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Discover the Power of Solar Energy in Pennsylvania!

Welcome to Pennsylvania, a state rich in history, diverse landscapes, and a growing enthusiasm for renewable energy. As Pennsylvania strides towards a sustainable future, solar energy is emerging as a key player, thanks to the state?s favorable policies, a strong network of solar installers, and financial incentives designed to make solar power accessible to more residents and businesses. Despite its varied climate, Pennsylvania enjoys a significant number of sunny days, providing ample opportunity for solar power generation throughout much of the state. This push towards solar is not only helping to reduce electricity costs for Pennsylvanians but also contributing to the state?s environmental goals by decreasing reliance on fossil fuels. Learn how adopting solar energy can illuminate your home, cut down on energy bills, and play a part in Pennsylvania?s journey towards a cleaner, more sustainable energy landscape. Join us in tapping into the sun?s potential and stepping into a brighter future in the Keystone State.

Solar State Incentives

Pennsylvania State Solar Incentives

PPL Electric Utilities - Business Incentive Program
PPL Electric Utilities promotes energy efficiency with incentives based on kWh saved, encouraging sustainable practices for a greener future.
City of Philadelphia - Solar Rebate Program
Philadelphia's Solar Rebate Program, encouraging solar installations, is currently closed due to COVID-19 related budget cuts. Applications are still accepted for a waitlist.
Solar Energy Loan Program
The Solar Energy Program offers loans for solar energy initiatives in manufacturing, research and development. Businesses, economic development organizations, and political subdivisions are eligible.
Solar Alternative Energy Credits
Pennsylvania's Alternative Energy Portfolio Standard mandates that each electric provider must supply about 18% of its electricity from alternative sources by 2021. To comply, suppliers can purchase Solar Alternative Energy Credits (SAECs), a potential revenue source for qualifying solar facilities. The value of SAECs varies annually. As of February 2022, the SAEC market price was $40.
City of Philadelphia - Streamlined Solar Permitting and Fee Reduction
Philadelphia offers homeowner incentives for solar energy adoption, including streamlined permitting processes, reduced fees, and an informative guidebook.
Energy Efficiency and Conservation Requirements for Utilities
Pennsylvania's Public Utility Commission continues to implement energy efficiency program, aiming for increased reductions in energy consumption and demand from electric distribution companies.
FirstEnergy (MetEdison, Penelec, Penn Power, West Penn Power) - Residential Energy Efficiency Programs
First Energy offers energy efficiency programs including free energy kits, home energy audits, appliance rebates, HVAC tune-ups, and special programs for low-income households in Pennsylvania.
City of Philadelphia - Green Power Purchasing
Philadelphia's Municipal Energy Master Plan aims to reduce greenhouse gas emissions and energy use by 50% and 20% respectively, and achieve 100% renewable electricity by 2030.
Duquesne Light Company - Residential Energy Efficiency Program
Duquesne Light incentivizes residential customers to invest in energy-saving equipment through rebates. Rebate forms should be completed and sent within 60 days to benefit from the program.
Alternative and Clean Energy Program
Pennsylvania's Alternative and Clean Energy Program offers loans, grants, and loan guarantees for renewable energy and energy efficiency projects. Eligibility varies by applicant type.
Pennsylvania Alternative and Clean Energy Program (ACE)
Pennsylvania's Alternative and Clean Energy Program provides grants and loans for renewable energy projects. Businesses, non-profits, and political subdivisions are eligible to apply under specific conditions.
High Performance Buildings Incentive Program
Pennsylvania's $650 million alternative energy bill supports renewable energy and energy efficiency tech. It includes a $25 million grant and loan program for high performance buildings.
High Performance Building Incentives Program
Pennsylvania's $650m alternative energy bill includes a $25m grant and loan program for high-performance buildings, supporting renewable energy and energy efficiency technologies.
Solar Energy Incentives Program
Pennsylvania's renewable energy program, which previously offered loans, grants and loan guarantees for solar energy technologies, is currently closed pending revisions to guidelines.
Small Business Advantage Grant Program
PA Small Business Advantage Grant Program, started in 2004, provides matching funds for energy efficiency and pollution prevention improvements.
Penelec SEF of the Community Foundation for the Alleghenies Grant Program (FirstEnergy Territory)
FirstEnergy's Sustainable Energy Fund provides loans, equity investments, and limited grants to businesses pursuing sustainable energy projects, managed by Pennsylvania community foundations.
Metropolitan Edison Company SEF Loans (FirstEnergy Territory)
FirstEnergy's Metropolitan Edison Company Sustainable Energy Fund, now worth $8.2 million, offers loans and equity investments for projects promoting renewable energy, energy efficiency, and environmental improvement. Managed by Berks County Community Foundation.
West Penn Power SEF Commercial Loan Program
WPPSEF provides financing for renewable and clean energy projects, with loans ranging from $10,000 to $1,000,000 for commercial, industrial, and residential customers.
Sustainable Energy Fund (SEF) Loan Program (PPL Territory)
The Sustainable Energy Fund offers financial incentives and loans for energy efficiency, renewable energy projects, and education initiatives in Pennsylvania.
Met-Ed / Penelec Sustainable Energy Fund
FirstEnergy established the Met-Ed Sustainable Energy Fund, now merged with the Penelec SEF, to support renewable energy and efficiency projects. The fund has approved 213 grants, 47 loans, and 3 equity investments.
Penelec SEF of the Community Foundation for the Alleghenies Loan Program (FirstEnergy Territory)
FirstEnergy set up the Penelec Sustainable Energy Fund, administered by the Community Foundation for the Alleghenies, to support renewable energy and clean-energy technology development.
Sustainable Development Fund Financing Program (PECO Territory)
Pennsylvania's Sustainable Development Fund offers financial assistance for renewable energy projects. Managed by The Reinvestment Fund, it supports ventures in clean and energy-conserving technologies.
Interconnection Standards
In 2016, PA's PUC updated interconnection rules for customer generation capacity, aligning with the Alternative Energy Portfolio Standards Act of 2004.
Alternative Energy Portfolio Standard
Pennsylvania's Alternative Energy Portfolio Standard mandates that each electric distribution company and electric generation supplier must supply 18% of its electricity using alternative-energy resources by 2020.
Public Benefits Programs
Pennsylvania's five major utilities created Sustainable Energy Funds to promote renewable energy, energy conservation, and sustainable-energy businesses. The funds collectively raised $55 million.
Net Metering
PA Public Utilities Commission updates regulations for net metering and Alternative Energy Portfolio Standards, including clarifications for meter aggregation and interconnection rules revisions.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.