Pennsylvania State Solar Power Rebates, Tax Credits, and Incentives

Pennsylvania Sate Picture

Update 4/23/09 -

Considering solar in Pennsylvania? Great news! $100 million dollars is on the way in the form of Pennsylvania Sunshine, a provision added to Gov. Ed Rendell’s Alternative Energy Investment Act. That $100 million takes the form of grant funding for commercial and residential solar projects.

Pennsylvania Sunshine passed with a unanimous vote from the Commonwealth Financing Authority just last week! That money will surely help solar take off in the Keystone State. Until now, the cost of solar has been prohibitive and has made it difficult for home and business owners to justify the expense of solar.

This legislation is hugely important as electricity rate caps expire at the end of 2010. Therefore, you can at least pursue an option to generate some of your own electricity instead of being gouged by your utility.

According to Solar States, the passage of PA Sunshine couldn’t come at a more critical juncture:

“The Pennsylvania solar community came out in force in support of the bill last week, as installers, potential developers and displaced solar company employees gathered in Harrisburg. Nine months ago, when Rendell’s energy policy was passed through the state house, install and development companies sprung up across PA, hoping to take advantage of promised rebates. But by the first of the year, no rebates had been issued and many installers had to lay off employees.

With the economy being in the shape it is in, cities and municipalities have been scrambling to keep development dollars flowing in. Philadelphia, for example, has had bills flowing through City Council since December to scale back generous tax abatement programs. But fears about negative impacts on development prevented support from the Mayor’s office. Pennsylvania Sunshine was propped up alongside federal stimulus funds as better incentives for green development.

Funding will be available on a first-come-first-served basis, with applications available through the Department of Environmental Protection as early as April 20th. Specifics for the Pennsylvania Sunshine Law, as well as applications for inclusion are here.

We recommend having multiple local installers come out and give you a quote for your solar system. Also, make sure they are able to help you with the application process or complete all the paperwork for you. That way, you’ll be getting expert help and can be sure you’ll be able to reserve funding without any missteps.

Update 9/1/08 -

We’re pleased to inform you that Governor Rendell signed the Alternative Energy Investment fund several weeks ago. However, specific details on how cash is going to flow from the new program to your checking account once you go solar are lacking. As a Pennsylvania homeowner considering solar, you should know the following if you are looking for money:

1. The Energy Cooperative of Pennsylvania will purchase the electricity your solar system produces for 20 cents/kwh. However, to participate in the program, you must be a member of the cooperative and they need to be in demand for your solar electricity as part of their energy mix. For 2008, they have already achieved their target of 3% of its energy coming from solar (By the way 87% comes from hydro-power). So currently, even if you go solar this year, they will not purchase the electricity you produce until they demand more. To be considered for 2009 budgeting they recommend you leave your full name and contact information with their office (800-223-5783 or 215-413-2122).

2. The Sustainable Development Fund historically has granted Pennsylvania homeowners up to $25,000 for qualifying solar systems. That’s a LOT of cash. However, they are now out of cash! Consequently, they are no longer accepting applications this year. Check back later they say. Frustrating, we know.

3. The Department of Environmental Protection will administer the bulk of future state grants, rebates and incentives for Pennsylvania home solar installations. They are currently developing the specifics of the consumer and small business programs, as well as the guidelines and application procedures.  To sign up to receive updates on their progress, click here. Hopefully, they get the ball rolling shortly. A lot of Pennsylvanians would like details before the federal tax credits for solar expire.

4. While the state is busy figuring out how the solar rebate and incentive procedures will be structured, we recommend having multiple local installers come out and give you a quote for your solar system in the interim. That way, you’ll know what your upfront cost will be before rebates and you can begin budgeting.

Update 7/16/08 -

Special Session Senate Bill 1

A few weeks ago, the Pennsylvania Senate held a special session and finally passed some meaningful solar energy legislation for home and business-owners. While the bill passed by a 44-5 margin, the House of Representatives still needs to vote on it. The odds are good that this bill passes. So, some congratulations are in order on making it this far. The bill earmarks $650 million for alternative energy investments and is front-loaded over the next two years to provide some immediate impact.  Specifically, it provides up to $100 million dollars in loans, grants, and rebates of up to 35% of the purchase and installation costs of solar and PV panels. More information will follow once this bill hopefully becomes law. A factsheet of SB 1 is available here.

While this is great news, the legislature has stalled on passing House Bill 2200. This bill would allow almost all Pennsylvania utility customers to benefit from the implementation of smart utility meters and real time pricing. Many customers do not realize when they are being charged for energy consumed at peak demands. Smart meters would allow those customers to see when their usage is being charged at a higher rate, thus encouraging energy conservation. A factsheet about HB 2200 is available here.

