Pennsylvania Solar Rebates and Incentives
Pennsylvania offers home and business owners as well as non-profits and government properties incentives and rebates for installing alternative energy, including photovoltaics, solar thermal, wind turbines and geothermal systems. In 2008, the state fueled its renewable energy program when Gov. Ed Rendell (D) signed a law creating the commonwealth’s $650 million Alternative Energy Investment Fund. This legislation broadly increased funding for projects of all sizes and included an additional $16 million Alternative Fuels Investment Fund. Large sums are reserved to help home and property owners invest in energy efficiency, $237.5 million, and more, $428.4 million, is invested in developing alternative energy and creating green jobs.
A fair amount of that money, $100 million, directly benefits homeowners and small businesses through the Pennsylvania Sunshine Solar Program, which provides rebates to help subsidize the cost of installing PV arrays and solar thermal systems. What’s great about the programs is that they’re not mutually exclusive, so if you get a state grant or low-interest-rate loan to help you renovate your building for energy efficiency, you can still qualify for the solar rebate program. All state incentives are offered on a first-come-first serve basis, and the programs are incredibly popular. Some funding is drying up years in advance of expectations.
Incentives are offered at the state and local level and by utilities in the state. Under different legislation, utilities in Pennsylvania are required to purchase power produced by independent solar and other renewable energy providers. Previously, the state offered tax credits to those who had installed alternative energy at their site, but that credit is limited to $1 million a year and is currently closed. The state encourages people to check back because it may reopen the tax credit in the future.
Solar Rebate and Incentive Programs
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AEPS Alternative Energy Credit Program
Program Type Net Metering/Performance-Based Incentive Technologies PV, Solar-Thermal Electric, Wind, Landfill Gas, Biomass, Large and Small Hydroelectric, Fuel Cells, Municipal Solid Waste, Combined Heat and Power, and More
Amount Retail rate of utility-provided electricity Required Documentation Resource Qualification Application and registration Official Web Site http://paaeps.com/credit/ Pennsylvania’s investor-owned utilities (IOUs) must offer net metering to grid-tied systems and reimburse residential and nonresidential customers at retail rates. The rule applies for systems that generate up to 50 kW (residential) and up to 3 MW (nonresidential installations).
Utilities must provide bi-directional meters that measure the flow of electricity in both directions. If an existing meter does not have this capability and the customer agrees, the utility may set up a dual-meter arrangement instead of a bi-directional meter. Net metered homes and buildings are not assessed additional fees and are subject to the same rate structure, retail rates and monthly charges that non-net-metered customers experience.In addition to reimbursement for excess electricity generation, system owners earn and retain rights to alternative energy credits, unless they agree to assign the credits to another entity or the generator refuses ownership. These credits are obtained each time the system generates 1 MW hour of electricity. Large electricity suppliers must purchase these credits or pay an Alternative Compliance Payment for those credits it did not purchase. The price is determined by the market and has ranged as high $690 per credit, according to the state’s utility commission. The average price paid in 2009 was $260.19.
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PPL Electric Utilities Solar Rebate Program
Program Type Rebate Technologies Photovoltaic and Geothermal Heat Pumps Amount PV: $2.00 per DC watt. Up to $500,000 for non-profits and government buildings. Up to $5,000 for residential installations Required Documentation Interconnection Application and Agreement, a two part process Official Web Site http://www.pplelectric.com/epower/renewable+energy+program/Renewable+Energy+Program.htm Pennsylvania Power & Light (PPL) offers rebates on a first-come-first-serve basis for PV and for non-profit and government customers that install PV systems. The rebates are $2.00 per installed watt, up to $500,000 for non-profits and government buildings and $5,000 per residential customers. Non-profits and government designation includes schools, colleges or universities, and all levels of government. Homeowners, non-profits, and government customers may also qualify for geothermal heat pump system rebates. To qualify for either the PV rebate or the geothermal system rebate, all components must be new.
PPL’s rebate program is retroactive to solar systems installed on or after July 1, 2009. The current applications have an expiration date of May 31, 2011.
The Database of State Incentives for Renewables and Efficiency reported that residential rebates may not be available as of July 2010, but PPL’s site still lists them as available.
