Pennsylvania

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.

Note:The Commonwealth Finance Authority is temporarily not accepting applications for the Alternative & Clean Energy Programs as the guidelines are currently being updated and modified. Once the guidelines have been updated and approved, these programs will resume accepting applications.

It is important to note that some applicants are only eligible to apply under some aspects of the program. Political subdivisions are only permitted to apply for loans or grants for Clean Energy Projects. Businesses and non-profits may apply for loans for Alternative Energy Production Projects and Clean Energy Projects, but may only apply for grants for Alternative Energy Production Projects and for site preparation for an alternative energy system as a Clean Energy Project.

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 grant and loan program for alternative energy and clean energy production projects. 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 May 2009 and revised in March 2010. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.).

The program will offer support for alternative energy and clean energy projects in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). Under this program, alternative energy production projects and clean energy production projects are governed by distinct sets of definitions and rules. Eligible activities for each type of project are described briefly below (see program rules for more detailed descriptions).

Clean Energy Projects

• Construction or renovation of a High Performance Building.
• Site preparation of a business park consisting exclusively of certified High Performance Buildings.
• Installation of equipment to facilitate or improve energy conservation or energy efficiency (including but not limited to heating, lighting, and cooling equipment). Equipment must be Energy Star rated if applicable.
• Installation of an alternative energy system which produces energy from sources defined under the state Alternative Energy Portfolio Standard (AEPS), including wind, geothermal, biomass, waste energy, hydroelectric, fuel cells, biologically derived methane gas, fuel cells, and biomass; but not including solar energy.*
• Replacement or enhancement of an existing energy system that utilizes nonrenewable energy with an energy system that utilizes alternative energy (as described above).
• Modification of the contract terms of an energy service project by a political subdivision pursuant to a new energy savings contract (ESCO) with a qualified provider under the Guaranteed Energy Savings Act (GESA) of 1996.

Alternative Energy Production Projects (construction or development of):

• An alternative energy project which produces energy from sources defined under the state Alternative Energy Portfolio Standard (AEPS), including wind, geothermal, biomass, waste energy, hydroelectric, fuel cells, biologically derived methane gas, fuel cells, and biomass; but not including solar energy.*
• A facility that manufactures or produces alternative fuels
• A facility that manufactures or produces products, including component parts that provide alternative energy (as defined above), improve energy efficiency, or conserve energy
• An alternative energy or alternative fuel R&D facility
• A project for the development or enhancement of rail transportation systems that deliver alternative fuels or high efficiency locomotives.

Both types of project allow eligible costs associated with the preparation of plans, specifications, studies, and surveys, necessary or incidental to facilitating or developing an eligible project, and costs (up to 3%) associated with administering a grant. 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 (i.e., incentives generally limited to 50% of costs).

Loans
Loans are available at a fixed interest rate which varies based on project type. As of September 2010 interest rates were set at 1% for energy conservation and energy efficiency projects, 4% for high performance building projects, and 5% for alternative energy production projects (may change based on market conditions. Loans may generally be amortized over a period corresponding to the life of the equipment, not to exceed 25 years, and must be repaid within 10 years. Loans for energy efficiency and energy conservation projects (including geothermal systems) have a 10-year amortization. Loans for manufacturing facilities are limited to $35,000 per job created within three years of loan approval. Failure to create the requisite number of jobs within three years may cause the interest rate to be raised by 3% over the remaining portion of the loan. Loans are also generally limited to $5 million, although higher amounts may be authorized on a case-by-case basis as determined by the DCED.

Grants
Grants for manufacturing facilities are available for up to $10,000 per job created within three years of grant approval. Grants are limited to $2 million for other alternative energy, clean energy projects, and high performance building projects; $500,000 for energy savings contracts (ESCOs); and $175,000 for planning and feasibility studies. Grants for green building projects are also limited to 10% of costs (as opposed to the general limit of 50% of costs for other projects).

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $5 million. The term of the grant may not exceed five years.

Special Session H.B. 1 authorized a total of $165 million for this program. Visit the program web site and review the funding guidelines for additional program details and application procedures.


* While solar energy is in fact eligible under the state AEPS, a specific solar energy program was also authorized as part of the enabling legislation and as a result solar energy projects have been excluded from some other programs created by the same legislation. The program guidelines do not list solar energy as an eligible technology.

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.

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 program will offer support for solar technologies in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). Eligible facilities are defined as those that generate, distribute, or store solar energy; manufacturing or assembly facilities for solar panels or other solar equipment; and solar technology R&D facilities. This definition includes both solar photovoltaic (PV) and solar thermal systems. All systems must have a lifetime of at least four years. Funds may be used for the following project costs:

• Acquisition of land and buildings, rights-of-way, and easements necessary for project construction
• Clearing and preparation of land to build an eligible project
• Construction or renovation of a building to manufacture solar components and systems
• Equipment purchases for the manufacture of solar systems
• Purchase, installation and construction of facilities to produce, distribute, and store solar energy or produce hot water using solar energy
• Project planning and feasibility studies
• Permit fees
• Administrative costs associated with an eligible project, not to exceed 3% of funding

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.

Loans
Loans are available at a fixed interest rate -- 5% as of August 2011 -- for terms of up to 10 years (equipment) or 15 years (real estate). Loans for manufacturing facilities are limited to $35,000 per job created within three years of loan approval. Loans for energy production projects are generally limited to $5 million although larger loans of greater than may be considered on a case-by-case basis. Loans for PV energy production projects are also limited to $2.25 per watt.

Grants
Grants for manufacturing facilities are available for up to $5,000 per job created within three years of grant approval. Grants for energy production facilities are generally limited to $1 million, although larger grants may be considered on a case-by-case basis. Grants for PV energy production projects are also limited to $2.25 per watt. Planning and feasibility studies are also eligible for grants of the lesser of 50% of the cost of the study or $175,000. The guidelines state that the CFA prefers to support generation projects through loans rather than grants; however, it will consider grant requests from projects for which there is not a long-term contract (10 years or more) in place for the Solar Renewable Energy Certificates (SRECs) produced by the project.

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $30 million. The term of the grant may not exceed five years.

Visit the program web site and review the funding guidelines for additional program details and application procedures.

Note: This program has been temporarily closed pending the development and approval of updated guidelines. The summary below describes the program as it existed prior to the suspension.

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 wind and geothermal 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 initially issued in January 2009 with revisions issued in June and October 2009. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.).

The program will offer support for wind and geothermal technologies in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). The definition of geothermal includes, but is not limited to, closed-loop geothermal heat pump systems that use the ground, groundwater, or an underground mine as an energy source. Eligible wind energy-related applications include energy production facilities and manufacturing facilities for wind turbines and other system components. Funds may be used for the following project costs:

• Acquisition of land and buildings, rights-of-way, and easements necessary for project construction
• Clearing and preparation of land to build an eligible project
• Construction or renovation of a building to manufacture wind or geothermal components and systems
• Equipment purchases for the manufacture of wind or geothermal systems
• Purchase, installation, and construction of facilities to produce and distribute geothermal or wind energy
• Project planning and feasibility studies
• Permit fees
• Administrative costs associated with an eligible project, not to exceed 3% of funding

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.

