Wind and Geothermal Incentives State Loan Program (Pennsylvania)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Wind and Geothermal Incentives Program|
|Incentive Type||State Loan Program|
|Applicable Sector||Commercial, Industrial, Local Government, Nonprofit, Residential, Schools|
|Eligible Technologies||Geothermal Electric, Geothermal Heat Pumps, Wind|
|Energy Category||Renewable Energy Incentive Programs|
|Amount|| Varies by project, but program generally requires matching funds at least equivalent to DCED funding
|Start Date|| January 2009
|Funding Source|| Alternative Energy Investment Fund (state issued bonds)
|Maximum Incentive|| Manufacturer loans: 35,000 per job created within 3 years |
Manufacturer grants: 5,000 per job created within 3 years
|Program Budget|| $25 million
|Terms||Loans at a fixed interest rate of 1% for geothermal projects and market rates (5% as of July 2011) up to 10 years (equipment) or 15 years (real estate). Loan guarantee grants have a maximum term of 5 years.|
|Program Administrator||Department of Community and Economic Development|
Note: This program has been temporarily closed pending the development and approval of updated guidelines. The summary below describes the program as it existed prior to the suspension.
In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a $25 million grant and loan program for wind and geothermal energy technologies. 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). Program guidelines were initially issued in January 2009 with revisions issued later in June and October 2009. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.). In addition, individuals seeking to install a geothermal heating and cooling system in a dwelling they occupy as a primary residence are also eligible for incentives.
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 3% 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 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 1% for geothermal projects and determined by market rates (5% as of July 2011) for other projects. Loans for manufacturing facilities are limited to $35,000 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 in general, and also limited to 50% of eligible costs for residential geothermal systems. Loans for wind energy generation or distribution projects are limited to $5 million.
Grants 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.
|Contact Name||Program Information - DCED Renewable Energy Program|
|Department||Department of Community and Economic Development|
|Division||Center for Business Financing - Site Development Division|
|Address||Commonwealth Keystone Building|
|Address 2||400 North Street, 4th Floor|
|Phone|| (717) 787-7120
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Special Session H.B. 1|
|Date Enacted|| 2008-07-09
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.