Small Business Energy Efficiency Grant Program

June 22, 2010


Note: This program is currently closed to new applications. A second round of grants may open in July 2009 pending a further funding authorization from the state legislature. Potential applicants can sign up for e-mail updates on the status of the program on the program website. In July 2008 the Pennsylvania Legislature enacted Special Session H.B. 1, a multi-faceted energy bill that established the $650 million Pennsylvania Alternative Energy Investment Fund as a source of funding assistance for renewable energy, energy efficiency, and other alternative energy related projects within the state. The Small Business Energy Efficiency Grant Program is one of the programs that have arisen as a result of this legislation. A total of $3 million was initially available through May 1, 2009 under the first solicitation. This grant program will reimburse small businesses for 25% of the cost of eligible energy efficiency projects up to a maximum grant of $25,000. An eligible business is defined as a for profit legal business entity with not more than 100 full-time employees. Only projects located at a Pennsylvania facility are eligible for incentives. In addition, in order to qualify for a grant, projects must save the business at least $1,000 in energy costs annually and result in a 20% annual energy savings compared to the system being replaced or result in a 20% reduction of the business's overall annual energy consumption. New construction projects are eligible, but must meet the above energy efficiency improvement requirements as compared to average commercially available products of the same type. Examples of eligible projects include efficient HVAC systems, lighting, commercial refrigeration, process improvements, windows, and insulation. Some measures (e.g., window replacement, insulation) require an energy assessment on the structure undergoing an upgrade to document projected energy savings. Equipment must be Energy Star rated if the type or class of equipment being installed is rated under the Energy Star program. The program is generally open to custom projects that meet the energy savings criteria above, however, certain measures (e.g., window air conditioners, wood-fired stoves, vending machines) are specifically identified as ineligible under the grant solicitation. Grants are only available for project costs that occur after January 12, 2009, the opening date of the grant program. Grants may be reserved on a first-come, first-served basis through May 1, 2009 or until funds are expended. Applicants who begin incurring costs prior to receiving grant approval do so at their own risk. All participants will be required to submit 1-year reports documenting 12 months of energy savings data after project completion. Please see the program website for application information, additional rules, and other program details.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Pennsylvania
Incentive Type: Grant Program
Web Site:
Administrator: Pennsylvania Department of Environmental Protection
Start Date: 01/12/2009
Eligible Renewable/Other Technologies:
  • Geothermal Heat Pumps
  • Refrigerators/Freezers
  • Lighting
  • Furnaces
  • Boilers
  • Air conditioners
  • Building Insulation
  • Windows
  • Doors
  • Processing and Manufacturing Equipment
  • Custom/Others pending approval
Incentive Amount: 25% of project cost
Maximum Incentive: $25,000
Equipment Requirements: Equipment must be Energy Star rated if the type or class of equipment being installed is rated under the Energy Star program.


Name: Program Information - Small Business Energy Efficiency Program Grant
Organization: Pennsylvania Department of Environmental Prot
Address: P.O. Box 8772
Harrisburg PA 17105-8772
Phone: (717) 783-8411

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.