Solar Energy Program (SEP)
Overview
The Solar Energy Program (SEP) provides financial assistance in the form of grant and loan funds to promote the use of solar energy in Pennsylvania. The program is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under the direction of the Commonwealth Financing Authority (CFA).
Uses
Activities to promote the generation and use of solar energy and the manufacture or assembly of solar equipment.
Eligibility
- Businesses
- Economic development organizations
- Political subdivisions, including municipalities, counties and school districts
Funding
Grants
Grants for component manufacturers of solar energy generation equipment up to $5,000 for every new job created within three years after approval of the loan. Grants for solar energy generation or distribution projects shall not exceed $1 million or $1.50 per watt, whichever is less. In exchange for a grant, Solar PV projects will contractually commit to transfer ownership of the Solar Renewable Energy Credits (SRECs) generated by the system over to the CFA for the life of the project.
Loans
Loans for component manufacturers of solar energy generation equipment up to $40,000 for every new job created within three years after approval of the loan. Loans for solar energy generation or distribution projects shall not exceed $5 million or $3.00 per watt, whichever is less.
Loan Guarantees
Loan guarantee grants shall not exceed $5 million and have a term of not more than five years. In the event of a default, the grant will pay up to 75 percent of the deficiency.
Terms
There is a matching investment requirement of at least $1 for every $1 of program grant funds awarded. There is a matching investment requirement of at least $1 for every $3 of program loan funds awarded. There is a $100 non-refundable application fee due at the time of submission made payable to the CFA. There is a 1% commitment fee on all approved loans.