Skip Navigation

The U.S. Department of Energy and the North Carolina Solar Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in the summer of 2014. Staff are currently working hard on the new DSIRE and are unfortunately only able to make minimal updates to the DSIRE website at this time. We apologize for any inconvenience and thank you for using DSIRE.

US Department Energy Efficiency and Renewable Energy
IREC North Carolina Solar Center
Home Glossary Links FAQs Contact About Twitter    Facebook
Pennsylvania

Pennsylvania

Incentives/Policies for Renewables & Efficiency

Printable Version
Wind and Geothermal Incentives Program   

Last DSIRE Review: 07/23/2012
Program Overview:
State: Pennsylvania
Incentive Type: State Loan Program
Eligible Renewable/Other Technologies: Wind, Geothermal Electric, Geothermal Heat Pumps, Geothermal Direct-Use
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government
Amount:Varies by project, but program generally requires matching funds at least equivalent to DCED funding
Maximum Incentive:Manufacturer loans: $35,000 per job created within 3 years
Manufacturer grants: $5,000 per job created within 3 years
Loans for geothermal systems: $3 per square foot of space served up to $5 million; also limited to 50% of eligible costs for residential systems.
Loans for wind energy production projects: $5 million
Grants for wind energy production projects: $1 million
Grants for feasibility studies: 50% of cost up to $175,000
Loan guarantee grants: Up to 75% of deficient funds up to $5 million
Terms:Loans at a fixed interest rate of 1% for geothermal projects and market rates (5% as of July 2011) up to 10 years (equipment) or 15 years (real estate). Loan guarantee grants have a maximum term of 5 years.
Funding Source:Alternative Energy Investment Fund (state issued bonds)
Program Budget:$25 million
Start Date:January 2009
Web Site: http://www.newpa.com/find-and-apply-for-funding/funding-and-progr...
Authority 1:
Date Enacted:
Special Session H.B. 1
07/09/2008
Summary:

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.


 
Contact:
  Program Information - DCED Renewable Energy Program
Department of Community and Economic Development
Center for Business Financing - Site Development Division
Commonwealth Keystone Building
400 North Street, 4th Floor
Harrisburg , PA 17120-0225
Phone: (717) 787-7120
Fax: (717) 772-3581
E-Mail: ra-dcedcbf@state.pa.us
Web Site: http://www.newpa.com
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.