Program Solar Energy Loan Program
Category Financial Incentive
Implementing sector State
Last Update
State Pennsylvania
Administrator Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP)
Start Date
Technologies Solar Water Heat, Solar Thermal Electric, Solar Photovoltaics

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). 


The following applicants are eligible for loans:

1. A Business – a corporation, partnership, sole proprietorship, limited liability company, business trust, or other commercial entity approved by the Commonwealth Financing Authority. The term shall include venture capital firms, solar energy and solar thermal system installers, and other business entities capable of raising a significant amount of capital. The term shall also include not-for-profit entities.

2. An Economic Development Organization – a nonprofit corporation or association whose purpose is the enhancement of economic conditions in their community.

3. A Political Subdivision – A municipality, county, or school district.

Program Description 

The program has a 25% cost share requirement. The applicant must provide evidence of a commitment of matching investment of at least $1 for every $3 of program funds awarded by the CFA. 

The loan amount can be used for following measures:

  • Acquisition of land and buildings, right-of-way, and easements necessary for the project.
  • Clearing and preparation of land necessary for construction of the project.
  • Construction or renovation of buildings used for either manufacture equipment, research, or development related to solar energy systems. 
  • Purchase and installation of equipment used for the manufacturing of equipment, or to conduct research and development related to solar energy systems. 
  • Design, purchase of equipment, installation, and construction of facilities that generate electricity.
  • Energy storage costs directly related to the storage of electricity produced by solar energy system. 
  • Permit fees
  • Administrative costs (not to exceed 2% of the loan amount).

Expenses related to fees for securing other financing, interest on borrowed funds, refinancing of existing debt, and cost incurred prior to the approval of CFA financing are not eligible for funding. 

To apply for funding, interested applicants can submit an online application available at the Department of Community and Economic Development website. Applications must be received at least 60 days prior to the next scheduled CFA meeting at which Solar Energy Program applications will be considered. The application review schedule is available on the CFA website

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