Funding sources for projectsFunding assistance is available for many clean energy projects. Use the links at the top of this page to get to funding information for your specific project lower on this page. Some funding sources close applications for periods of time, but often offer notification systems with registration.
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 Solar
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 Wind
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 Other renewables
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 Conservation and efficiency
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 Building-efficiency upgrades
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- Pennsylvania programs
- Alternative Energy Investment Act programs
residential and small business projects
Register with DEP to be notified as funds become available. | Download a fact sheet. - The Alternative Energy Investment Act (Special Session House Bill 1) of July 9, 2008 created a $650 million energy fund, most of which ($500 million) will be available in the first few years of the plan.
The rest will go to deployment and manufacturing of other clean energy technologies, energy efficient heating and cooling systems and support of early-stage activities and research in clean energy. Allocations will be available for green buildings, geothermal and wind projects, the Low Income Home Energy Assistance Program (LIHEAP), alternative energy production tax credits and a home energy efficiency loan program.
- Sunshine Program
small business and residential projects
Program will provide $100 million in rebates to help fund solar electric [solar photovoltaic (PV)] and solar hot water (solar thermal) projects. Rebates will be awarded on a first-come first-served basis to approved applicants. Households may receive one solar PV rebate for up to 10 kilowatts (kW) of installed PV generating capacity plus one solar thermal rebate not to exceed $2,000. Small businesses may only submit one PV and one solar thermal application at a time and must complete the project and rebate process prior to submitting another application.
State rebates are considered taxable income; the DEP will send out form 1099 for the rebates.
- Commonwealth Financing Authority (CFA) solar program
610-433-7486 or 888-AFC-FIRST (232-3477)
business, economic development, municipality, county, research and development and school projects
Loan maximum of $35,000 to manufacturers of solar equipment for every new job projected to be created within three years; loan maximum for solar-energy generation or distribution project is lesser of either $5 million or $2.25 per watt. Loan maximum of $5 million for a solar research and development facility or a solar thermal project.
Grants of $5,000 for solar-equipment manufacturers for every new job projected to be created within three years. Grant maximum for a solar energy generation or distribution project is lesser of either $1 million or $2.25 per watt. Grant maximum grant of $1 million for a solar research and development facility or a solar thermal project.
Projects ranked on criteria to include level of matching funds (minimum of a one-to-one match requirement), technical and financial feasibility of project and number and quality of jobs to be created or preserved in Pennsylvania.
- High Performance Building program
residential and small business projects
Program offers grants and loans for new-build and renovation projects of primary residences and businesses with 100 or fewer full-time employees. Sustainability guidelines must be met. Can apply for loan or grant, but not both.
Loans up to $2 million available for small-business and $100,000 for residential projects. Grants up to $500,000 or 10 percent of total eligible costs also available.
Funds can be used for most aspects of green building construction and renovation including: land acquisition, buildings, rights-of-way, easements, land clearing, planning, designing, modeling or consulting services, registration and certification with the U.S. Green Building Council or construction and renovation.
Projects ranked on criteria to include level of matching funds (minimum of a one-to-one match requirement), number and quality of jobs to be created (small business applicants only), financial need and project readiness.
- Small Business Energy Efficiency Grant Program | ra-sbgrants@state.pa.us
small business and agricultural projects
closed, but might reopen
Online seminars to explain the program are available.
Provides a 25 percent match, up to $25,000, for equipment or processes that significantly improve energy efficiency.
Applicants must be independent, for-profit businesses with 100 employees or fewer, located in Pennsylvania. Project must save at least 20 percent annually in energy-related expenses, with minimum savings of $1,000 per year.
- Keystone HELP Residential Energy Efficiency Program
610-433-7486 or 888-AFC-FIRST (232-3477)
residential projects
Program will provide $3.5 million to reduce interest rates on nearly $16 million in low-interest loans for energy efficiency improvements, including installation of energy-efficient heating and air conditioning systems, geothermal systems, insulation and air sealing, and more. Program also includes $1 million for rebates to cover up to $250 or 10 percent of the cost of ENERGY STAR qualified improvements.
Department of Environmental Protection, Pennsylvania Treasury Department, Pennsylvania Housing Finance Agency and AFC First Financial offer the program.
- HUD Title I Loans
residential and small business projects
- This program provides a guarantee for loans to finance light or moderate rehabilitation of properties and construction of nonresidential buildings on the properties. The program may be used to insure loans for up to 20 years on single family or multifamily properties. Maximum loan amount is $25,000 to improve a single family home or to improve or build a nonresidential structure; multifamily properties are eligible for insurance up to $60,000.