Loans
Loans are generally available at a fixed interest rate for terms of up to 10 years (equipment) or 15 years (real estate). Interest rates are set at 1% for geothermal projects and determined by market rates (5% as of July 2011) for other projects. Loans for manufacturing facilities are limited to $35,000 per job created within three years of loan approval. Loans for geothermal systems may not exceed $3 per square foot of space to be served by the system, up to $5 million. Loans for wind energy generation or distribution projects are limited to $5 million.

Grants
Grants for renewable energy manufacturing facilities are available for up to $5,000 per job created within three years of grant approval. Grants for wind energy production or distribution facilities are limited to $1 million. Planning and feasibility studies are also eligible for grants of the lesser of 50% of the cost of the study or $175,000. Grants are not available for the installation of geothermal energy systems.

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $5 million. The term of the grant may not exceed five years.

Visit the program web site and review the funding guidelines for additional program details and application procedures.

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 following types of projects are currently eligible for grants:

• Projects that educate power users in the Med-Ed region about renewable energy, the importance of energy conservation and/or energy conservation methods.
• Projects that improve the environment in the Met-Ed service territory, as defined by their relationship to the company's transmission and distribution facilities. Grants are limited to projects that propose to provide a public benefit from the use of the company's facilities.
• Studies of the implementation of established or developing technologies (e.g., wind studies, methane quality studies) for projects situated in the Met-Ed region. Projects that, if feasible, are likely to attract investment from the fund will be given preference.

Examples of projects funded in the past are available on the program web site, along with details of the grant guidelines.

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 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 types of projects are currently eligible for grants:

• Projects that educate power users in the Med-Ed region about renewable energy, the importance of energy conservation and/or energy conservation methods.
• Projects that improve the environment in the Met-Ed service territory, as defined by their relationship to the company's transmission and distribution facilities. Grants are limited to projects that propose to provide a public benefit from the use of the company's facilities.
• Studies of the implementation of established or developing technologies (e.g., wind studies, methane quality studies) for projects situated in the Met-Ed region. Projects that, if feasible, are likely to attract investment from the fund will be given preference.

Examples of projects funded in the past are available on the program web site, along with details of the grant guidelines.

The Keystone HELP Program is designed to help homeowners improve energy efficiency with special financing for high-efficiency heating, air conditioning, insulation, windows, doors, and “whole house” improvements. Principally supported by the Pennsylvania Department of Environmental Protection, the Pennsylvania Treasury Department and the Pennsylvania Housing Finance Agency, the Keystone HELP program is administered by AFC First Financial Corporation, a Pennsylvania energy efficiency lender. The EnergyWorks Efficiency Loan Program is a special offshoot of Keystone HELP which offers special, lower interest rates to qualifying homeowners in Bucks, Chester, Delaware, Montgomery, and Philadelphia counties.

Pennsylvania homeowners who own and make qualifying improvements to their one- or two-unit primary residence located within the eligible counties, and whose combined annual household income does not exceed $250,000 are eligible to apply for loans under this program. All installed equipment and material must be new, and work must be performed by a qualifying contractor. A list of qualifying contractors is available on the program web site. The following types of loans are available for energy efficiency improvements:

• Energy Improvements with Air Sealing (CAPP) Loans (unsecured) are for heating, cooling, insulation and other Energy Star qualified improvements that are part of a comprehensive project of blower door directed air sealing and other energy saving measures recommended by a BPI-certified contractor. The loan range is $1,000 - $15,000 with a fixed interest rate of 0.99% on a 3, 5, or 10 year loan term. For home assessments there is also a promotional rate of $150 (a $250 savings) and a further $50 rebate is available if $1,000 or more in energy improvements are made.
• Energy Star Loans (unsecured) are for the installation of qualifying Energy Star improvements or other improvements that meet program criteria. The loan range is $1,000 - $15,000. The rate is 5.99% (fixed). The term options are 3, 5 or 10 years. Note: Cooling and windows are not eligible for the EnergyWorks 5.99% rate, but are eligible for the 8.99% rate under the statewide Keystone HELP program.
• Advanced Performance Energy Star Loans (unsecured) are for the installation of qualifying improvements that exceed Energy Star standards. The loan range is $1,000 - $15,000. The rate is 4.99% (fixed). The term options are 3, 5 or 10 years. Note: Cooling is not eligible for the EnergyWorks 4.99% rate, but is eligible for the 7.99% rate under the statewide Keystone HELP program.

Prospective participants should note that each loan offering has distinct list of eligible energy efficiency improvement measures and equipment standards. All loans are unsecured and do not carry any penalties for pre-payment. Residents who qualify for the loans described above also qualify of other loan offerings through the general, Statewide Keystone HELP Energy Efficiency Loan Program. Please see the program web site listed at the top of this page for additional program details.

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.

The fund is designed to promote:

• The development and use of renewable energy and clean-energy technologies;
• Energy conservation and efficiency;
• Sustainable-energy businesses; and
• Projects that improve the environment in the companies' service territories, as defined by their relationship to the companies' transmission and distribution facilities.

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.

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.

The fund is designed to promote:

• The development and use of renewable energy and clean-energy technologies;
• Energy conservation and efficiency;
• Sustainable-energy businesses; and
• Projects that improve the environment in the companies' service territories, as defined by their relationship to the companies' transmission and distribution facilities.

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.

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 SDF provides financial assistance to eligible projects in the form of commercial loans, subordinated debt, royalty financing, and equity financing. The Sustainable Development Fund provides financial assistance for the following types of ventures:

• Companies and ventures that generate electricity using renewable energy sources;
• Manufacturers, distributors and installers of renewable energy, advanced clean energy and energy-conserving products and technologies; and,
• Companies and organizations that are end-users of renewable energy, advanced clean energy and energy-conserving products and technologies.

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 Commercial Financing Program provides flexible business loans to:

• Manufacturers, wholesalers/distributors, retailers and service companies who want to finance equipment upgrades or electricity energy savings improvements to their plant/office facilities;
• End-user companies wishing to purchase advanced clean energy systems; and
• Start-ups and expansions of companies producing clean energy.

The SDF 2011 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.

The Sustainable Energy Fund (SEF) promotes and invests in energy efficiency and renewable energy projects, and energy education initiatives. Financial incentives are offered as loans to promote clean energy technologies and for projects where energy savings are measurable. Eligible clean technology applications include energy efficiency, renewable energy, green building, and clean transportation. Financing terms are customized to the unique requirements of individual projects.The SEF has also developed Energypath, a comprehensive resource intended to assist Pennsylvanians in locating contractors, grants, loans, equipment manufacturers, rebates and technical assistance.

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. See DSIRE's summary of Pennsylvania's Public Benefits Funds for more information.

The West Penn Power Sustainable Energy Fund (WPPSEF) promotes the use of renewable energy and clean energy among commercial, industrial, institutional and residential customers in the West Penn market region. Eligible technologies include solar, wind, low-impact hydro, and sustainable biomass such as closed-loop biomass and biomass gasification, as well as energy efficiency. Clean energy refers to advanced technologies, including landfill gas and fuel cells, which use fossil fuels but have significantly lower emissions and waste than current commercialized technologies and fuels derived from waste. The WPPSEF's recent solicitation for Sustainable Energy Financing Proposals (April 3, 2012 deadline) indicates an intention to focus activities on energy efficiency, commercial and industrial biomass heat and power projects using Pennsylvania feedstocks, sustainable energy manufacturing in Pennsylvania, and community energy events.

