Sustainable Energy Fund (SEF) Loan Program (PPL Territory)

August 07, 2020


The Sustainable Energy Fund (SEF) promotes and invests in energy efficiency and renewable energy projects, and energy education initiatives in the state of Pennsylvania. 

Financial incentives are offered as loans to promote clean energy technologies and for projects where energy savings are measurable. Eligible clean technology applications include a wide range of energy efficiency and renewable energy projects. Financing is available to commercial, industrial, municipal, agricultural, and nonprofit entities. Special features of the loans include: no prepayment penalty, subordinate lien positions, 100% financing, and interest only period payments.

The SEF also provides financing to non-profits through its Energy Savings Agreements program. The program functions as an Energy Service Performance Contracting (ESPC), where the SEF will finance energy efficiency upgrades at a non-profit facility, which are paid back through bill savings. 

The SEF has also developed a Solar Power Purchase Agreements designed for specifically for the needs of non-profit organizations. The program provides technical assistance to non-profits who are looking to purchase or install solar energy. 

The SEF was founded in November 1999 as a result of the Pennsylvania Public Utility Commission electric utility restructuring proceedings. The SEF was a key component of the joint settlement with PPL, Inc. (now PPL Electric Utilities Corporation) and the PUC. The fund has collected slightly more than $25 million since opening through a rate surcharge on PPL ratepayers. The surcharge expired and was not renewed at the end of 2006. 

Program Overview

Implementing Sector: Local
Category: Financial Incentive
State: Pennsylvania
Incentive Type: Loan Program
Web Site:
Administrator: Sustainable Energy Fund of Central Eastern PA
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Space Heat
  • Geothermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Geothermal Heat Pumps
  • Combined Heat & Power
  • Fuel Cells using Non-Renewable Fuels
  • Landfill Gas
  • Lighting
  • Energy Mgmt. Systems/Building Controls
  • Other EE
  • Wind (Small)
  • Fuel Cells using Renewable Fuels
  • Other Distributed Generation Technologies
Maximum Loan: From $5,000 to $1 million
Loan Term: Vary by project
Interest Rate: Competitive interest rates (vary by project)


Name: Public Information
Organization: Sustainable Energy Fund of Central Eastern PA
Address: 1005 Brookside Road, Suite 210
Allentown PA 18106
Phone: (610) 264-4440
Name: Nick Rudofski
Organization: Sustainable Energy Fund

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.