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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