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Sunshine Solar Program
Program Type Rebate Technologies Photovoltaic and Solar Thermal Amount Up to 35 percent of total cost of project Required Documentation Pre-application submitted by state-certified installer, application and fee, and proof of deposit with installer Official Web Site http://www.portal.state.pa.us/portal/server.pt/community/in_the_news/10475/pa_sunshine_solar_program/553019 Under the program, homes or small businesses that install a PV system will qualify for a state rebate for a PV system of up to 10 kilowatts (kWs) and can submit applications for multiple rebates. But only one at a time. Before they can submit a second application, the previous project must be complete. Projects larger than the limits will qualify for a rebate of the initial limit. Both can qualify for a solar thermal rebate of up to $2,000 for residents and $20,000 for small businesses.
Rebates for residential PV systems were as high as $2.25 per installed watt. So a 1 kW PV system could have qualified for a $2,250 rebate under the program. However, the program is stepped and as more projects qualify for the rebate, the amount of the rebate falls. As of July 2010, it offered homeowners $1.25 per watt for PV systems.
As of July 2010 only $4 million remained in the fund to support small business PV systems. Originally, small systems between 3 kW and 10 kW qualified for rebates of $2.25 per watt, medium systems between 10kW and 100 kW qualified for rebates of $2.00 per watt, and large systems between 100 kW and 200 kW qualified for rebates of $1.75 per watt. Due to popularity of the program, by July 2010, rebates fell to $0.75 per watt, $0.50 per watt, and $0.25 per watt for the same sizes, respectively.
To qualify, for the PV rebate, all PV components must use new equipment and be in compliance with the state’s construction codes. A solar shade analysis is required. It must show that the system will produce at least 80 percent of what an optimally placed system would produce. The PV installer must be approved by the state Department of Environmental Protection. And for new construction to qualify for the rebate, it must be Energy Star qualified. Most systems must be grid-tied, but applicants can request exceptions.
For solar thermal, it must also be new equipment and it does not cover solar pool heating or solar hot tub heating.
Applicants are eligible to qualify for federal incentives as well. Between the two, roughly half of a solar system could be covered. But PV systems may not qualify for both the sunshine rebate and the PPL Electric Utilities solar rebate program for the same PV panels. However, part of a PV system could qualify for the Sunshine Solar Program and the other part the PPL Electric Utilities rebate program.
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Pennsylvania Solar Power Financial Incentives
Financial Incentives
Industry Recruitment/Support
Local Grant Program
- Metropolitan Edison Company SEF Grants (FirstEnergy Territory)
- Penelec SEF of the Community Foundation for the Alleghenies Grant Program (FirstEnergy Territory)
- West Penn Power SEF Grant Program
Local Loan Program
- Metropolitan Edison Company SEF Loans (FirstEnergy Territory)
- Penelec SEF of the Community Foundation for the Alleghenies Loan Program (FirstEnergy Territory)
- SEF of Central Eastern Pennsylvania Loan Program (PPL Territory)
- Sustainable Development Fund Financing Program (PECO Territory)
- West Penn Power SEF Commercial Loan Program
Local Rebate Program
Property Tax Assessment
State Grant Program
- DCED - High Performance Building Incentives Program
- High Performance Green Schools Planning Grants
- Pennsylvania Energy Development Authority (PEDA) - Grants
- Pennsylvania Energy Harvest Grant Program
- Small Business Advantage Grant Program
- Small Business Energy Efficiency Grant Program
State Loan Program
- Keystone HELP Energy Efficiency Loan & Rebate Program
- Small Business Pollution Prevention Assistance Account Loan Program
State Rebate Program
Utility Grant Program
Utility Loan Program
Utility Rebate Program
Rules, Regulations & Policies
Building Energy Code
Energy Standards for Public Buildings
Generation Disclosure
Green Power Purchasing/Aggregation
Interconnection
Net Metering
Public Benefits Fund
Renewables Portfolio Standard
Solar/Wind Permitting Standards
Related Programs & Initiatives
Alternative Fuels and Advanced Vehicles Data Center
The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.
The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.
Weatherization Assistance Program
The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.
The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.