Small Business Incentives

Here’s a list of where to get information, help, and most importantly, MONEY, for energy efficient improvements for your small business if you live in Pennsylvania. As far as homeowners are concerned, refer to the update at the top of this page.

1. EMAP, the Environmental Management Assistance Program was created by the Pennsylvania Small Business Development Centers which have consultants to help you (for free) in anything dealing with Energy Efficiency. Here you can sign up for an energy assessment and someone will come out and see where you would best be benefited by energy efficiency improvements. You can also call 877-ASK-EMAP and get a free consultant to answer any questions about energy efficiency.

2. The Small Business Advantage Program grants money for energy efficiency upgrades like solar power and pollution prevention. That’s free money…. but they’re out of it. Gotta wait till next year.

3. “Growing Greener” is a PA program with a boatload of cash ($600 mil) to dole out for green projects. Here’s how to apply.

4. “Energy Harvest” is another PA grant program where Pennsylvania fights for Federal grant money. Energy harvest is closed for 2007 but go here to be notified when it reopens.

5. “AFIG,” The Alternative Fuels Incentive Grant Program is a fairly small PA grant program with money for things like bio diesel, so if you want to convert your old diesel benzo you might be able to get some free ducats here for that…. But no money for rims :-( … I checked.

6. Yay, more acronyms… The PPAA, or Pollution Prevention Assistance Account Loan Program has low interest loans for small business taking on projects to reduce waste, pollution, or energy use (yay, that mean solar power!). You can get up to 75% of the cost of the project at a rate of, no kidding, 2%… BAM!

7. SAG, the Site Assessment Grant Program funds up to 80 percent of the cost of a site assessment. It’s closed for the time being… call 717-772-8951 to find out if and when it re-opens. Also, while you’re at it, another program out of money that will reopen is PEDA, the Pennsylvania Energy Development Authority from which you can solicit money….. next year.

8. NEWPA offers some low-interest loans for small business complying with some energy efficient practices.

Hope this helps… this covers the vast majority of ways to get free money or cheap money in Pennsylvania for your solar power projects.

Click here to have multiple solar installers bid to upgrade your Pennsylvania home or business.

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34 comments.

ross
Comment on November 18th, 2007.

These sites all seem to be for businesses. Where can I find information about solar rebates for residential homes.

Comment on December 4th, 2007.

The site at Find Solar is really great for general information and is geared toward the home owner. It also can link you up with customer recommended installers.

Amy Sahm
Comment on January 24th, 2008.

The sites listed above are all for small business. Where can I find info about solar panel installation and possible rebates and tax advantages for residential use?

Doris
Comment on June 25th, 2008.

Hi. Im interested in getting solar heating for my home. The fuel bills will put me out of my house if I cannot come up with something more feasible. But like Brian asked, where can I find out about info on solar ins. and rebates for residental use? Thanks.

Allan Minard
Comment on July 3rd, 2008.

I am like the rest of the people psting here. All the listed information seems to be geared to the business owner and not the home owner. Where can I find information for the homeowner that wants to install solar and find possible wources of help?

Bruce
Comment on July 9th, 2008.

Hello??? Does anyone check the postings on this site? I to would like info for residential solar power incentives.

Gregory Gorbulsky
Comment on July 9th, 2008.

Dear friends! As I can see from your questions, you are homeowners like me. Unfortunately, there is no rebate program for homeowners in PA right now. Governor Rendall stepped forward last year with so calle Sunshine Initiative, which stipulates 50% rebate for us, homeowners, but this initiative still did not passed Senate. We have to write or call to our Senators to move ahead with this bill asap. Meanwhile, Ihave installed 3.1 kwt Solar System myself and have been enjoying free clean energy.

Lorraine
Comment on July 12th, 2008.

Didn’t the legislation just pass? Please be the first to post information about residential renewable credits from PA.

Sally
Comment on July 13th, 2008.

I see nothing on this page for financial help for PA homeowners…just small business. It is an enormas expense…how does one get help?

Jeff
Comment on July 13th, 2008.

This news release was on the PA DEP website. It mentions “$100 million to provide loans, grants and rebates that cover up to 35 percent of the costs residential consumers and small businesses incur for installing for solar energy technology”. Here is the web address. http://www.ahs.dep.state.pa.us/newsreleases/default.asp?ID=5150&varQueryType=Detail

Mike
Comment on August 3rd, 2008.

