Pennsylvania Solar Rebates And Incentives

Rebates list

Pennsylvania Rebates and Incentives Summary

Rhode IslandPennsylvania has a history of innovation and forward-thinking ideas. It was the first state to put its website URL on its license plate. It’s home of the first baseball stadium, built in 1909. The first automobile service station went up in Pittsburgh in 1913. And, in 1946 Philadelphia became home to the first computer. The state is not quite leading the charge on solar the way it has in so many other fields. But it’s not far behind either.

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 the state invests another $428.4 million 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 individual utility companies. Under different legislation, utilities in Pennsylvania are required to purchase power produced by independent solar and other renewable energy providers. The state also renewed its residential and business solar tax credit programs through Dec. 31, 2016. The program allows a 30 percent investment tax credit for each installed system.

Pennsylvania benefits from being centrally located in what is a hotbed of solar activity.  Neighboring New Jersey, Maryland, and New York are currently three states in the top 10 for solar activity in the US.  You will find many qualified solar installers working in most areas of the state that also work in these other states and vice versa.

 

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Adams Electric Cooperative - Energy Efficiency Loan Program

Adams Electric Cooperative offers financing to help residential customers increase the energy efficiency of homes through the Energy Resource Conservation (ERC) and Supplemental Loan Program. Residents who qualify for a loan can borrow up to $100,000 with terms of 5-8 years for installations in either existing or new houses. Further information is available on the program web site or from utility personnel.

Alternative and Clean Energy Program

NOTE: It is important to note that some applicants are only eligible to apply under some aspects of the program. 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.

In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and

Alternative and Clean Energy Program

NOTE: It is important to note that some applicants are only eligible to apply under some aspects of the program. 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.

In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and

Alternative Energy Portfolio Standard

Pennsylvania's Alternative Energy Portfolio Standard (AEPS), created by S.B. 1030 on November 30, 2004, requires each electric distribution company (EDC)* and electric generation supplier (EGS) to retail electric customers in Pennsylvania to supply 18% of its electricity using alternative-energy resources by 2020.** 

Eligible technologies

The eligible alternative energy resources are categorized into two “Tiers”. The standard calls for utilities to generate 8% of their electricity by using "Tier I" energy sources and 10% using "Tier II" sources by May 31, 2021. 

Tier I sources include new and existing facilities which produce electricity using the following sources/technologies:

Building Energy Code

NOTE: Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP websites.

Pennsylvania Department of Labor and Industry (DLI) has the authority to upgrade commercial and residential energy standards through the regulatory process. The current code, the 2009 UCC, became effective December 31, 2009.

Over 90% of Pennsylvania's 2,563 municipalities have elected to administer and enforce the UCC locally, using their own employees or via certified third party

City of Philadelphia - Green Power Purchasing

Philadelphia has committed to purchasing green power to supply 20% of the city's electricity by 2015.* In doing so, the city is exceeding the Pennsylvania Alternative Energy Portfolio Standard, which requires 11.2% renewables and "alternative" energy resources by 2015. Philadelphia also has a goal of producing 57.7 megawatts (MW) of solar power by 2021, of which 3.8 MW is currently on-line. The city's 2012 Greenworks Progress Report indicates that through the end of 2011, 12.2% of the electricity used in Philadelphia was sourced from alternative energy resources. The city is exploring a variety of complementary policies and programs to help

City of Philadelphia - Streamlined Solar Permitting and Fee Reduction

Photovoltaic systems of 10 kW or less installed on 1- or 2-family residential units are eligible for streamlined permitting and a fee reduction. PV projects can use a combined electrical and building permit instead of filling out two separate permits if the project meets certain installation and electrical requirements (as outlined on the combined permit form). In addition, electrical and building permit fees for all PV projects are reduced to $25 per $1,000 labor - lowered from the standard $25 per $1,000 of labor and equipment costs. This treatment was established by separate bills relating to electrical permits and building

Duquesne Light Company - Residential Energy Efficiency Program

Duquesne Light provides rebates to its residential customers for purchasing and installing energy-saving equipment. The Whole-House Energy Audit program offers an instant rebate of $250, reducing the total cost of the audit to $185. Households that qualify for income-eligibility requirements may receive the audit at no cost.

