Solar Energy Loan Program

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 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 each of the sectors are tabled above. Although the maximum loan amount is set at $5 million, the CFA will consider loan requests over $5 million for projects depending on the impact of the project. 

Only businesses, not-for-profit, economic development organization, and local governments are eligible to apply to apply for the loan. Business includes any corporation, partnership, sole proprietorship, limited liability company, or any entity approved by the Commonwealth Financing Authority.  Economic development organizations include nonprofit corporation or association focused on enhancement of economic conditions in their community. Local governments or political subdivision includes 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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