I got a quote but the “grant” would have sign over my energy credits indefinitely. Does anybody know why the grant program has changed its format so many times?

David Leinenbach
Comment on August 11th, 2008.

Careful Everyone. I’ve done some pretty extensive research and so far I have yet to see a site that deals exclusively with homneowners, residential, and individual use assistance, grants, and reasonable financing. I’ve had 3 or 4 contractors out to the house and I get the sense there will be some predatory activity initally given the intense interest as of late. ITS STILL THE RIGHT THING TO DO, but dont get sucked in too fast. Im pretty sure it can be done for a reasonable cost, but they’re not gonna make it easy as you can all see. Anyone find a site thats really helpful and informative to an average, middle class residence inquiry in PA, please let me know.

Comment on August 11th, 2008.

David,

Thank you for your concern and comments. We’re doing the best we can to accurately reflect what is going on incentive and rebate-wise for Pennsylvania homeowners. From the installers we have spoken to in our network, there is some consensus that solar will not be an easy option to pursue in Pennsylvania for at least a year or so. That is in comparison to other states with much clearer goals and passed legislation. When the aforementioned bills get passed, we plan on reporting what it takes to acquire solar in a fiscally responsible manner with an actual example from a Pennsylvanian family. Again, thank you for your concerns and comments. We’re not here to be predatory misinformers. If you could, please share your experiences with your contractors that came out to your home. Everyone reading this page will benefit.

Thanks so much,

Dan Hahn

Mike
Comment on August 18th, 2008.

I find it kind of funny that the governor of the state has a solar roof and gets a $20,000 grant to have it done but the working Keystoner can’t get any definitive answers when it comes to financial assistance. (lost the link to the page will post it when I find it)

Comment on August 30th, 2008.

Hi,
I’m a retired NYC Police officer that fell ill after 9/11. Yep, I’m one of those guys that you hear about who are sick, and getting the shaft by the City. So seeing as I am on Social Security and 100% disabled, and living with my father who is also on social security, I need to find a way to lower my energy bills drasticly now. I want to go green, and get off the PPL trough. My dad and I live in a single wide mobile home in a nice area in PA, and the trailer faces exactly south with no obstruction. I was wondering if we’d qualify fir some kind of grant, or special loan to get full solar power up and running. We have only like 1100 sq feet. Is this possible? Any help would be greatly appreciated. Feel free to email me: nypd219@gmail.com

Tony
Comment on August 31st, 2008.

Please post something for the individual residential homeowner, there must be some funding out there and hybrid (solar and wind) systems are not on you list of choices.

Comment on September 1st, 2008.

Tony,

I provided an update today regarding the status of Pennsylvania homeowner rebates, incentives, and credits. Which ‘list of choices’ are you referring to?

Thank you all again for your comments and suggestions.

Joy
Comment on September 8th, 2008.

The state rebates are still being dickered over, as I understand it. The federal “30% up to $2,000″ is good for systems up and running by Dec. 31 2008. That cut off has been moved before, and (esp. if you call your congressman and senator) could be renewed / extended again.

use http://www.dsireusa.org/ to track funding opportunities; there are quite a few low-interest loans. Most Solar companies will help to hook you up with one. I would suggest buying a bit more inverter than your panels need, BTW, in case the panel cost and efficiency both improve in the next decade, so you can slot in a spare panel or two. BTW, with the federal credits currently slated to expire, good, fully sealed “made in USA” panels like the ones I got from http://www.solarworld-usa.com are in considerable demand!

john
Comment on September 9th, 2008.

Hello to all you folks talking about solar energy. Over the past 9 months I have designed and build my own solar water heating system. Over the past 3 months I have reduced my natural gas bill by approximately $50.00 a month and my investment was around a thousand dollars. The materials need to build a solar thermal collector are available at many plumbing supply stores. Good plumbing skills are a must have, if you wish to build your own system. I originally got most of my idea from http://www.builditsolar.com and just went ahead with what I wanted to do, make hot water with sunshine.

Comment on October 16th, 2008.

Here’s the latest word I’ve heard from the DEP about when residents can expect to hear about taking advantage of the Renewable Energy rebate program; the program is being funded by a bond, so they can’t activate the program until the bond has been issued. In our current economic situation, they’re not sure when that will happen. They’re projecting mid-2009. There will likely be stipulations that will determine your rebate eligibility, particularly energy efficiency; if you’ve demonstrated energy reduction in your home and/or have had an energy audit, you’re more likely to get a higher rebate (the maximum we’ve heard is 35%). I’ve also heard that there will be tax credits available as part of the program co-administered by the Department of Revenue.