Customers must purchase and install equipment before applying for the rebate. Customers must then fully and accurately complete the rebate form and send it to the address stated on the document. Rebates should be received within 60 days of rebate form submittal. Equipment standards must meet efficiency requirements of the program. Call 877-694-2197

Duquesne Light Company - Residential Solar Water Heating Program

Duquesne Light provides rebates to its residential customers for purchasing and installing qualifying solar water heating systems. Eligible systems may receive a flat rebate of $286 per qualifying system. Various equipment, installation, contractor, and warranty requirements apply, as summarized above and described in more detail in program documents. Customers must purchase and install equipment before applying for rebate and must then fully and accurately complete the rebate form and send it to the address stated on the document. Rebates are paid by debit card, which should be received within 60 days of the submission of the rebate form. Application

Energy Efficiency and Conservation Requirements for Utilities

NOTE: On June 11, 2015 the PA Public Utility Commission (PUC) approved implementation of Phase III of Energy Efficiency and Conservation program, increasing reductions in energy consumptions and peak demand for PA electric distribution companies (EDCs). Please visit consolidated case page Docket M-2014-2424864 to follow the proceeding. 

In October 2008 Pennsylvania adopted Act 129 requiring PA Public Utility Commission (PUC) to establish energy efficiency and conservation program for the state’s investor owned utilities. The standard applies to utilities with at least 100,000 customers, which includes the following seven Electric Distribution Companies* (EDCs): PECO Energy, PPL Electric Utilities, West Penn Power,

First Energy (MetEdison, Penelec, Penn Power, West Penn Power) - Residential Solar Water Heating Program

First Energy Utilities (MetEd, Penelec, Penn Power, West Penn Power) in Pennsylvania provide rebates to residential customers for purchasing and installing qualifying solar water heating systems. Eligible systems may receive a rebate of up to $500.  Applications must include a dated sales receipt from the contractor and a copy of the Solar Rating and Certification Corporation (SRCC) certificate indicating SRCC OG-100 certification. Application forms, terms and conditions, and a list of eligible systems are available on the program website.

FirstEnergy (MetEdison, Penelec, Penn Power, West Penn Power) - Residential Energy Efficiency Programs

Note: Bonus incentives are available for some equipment types purchased between October 1, 2017 and March 31, 2018. See program website for complete details. 

First Energy as a parent company administers the energy efficiency program for Metropolitan Edition (Met-Ed), Pennsylvania Electric (Penelec), Pennsylvania Power (Penn Power), and West Penn Power.  The program summarizes the most of the programs offered by these utilities, the actual incentives might vary between the electric utilities. 

Energy Conservation Kit Program: Customers of Met-Ed, Penelec, Penn Power, and West Penn are eligible to receive an energy conservation kit at no additional charge. The kit includes seven compact

High Performance Building Incentives Program

In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a $25 million grant and loan program for high performance buildings. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). Program guidelines were issued in April 2009 and revised in November 2009. Incentives are available to both in-state small businesses (100 or fewer

High Performance Buildings Incentive Program

In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a $25 million grant and loan program for high performance buildings. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). Program guidelines were issued in April 2009 and revised in November 2009. Incentives are available to both in-state small businesses (100 or fewer

Interconnection Standards

NOTE: On October 2016, the PA Public Service Commission (PUC) issued a final rulemaking order amending interconnection regulation to reflect the increase in limits on customer generation capacity, clarifying the definition of system size limit, and other minor amendments. The documents associated with the case can be accessed at Docket L-2014-2404361.

The Pennsylvania Public Utilities Commission was required to adopt interconnection standards and net-metering rules by the Alternative Energy Portfolio Standards Act of 2004. The PUC subsequently adopted interconnection standards for net-metered distributed generation (DG) systems in August 2006. In July 2007, H.B.1203 required the Pennsylvania Public Utilities Commission

Metropolitan Edison Company SEF Grants (FirstEnergy Territory)

FirstEnergy (formerly GPU) established the Metropolitan Edison Company (Met-Ed) Sustainable Energy Fund in 2000 with an initial contribution of $5.7 million. The fund later received an additional contribution of $2.5 million as a result of the merger between GPU Energy and FirstEnergy, bringing the total to $8.2 million. The fund is administered by the Berks County Community Foundation. The majority of funding available from the Metropolitan Edison Company SEF takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments, but a limited number

Metropolitan Edison Company SEF Loans (FirstEnergy Territory)

FirstEnergy (formerly GPU) established the Metropolitan Edison Company Sustainable Energy Fund in 2000 with an initial contribution of $5.7 million. The fund later received an additional contribution of $2.5 million as a result of the merger between GPU Energy and FirstEnergy, bringing the total to $8.2 million. The fund is administered by the Berks County Community Foundation. The majority of funding available from the Metropolitan Edison Company SEF takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments. The program is open to

Net Metering

NOTE: On October 2016, the PA Public Service Commission (PUC) issued a second final rulemaking order amending net metering and Alternative Energy Portfolio Standards (AEPS) regulations. Changes include clarifying provisions for meter aggregation, revisions to the interconnection rules and other minor amendments. The documents associated with the case can be accessed at Docket L-2014-2404361.

