.48, the largest part of which is attributable to the weighted average SAEC market price of $40 per SAEC for the 2021 period. Under this system SAECs represent a potentially significant source of revenue for owners of qualifying PV facilities with a value determined by demand in the trading market. Eligible generators in Pennsylvania, including on-site generators, retain ownership of SAECs generated by their system until they voluntarily transfer them to another party. A generator remains eligible to generate SAECs for as long as the facility remains certified as an eligible generator. An SAEC may generally be used for compliance by a utility for the compliance year during which it was generated or the two subsequent compliance years. However, SAECs purchased by a utility during a time period for which the utility is under rate caps -- rate caps for some utilities did not expire until January 1, 2011 -- may be used by the utility in the compliance year the rate caps are lifted or in the subsequent compliance year. In order to begin producing SAECs that can be used for compliance with Pennsylvania's AEPS, a generator must apply for and be certified as an eligible generator. In order to be considered an eligible generator for the purpose of the AEPS, the generator must generally be located either within the state of Pennsylvania or within the broader PJM region. The exception to this rule is that energy from resources located within the footprint of the Midwest Independent Systems Operator (MISO) -- which also serves a small portion of Pennsylvania -- may be used for compliance in areas served by the MISO. The practical impact of this exception is that out-of-state resources located in the MISO may only be used for compliance by the Pennsylvania Power Co. or energy suppliers operating within its service territory. Systems must be operational before the owner can apply for a certification number. Once a generator has received a certification number from the program administrator, they may create an account on the PJM-EIS Generation Attributes Tracking System (GATS). The GATS is used to track the generation and transfer of SAECs from an eligible facility. The GATS issues SAECs to correspond with energy generation readings that the system owner uploads to the system. Facilities less than 15 kW DC capacity, interconnected prior to May 18, 2017, that did not receive funding from the PA Sunshine program, and do not have a Revenue Grade Meter may be eligible to produce SRECs from estimated generation based on PV Watts estimates. A facility must use actual, metered production if the facility is equal to or greater than 15kW, has a revenue-grade PV meter installed, or if the facility is composed of adjustable tilt PV modules or laminate PV modules, or if the facility was interconnected on or after May 18, 2017. In addition, estimates are not allowed if the facility already has metered generation processed by PJM-GATS, as stated in the GATS Operating Rules, Section 6.3.3 Section d. Pennsylvania will only recognize the generation of SAECs by a system after the date of the application for certification. In 2017, Pennsylvania passed Act No. 40, which restricted geographical eligibility for the PA SREC market to Pennsylvania-sited solar photovoltaic systems effective October 30, 2017. The law may also impact out-of-state systems which were certified prior to the rule change. The Pennsylvania Public Utilities Commission will be reviewing the Act and issuing an Order regarding eligibility in the program in the coming months. The program website contains additional information on Pennsylvania's AEPS, registering a facility, and using credit brokers and aggregators. | ||
Fannie Mae Green Financing – Loan Program | 05/08/20 | 06/02/23 | 5780 | NOTE: Only multifamily properties are eligible for the program. Single family homeowners are not eligible for this program. The Fannie Mae Green Financing Business provides mortgage financing to apartment buildings and cooperatives (with 5 or more units) to finance energy and water efficiency property improvements. Its green financing programs include Green Rewards, and preferential pricing for loans secured by a property with an eligible Green Building Certification. All Fannie Mae green loans are securitized as Green Mortgage Backed Securities (Green MBS). To learn more about these programs, multifamily property owners should coordinate with a Fannie Mae DUS Lender: https://multifamily.fanniemae.com/about-multifamily/our-partners/dus-lenders Green Rewards, launched in 2015, provides preferential pricing and up to an additional 5% of loan proceeds by including up to 75% of projected owner energy and water savings and 25% of projected tenant savings in the loan underwriting. Conventional and affordable multifamily properties, as well as cooperatives, seniors, military, and student housing properties are eligible for this program. To qualify for a Green Rewards loan the property owner must commit to making property improvements that are projected to reduce the whole property’s annual energy and water consumption by at least 30%, which a minimum of 15% must be attributable to savings in energy consumption. Properties may be located anywhere in US, and the selected property upgrades must be completed within 12 months of loan closing. Fannie Mae also provides preferential pricing for an acquisition or refinance loan on a conventional or affordable property that has a current, eligible Green Building Certification per Fannie Mae Form 4250. Please visit the Fannie Mae Green Financing website for more information and detailed program requirements. | ||
Solar Energy Loan Program | Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) | 10/22/22 | 06/02/23 | 5945 | The Solar Energy Program (SEP) program offers financial assistance as loans to eligible applicants to promote manufacturing, research and development, and generation of solar energy in the state. The program is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under direction of the Commonwealth Financing Authority (CFA). Eligibility The following applicants are eligible for loans: 1. A Business – a corporation, partnership, sole proprietorship, limited liability company, business trust, or other commercial entity approved by the Commonwealth Financing Authority. The term shall include venture capital firms, solar energy and solar thermal system installers, and other business entities capable of raising a significant amount of capital. The term shall also include not-for-profit entities.2. An Economic Development Organization – a nonprofit corporation or association whose purpose is the enhancement of economic conditions in their community. 3. A Political Subdivision – A municipality, county, or school district. Program Description The program has a 25% cost share requirement. The applicant must provide evidence of a commitment of matching investment of at least $1 for every $3 of program funds awarded by the CFA. The loan amount can be used for following measures:
Expenses related to fees for securing other financing, interest on borrowed funds, refinancing of existing debt, and cost incurred prior to the approval of CFA financing are not eligible for funding. To apply for funding, interested applicants can submit an online application available at the Department of Community and Economic Development website. Applications must be received at least 60 days prior to the next scheduled CFA meeting at which Solar Energy Program applications will be considered. The application review schedule is available on the CFA website. | |
City of Philadelphia - Solar Rebate Program | City of Philadelphia | Maximum of $500,000 per fiscal year | 08/14/19 | 12/31/24 | 22110 | On August 14, 2019, Mayor Kenney of Philadelphia signed a law which created a Solar Rebate. The rebate is paid by the City for commercial or residential solar installations completed after July 1, 2019. These incentive payments will average $1,000 per home. The program has a spending cap of $500,000 per fiscal year. |
PPL Electric Utilities - Business Incentive Program | 03/07/23 | 06/02/23 | 22438 | PPL Electric Utilities offers incentives on a variety of energy efficiency projects, including solar and CHP. Incentives are valued based on peak demand reductions which are determined as the average of the demand reduction during June, July, and August peaks. The peak period is non-holiday weekdays between 2 p.m. and 6 p.m. Effective December 7, 2022, solar project incentives will be calculated and paid based on energy usage displaced from PPL Electric Utilities’ system for both demand and energy. Customers without kWh load offset by solar are not eligible for the incentives. |