Funding for eligible projects may include commercial loans, equity investment, subordinated debt and royalty financing. Commercial loans are available to manufacturers, distributors, retailers and service companies involved in renewable and advanced clean energy technologies, as well as energy efficiency and conservation products and services to end-user companies and community-based organizations. WPPSEF intends to initiate loan programs in conjunction with other agencies and intermediaries to ensure an adequate flow of financing proposals for consideration.

WPPSEF will seek out loan proposals that may not be currently bankable but are acceptable credit risks. For small business lending, the ability to repay a business loan is based primarily on operating cash flow. Also, commercial lending is based on the management experience, ability and character of the management team. WPPSEF will offer term loans to finance energy-efficient equipment, construction, and provide working capital financing as part of a larger request. WPPSEF would charge a below market rate of interest, and secure the loans with available collateral. Further information on funding opportunities can be found on the program web site listed at the top of this page.

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 for the reporting period and (2) the levelized value of up-front rebates received by sellers of SAECs (see PUC order listed above for a more detailed description). For the 2010-2011 compliance year the SACP was $495.81, the largest part of which is attributable to the weighted average SAEC market price of $247.82 per SAEC for the period. The average market price for Pennsylvania-sourced credits has ranged from roughly $120 - $170 per SAEC/SREC, with significant variations above and below this average for individual transactions.*

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. Systems of 15 kilowatts (kW) or less that are not equipped with production meters may elect to use an engineering estimate of expected energy production in lieu of uploading actual meter readings into GATS. The Pennsylvania Sunshine solar rebate program requires that participating systems be equipped with a utility-grade meter to measure energy production, thus the engineering estimate option not available to Pennsylvania Sunshine participants.

Generally, Pennsylvania will only recognize the generation of SAECs by a system after the date of the application for certification. However, if a generator has already been certified in another state and has generated SAECs recorded by the GATS, those SAECs will be recognized by Pennsylvania. If the facility is located in another state that allows the use of energy production estimates for systems of 10 kW or less, the same estimates will be used in Pennsylvania.

The program website contains additional information on Pennsylvania's AEPS, registering a facility, and using credit brokers and aggregators.


*It is important to note that SAECs/SRECs produced by facilities located in Pennsylvania may be eligible for other compliance markets such as that in Ohio. The prices quoted here include transactions where Pennsylvania-sourced SAECs/SRECs have been sold into markets beyond Pennsylvania.

Pennsylvania enacted legislation in November 2006 providing that wind turbines and related equipment (including towers and foundations) may not be counted by tax assessors when setting property values.* However, the law states that the valuation of real property used for the purpose of wind-energy generation "shall be developed by the county assessor utilizing the income capitalization approach to value." This valuation is determined by the capitalized value of the land-lease agreements, supplemented by a sales comparison data approach as deemed necessary by county assessors. Lessees or lessors must provide relevant, non-proprietary lease and lease-income information to county assessors by September 1 of each year.

In 2010, S.B. 918 consolidated and amended property tax assessment laws in Pennsylvania. The provisions governing the assessment of wind energy facilities were relocated at this time, but not changed in a substantive way. Click here for local tax information from the Pennsylvania Department of Community and Economic Development.


*Although the language of the statute is somewhat unclear on this point, the law is apparently not intended to address property tax assessments of residential scale wind energy systems. With a lack of clear guidance from the state on this issue, assessment methodologies for residential wind systems may vary from county to county.

Note:The Commonwealth Finance Authority is temporarily not accepting applications for the Alternative & Clean Energy Programs as the guidelines are currently being updated and modified. Once the guidelines have been updated and approved, these programs will resume accepting applications.

It is important to note that some applicants are only eligible to apply under some aspects of the program. Political subdivisions are only permitted to apply for loans or grants for Clean Energy Projects. Businesses and non-profits may apply for loans for Alternative Energy Production Projects and Clean Energy Projects, but may only apply for grants for Alternative Energy Production Projects and for site preparation for an alternative energy system as a Clean Energy Project.

 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 grant and loan program for alternative energy and clean energy production projects. 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 May 2009 and revised in March 2010. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.).

The program will offer support for alternative energy and clean energy projects in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). Under this program, alternative energy production projects and clean energy production projects are governed by distinct sets of definitions and rules. Eligible activities for each type of project are described briefly below (see program rules for more detailed descriptions).

Clean Energy Projects

• Construction or renovation of a High Performance Building.
• Site preparation of a business park consisting exclusively of certified High Performance Buildings.
• Installation of equipment to facilitate or improve energy conservation or energy efficiency (including but not limited to heating, lighting, and cooling equipment). Equipment must be Energy Star rated if applicable.
• Installation of an alternative energy system which produces energy from sources defined under the state Alternative Energy Portfolio Standard (AEPS), including wind, geothermal, biomass, waste energy, hydroelectric, fuel cells, biologically derived methane gas, fuel cells, and biomass; but not including solar energy.*
• Replacement or enhancement of an existing energy system that utilizes nonrenewable energy with an energy system that utilizes alternative energy (as described above).
• Modification of the contract terms of an energy service project by a political subdivision pursuant to a new energy savings contract (ESCO) with a qualified provider under the Guaranteed Energy Savings Act (GESA) of 1996.

Alternative Energy Production Projects (construction or development of):

• An alternative energy project which produces energy from sources defined under the state Alternative Energy Portfolio Standard (AEPS), including wind, geothermal, biomass, waste energy, hydroelectric, fuel cells, biologically derived methane gas, fuel cells, and biomass; but not including solar energy.*
• A facility that manufactures or produces alternative fuels
• A facility that manufactures or produces products, including component parts that provide alternative energy (as defined above), improve energy efficiency, or conserve energy
• An alternative energy or alternative fuel R&D facility
• A project for the development or enhancement of rail transportation systems that deliver alternative fuels or high efficiency locomotives.

Both types of project allow eligible costs associated with the preparation of plans, specifications, studies, and surveys, necessary or incidental to facilitating or developing an eligible project, and costs (up to 3%) associated with administering a grant. 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 (i.e., incentives generally limited to 50% of costs).

Loans
Loans are available at a fixed interest rate which varies based on project type. As of September 2011 interest rates were set at 1% for energy conservation and energy efficiency projects, 4% for high performance building projects, and 5% for alternative energy production projects (may change based on market conditions. Loans may generally be amortized over a period corresponding to the life of the equipment, not to exceed 25 years, and must be repaid within 10 years. Loans for energy efficiency and energy conservation projects (including geothermal systems) have a 10-year amortization. Loans for manufacturing facilities are limited to $35,000 per job created within three years of loan approval. Failure to create the requisite number of jobs within three years may cause the interest rate to be raised by 3% over the remaining portion of the loan. Loans are also generally limited to $5 million, although higher amounts may be authorized on a case-by-case basis as determined by the DCED.