In 2006 the PA Public Utilities Commission (PUC) adopted net-metering rules and interconnection standards for net-metered systems and other forms of distributed generation (DG) pursuant to the Alternative Energy Portfolio Standards (AEPS) Act of 2004. In 2007, H.B. 1203 amended AEPS and expanded net metering. Revised

PECO Energy (Electric) - Residential Energy Efficiency Rebate Program

PECO electric service customers are eligible for rebates on ENERGY STAR qualified appliances and HVAC equipment. Whether eligible technologies are purchased through a retail store or a contractor, customers should fill out a rebate form and attach a paid receipt.  PECO will also pick up, recycle, and provide rebates for an old refrigerator or freezer. Lighting discounts are also available through selected retailers. Fuel switching rebates may also be available to PECO customers. Program term is June 1, 2016 to May 31, 2021. Contact PECO for more information on these offerings.

PECO Energy (Gas) - Residential Heating Efficiency Rebate Program

The PECO Natural Gas Efficiency Upgrade Program offers various incentives for installing energy efficient gas equipment in homes.  The program is available to PECO natural gas customers in the natural gas service area of Bucks, Chester, Delaware and Montgomery Counties. All equipment must meet program efficiency requirements. Rebates can be applied online or can be mailed in. 

Fuel switching rebates may also be available to eligible PECO customers. Appliances for use in new construction are not eligible for this program. For more information, and to access application forms, visit the program web site. 

 

Penelec SEF of the Community Foundation for the Alleghenies Grant Program (FirstEnergy Territory)

FirstEnergy (formerly GPU) established the Metropolitan Edison Company Sustainable Energy Fund and the Penelec Sustainable Energy Fund in 2000. The Community Foundation for the Alleghenies in Johnstown, Pennsylvania administers the Penelec loan and grant components of the Fund, which has assets of approximately $9.1 million. The fund is administered by the Berks County Community Foundation. The majority of funding available from the fund takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments, but a limited number of grants are available each year

Penelec SEF of the Community Foundation for the Alleghenies Loan Program (FirstEnergy Territory)

FirstEnergy (formerly GPU) established the Metropolitan Edison Company Sustainable Energy Fund and the Penelec Sustainable Energy Fund in 2000. The Community Foundation for the Alleghenies in Johnstown, Pennsylvania administers the Penelec loan and grant components of the Fund, which has assets of approximately $9.1 million. The majority of funding available from the fund takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments. The program is open to any individual, organization, governmental entity, or corporation. Penelec Sustainable Energy Fund and Metropolitan Edison Sustainable

Philadelphia Gas Works - Home Rebates Program

PGW’s Home Rebate program is available for residential customers within the PGW service territory. To participate in the program, the homeowner must first obtain a discounted home energy audit from a PGW-approved contractor. The assessment will identify various cost-effective energy saving opportunities customized to the home. Following the assessment, the contractor will work with the customer to determine a scope of work. The customer is eligible for a rebate based on the final project scope, up to approximately $3,000. Please contact PGW at 855-PGW-SOLVES to participate in the program


Philadelphia Gas Works - Residential and Commercial Construction Incentives Program

Philadelphia Gas Works (PGW) provides incentives to developers, home builders and building owners that build new facilities or undergo gut-rehab projects to conserve gas beyond the level consumed at code (IECC 2009) minimum standards. Single-family residential properties can qualify up to $750 per for saving at least 20% beyond energy code minimum standards. Commercial and multifamily properties can qualify for up to $60,000 calculated based on the projected energy savings of at least 15% beyond energy code minimum standards. Projects may use a variety of equipment and measures to achieve gas savings to qualify including high efficiency heating equipment, water

Philadelphia Gas Works - Residential and Small Business Equipment Rebate Program


Philadelphia Gas Works' (PGW) Residential Heating Equipment rebates are available to all PGW residential or small business customers installing high efficiency boilers and furnaces, and programmable thermostats. All equipment must meet program requirements in order to be eligible for rebates. Furnace rebates are issued in the form of a pre-paid visa card. See the program web site for more information on rebate amounts, equipment requirements and fund availability.


PPL Electric Utilities - Residential Energy Efficiency Rebate Program

PPL Electric Utilities as part of Pennsylvania's Act 129 offers numerous rebates and incentives for its residential customers to improve energy efficiency. All residential customers of PPL Electric are eligible for the incentives. 

Interested applicants must first contact a qualified contractor to install the equipment. PPL utility maintains a database of all participating contractors that the customers can reach out to for installations. After the work is completed the customer can apply online or mail in the rebate form. The applications for the rebates for appliances and equipment must be submitted within 90 days of installation. Applications for insulation

Public Benefits Programs

Note: Currently, the four funds are not collecting revenue. The funds are transitioning toward a revolving loan and investment fund model in order to sustain their capital.

