Combined Heat and Power Partnership
Alternative and Clean Energy Program
|Date Last Updated||6/18/2013|
|Incentive Type||Grant; Loan|
|Incentive Administrator/Contact Office||Department of Community and Economic Development|
|Incentive Initiation Date||5/1/2009|
|Incentive Size and Funding Source||The Pennsylvania Alternative and Clean Energy program provides financial assistance in the form of grant and loan funds for the use, development and construction of alternative and clean energy projects in Pennsylvania. The program has a budget of $165 million. There is a general requirement that applicants provide matching funds equivalent to the funding offered under the program. There is a matching investment requirement of at least $1 for every $1 of program funds awarded.|
Loans: The maximum loan for manufacturers of alternative and/or clean energy generation equipment or components is $40,000 for every new job created within 3 years after approval of the loan. Loans for any alternative energy production or clean energy project shall not exceed $5 million or 50% of the total project cost, whichever is less. The interest rate for the loan will be fixed at the time of approval of the loan and remain fixed for the duration of the repayment term. Interest rates may change based on market conditions. The interest rate will be updated on a quarterly basis. The rate will be set at the beginning of each quarter and based upon the average of the previous week 10-year Treasury. Loans may be amortized over a period not to exceed 25 years or the useful life of the asset, whichever is less and will be repaid over a period not to exceed 10 years. Loans for energy conservation or energy efficiency projects will have a 10 year amortization.
Grants: The maximum grant for manufacturers of alternative and/or clean energy generation equipment or components is $10,000 for every job projected to be created by the business within 3 years after approval of the grant. Grants for any alternative energy production or clean energy project shall not exceed $2 million or 30% of the total project cost, whichever is less.
Loan Guarantees: Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Grants shall not exceed $5 million and have a term of not more than 5 years. In the event of a default, the grant will pay up to 75% of the deficiency.
|Eligible Recipient||A business, an economic development organization, or a political subdivision, includes municipalities, counties and school districts.|
|Eligible Fuel||Does Not Specify|
|Eligible Project Size (MW)||Does Not Specify|
|Minimum Efficiency Required (%)||Does Not Specify|
|Application Form(s)||Single Application for Assistance|
|Other Incentive Details||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.|