Solar Energy Loan Program
Administered by Department of Community and Economic Development (DCED); Department of Environmental Protection (DEP)
Pennsylvania's Solar Energy Program offers loans to help businesses, nonprofits, municipalities, and school districts invest in solar energy systems and equipment; your organization must contribute at least $1 for every $3 in program funds borrowed, and loans can cover land acquisition, construction, equipment purchase and installation, and energy storage costs. Apply online through the Department of Community and Economic Development website, submitting your application at least 60 days before the next scheduled Commonwealth Financing Authority meeting.
This program enables your solar energy or thermal system installer business to access loans up to $5 million (or $3.00 per watt, whichever is less) for solar generation projects, or up to $40,000 per new job created for component manufacturing; customers gain favorable long-term financing for complete system deployment. Your customer must provide 25% cost-sharing ($1 match per $3 of loan funds), and all approved loans carry a 1% commitment fee plus a $100 non-refundable application fee at submission.
SEP is jointly administered by DCED and DEP under Commonwealth Financing Authority direction, offering loans and grants for solar manufacturing, R&D, and generation across business, nonprofit, municipal, and school sectors. Loan caps are $5 million or $3.00/watt for generation projects and $40,000 per new job for manufacturers; grants cap at $1 million or $1.50/watt for generation and include $5,000 per new job for manufacturers, with grant recipients contractually transferring SRECs to CFA for the project lifetime. The 25% cost-share requirement ($1:$3 match for loans) ensures stakeholder commitment; applications require 60-day advance submission and a $100 application fee, with a 1% commitment fee on approved loans.
Program details
- Program ID
- 5945
- Effective
- 11/2/2016
- Last updated
- 8/5/2025
Eligibility
- Sectors
- commercial industrial local government nonprofit schools agricultural
- Technologies
- solar water heat solar thermal electric solar photovoltaics
Program summary
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 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.
Contact & resources
- Contact email
- ryemerson@pa.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