Grants
Grants for manufacturing facilities are available for up to $10,000 per job created within three years of grant approval. Grants are limited to $2 million for other alternative energy, clean energy projects, and high performance building projects; $500,000 for energy savings contracts (ESCOs); and $175,000 for planning and feasibility studies. Grants for green building projects are also limited to 10% of costs (as opposed to the general limit of 50% of costs for other projects).

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $5 million. The term of the grant may not exceed five years.

Special Session H.B. 1 authorized a total of $165 million for this program. Visit the program web site and review the funding guidelines for additional program details and application procedures.


*While solar energy is in fact eligible under the state AEPS, a specific solar energy program was also authorized as part of the enabling legislation and as a result solar energy projects have been excluded from some other programs created by the same legislation. The program guidelines do not list solar energy as an eligible technology. However, it appears that some solar technologies could qualify if they are incorporated into the broader design of a High Performance Building.

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 program will offer support for green buildings in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). In order to be eligible for incentives, new construction and major renovation projects must achieve the applicable Gold certification under USGBC LEED or the National Green Building Standard, or at least 3 Globes under the GBI Green Globes system. Buildings must also meet additional requirements in certain categories. Funds may be used for the following project costs:

• Acquisition of land and buildings, rights-of-way, and easements necessary for project construction
• Clearing and preparation of land to build an eligible project
• Construction or renovation of a high performance building
• Project planning, design, and modeling work
• Fees for registration and certification of a project
• Commissioning and enhanced verification of building performance

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.

Loans
Loans are available at a fixed interest rate -- 4% as of March 2012 -- and must be repaid within 10 years. The maximum loan is $100,000 for residential projects and $2 million for small business projects. Loans may be amortized over a period of up to 25 years.

Grants
Grants are available for up to 10% of eligible project costs or $500,000. Applicants may request both a grant and a loan, but not for the same project.

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant, up to $100,000 for residential projects and $2 million for small business projects.

Visit the program web site and review the funding guidelines for additional program details and application procedures.
 

The Governor's Green Government Council of Pennsylvania provides an incentive for new schools to be built according to green building standards. High Performance Green Schools Planning Grants are designed to cover a portion of the "soft" costs of designing a green building that are not typically included within the conventional design fee structure. Grants may vary in size depending upon the scope of the project, but it appears that typical past awards have been for $25,000. Grants may be used for simulation and modeling costs, including daylighting studies and energy modeling, additional consultancy fees, and costs of documentation required for LEED for Schools certification. The incentive is only for new construction of a LEED Silver, Gold, or Platinum project.

In addition to planning grant opportunities, the Department of Education offers an additional reimbursement to schools that build or renovate to LEED silver or higher, or achieve two or more Globes on the Green Building Initiative Green Globes rating scale. When a school district undertakes a major construction project, the district seeks reimbursement from the Commonwealth through the "Planning and Construction Workbook" (PlanCon) process. This incentive may result in a state funding contribution up to 10% larger than it would have been for a non-rated building.

Note: This program is expected to begin accepting applications for the Fiscal Year 2012-2013 program on July 25, 2012. A Notice of Availability has also been posted in the Pennsylvania Bulletin. Applications will be accepted until September 26, 2012.

Established in July 2004, the PA Small Business Advantage Grant Program provides matching funds to for-profit businesses with a maximum of 100 full-time employees for improvements in energy efficiency and pollution prevention. The business must also be the primary source of employment for at least one full-time employee. The Department of Environmental Protection (DEP) administers the grants, providing up to $9,500 for proposed projects. Under the most recent solicitation, projects must demonstrate annual savings of at least 25% in energy consumption or pollution output plus $750 in annual monetary savings as a direct result of the proposed project. A recipient of the grant must submit a follow-up report to the DEP twelve months after the project completion date, detailing the environmental benefits and the financial costs and benefits as a result of the project. Prior to submitting an application for the 2012 program, eligible businesses must first (1)  obtain a Commonwealth of Pennsylvania Vendor Registration Number; and (2) provide a completed checklist and a W-9 with the application.

Projects that receive energy efficiency incentives from a utility are not eligible for additional funding through the Small Business Advantage Grant Program. Residential rental units and dwellings are not eligible for awards, nor are outdoor wood burners, wood-fired boilers, photovoltaics (PV), solar hot water, room air-conditioners, vending machines, and some types of building envelope measures. The measures identified above as eligible equipment are based on examples provided in program documents and lists of awards made for prior solicitations.

The program provided more than $564,000 in grants for 90 projects under the 2010 solicitation. Further information on eligible technologies and the application process can be found at the program website above.

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. 

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 program will offer support for solar technologies in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). Eligible facilities are defined as those that generate, distribute, or store solar energy; manufacturing or assembly facilities for solar panels or other solar equipment; and solar technology R&D facilities. This definition includes both solar photovoltaic (PV) and solar thermal systems. All systems must have a lifetime of at least four years. Funds may be used for the following project costs:

• Acquisition of land and buildings, rights-of-way, and easements necessary for project construction
• Clearing and preparation of land to build an eligible project
• Construction or renovation of a building to manufacture solar components and systems
• Equipment purchases for the manufacture of solar systems
• Purchase, installation and construction of facilities to produce, distribute, and store solar energy or produce hot water using solar energy
• Project planning and feasibility studies
• Permit fees
• Administrative costs associated with an eligible project, not to exceed 3% of funding

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.

Loans
Loans are available at a fixed interest rate -- 5% as of August 2011 -- for terms of up to 10 years (equipment) or 15 years (real estate). Loans for manufacturing facilities are limited to $35,000 per job created within three years of loan approval. Loans for energy production projects are generally limited to $5 million although larger loans of greater than may be considered on a case-by-case basis. Loans for PV energy production projects are also limited to $2.25 per watt.

Grants
Grants for manufacturing facilities are available for up to $5,000 per job created within three years of grant approval. Grants for energy production facilities are generally limited to $1 million, although larger grants may be considered on a case-by-case basis. Grants for PV energy production projects are also limited to $2.25 per watt. Planning and feasibility studies are also eligible for grants of the lesser of 50% of the cost of the study or $175,000. The guidelines state that the CFA prefers to support generation projects through loans rather than grants; however, it will consider grant requests from projects for which there is not a long-term contract (10 years or more) in place for the Solar Renewable Energy Certificates (SRECs) produced by the project.

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $30 million. The term of the grant may not exceed five years.

Visit the program web site and review the funding guidelines for additional program details and application procedures.

Note: This program has been temporarily closed pending the development and approval of updated guidelines. The summary below describes the program as it existed prior to the suspension.

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 wind and geothermal 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 initially issued in January 2009 with revisions issued later in June and October 2009. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.).

