Solar Water Heat

Residential Renewable Energy Tax Credit

Note: Section 70506 of The One Big Beautiful Bill (OBBB) repealed this tax credit for any expenditures made after December 31, 2025. 

A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original

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Energy-Efficient Mortgages

 Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.

FHA Energy Efficient Mortgages
The FHA allows lenders to add up to 100% of energy efficiency improvements to an existing mortgage loan

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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

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Keystone Energy Efficiency Program (KEEP) Home Energy Loan

In FY 2023-2024, the Pennsylvania Energy Development Authority (PEDA) launched the Energy Accelerator Program (EAP), a green bank for Pennsylvania. PEDA has contracted with the National Energy Improvement Fund (NEIF) to launch the first two financing products under the EAP in spring of 2024, the first of which is the Keystone Energy Efficiency Program (KEEP). 

KEEP offers low-interest rates and incentivizes high-performing Energy Star upgrades for credit-qualified borrowers. Loans are made directly to the consumer and can range between $2,500 and $25,000 depending on the applicant's credit score.

Owners of single family and multi-unit residential buildings up to four units

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SoCalGas - Non-Residential Energy Efficiency Rebate Programs

Southern California Gas Company (SoCalGas) offers non-residential customer rebates to encourage energy efficiency. More information about rebates and equipment requirements can be found at the program website.

The Energy Efficiency Rebates For Businesses (EERB) for general and small business covers the cost of prescriptive improvements, such as the installation of commercial grade clothes washers, boilers, water heaters, steam trap replacement and other energy efficient measures. A list of general equipment and food service equipment, along with rebate amounts are available on the program web site.

 

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Riverland Energy Cooperative - Commercial, Industrial, and Agricultural Energy Efficiency Rebate Program

Riverland Energy Cooperative offers a number of rebates for the purchase and installation of efficient lighting fixtures, air conditioners, heat pumps, water heaters, central electric thermal storage units, and agricultural equipment.  All rebates except for the lighting rebates require load management control. Rebates also exist for home energy audits, implementation of improvements suggested by home energy audits, and also for custom, creative energy efficient measures. Visit the program website or contact Riverland Energy Cooperative directly for more information.

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Solar Access Law

H.B. 5028, enacted in June 2024, declares that any provision within a homeowners' associations agreement that prohibits or has the effect of prohibiting the installation of a solar energy system is invalid and unenforceable as contrary to public policy. The law provides similar protections for the installation of:

  • Clotheslines
  • Air source heat pumps
  • Ground source heat pumps
  • Insulation
  • Rain barrels
  • Reflective roofing
  • Energy efficient appliances
  • Solar water heaters
  • Electric vehicle supply equipment
  • Energy-efficient windows
  • Energy-efficient insulation materials

The bill also directs each homeowners’ association in this state to adopt a written solar energy policy statement. The statement may not

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Local Option - Commercial Property Assessed Capital Expenditure (C-PACE)

S.B. 802 of 2024 authorized the establishment of a statewide Commercial Property Assessed Capital Expenditure (C-PACE) program that local governments may voluntarily join. Eligible properties include commercial, industrial, agricultural, nonprofit, and multifamily residential properties with five or more dwelling units. The bill establishes the Economic Development Partnership of North Carolina as the statewide administrator for the program and assigns a variety of tasks to it: 

  • Prepare a C-PACE toolkit, as described in S.B. 802, in consultation with stakeholders and local governments
  • Impose fees to offset the actual and reasonable costs of administering the C-PACE Program, including an application fee not
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Commercial Retro-Commissioning and New Construction Program

Focus on Energy offers a variety of tools and financial incentives to eligible business customers to retro-commission buildings or design and build new buildings to optimize performance. Through Focus on Energy's Energy Design Assistance Program, customers will receive a free, customized, whole-building analysis of energy-saving design options. Focus on Energy prepares multiple design options, each progressively more efficient, so that building owners and design teams can customize dozens of design elements to maximize energy efficiency opportunities while balancing financial considerations. Projects can also receive custom incentives based on estimated energy savings. See program website and contact Focus on Energy for

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Tennessee C-PACER Financing

Note:  In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing

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