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The Solar Energy Program (SEP) in Pennsylvania is a state initiative aimed at expanding solar energy usage and supporting the solar industry through financial assistance. By offering grants, loans, and loan guarantees, the SEP provides funding to encourage solar energy generation and the development of solar technology. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the guidance of the Commonwealth Financing Authority (CFA).
Program Goals and Uses
The SEP funds projects that:
- Promote the generation and use of solar energy
- Support the manufacturing and assembly of solar equipment within Pennsylvania
Eligibility for SEP Funding
SEP funding is available to:
- Businesses
- Economic development organizations
- Political subdivisions, including municipalities, counties, and school districts
Types of Funding
The program offers three types of financial assistance: grants, loans, and loan guarantees.
Grants
- For Solar Equipment Manufacturers: Grants up to $5,000 are available for each new job created within three years after loan approval.
- For Solar Energy Generation/Distribution Projects: Grants can reach up to $1 million or $1.50 per watt (whichever is less).
- Solar Renewable Energy Credits (SRECs): In exchange for receiving grant funding, solar PV projects must contractually agree to transfer ownership of SRECs generated by the system to the CFA for the project’s duration.
Loans
- For Solar Equipment Manufacturers: Loans of up to $40,000 are available for each new job created within three years of loan approval.
- For Solar Energy Generation/Distribution Projects: Loans can go up to $5 million or $3.00 per watt, whichever is lower.
Loan Guarantees
Loan guarantee grants cover up to $5 million with a maximum term of five years. In case of a loan default, the guarantee will cover up to 75% of the deficiency.
Program Terms and Requirements
Matching Investment
Applicants must provide matching investments for SEP funds—at least $1 for every $1 of grant funds and $1 for every $3 of loan funds.
Fees
There is a $100 non-refundable application fee due at submission, payable to the CFA. Approved loans also carry a 1% commitment fee.
Application and Approval Process
The SEP provides a structured pathway for businesses, organizations, and local government bodies to engage in solar energy projects with accessible financial support. For additional information, application forms, and detailed guidelines, interested parties can contact the Commonwealth Financing Authority or visit the Pennsylvania Department of Community and Economic Development (DCED) website.
With SEP funding, Pennsylvania aims to foster growth in its solar industry, support job creation, and enhance renewable energy production to move toward a more sustainable energy future.
