Solar Energy Program (Grant Category)

The Solar Energy Program (SEP) program offers financial assistance as grants and loans to eligible applicants to promote manufacturing, research and development, and generation of solar energy in the state. The program is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under direction of the Commonwealth Financing Authority (CFA). 

Eligibility

The following applicants are eligible for grants:

1. A Business – a corporation, partnership, sole proprietorship, limited liability company, business trust, or other commercial entity approved by the Commonwealth Financing Authority. The term shall include venture capital firms, solar energy and solar thermal system installers, and other business entities capable of raising a significant amount of capital. The term shall also include not-for-profit entities.

2. An Economic Development Organization – a nonprofit corporation or association whose purpose is the enhancement of economic conditions in their community.

3. A Political Subdivision – A municipality, county, or school district.

Program Description 

Funding is available to component manufacturers of solar energy generation equipment and solar energy generation or distribution projects. Solar energy or distribution projects can receive grants up to $1 million or $1.50 per watt, whichever is less. 

The grant can be used for following measures:

• Acquisition of land and buildings, right-of-way, and easements necessary for the project.
• Clearing and preparation of land necessary for construction of the project.
• Construction or renovation of buildings used for either manufacture equipment, research, or development related to solar energy systems. 
• Purchase and installation of equipment used for the manufacturing of equipment, or to conduct research and development related to solar energy systems. 
• Design, purchase of equipment, installation, and construction of facilities that generate electricity.
• Energy storage costs directly related to the storage of electricity produced by solar energy system. 
• Permit fees
• Administrative costs (not to exceed 2% of the loan amount).

Expenses related to fees for securing other financing, interest on borrowed funds, refinancing of existing debt, and cost incurred prior to the approval of CFA financing are not eligible for funding. 

To apply for funding, interested applicants can submit an online application available at the Department of Community and Economic Development website. Application periods do not have a set schedule because the program opens for applications as funding becomes available through loan repayments and other sources. Potential applicants should check dced.pa.gov/sep to determine if applications are currently being accepted. Interested parties can be added to a distribution list to be notified of available funds by emailing or calling the contact below.