Comment on October 21st, 2008.

GOOD OLD RENDELjUST A BAG OF “HOT AIR”.
ALL SHOW AND NO GO!!

Rob
Comment on December 3rd, 2008.

I watched a little bit of the meeting between Obama and the governors last night and was wondering if anyone caught any concrete plans for solar subsidies in PA

Comment on January 21st, 2009.

Anyone interested in signing up to hear exactly what the PA credits are, and exactly when they are going to be released, please visit http://www.ahs2.dep.state.pa.us/aeifsignup/ Please feel free to post back with any further questions. We expect to hear something definitive around March 2009.

Scott
Comment on February 13th, 2009.

Hey guys, for information on finance and incentive help in PA try http://www.disireusa.org. Its a database of state incentives for renewable energy. Federally the only real incentive is the 30% direct tax credit for the installation. That is not a deduction but a direct cash credit (same as cash) of 30%.

Jim
Comment on February 21st, 2009.

i am a do it yourselfer, and i have been unable to find any where that i can get the info i need and purchase a roof system for my home. of the places i found on th internet in pittsburgh area, they are all contractors and no help, with info do to my wanting to do it myself. can’t find anyone who will sell to the do it yourselfer. any info on where i can find whatever it is i need, please help!!

Comment on February 22nd, 2009.

Great Website !
We wanted to Announce an Energy Expo for Northeastern Pennsylvania.
The Pocono Northeast Resource Conservation and Development (RC&D) Council is a 501©3 non-profit organization that has been active within northeast Pennsylvania since 1980. The Pocono Northeast RC&D is a regional organization that encompasses and serves the following ten counties: Carbon, Columbia, Lackawanna, Luzerne, Monroe, Montour, Northumberland, Pike, Schuylkill, and Wayne.

The Pocono Northeast Resource Conservation and Development (RC&D) Council and its partners will be hosting the Northeast PA Energy Solutions Expo on June 13-14th, 2009 at the Luzerne County Fairgrounds in Dallas, PA. The event will focus on alternative and renewable energy opportunities as well as energy conservation for residents, landowners, municipalities, regional governments, and local businesses. The intent of the Expo a forum where people can come to see, witness, and learn about potential conservation and alternative energy solutions.

Mark
Comment on February 26th, 2009.

Does anyone know what % of a tax credit or rebate will be allowed for PA? Everything that I found for the State is for 08. Nothing for 09 yet. I have the Fed information, but can’t find anything exact for state rebates. Thanks in advance!

Jeremy Klotz
Comment on March 3rd, 2009.

Mark, it’s a $2 to $2.5 per watt rebate for PV. I have it from a good source that it’ll start in April. Here’s a draft of the legislation: http://www.paenergyfest.com/downloads/09-Jan-SolarProgramOutline.pdf

jeremy@solarishere.com

Daniel-Sun
Comment on March 4th, 2009.

Good to know folks in Pa. are paying attention(not just paying ppl).Being from Ca. I wasn’t sure how solar would be received, and am now confident the time is now!

druidclark
Comment on March 11th, 2009.

So much for the State giving it more than PPL. Solar is actually excluded from the rebate-eligible expenses. Look at this site and “Advanced Performance” (http://www.keystonehelp.com/info/eligible.php)And, you have to use one of their contractors. IMO, as long as the materials are certified Energy Star and the Contractor is registered and I can prove that they were installed correctly, that should be enough. FPhhfffft.

david
Comment on March 13th, 2009.

HI im dave i live in williamsport and i have been installing these systems for about 4 years, i am starting a renewable energy business and found an outline draft on how the state will only give grants to the systems that are installed by NABCEP Certified installers and they want energy audits to that have to be done only by RESNET OR BPI CERTIFIED I beleive this will stop a lot of people from getting one installed i have installed more of these systems than i can count , at least give us time to get the classes and test

J. Lubas
Comment on March 14th, 2009.

How does one become a state installer if you have to install at least 3 systems before you get on the list as a contractor. Is there any exception to this? Where can you apply to become a certified installer.

Jason
Comment on April 10th, 2009.

I agree completely we are starting a new business in this area and it seems we are fighting an uphill battle all the way. All I want to know is what tax credit is availible and how do I go about getting it. I’ve spent hours on the web trying to figure this out only to be left more confussed then ever. HELP!

david
Comment on April 17th, 2009.

hi dave form williamsport i just started my co. Renewable Energy For Pa llc . the D.E.P have been a big help.my email add is dave@renewableEnergyForPa.comcastbiz.net i have been installing these systems for 3 plus years and i cant wate to get the first one for my own co.

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