- Energy Efficient Mortgages (EEMs)
residential projects
- These mortgages can be used in new or existing homes to finance energy efficiency measures, including renewable energy technologies. The federal government supports the loans by insuring them through Federal Housing Administration (FHA) or Veterans Affairs (VA) programs. The program allows borrowers who might otherwise be denied loans to pursue energy efficient improvements, and secures lenders against loan default, by allowing lenders to approve customers who they might have otherwise denied.
- Sustainable Energy Funds (SEF)
commercial, industrial, nonprofit, school, local and state government projects
- In 1998, as a result of the restructuring plans of five electric companies, the Pennsylvania Public Utility Commission (PUC) created four funds to promote development of renewable energy companies and projects and energy conservation. Funds have provided $20 million+ in loans and $1.8 million in grants to 100+ projects.
Funds are associated with service territories. Use your territory's link to find more information.
- Pennsylvania Energy Harvest Grant Program
Department of Envrionmental Protection (DEP) Grants Center, 717-705-5400
commercial, industrial, nonprofit, school, local and state government, and farm projects
- DEP is particularly interested in projects that demonstrate measurable pollution reduction and decreased energy use. The program provides the last increment of funding to implement clean and renewable energy technologies in Pennsylvania, with projects typically funded at five to six million dollars annually. Since May 2003, the program allocated $15.9 million to 100 projects that leveraged another $43.7 million in private funds.
- Pennsylvania Energy Development Authority (PEDA)
717-772-5942
business, industry, school, municipality and nonprofit projects
- Under this program, approximately $10 million for grants, loans and loan guarantees is made available annually. The program is administered by DEP Office of Energy and Technology Development and the Pennsylvania Department of Community and Economic Development (DCED). Both tax-exempt and taxable bond financing are also available through PEDA's partnership with the Pennsylvania Economic Development Financing Authority.
The most recent PEDA awards, (October 2007), provided $6.4 million to 16 clean energy projects that will create 316 permanent, and up to 280 construction, jobs in the commonwealth and leverage more than $38 million in private funds. Since 2005, PEDA has awarded $21 million in grants and loans for 57 clean energy projects that will leverage another $240 million in private investment. - Pennsylvania Home Heating Equipment Rebate Program | 877-592-2061
residential projects
- Rebate program of $11.9 million for non-electric ENERGY STAR qualified residential water heaters, furnaces and boilers. Rebates cannot be combined with utility energy efficiency rebates for the same piece of equipment.
- Small Business Advantage Grant Program
717-772-5160
small business projects
closed, but may reopen
- DEP, the grant administrator, provides matching funds up to $7,500 to businesses with a maximum of 100 full-time employees; the recipient must demonstrate at least a 10 percent annual economic gain or savings through energy conservation or pollution prevention as a direct result of the proposed project.
- Pennsylvania Alternative Fuels Incentive Grant (AFIG) Program
717-772-8912
small business projects
closed, but may reopen
- This program provides funding for construction of alternative fuel stations and research and development projects. The money can be used for purchase of hybrid and other cleaner vehicles and to cover the incremental cost of a biofuel. As support for biofuels continues to grow, this or similar funds are likely to grow. Since the program began in early 1990s, DEP has awarded almost $30 million.
- Energy Cooperative Solar Energy Buy-Back Program (PECO service territory)
residential and small business projects
- The Energy Cooperative (ECAP) offers financial incentives to members who generate power from one- to five-kW photovoltaic systems. Members choose between two pricing and payment options.
- Pennsylvania Home Energy
residential projects
- Financial incentives from $200-$1,000 available within the 23-county West Penn Power service region for ENERGY STAR whole-house-approach system on new construction or existing structure upgrades. Program is expected to expand to other areas of the state.
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- Philadelphia Home Improvement Loan Program
residential projects
- Program offers low-interest loans up to $25,000 for owner-occupied residences in the city of Philadelphia for home improvements that include energy-efficiency upgrades.
- Philadelphia Housing Development Corp. Weatherization Assistance Program
residential projects
- Program provides free energy audits and weatherization and energy efficiency improvements to owner-occupied houses and tenant-occupied rental units in the city of Philadelphia. Income guidelines apply. Applications made by phone at 215-448-2160.
- Federal programs
- Federal Residential Tax Credit
residential projects
- A 30 percent tax credit is available for purchase and installation of solar electric and solar water heating systems. Consumers can qualify for two credits – one for a photovoltaic system and another for a solar water heating system.
- Federal Renewable Energy Incentives
residential, business and agricultural projects
- Various incentives, tax deductions, loans and grants are available for clean energy technologies.
