Renewable Energy Program (REP) – Geothermal and Wind Projects

The Renewable Energy Program (REP) – Geothermal and Wind Projects is a financial assistance initiative administered by the Pennsylvania Department of Community and Economic Development (DCED) in collaboration with the Department of Environmental Protection (DEP) and the Commonwealth Financing Authority (CFA). The program aims to promote the use of alternative energy technologies by providing grants and loans to eligible applicants for geothermal and wind energy projects across Pennsylvania. Eligible applicants include businesses (both for-profit and nonprofit), economic development organizations, political subdivisions (municipalities, counties, and school districts), and individuals seeking to install geothermal systems in their primary residences. The program supports projects that involve geothermal heat pump systems, wind energy generation and distribution facilities, and manufacturing plants for renewable energy components. Funds can be used for acquiring land, site preparation, construction, equipment purchases, feasibility studies, and administrative costs (capped at 2% of the total grant or loan amount). Applicants are required to provide matching funds of at least $1 for every $1 awarded. Additional program requirements include compliance with nondiscrimination laws, project audits for grants exceeding $100,000, proof of municipal notification, and adherence to Pennsylvania Prevailing Wage Act provisions where applicable. A $100 non-refundable application fee is required, along with a 1% commitment fee on approved loans (capped at $10,000). The program offers loans with a maximum of $40,000 per new job created (up to $5 million for wind projects and geothermal systems). Loan repayment terms range from 10 years for equipment to 15 years for real estate, with interest rates fixed based on market conditions. Grants are also available, with a maximum of $5,000 per job created, and wind projects eligible for up to $1 million or 30% of total costs. Grants exceeding these amounts may be considered for projects with significant economic impact. Geothermal system installations are not eligible for grants due to their energy savings and short payback period. Applications must be submitted electronically via the DCED’s Single Application for Assistance system at least 60 days before a scheduled CFA meeting. Proposals are evaluated based on project feasibility, energy savings, job creation, environmental benefits, and financial need. Successful applicants receive funding through grant agreements or loan closings, with periodic disbursements based on project milestones. For inquiries, applicants can contact the PA Department of Community and Economic Development, Center for Business Financing – Site Development Division, at (717) 787-6245 or email ra-dcedsitedvpt@pa.gov. Additional program details and application guidelines are available at dced.pa.gov.