Knowing where to find financing is one of the most important elements of
developing a renewable energy project. Financing for a renewable
energy improvement or to add it to new construction is similar to
financing any other home improvement or capital project. However, there
are some important differences, challenges, and resources you should be
aware of. These systems are generally not cheap and typically you will need to
make a significant investment on your own plus have some help from
incentives to make it pay. Below we have included some financial opportunities that may be available to you. Installers should also be knowledgeable of
available opportunities related to your project.
Rural Energy for America Program
(REAP)Administered by USDA—Rural DevelopmentThe Rural Energy for America Program (REAP) provides assistance to agricultural producers and rural small businesses to complete a variety of projects. Offering both loan guarantees and grants, REAP helps eligible applicants install renewable energy systems, make energy efficiency improvements, and conduct energy audits and feasibility studies.
On-Farm Energy InitiativeThis program, through the UDSA NRCS, provides
funding for an energy audit (Agricultural Energy Management Plan, or AgEMP) or
energy efficiency improvements on the farm.
Appalachian Regional Commission
ARC, a joint program of federal, state, and local governments in the Appalachians, provides a
range of assistance to help communities develop clean energy programs, a well as support to help new energy businesses expand and create local jobs.
Federal Tax CreditAdministrated
by the US Internal Revenue Service, Environmental Protection Agency and Department
of EnergyThis program allows a tax credit on fuel cells, small wind turbines, geothermal heat pumps, solar water
heaters and photovoltaic systems through 2021 (with a gradual step down from 30% to 26% to 22% between 2019 and 2021, before being phased out completely). Homes, businesses, farms,
industrial facilities and other organizations may qualify.Residential WebsiteBusiness Website
Modified Accelerated Cost-Recovery System
This tax strategy can be used by businesses to recover the cost of various renewable
Alternative and Clean Energy Program (ACE)Administered by the Commonwealth Financing Authority - Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP)
The Alternative and Clean Energy Program provides financial assistance in the form of grant and loan funds that will be used by eligible applicants for the utilization, development and construction of alternative and clean energy projects in PA.
Energy Development Authority (PEDA)
The authority finances advanced energy projects
in Pennsylvania through grants, loans, and loan guarantees.
PA DEP Small Business Advantage Grant This program offers a 50% match of up to $7,000 to enable Pennsylvania small businesses to purchase energy efficient or pollution prevention equipment, or adopt waste reduction processes.
PA DEP Website
Property Assessed Clean Energy (C-PACE)
Commercial and agricultural property owners may
develop a clean energy project and secure a capital provider to finance the
project (including equipment, labor and soft costs). A low-cost, long-term loan
payment that repays the costs of the upgrades is added to the property tax bill
and collected as an assessment by the county/municipality. Available in participating locations.
ACT 129 and other energy efficiency/conservation initiatives Many electric utilities offer rebates and other incentives to reduce electricity consumption and peak demand.
Sustainable Energy Funds (SEF)Created through the restructuring of electric companies, these funds promote sustainability and renewable energy in PA.
Metropolitan Edison Region Sustainable
Energy Fund, Administered by the Berks County Community Foundation
Penelec Region Sustainable Energy Fund, Administered by the Community Foundation for the Alleghenies
Met-Ed/Penelec SEF Website
Sustainable Development Fund, Administered by The Reinvestment Fund
TRF SEF Website
West Penn Power Sustainable Energy FundWPPSEF Website
Sustainable Energy Fund of Central Eastern
Database of State Incentives for Renewables and Efficiency (DSIRE)Maintained by the Carolina Clean Energy Technology CenterFunded through the U.S. Department of Energy
DSIRE is a
comprehensive source of information on state, federal, local, and utility incentives and policies.
Find an installer for your project. We encourage you to take your time and explore your options. Get several quotes and make a comparison.
SFU IFE Renewable Energy Business Directory
Sustainable Energy Fund's Energy Service Providers List
Good luck with your project!
Disclaimer: Information provided for reference purposes only and may be out of date/incomplete. Use at your own risk.
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