The program will offer support for wind and geothermal technologies in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). The definition of geothermal includes, but is not limited to, closed-loop geothermal heat pump systems that use the ground, groundwater, or an underground mine as an energy source. Eligible wind energy-related applications include energy production facilities and manufacturing facilities for wind turbines and other system components. Funds may be used for the following project costs:

• Acquisition of land and buildings, rights-of-way, and easements necessary for project construction
• Clearing and preparation of land to build an eligible project
• Construction or renovation of a building to manufacture wind or geothermal components and systems
• Equipment purchases for the manufacture of wind or geothermal systems
• Purchase, installation, and construction of facilities to produce and distribute geothermal or wind energy
• Project planning and feasibility studies
• Permit fees
• Administrative costs associated with an eligible project, not to exceed 3% of funding

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.

Loans
Loans are generally available at a fixed interest rate for terms of up to 10 years (equipment) or 15 years (real estate). Interest rates are set at 1% for geothermal projects and determined by market rates (5% as of July 2011) for other projects. Loans for manufacturing facilities are limited to $35,000 per job created within three years of loan approval. Loans for geothermal systems may not exceed $3 per square foot of space to be served by the system, up to $5 million. Loans for wind energy generation or distribution projects are limited to $5 million.

Grants
Grants for renewable energy manufacturing facilities are available for up to $5,000 per job created within three years of grant approval. Grants for wind energy production or distribution facilities are limited to $1 million. Planning and feasibility studies are also eligible for grants of the lesser of 50% of the cost of the study or $175,000. Grants are not available for the installation of geothermal energy systems.

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $5 million. The term of the grant may not exceed five years.

Visit the program web site and review the funding guidelines for additional program details and application procedures.

Note: The Commonwealth Finance Authority is temporarily not accepting applications for the Alternative & Clean Energy Programs as the guidelines are currently being updated and modified. Once the guidelines have been updated and approved, these programs will resume accepting applications.

It is important to note that some applicants are only eligible to apply under some aspects of the program. Political subdivisions are only permitted to apply for loans or grants for Clean Energy Projects. Businesses and non-profits may apply for loans for Alternative Energy Production Projects and Clean Energy Projects, but may only apply for grants for Alternative Energy Production Projects and for site preparation for an alternative energy system as a Clean Energy Project.

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 grant and loan program for alternative energy and clean energy production projects. 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 May 2009 and revised in March 2010. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.).

The program will offer support for alternative energy and clean energy projects in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). Under this program, alternative energy production projects and clean energy production projects are governed by distinct sets of definitions and rules. Eligible activities for each type of project are described briefly below (see program rules for more detailed descriptions).

Clean Energy Projects

• Construction or renovation of a High Performance Building.
• Site preparation of a business park consisting exclusively of certified High Performance Buildings.
• Installation of equipment to facilitate or improve energy conservation or energy efficiency (including but not limited to heating, lighting, and cooling equipment). Equipment must be Energy Star rated if applicable.
• Installation of an alternative energy system which produces energy from sources defined under the state Alternative Energy Portfolio Standard (AEPS), including wind, geothermal, biomass, waste energy, hydroelectric, fuel cells, biologically derived methane gas, fuel cells, and biomass; but not including solar energy.*
• Replacement or enhancement of an existing energy system that utilizes nonrenewable energy with an energy system that utilizes alternative energy (as described above).
• Modification of the contract terms of an energy service project by a political subdivision pursuant to a new energy savings contract (ESCO) with a qualified provider under the Guaranteed Energy Savings Act (GESA) of 1996.

Alternative Energy Production Projects (construction or development of):

• An alternative energy project which produces energy from sources defined under the state Alternative Energy Portfolio Standard (AEPS), including wind, geothermal, biomass, waste energy, hydroelectric, fuel cells, biologically derived methane gas, fuel cells, and biomass; but not including solar energy.*
• A facility that manufactures or produces alternative fuels
• A facility that manufactures or produces products, including component parts that provide alternative energy (as defined above), improve energy efficiency, or conserve energy
• An alternative energy or alternative fuel R&D facility
• A project for the development or enhancement of rail transportation systems that deliver alternative fuels or high efficiency locomotives.

Both types of project allow eligible costs associated with the preparation of plans, specifications, studies, and surveys, necessary or incidental to facilitating or developing an eligible project, and costs (up to 3%) associated with administering a grant. 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 (i.e., incentives generally limited to 50% of costs).

Loans
Loans are available at a fixed interest rate which varies based on project type. As of September 2011 interest rates were set at 1% for energy conservation and energy efficiency projects, 4% for high performance building projects, and 5% for alternative energy production projects (may change based on market conditions. Loans may generally be amortized over a period corresponding to the life of the equipment, not to exceed 25 years, and must be repaid within 10 years. Loans for energy efficiency and energy conservation projects (including geothermal systems) have a 10-year amortization. Loans for manufacturing facilities are limited to $35,000 per job created within three years of loan approval. Failure to create the requisite number of jobs within three years may cause the interest rate to be raised by 3% over the remaining portion of the loan. Loans are also generally limited to $5 million, although higher amounts may be authorized on a case-by-case basis as determined by the DCED.

Grants
Grants for manufacturing facilities are available for up to $10,000 per job created within three years of grant approval. Grants are limited to $2 million for other alternative energy, clean energy projects, and high performance building projects; $500,000 for energy savings contracts (ESCOs); and $175,000 for planning and feasibility studies. Grants for green building projects are also limited to 10% of costs (as opposed to the general limit of 50% of costs for other projects).

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $5 million. The term of the grant may not exceed five years.

Special Session H.B. 1 authorized a total of $165 million for this program. Visit the program web site and review the funding guidelines for additional program details and application procedures.


*While solar energy is in fact eligible under the state AEPS, a specific solar energy program was also authorized as part of the enabling legislation and as a result solar energy projects have been excluded from some other programs created by the same legislation. The program guidelines do not list solar energy as an eligible technology. However, it appears that some solar technologies could qualify if they are incorporated into the broader design of a High Performance Building.

The Keystone HELP Energy Efficiency Loan Program is designed to help homeowners improve energy efficiency with special financing for high-efficiency heating, air conditioning, insulation, windows, doors, geothermal and “whole house” improvements. Principally supported by the Pennsylvania Department of Environmental Protection, the Pennsylvania Treasury Department and the Pennsylvania Housing Finance Agency, the Keystone HELP program is administered by AFC First Financial Corporation, a Pennsylvania energy efficiency lender.

Pennsylvania homeowners who own and make qualifying improvements to their one- or two-unit primary residence located in the state and whose combined annual household income does not exceed $250,000 are eligible to apply for loans under this program. Eligible applicants may receive only one loan during each fiscal year, but they may apply for additional loans in future years, as long as the additional projects comply with the published guidelines current at the time of application. Loans are available only for projects initiated after February 23, 2009. All installed equipment and material must be new, and work must be performed by a qualifying contractor. A list of qualifying contractors is available on the program web site.

