Going solar in Pittsburgh, PA

Pennsylvania's First utilities manage two Sustainable Energy Funds, one of which is earmarked for the Penelec service area. The Penelec SEF was created through a partnership with the Community Foundation for the Alleghenies. Funding is acquired through a surcharge on consumer bills. Each SEF supports loans, equity stakes, and grants for businesses, nonprofits, and public-sector agencies making energy efficiency improvements or investing in new renewable energy devices. Annual reports detailing fund revenue and supported initiatives are available through the Penelec website.

NOTE: This program appears to no longer be accepting applications. By a 2008 act of the Pennsylvania legislature, the Commonwealth Finance Authority, Department of Environmental Protection, and Department of Community/Economic Development manage a statewide program awarding grants and loans for solar energy investment. Any business, nonprofit organization, or local government/MPO may apply for funding to support new solar photovoltaic and thermal systems. The maximum available grant or loan available will vary depending on the type of applicant and various subfactors, which may include job creation or wattage capacity. Interest rates are fixed at 5%; repayment can occur over 10 - 15 years. Additional information is available from the DCED website.

Distributed generation and grid interconnection practices in Pennsylvania have been standardized by the state Public Utility Commission since 2004. Generally, each new renewable energy system will be sorted into one of five capacity levels governing permit processes, fees, review turnaround time, and the IEEE/UL performance and safety standards to which the system is subject. The PUC requires all system owners to install disconnect switches at their own expense, but it does not require them to carry liability insurance (even though insurance is still recommended). Additional information is available from the PUC website.

In Pennsylvania, all private utilities are required to offer net metering arrangements to renewable energy customers within capacity guidelines. Cooperatives or retail electric providers may voluntarily offer net metering. Eligible technologies include solar PV/thermal, wind, geothermal, hydroelectric, CHP, and some biomass and conventional fuels. Each new renewable energy system will have a bidirectional meter installed to measure net excess generation (NEG) sent back to the grid. Customers will receive a bill credit for the NEG they generate at full retail price. They will retain all renewable energy credits they generate unless they agree to transfer their ownership. Aggregated net metering provisions may be available for microgrid customers or customers with more than one metered energy facility.

Pennsylvania uses a solar alternative energy credit (SAEC) system to measure compliance with solar carve-out provisions of the Alternative Energy Portfolio Standard. Each credit pegs one megawatt hour of electricity to a dollar amount fluctuating with market forces. Some utilities call these credits "certificates". All solar energy systems in Pennsylvania generate SAECs so long as they are registered with the Public Utilities Commission. Utilities may invest in their own facilities and buy credits from customers under net metering or power purchase agreements. Should a utility fail to meet its SAEC quota, it will be assessed an "alternative compliance" penalty for each credit/megawatt hour it is deficient.

The Pennsylvania legislature has earmarked $25 million since 2008 for sustainable, energy-efficient upgrades in public and some private buildings. Small businesses of less than 100 employees, homebuilders, and commercial contractors may apply for loans or grant funding to build or remodel structures meeting sustainable standards. Projects receiving funding must meet at least LEED Gold certification and pursue formal accreditation from the US Green Building Council. Buildings earning 3 Green Globes may also qualify. Loans are available at maximum principals of $100,000 (residential) and $2 million (small business). Interest will accrue at a fixed rate over up to 25 years of repayment. Grants are available at a maximum award of $500,000 or 10% of project expenses. Additional information is available from the New Pennsylvania website.

Pennsylvania first established an Alternative Energy Portfolio Standard in 2004. The AEPS is effectively equal to RPS laws in many other states and jurisdictions. All public/private utilities, cooperatives, and electric retailers are required to participate. The state's 2020 goals required at least 18% of the state's energy to be generated at in-state renewable energy facilities. Each renewable technology is sorted into two tiers based on emission levels. Compliance with the AEPS is measured using both an alternative energy credit (AEC) and a renewable energy credit (REC) system. Each credit pegs one megawatt hour of electricity to a fluctuating dollar value. All alternative energy systems in the state generate either AECs or RECs depending on their technology tier; utilities may also purchase credits from customers under net metering or a PPA. Should a utility fail to meet its AEC or REC quota, it will be assessed a penalty fee for each megawatt hour it is deficient.

