Solar Energy Program (SEP)

The Solar Energy Program (SEP) is a funding initiative designed to support the generation, distribution, and storage of solar energy in Pennsylvania. Administered collaboratively by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), the program operates under the guidance of the Commonwealth Financing Authority (CFA). SEP offers financial assistance through both grants and loans, supporting solar energy projects and the manufacturing or assembly of solar-related equipment, including photovoltaic and thermal systems. Eligible applicants for this program include for-profit and nonprofit businesses, economic development organizations, and political subdivisions such as municipalities, counties, and school districts. Projects are required to begin only after approval of funding to maintain eligibility. The program can support a wide array of activities, from solar panel manufacturing to research and development facilities, and mandates that all supported equipment and systems be new, UL-listed, and installed according to Pennsylvania and local building codes. Funding terms differ based on the type of project and applicant. For solar equipment manufacturers, SEP offers grants up to $5,000 and loans up to $40,000 for each new job created within three years of loan approval. For solar energy generation and distribution projects, grants may reach up to $1 million or $1.50 per watt (whichever is less), while loans can be as high as $5 million or $3.00 per watt (whichever is less). Loan guarantees may also be provided up to $5 million for a term not exceeding five years, covering up to 75 percent of a defaulted deficiency. Solar PV projects receiving grants must transfer the Solar Renewable Energy Credits (SRECs) generated to the CFA for the life of the system. Applicants are required to provide matching funds: a dollar-for-dollar match for grants and a one-dollar match for every three dollars of loan funding. A non-refundable $100 application fee is due at submission, and approved loans incur a 1% commitment fee. SEP applications must be submitted via the PA Single Application for Assistance platform. Application windows are irregular and depend on funding availability, which is replenished through repayments and other means. Interested parties are advised to check the DCED website regularly for openings. Evaluation of proposals considers multiple criteria including project readiness, technical and financial feasibility, energy generation and savings, job creation, environmental benefits, and use of U.S.-made components. Comprehensive documentation is required for application submission, including detailed project descriptions, financial statements, cost estimates, energy output and environmental benefit analyses, and compliance with local land use and zoning regulations. Contact for inquiries and updates includes the DCED’s Center for Business Financing – CFA Programs Division. Email communication should be directed to RA-DCEDSiteDvpt@pa.gov and phone inquiries can be made at 717-787-6245. The program is based at the Commonwealth Keystone Building, 400 North Street, 4th Floor, Harrisburg, PA 17120-0225. Regular updates and information are available at dced.pa.gov/sep.

Projects must be cost-competitive and technically feasible; grant recipients must be prepared to transfer SRECs; do not start project work before approval.