Renewable Energy Program

September 11, 2022


The Renewable Energy Program (the Program) provides financial assistance in the form of grant and loan funds that will be used by eligible applicants to promote the use of alternative energy in the commonwealth. The Program
is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under the direction of the Commonwealth Financing Authority (CFA). The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). The most recent program guidelines were issued in January 2018, available here. Incentives are available to businesses (including non-profits), economic development organizations, political subdivisions (e.g., local governments, schools, etc.), and individuals. 

The program will offer support for wind and geothermal technologies in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). The definition of geothermal includes, but is not limited to, closed-loop geothermal heat pump systems that use the ground, groundwater, or an underground mine as an energy source. Eligible wind energy-related applications include energy production facilities and manufacturing facilities for wind turbines and other system components. Funds may be used for the following project costs:

  • Acquisition of land and buildings, rights-of-way, and easements necessary for project construction
  • Clearing and preparation of land to build an eligible project
  • Construction or renovation of a building to manufacture wind or geothermal components and systems
  • Equipment purchases for the manufacture of wind or geothermal systems
  • Purchase, installation, and construction of facilities to produce and distribute geothermal or wind energy
  • Project planning and feasibility studies
  • Permit fees
  • Administrative costs associated with an eligible project, not to exceed 2% of funding

The individual support mechanisms are described in more detail below. For all types of support, there is a general requirement that applicants provide matching funds equivalent to the funding offered under the program. 


Loans are generally available at a fixed interest rate for terms of up to 10 years (equipment) or 15 years (real estate). Interest rates are set at 250 basis points above the 10 year Treasury bond (5% as of November 2014). Loans for manufacturing facilities are limited to $40,000 per job created within three years of loan approval. Loans for geothermal systems may not exceed $3 per square foot of space to be served by the system, up to $5 million. Loans for wind energy generation or distribution projects are limited to $5 million. 


Grants for renewable energy manufacturing facilities are available for up to $5,000 per job created within three years of grant approval. Grants for wind energy production or distribution facilities are limited to $1 million. Planning and feasibility studies are also eligible for grants of the lesser of 50% of the cost of the study or $175,000. Grants are not available for the installation of geothermal energy systems. 

Loan Guarantees 

Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant. Loan guarantees are limited to 75% of the deficiency up to $5 million. The term of the grant may not exceed five years. 

Visit the program web site and review the funding guidelines for additional program details and application procedures.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Pennsylvania
Incentive Type: Industry Recruitment/Support
Web Site:
Start Date:
Eligible Renewable/Other Technologies:
  • Geothermal Electric
  • Wind (All)
  • Geothermal Heat Pumps
  • Wind (Small)
  • Geothermal Direct-Use
Incentive Amount: Varies by project, but program generally requires matching funds at least equivalent to DCED funding
Manufacturer loans: $40,000 per job created within 3 years
Manufacturer grants: $5,000 per job created within 3 years
Loans for geothermal systems: $3 per square foot of space served up to $5 million
Loans for wind energy production projects: $5 million
Grants for wind energy production projects: $1 million
Grants for feasibility studies: 50% of cost up to $175,000
Loan guarantee grants: Up to 75% of deficient funds up to $5 million
Maximum Incentive: The maximum amount of any grant for a component manufacturer of renewable energy generation equipment shall not exceed $5,000 for every job projected to be created by the business within three years after approval of the grant. If the component manufacturer fails to create the projected number of jobs, the Authority may require the full amount of the grant to be repaid.

The maximum grant amount for a wind energy generation or distribution project shall not exceed $1 million or 30% of the total project cost, whichever is less. The maximum grant/loan combination shall not exceed 50% of the total project cost. The CFA will consider grant requests over $1 million for projects that will significantly impact the Authority’s goal to leverage private investment and encourage alternative energy production and conservation in the commonwealth.

The maximum amount for any grant that will be used solely for planning or feasibility studies shall not exceed 50% of the total cost of the planning project or $175,000, whichever is less. Grants may be used to pay for any eligible project costs as defined in Section II of these guidelines.


Name: Special Session H.B. 1
Date Enacted: 07/09/2008


Name: Renewable Energy Program
Organization: PA Department of Community and Economic Devel
Address: 400 North Street, 4th Floor
Harrisburg PA 17120-0225
Phone: (717) 787-6245

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.