The following types of loans are available for energy efficiency in general:

• Energy Improvements with Air Sealing (CAPP) Loans (unsecured) are for heating, cooling, insulation and other Energy Star qualified improvements that are part of a comprehensive project of blower door directed air sealing and other energy saving measures recommended by a BPI-certified contractor. The loan range is $1,000 - $15,000 with a fixed interest rate of 2.99% on a 3, 5, or 10 year loan term.
• Energy Star Loans (unsecured) are for the installation of qualifying Energy Star improvements or other improvements that meet program criteria. The loan range is $1,000 - $15,000. The rate is 8.99% (fixed). The term options are 3, 5 or 10 years.
• Advanced Performance Energy Star Loans (unsecured) are for the installation of qualifying improvements that exceed Energy Star standards. The loan range is $1,000 - $15,000. The rate is 7.99% (fixed). The term options are 3, 5 or 10 years.
• Whole House Improvement Loans (secured) are for improvements that make a whole house more energy-efficient, as recommended by an approved energy auditor. The loan range is $5,000 - $35,000. The rate range is 3.875% - 6.375% (fixed). The term options are 10, 15 or 20 years. Whole House Improvement Loans are available for qualifying improvements determined by a comprehensive "whole house" energy audit conducted by a qualifying auditor and the recommended energy improvements presented by the auditor. A post-construction audit is also conducted. Eligible applicants will receive $325 towards the cost of the energy audit from Keystone HELP upon completion of the post-construction audit.

In October 2010, the program introduced a series of new loan options for homeowners that install geothermal heat pump systems. Projects must be initiated after the effective date of the program (October 22, 2010) in order to qualify. There are no income limits for geothermal loans. Geothermal loan options are as follows:

• Geothermal Heat Pump System Loans (unsecured) from $1,000 - $15,000 are available for closed-loop geo-exchange systems that meet the Energy Star Tier II designation, as well as other improvements that are Energy Star qualified or meet program standards. Loans have a fixed interest rate of 4.99% over terms of 3, 5, or 10 years. Participants in this program (10-year term only) are also eligible for a geothermal tax credit anticipation loan set at 30% of the cost of the system (the value of the federal tax credit) from $2,500 - $10,000. Under this option, Keystone HELP makes the first 12 regular monthly payments of interest and principal on behalf of the borrower.
• Geothermal Heat Pump System Loans with Whole House Improvements (secured) are for projects that combine a closed-loop geo-exchange system that meets the Energy Star Tier II designation with whole house improvements recommended by a BPI/RESNET certified energy audit. A minimum energy savings of 15% - 25% is required depending on the energy profile of the home. Loan amounts may range from $5,000 - $35,000 at interest rates form 2.875% - 5.375% over terms of 10, 15 or 20 years. Eligible applicants will receive $325 towards the cost of the energy audit from Keystone HELP.

For more information please see the program website, which contains detailed program guidelines and also lists several private loans that are available for people and projects that do not qualify for the Keystone loan programs.

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 program will offer support for green buildings in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). In order to be eligible for incentives, new construction and major renovation projects must achieve the applicable Gold certification under USGBC LEED or the National Green Building Standard, or at least 3 Globes under the GBI Green Globes system. Buildings must also meet additional requirements in certain categories. Funds may be used for the following project costs:

• Acquisition of land and buildings, rights-of-way, and easements necessary for project construction
• Clearing and preparation of land to build an eligible project
• Construction or renovation of a high performance building
• Project planning, design, and modeling work
• Fees for registration and certification of a project
• Commissioning and enhanced verification of building performance

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.

Loans
Loans are available at a fixed interest rate -- 4% as of March 2012 -- and must be repaid within 10 years. The maximum loan is $100,000 for residential projects and $2 million for small business projects. Loans may be amortized over a period of up to 25 years.

Grants
Grants are available for up to 10% of eligible project costs or $500,000. Applicants may request both a grant and a loan, but not for the same project.

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant, up to $100,000 for residential projects and $2 million for small business projects.

Visit the program web site and review the funding guidelines for additional program details and application procedures.

The Pollution Prevention Assistance Account (PPAA) offers low-interest loans to help small businesses (100 full-time employees or less) located within the state implement energy efficiency and pollution prevention projects. Loans may be issued for 75% of project costs up to $100,000 within any 12-month period, with terms of up to 10 years. The program is only available to qualifying businesses that adopt or install pollution prevention or energy efficient equipment or processes that reduce or reuse raw materials on-site, reduce the production of waste, or significantly reduce energy consumption and are directly related to the business activity. Renewable energy systems are eligible for loans under this program if they meet the project eligibility criteria. A list of potentially eligible projects is provided in the program guidelines.

The program is administered by the PA Department of Environmental Protection and the PA Department of Community and Economic Development. Since the program's inception in 1999, DEP has received 186 loan applications totaling more than $9.3 million. In order to qualify, the project must have a payback that is less than or equal to the loan term, and the expected benefits must extend past the term of the loan. Applications are available at the program web site above.

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.

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 program will offer support for solar technologies in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). Eligible facilities are defined as those that generate, distribute, or store solar energy; manufacturing or assembly facilities for solar panels or other solar equipment; and solar technology R&D facilities. This definition includes both solar photovoltaic (PV) and solar thermal systems. All systems must have a lifetime of at least four years. Funds may be used for the following project costs:

• Acquisition of land and buildings, rights-of-way, and easements necessary for project construction
• Clearing and preparation of land to build an eligible project
• Construction or renovation of a building to manufacture solar components and systems
• Equipment purchases for the manufacture of solar systems
• Purchase, installation and construction of facilities to produce, distribute, and store solar energy or produce hot water using solar energy
• Project planning and feasibility studies
• Permit fees
• Administrative costs associated with an eligible project, not to exceed 3% of funding

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.

Loans
Loans are available at a fixed interest rate -- 5% as of August 2011 -- for terms of up to 10 years (equipment) or 15 years (real estate). Loans for manufacturing facilities are limited to $35,000 per job created within three years of loan approval. Loans for energy production projects are generally limited to $5 million although larger loans of greater than may be considered on a case-by-case basis. Loans for PV energy production projects are also limited to $2.25 per watt.

Grants
Grants for manufacturing facilities are available for up to $5,000 per job created within three years of grant approval. Grants for energy production facilities are generally limited to $1 million, although larger grants may be considered on a case-by-case basis. Grants for PV energy production projects are also limited to $2.25 per watt. Planning and feasibility studies are also eligible for grants of the lesser of 50% of the cost of the study or $175,000. The guidelines state that the CFA prefers to support generation projects through loans rather than grants; however, it will consider grant requests from projects for which there is not a long-term contract (10 years or more) in place for the Solar Renewable Energy Certificates (SRECs) produced by the project.

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $30 million. The term of the grant may not exceed five years.

Visit the program web site and review the funding guidelines for additional program details and application procedures.

Note: This program has been temporarily closed pending the development and approval of updated guidelines. The summary below describes the program as it existed prior to the suspension.

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 wind and geothermal 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 initially issued in January 2009 with revisions issued later in June and October 2009. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.). In addition, individuals seeking to install a geothermal heating and cooling system in a dwelling they occupy as a primary residence are also eligible for incentives.

The program will offer support for wind and geothermal technologies in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). The definition of geothermal includes, but is not limited to, closed-loop geothermal heat pump systems that use the ground, groundwater, or an underground mine as an energy source. Eligible wind energy-related applications include energy production facilities and manufacturing facilities for wind turbines and other system components. Funds may be used for the following project costs:

• Acquisition of land and buildings, rights-of-way, and easements necessary for project construction
• Clearing and preparation of land to build an eligible project
• Construction or renovation of a building to manufacture wind or geothermal components and systems
• Equipment purchases for the manufacture of wind or geothermal systems
• Purchase, installation, and construction of facilities to produce and distribute geothermal or wind energy
• Project planning and feasibility studies
• Permit fees
• Administrative costs associated with an eligible project, not to exceed 3% of funding

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.

