| Date Last Updated | 11/16/2012 |
| Incentive Type | Grant; Loan |
| State/Federal | PA |
| Incentive Administrator/Contact Office | Department of Community and Economic Development |
| Incentive Initiation Date | 5/1/2009 |
| Incentive Size and Funding Source | Pennsylvania Alternative and Clean Energy program has a budget of $165 million. The program offers support for alternative energy and clean energy projects in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). For all types of support, there is a general requirement that applicants provide matching funds equivalent to the funding offered under the program (i.e., incentives generally limited to 50% of costs).
Loans are available at a fixed interest rate which varies based on project type. As of September 2010 interest rates were set at: - 1% for energy conservation and energy efficiency projects.
- 4% for high performance building projects.
- 5% for alternative energy production projects (may change based on market conditions).
Loans may generally be amortized over a period corresponding to the life of the equipment, not to exceed 25 years, and must be repaid within 10 years. Loans for energy efficiency and energy conservation projects (including geothermal systems) have a 10-year amortization. Loans for manufacturing facilities are limited to $35,000 per job created within 3 years of loan approval. Failure to create the requisite number of jobs within 3 years may cause the interest rate to be raised by 3% over the remaining portion of the loan. Loans are also generally limited to $5 million, although higher amounts may be authorized on a case-by-case basis as determined by the DCED.
Grants for manufacturing facilities are available for up to $10,000 per job created within 3 years of grant approval. Grants are limited to $2 million for other alternative energy, clean energy projects and high performance building projects; $500,000 for energy savings contracts (ESCOs); and $175,000 for planning and feasibility studies. Grants for green building projects are also limited to 10% of costs (as opposed to the general limit of 50% of costs for other projects).
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. Loan guarantees are limited to 75% of the deficiency, up to $5 million. The term of the grant may not exceed 5 years. |
| Eligible Recipient | Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.). |
| Eligible Fuel | Does Not Specify |
| Eligible Project Size (MW) | Does Not Specify |
| Minimum Efficiency Required (%) | Does Not Specify |
| Other Selected Eligibility Criteria | Political subdivisions are only permitted to apply for loans or grants for Clean Energy Projects. Businesses and non-profits may apply for loans for Alternative Energy Production Projects and Clean Energy Projects, but may only apply for grants for Alternative Energy Production Projects and for site preparation for an alternative energy system as a Clean Energy Project.
Clean Energy Projects include: - Construction or renovation of a High Performance Building.
- Site preparation of a business park consisting only of certified High Performance Buildings.
- Installation of equipment to facilitate or improve energy conservation or efficiency (including but not limited to heating, lighting and cooling equipment). Equipment must be Energy Star rated if applicable.
- Installation of an alternative energy system which produces energy from sources under the state Alternative Energy Portfolio Standard (AEPS), including wind, geothermal, biomass, waste energy, hydroelectric, fuel cells, biologically derived methane gas; but not including solar energy.
- Replacement or enhancement of an existing energy system that uses nonrenewable energy with an energy system that uses alternative energy (as described above).
- Modification of the contract terms of an energy service project by a political subdivision pursuant to a new energy savings contract (ESCO) with a qualified provider under the Guaranteed Energy Savings Act (GESA) of 1996.
Alternative Energy Production Projects (construction or development of) include: - An alternative energy project which produces energy from sources defined under the state AEPS (as described above).
- A facility that manufactures or produces alternative fuels.
- A facility that manufactures or produces products, including component parts that provide alternative energy (as defined above), improve energy efficiency or conserve energy.
- An alternative energy or alternative fuel R&D facility.
- A project for the development or enhancement of rail transportation systems that deliver alternative fuels or high efficiency locomotives.
Both types of projects allow eligible costs associated with the preparation of plans, specifications, studies and surveys necessary or incidental to facilitating or developing an eligible project, as well as costs (up to 3%) associated with administering a grant. |
| Application Form(s) | Single Application for Assistance |
| Resource Website(s) |
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