Sustainable Development Fund Solar PV Grant Program (PECO Territory)

January 22, 2007


Note: This program is temporarily closed to new applications, pending the receipt of additional program funding. Persons can be notified of the program reopening by signing up for an email notice on the program website: The Sustainable Development Fund (SDF) offers grants for PV systems that are purchased by PECO Energy distribution company customers. Systems between 1 kW and 5 kW are eligible, and preference will be given to systems that will be interconnected to the electric grid. Each system must meet the program’s hardware and installation standards and be installed by participating contractors. All systems must be inspected and certified by the program administrator to ensure they comply with program requirements. In addition, the system owner must agree to allow the system to be used for research purposes and promotion of the program. The PV grant is paid in several installments based in part on system performance. Current grant amounts were extended until further notice and include the following three-pronged subsidy:

  • Buy-down Incentive for the PV System Owner via the Participating Contractor: $4/watt (Rated PV Capacity @ STC) up to $20,000;
  • Performance Incentive for PV System Owner: $1/kWh of Gross Solar Production in the first year up to $5,000; and
  • Performance Incentive for the Participating Contractor: $0.10/kWh of Gross Solar Production in the first year up to $250
The first payment of $4/watt up to $20,000 will be made upon inspection and approval of the installed system. This payment is made to the installer of the PV system. All Participating Contractors have agreed to credit the system buyers with this payment. The second payment is made at the first anniversary of the system and is equal to $1 per kilowatt-hour that the system has produced during the first 12 months of operation, up to a maximum payment of $5,000. At the same time, a payment will be made to the system installer equal to $0.10 per kWh generated by the system during these 12 months of operation, up to a maximum payment of $250 per system. The two later payments will give both the owner and the installer a significant incentive to monitor system performance and to make certain that the system is performing well. To date, 83 PV systems (between 1kW and 5kW) have been installed or are pending installation with a total capacity of 307.4 kW. The SDF program also funds some special PV projects, including those for low income housing and large commercial facilities, as well as some show case applications outside the PECO region.

Program Overview

Implementing Sector: Local
Category: Financial Incentive
State: Pennsylvania
Incentive Type: Rebate Program
Web Site:
Administrator: Sustainable Development Fund
Start Date: December 2001
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
Incentive Amount: $4/watt up to $20,000; then $1/kWh produced in first year of production up to $5,000
Maximum Incentive: $25,000 or 80% of the total installed cost of the PV system
Eligible System Size: 1 kW to 5 kW


Name: Ron Celentano
Organization: Sustainable Development Fund
Address: 7217 Oak Avenue
Melrose Park PA 19027-3222
Phone: (215) 635-0900

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.