The Commonwealth Financing Authority administers the Pennsylvania Solar Energy Program alongside the DEP and DCED. Through the SEP, Pennsylvania businesses, nonprofits, and local governments may borrow funding for new solar PV or thermal energy investment and research. Available loan principal can reach $5 million. The borrower is required to share 25% of the cost and make matching investments at a 1:3 investment-to-loan ratio. Application forms are available from the DCED website; forms will be considered at regular Commonwealth Finance Authority meetings.

Pennsylvania's Sustainable Energy Fund is operated as a public-private partnership between the state government and PPL. Funding is acquired through a surcharge on all PPL customer bills. SEF grants and loans support new renewable and low-emissions energy investments among businesses, farms, local governments, and nonprofit agencies in the PPL service area. SEF administrators may also enter Power Purchase Agreements with nonprofit agencies to acquire renewable energy credits. Additional information is available through the fund website.

Small businesses (>100 employees) making energy efficiency improvements or investing in new renewable energy systems may apply for grant funding through the PA Small Business Advantage program. Qualifying projects should reduce the business's energy usage by at least 25%. The PA SBA program is specifically tailored for projects listed in the application documents. Solar PV, biomass energy, and room HVAC are among the projects that do not qualify for grants. Additional information is available from the Pennsylvania Department of Environmental Protection.

A major 2008 energy bill passed by the Pennsylvania legislature created loan funds for businesses and local/state government agencies making energy efficiency improvements or constructing new sustainable facilities. This loan fund differs from similar initiatives in that it supports renewable energy aside from solar. The maximum available principal varies depending on the type of applicant and the specific project. Loans will top out at $5 million or half of a project's expenses. Grants may be available for lower-income entities. The maximum available grant is currently $2 million or 30% of project expenses. Additional information and annual reports are available from the Department of Community and Economic Development.

Since 1985, Pennsylvania's Sustainable Development Fund has supported new renewable energy investment and energy efficiency education in the state. The SDF, as a unit of the Reinvestment Fund, primarily targets low to moderate-income Pennsylvanians and economically disadvantaged communities. Arms of the SDF include venture capital initiatives supporting renewable energy businesses, lease programs for nonprofit agencies making energy efficiency improvements, and business loans for companies desiring energy efficiency improvements. Additional information and annual reports are available from the Reinvestment Fund website.

Penelec has established its own Sustainable Energy Fund to offer grants and loans for business renewable energy investment. The fund portfolio includes loans and equity stakes. Grants may support LEED certification, educational initiatives/energy auditing, and large-scale solar or wind energy systems. Additional information is available from the Berks County Community Foundation, which handles routine fund business.

Pennsylvania's First utilities manage two Sustainable Energy Funds, one of which is earmarked for the Metropolitan Edison service area. The Met Edison SEF was created through a partnership with the Berks County Community Foundation. Funding is acquired through a surcharge on consumer bills. Each SEF supports loans, equity stakes, and grants for businesses, nonprofits, and public-sector agencies making energy efficiency improvements or investing in new renewable energy devices. Annual reports detailing fund revenue and supported initiatives are available through the Met Edison website.

By an act of the Pennsylvania legislature, the Public Utility Commission is in charge of establishing utility-level conservation and energy efficiency programs. Private and municipal utilities of more than 100,000 customers are required to participate and meet energy saving thresholds set in different annual phases. Different "carve-out" goals require energy savings to be proportionally allocated across economic sectors. Compliance is measured through annual reports forwarded to the Public Utility Commission. Should a utility fail to meet standard goals, it will be assessed a civil penalty. Additional information is available through the PUC website.