Loans
Loans are generally available at a fixed interest rate for terms of up to 10 years (equipment) or 15 years (real estate). Interest rates are set at 1% for geothermal projects and determined by market rates (5% as of July 2011) for other projects. Loans for manufacturing facilities are limited to $35,000 per job created within three years of loan approval. Loans for geothermal systems may not exceed $3 per square foot of space to be served by the system, up to $5 million in general, and also limited to 50% of eligible costs for residential geothermal systems. Loans for wind energy generation or distribution projects are limited to $5 million.

Grants
Grants for renewable energy manufacturing facilities are available for up to $5,000 per job created within three years of grant approval. Grants for wind energy production or distribution facilities are limited to $1 million. Planning and feasibility studies are also eligible for grants of the lesser of 50% of the cost of the study or $175,000. Grants are not available for the installation of geothermal energy systems.

Loan Guarantees
Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $5 million. The term of the grant may not exceed five years.

Visit the program web site and review the funding guidelines for additional program details and application procedures.

Note: As of August 19, 2011 both the solar photovoltaic and solar thermal portions of this program are operating under a waiting list system. Applications will continue to be accepted, but rebates for waiting list applications are not guaranteed. Funding will only be assigned to new projects as it becomes available. Please see the program web site for additional details.

The Pennsylvania Sunshine program offers rebates to residential and small commercial residents that install photovoltaic (PV) and solar thermal systems. Systems that use solar thermal energy for the purpose of radiant heating or pool or hot tub heating are not eligible; however, other types of uses which require heated water are eligible (e.g., industrial process heating). The program was authorized in July 2008 by the state legislature and began accepting applications in May 2009 under the administration of the Pennsylvania Department of Environmental Protection (DEP). Only systems installed after the date of program opening are eligible for rebates. A total of $100 million (funded through state bonds) is available for rebates over the lifetime of the program. The DEP expects the program as a whole to last three to four years.

All residential applicants must be Pennsylvania residents, own the home upon which the system is installed, and use it as a primary residence (i.e., vacation homes and investment properties do not qualify for residential rebates). Small business applicants must be for-profit entities located within the state of Pennsylvania with no more than 100 full-time employees. This definition includes producers of an agricultural commodity. Low-income residents (60% or less of median state income) are eligible for higher incentives than other applicants.

It is important to note that residents and small businesses do not submit incentive applications themselves. Applications must be submitted on behalf of the applicant by an approved installer. Households are eligible for only one PV and one solar thermal rebate. Small businesses may receive multiple rebates, but are only permitted to submit one PV application and one solar thermal application at a time and must complete the project and rebate process prior to submitting another application.

The Pennsylvania Department of Environmental Protection has issued a policy statement on "double-dipping" from multiple solar rebate programs (e.g., the PA Sunshine and the PPL Electric Utilities solar rebate programs). Double-dipping is generally not permitted; however, the DEP does identify some circumstances where participation in PA Sunshine and another solar rebate program would not be considered double-dipping. Click here or visit the program website to view the DEP's statement.

The program was originally set up to provide rebates that decline over time as certain benchmarks, or "steps", of installed capacity were reached. The program is now coming to a close and incentive levels for PV are on the final step. Incentive levels for solar thermal systems remain on the first step. However, as noted at the beginning of this summary, the program is currently on a waiting list system and rebate funding is no longer guaranteed. In 2011 a separate stepped incentive schedule was added for battery back-up systems. This incentive was originally available for retrofits of existing systems installed on or after September 1, 2010 but is now only available for new system applications.

The list below describes incentive levels and other program rules as they stood as of Sepember 16, 2011.

• Residential PV: $0.75/W for systems of 1-10 kilowatts (kW). Systems larger than 10 kW are eligible, but incentives are limited to first 10 kW.
• Residential Battery Back-up: $0.35/amp-hour for up to 400 amp-hours/kW. Systems larger than 10 kW are not eligible for battery back-up incentives.
• Small Business PV: $0.75/W for systems of 3-10 kW and $0.50/W for next 90 kW. Systems larger than 100 kW are eligible, but incentives are limited to first 100 kW.
• Solar Thermal: 35% of installed system cost, with maximums of $5,000 for residences and $50,000 for small businesses.
• Low-Income (PV and Solar Thermal): 35% of installed costs (the maximum rebate authorized by the enabling legislation).

All work must be performed by approved installers (see list on program website), and systems are subject to a variety of equipment and installation requirements. System owners or site hosts are permitted to assign the rebate to an installer or a leasing company. The application procedures generally require that systems be grid-connected, but exceptions to this requirement may be granted by the DEP on a case-by-case basis at the applicant's request. The program will not cover costs associated with roof repair. Provisions also exist for system inspections and performance reporting.

Ownership of renewable energy credits (RECs) or other environmental attributes produced by rebated systems is not addressed in the program rules; however, Pennsylvania's net metering rules grant the customer-generator title RECs generated by net metered systems unless the customer assigns them to another entity or specifically rejects ownership. Please consult the program guidelines or contact the DEP for further program details.

Adams Electric Cooperative offers financing to help residential customers increase the energy efficiency of homes through the Energy Resource Conservation (ERC) and Supplemental Loan Program. Loans are processed by credit application, credit check, credit tests and credit documents. Residents who qualify for a loan can borrow up to $25,000 with terms of 1-7 years for installations in either existing or new houses. The loan can be used to finance a variety of heating/cooling systems and weatherization projects in both new housing or in existing housing.

Supplemental loan money is available for:

• Ground source heat pump installations 
• Heat Pump Plus installations 
• Electric Thermal Storage
• Demand side management installations

Further information is available on the program web site or from utility personnel.

Duquesne Light provides rebates on energy-saving equipment to commercial and industrial customers in the eligible service territory. There are 2 types of rebate programs available to all C&I customers. One is the rebate catalog listing specific equipment and its rebate amount. After purchasing and installing the equipment, the customer submits the necessary paperwork, and the rebate is paid to the customer by check. The second program is the customized rebate program where C&I customers are encouraged to undertake energy efficiency projects customized to facilities that include items not found in the rebate catalog. Rebates for the projects will be based on kWh's saved in a year. Customers will provide details of the planned installations and removals, hours of operation, etc. Customers will be informed of the rebate amount before they start the project. Rebate checks for customized projects will be issued after installation is complete. Duquesne Light has partnered with conservation service providers to work with specific segments of customers. These conservation service providers can assist customers with energy audits, project identification, cost and savings calculations, equipment specification, project management and rebate paperwork. See program web site listed above for more information.

