The Solar Energy Program (SEP), administered by the Pennsylvania Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under the Commonwealth Financing Authority (CFA), provides financial assistance in the form of grants and loans to promote the generation and use of solar energy as well as the manufacturing or assembly of solar equipment in Pennsylvania. The program supports projects that contribute to the state's renewable energy goals while fostering economic growth.

Eligible applicants include businesses (such as corporations, partnerships, sole proprietorships, and venture capital firms), economic development organizations, and political subdivisions (municipalities, counties, and school districts). Projects eligible for funding include the installation of solar photovoltaic (PV) systems, manufacturing or assembly of solar equipment, and research and development facilities related to solar energy. The projects must have a minimum useful life of 22 years.

Program funds can be used for land acquisition, site preparation, construction, renovation, equipment purchases, installation of solar systems, energy storage, permit fees, and administrative costs (up to 2% of the funding). Engineering and design costs cannot exceed 10% of the total grant or loan amount. Matching funds are required, with grant recipients needing to provide a 1:1 match, while loan recipients must match $1 for every $3 received.

Funding is available in three forms:

Loans: Up to $5 million for solar generation projects, $40,000 per job created for manufacturers, and $5 million for solar R&D facilities. Loans have a fixed interest rate, repayment terms of up to 22 years for equipment and 15 years for real estate, and require collateral.
Grants: Up to $1 million for solar generation projects, $5,000 per job created for manufacturers, and $1 million for R&D facilities. Grant recipients transferring ownership of Solar Renewable Energy Credits (SRECs) to CFA can receive additional funding consideration.
Loan Guarantees: Up to $5 million to secure project financing, covering up to 75% of financial deficiencies in case of default.
The application process requires submission through DCED’s Single Application for Assistance. Applications must be received at least 60 days before the next scheduled CFA meeting. The evaluation criteria include technical and financial feasibility, level of private investment, energy savings, solar energy output, job creation, environmental benefits, and project readiness. Approved applicants receive a commitment letter and must sign an agreement within 45 days to secure funding.

Applicants must comply with Pennsylvania’s Prevailing Wage Act, nondiscrimination requirements, and record-keeping obligations. Proof of notification to the host municipality and county is required. For inquiries, applicants can contact DCED’s Center for Business Financing – CFA Programs Division at 717-787-6245 or email ra-dcedsitedvpt@pa.gov.