Sustainable Development Fund Financing Program (PECO Territory)

The Pennsylvania Public Utility Commission created the Sustainable Development Fund (SDF) in its final order of the PECO Energy electric utility restructuring proceeding. The Reinvestment Fund, Inc. (TRF), which was formed in 1985 to build wealth and opportunity for low-wealth communities and low- and moderate-income individuals, administers the SDF. The SDF later received additional funding and responsibilities as a result of the PECO Energy/Unicom merger settlement. That settlement added funding for new wind development, for solar photovoltaics and for renewable energy education, as well as a lump-sum payment and an increase in SDF’s core fund. In total, the fund has received approximately $31.8 million in income over its lifetime.

The SDF provides financial assistance to eligible projects in the form of commercial debt, subordinated debt, lease financing, and energy performance contract financing. The Sustainable Development Fund provides financial assistance for the following types of ventures:

• Companies and ventures that generate electricity using renewable energy sources;
• Manufacturers, distributors and installers of renewable energy, advanced clean energy and energy-conserving products and technologies; and,
• Companies and organizations that are end-users of renewable energy, advanced clean energy and energy-conserving products and technologies.

The specific terms of the financial support are flexible and are determined on a case-by-case basis. SDF also has a lease-financing product for large nonprofit institutions (schools and hospitals) and commercial real estate owners for energy conservation improvements.

The SDF Commercial Financing Program provides flexible business loans to:

• Manufacturers, wholesalers/distributors, retailers and service companies who want to finance equipment upgrades or electricity energy savings improvements to their plant/office facilities;
• End-user companies wishing to purchase advanced clean energy systems; and
• Start-ups and expansions of companies producing clean energy.

The SDF 2019 Annual Report to the Pennsylvanian Public Utilities Commission (PUC) contains information about past and current program activities. For more information on financing opportunities, visit the program website above.