Duquesne Light provides rebates to its residential customers for purchasing and installing energy-saving equipment. Eligible equipment includes dehumidifiers, freezers, refrigerators, air conditioning units, ceiling insulation, programmable thermostats, house fans, indoor and outdoor lighting, pipe wrap, insulation, controls, and pool pumps. Customers must purchase and install equipment before applying for rebate. Customers must then fully and accurately complete the rebate form and send it to the address stated on the document. Rebates are paid by debit card, which should be received within 60 days of rebate form submittal. Rebates totaling less than $10.00 will be sent via check. Equipment standards must meet efficiency requirements of program. Call 877-694-2197 for rebate inquiries. Duquesne runs a separate rebate program through another conservation service provider, which offers a $35 rebate to residential customers who properly recycle refrigerators. See Refrigerator Recycling on www.wattchoices.com or call 1-877-270-3521 for more information on this program.

Duquesne Light provides rebates to its residential customers for purchasing and installing qualifying solar water heating systems. Eligible systems may receive a flat rebate of $300 per qualifying system. Various equipment, installation, contractor, and warranty requirements apply, as summarized above and described in more detail in program documents. Customers must purchase and install equipment before applying for rebate and must then fully and accurately complete the rebate form and send it to the address stated on the document. Rebates are paid by debit card, which should be received within 60 days of the submission of the rebate form. Application forms, terms and conditions, and a list of eligible systems are available on the program website. Customers interested in participating in the program can call 877-694-2197 for further details.

First Energy Utilities (MetEd, Penelec, Penn Power) in Pennsylvania provide rebates to residential customers for purchasing and installing qualifying solar water heating systems. Eligible systems may receive a rebate of up to $500.  Applications must include a dated sales receipt from the contractor and a copy of the Solar Rating and Certification Corporation (SRCC) certificate indicating SRCC OG-100 certification. Application forms, terms and conditions, and a list of eligible systems are available on the program website.

The Pennsylvania Energy Efficient New Homes Program has been suspended in Penn Power territory. Contact Penn Power for information on the future status of this program.

The Residential HVAC Program offers rebates on the purchase of qualifying central air conditioners, air source heat pumps, and geothermal heat pumps. All efficiency requirements for these HVAC rebates must be met. See the application form on the program web site for any additional details and requirements. The Appliance Turn-In Program allows customers to receive rebates of $50 for turning in inefficient refrigerators and freezers and $25 for inefficient air conditioners. JACO Environmental Inc. will pick up and recycle older appliances when customers call 1-877-270-3521. The Energy Efficient Products Program allows residential customers to apply for rebates on Energy Star qualified clothes washers, refrigerator-freezers, water heaters, chest freezers, room air conditioners and dehumidifiers. Residential customers can also receive $1 rebates for Compact Fluorescent Light bulbs from retail stores in the companies' service territories. The Whole House Program also provides incentives for implementing a comprehensive home energy audit as well as installing measures as a result of the audit. Contact Penelec or Honeywell for more information on this program.

*FirstEnergy Corp.'s Pennsylvania Electric Company, Metropolitan Edison Company, and Pennsylvania Power Company have introduced a variety of residential programs to comply with Pennsylvania Act 129.
 

In order to help meet the goals established in Pennsylvania's Act 129, FirstEnergy's Pennsylvania companies (MetEdison, Penelec, and Penn Power) are providing energy efficiency incentives for a variety of equipment. Eligible equipment includes heat pumps, air conditioners, chillers, lighting measures, motors, and custom incentives.  A participant or contractor should submit an application package before the equipment is purchased, install the equipment after receiving an approval letter, and submit proof of purchase/manufacturing specifications within nine months to receive available incentives. Contact FirstEnergy or SAIC, the program administrator, for more information on this offering.

FirstEnergy (West Penn Power) offers various rebates to eligible commercial, industrial, non-profit, local government and institutional customers in Pennsylvania service territory who upgrade to energy efficient equipment. Rebates are available on lighting, controls, HVAC equipment, sensors, exit signs, food service equipment, refrigeration and custom projects. Contact FirstEnergy regarding custom incentive options for projects which do not fit within the scope of the prescriptive rebate offerings. All appropriate forms, requirements and guidelines for equipment may be found on the program web site listed above. All application forms must be filled out completely along with all necessary purchase documentation. Contact First Energy (West Penn Power) for other information regarding this program.

FirstEnergy (West Penn Power) offers a variety of incentives to Pennsylvania residential customers who are interested in upgrading to more energy efficient appliances and equipment. Rebates are available on washers, refrigerators, freezers, dehumidifiers, appliance recycling, CFL light bulbs, room ac units, water heaters, central ac units, heat pumps and geothermal heat pumps. Most appliances are only eligible for one rebate per customer per year, however room ac units have a maximum limit of 3 per customer. All efficiency and equipment standards on the program web site and forms must be met in order to receive rebates. See program web site listed above for more information on eligible equipment and program guidelines. Customers are asked to allow six to eight weeks for processing.

West Penn Power, a First Energy utility, provides rebates to residential customers for purchasing and installing qualifying solar water heating systems. Eligible systems may receive a rebate of up to $500. Applications must include a dated sales receipt from the contractor and a copy of the Solar Rating and Certification Corporation (SRCC) certificate indicating SRCC OG-100 certification. Application forms, terms and conditions, and a list of eligible systems are available on the program website.

Philadelphia Gas Works' (PGW) Commercial and Industrial Equipment rebates are available to all PGW commercial and industrial customers installing high efficiency boilers or eligible commercial food service equipment. All equipment must meet program efficiency and installation requirements. Boiler rebates vary based upon the size and efficiency of the unit. Boiler rebates are provided for equipment with a rating of either Thermal Efficiency 85 or Thermal Efficiency 90. See the program web site for more information on rebate amounts, equipment requirements, and fund availability.

Once PGW determines the incentive level, customers can implement the eligible project and submit a Project Completion Certificate within 60 days of project completion. After an inspection of the installed measures, PGW will pay incentives within 4 to 6 weeks. In order for projects to be eligible, applying entities must be PGW commercial or industrial rate customers, the project must have begun the project after September 1, 2011, and all upgrades must be performed on an "existing building". Multi-family property owners are encouraged to apply as well. Major rehabilitation projects and new construction is not eligible for this program, but may be eligible for other PGW incentives. Contact PGW for more information on this program or visit the program web site.

Philadelphia Gas Works (PGW) provides incentives to developers, home builders and building owners that build new or gut-rehab facilities to conserve gas beyond the level consumed at code (IECC 2009). Eligible residential developers and builders can receive a flat rebate of $750 per unit. Based upon the level of gas savings beyond code, commercial builders and developers can receive an incentive of $13/MMBtu, $24/MMBtu or $40/MMBtu in first year energy savings. Commercial incentives are capped at $60,000 per project. Projects may use a variety of equipment and measures to acheive gas savings, including: Water Heaters, Furnaces, Boilers, Heat recovery, Steam-system upgrades, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Siding, Roofs, Motors and Motor VFDs. View the program web site for program details and full requirements.

Philadelphia Gas Works' (PGW) Residential Heating Equipment rebates are available to all PGW residential or small business customers installing high efficiency boilers and furnaces, and programmable thermostats. All equipment must meet program requirements in order to be eligible for rebates. Furnace rebates are issued in the form of a pre-paid visa card. See the program web site for more information on rebate amounts, equipment requirements and fund availability.