- Emergency Economic Stabilization Act of 2008 Clean Energy Incentives
residential and commercial projects
- When former President Bush signed Public Law No: 110-343, financial incentives to help the development of renewable energy and energy efficiency technologies that were included in the legislation also took effect.
- Tax Incentives Assistance Project (TIAP)
residential and commercial projects
- This project is sponsored by a group of public interest nonprofit groups, government agencies and other organizations in the energy efficiency field. It gives consumers and businesses information about using federal income tax incentives for energy efficient products and technologies passed by Congress as part of the Energy Policy Act of 2005 and its amendments.
- Conservation Innovation Grants (CIG)
non-federal government or non-government organizations or individuals
- This is a voluntary program to stimulate development and adoption of innovative conservation approaches and technologies. Projects must not exceed three years. Grant cannot exceed $2 million; at least 50 percent of the total project cost must come from non-federal matching funds (cash and in-kind contributions) provided by the grantee.
Four categories for the 2009 grant competition:
- Natural Resource Concerns, up to $5 million available
- Technology, up to $6 million available
- Grant Leveraging, up to $4 million available
- Chesapeake Bay Watershed, up to $5 million available
- Rural Energy for America Program (REAP)
agricultural projects
- Title IX of the 2008 United States Department of Agriculture (USDA) Farm Bill contains several funding options for renewable energy projects.
- USDA Small Business Innovation Research Program
small business projects
- Research and development funding for alternative and renewable energy technology from the federal Department of Agriculture.
- Industrial Technologies Program, U.S. Department of Energy
industrial projects
- This program works to improve energy efficiency and environmental performance by 1) investing in high-risk, high-value research and development projects and 2) conducting on-site energy efficiency assessments for U.S. companies and offering information about best practices in energy management.
- Loan Guarantee Program, U.S. Department of Energy
commercial projects
- Program is available for projects that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases" and "employ new or significantly improved technologies as compared to technologies in service in the United States at the time the guarantee is issued." Application dates and deadlines are based on solicitations, for which prospects can register.
- Energy Efficiency and Renewable Energy financing, U.S. Department of Energy
business, industry, university, residential, federal, state, tribal and inventor projects
- Program offers grants, cooperative agreements, continuation and renewal awards for projects, research and development and procurement.
- Small Business Innovation Research program, U.S. Department of Energy
small business projects
- Program provides funding for research and development on projects related to "clean" technology innovation.
- American Recovery and Reinvestment Act (ARRA) programs
residential and small business projects
On February 17, President Obama signed the ARRA into law to infuse the economy with $787 billion. Pennsylvania is slated to receive $16 billion in federal funds, with a portion dedicated to clean energy. The ARRA amends several clean energy tax credits and incentives to spur further development.
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- Definitions of terms and other general information, including programs for fuel-efficient automobiles is available from the Alliance to Save Energy.
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- Home Heating Equipment Rebate Program
residential projects
Starting April 21, 2010, rebates became available for the purchase of qualifying high-efficiency non-electric ENERGY STAR-qualified water heaters, furnaces and boilers.
- Residential Energy Efficiency Tax Credit
residential projects
The ARRA triples tax credits available to homeowners for energy-efficient improvements from 10 percent to 30 percent of the cost, up to $1,500 per household through 2010.
- Residential Renewable Energy Tax Credit
residential projects
A 30-percent tax credit (with no cap) on installation of solar hot water heaters, photovoltaics, other solar electric technologies, small wind, fuel cells and geothermal heat pumps. This tax credit can be combined with Pennsylvania's Sunshine Program, the rebate from which is considered income. Because the state rebate is taxable, homeowners can take the federal credit based upon the full price of the solar system (without subtracting the rebate amount).
- Renewable Electricity Production Tax Credit (PTC) and Business Energy Investment Tax Credit (ITC)
commercial, industrial, utility projects
Taxpayers eligible for the PTC can take the federal ITC or receive a grant from the U.S. Treasury Department instead of taking the PTC for new installations. The new law also allows taxpayers eligible for the business ITC to receive a grant from the U.S. Treasury Department instead of taking the business ITC for new installations. It also extends the ITC for combined heat and power systems through 2016. These new provisions will provide funds to renewable energy companies that do not have enough tax liability to take the tax credit due to current market conditions, helping to keep the market moving forward.
- Energy Efficient Commercial Buildings Tax Deduction
commercial projects
The ARRA extends this tax deduction of $1.80 per square foot for energy efficiency improvements to the end of 2013.
- Energy-Efficient New Homes Tax Credit for Home Builders
commercial projects
The ARRA creates a one-year extension of the new energy-efficient home tax credit, up to $2,000 for builders.
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