Although Pennsylvania's December 1996 electricity restructuring law did not establish a clean-energy fund, four renewable and sustainable-energy funding programs were subsequently created through individual settlements with the state’s five major distribution utilities: Metropolitan Edison Company (Met-Ed), Pennsylvania Electric Company (Penelec), PECO Energy (PECO), PP&L (PPL), and Allegheny Power/West Penn Power Company (WPP). These utilities created individual "Sustainable Energy Funds" with the goals of promoting (1) the development and use of renewable energy and

Small Business Advantage Grant Program

NOTE: This program started accepting applications for the Fiscal Year 2019-2020 on July 26, 2019. Applications will be accepted until the funds are exhausted.

Established in July 2004, the PA Small Business Advantage Grant Program provides matching funds to for-profit businesses with a maximum of 100 full-time equivalent employees for improvements in energy efficiency and pollution prevention. The business must also be the primary source of employment for at least one full-time employee. 

The Department of Environmental Protection (DEP) administers the grants, providing up to $7,000 for proposed projects. Under the most recent solicitation, projects must demonstrate annual savings of at

Solar Alternative Energy Credits

Pennsylvania's Alternative Energy Portfolio Standard (AEPS), created by S.B. 1030 on November 30, 2004, requires each electric distribution company (EDC) and electric generation supplier (EGS) to retail electric customers in Pennsylvania to supply roughly 18% of its electricity using alternative-energy resources -- roughly 8% from Tier I technologies and 10% from Tier II technologies -- by 2021. The standard also contains a solar set-aside requiring obligated entities to procure a small percentage of their electricity sales from photovoltaic (PV) systems as part of the Tier I requirement. As with the other components of Pennsylvania's AEPS, the percentage requirement ramps

Solar Energy Loan Program

The Solar Energy Program (SEP) program offers financial assistance as 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 program provides loans for solar projects, including generation, distribution, storage, manufacturing or assembly facilities for solar panels or equipment, and development or construction of facilities used for research and development of technology related to solar energy.  The terms of the loan for

Sustainable Development Fund Financing Program (PECO Territory)

The Pennsylvania Public Utility Commission created the Sustainable Development Fund (SDF) in its final order of the PECO Energy electric utility restructuring proceeding. The Reinvestment Fund, Inc. (TRF), which was formed in 1985 to build wealth and opportunity for low-wealth communities and low- and moderate-income individuals, administers the SDF. The SDF later received additional funding and responsibilities as a result of the PECO Energy/Unicom merger settlement. That settlement added funding for new wind development, for solar photovoltaics and for renewable energy education, as well as a lump-sum payment and an increase in SDF's core fund. In total, the fund has

Sustainable Energy Fund (SEF) Loan Program (PPL Territory)

The Sustainable Energy Fund (SEF) promotes and invests in energy efficiency and renewable energy projects, and energy education initiatives in the state of Pennsylvania. 

Financial incentives are offered as loans to promote clean energy technologies and for projects where energy savings are measurable. Eligible clean technology applications include a wide range of energy efficiency and renewable energy projects. Financing is available to commercial, industrial, municipal, agricultural, and nonprofit entities. Special features of the loans include: no prepayment penalty, subordinate lien positions, 100% financing, and interest only period payments.

The SEF also provides financing to non-profits through its Energy Savings Agreements program.

West Penn Power SEF Commercial Loan Program

NOTE: The program is currently accepting Request for Proposals (RFP) for Sustainable Energy Financing Projects. The applications are due by January 29, 2015. 

The West Penn Power Sustainable Energy Fund (WPPSEF) promotes the use of renewable energy and clean energy among commercial, industrial, institutional and residential customers in the West Penn market region. Eligible technologies include solar, wind, low-impact hydro, sustainable biomass such as closed-loop biomass and biomass gasification, and innovative natural gas technologies as well as energy efficiency. Clean energy refers to advanced technologies, including landfill gas and fuel cells, which use fossil fuels but have significantly lower emissions

West Penn Power SEF Grant Program


The West Penn Power Sustainable Energy Fund (WPPSEF) promotes the use of renewable energy and clean energy among commercial, industrial, institutional and residential customers in the West Penn market region. Eligible technologies include solar, wind, low-impact hydro, sustainable biomass such as closed-loop biomass and biomass gasification, and innovative natural gas technologies as well as energy efficiency. Clean energy refers to advanced technologies, including landfill gas and fuel cells, which use fossil fuels but have significantly lower emissions and waste than current commercialized technologies and fuels derived from waste.

In addition to loans, the program also offers grants up to $25,000 for

Wind and Geothermal Incentives Program

In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a $25 million grant and loan program for wind and geothermal energy technologies. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). The most recent program guidelines were issued in January 2014, available here. Incentives are available to businesses (including non-profits), economic