Pennsylvania State Grants for Solar Energy

Alternative Fuels Incentive Grant Fund

• The Pennsylvania Department of Environmental Protection awards grants for alternative fuel vehicle programs, including solar power. The grants are for the purchase of alternative fuel vehicles, converting existing vehicles to use alternative fuels, purchasing or installing alternative fuel refueling and recharging stations or research and development of alternative fuel vehicles. School districts, municipal governments, political subdivisions, nonprofit organizations and Pennsylvania businesses are eligible for up to 20 percent of the cost of their project in grant funding.

Harvest Grant Fund

• The Harvest Grant Fund provides grants for clean and renewable energy projects. The project must be built in Pennsylvania and generate energy from solar, biomass, wind, small-scale hydroelectric, landfill methane, coal-bed methane or waste-coal. Projects are also sought that create a public awareness of renewable energy technology. Pennsylvania farms and businesses are eligible for the grant.

Pennsylvania Sunshine Program

• The Pennsylvania Sunshine Program awards grants up to 35 percent of the cost to install solar electric and solar heating systems on homes and small businesses. The size needs for the solar system must be between 1 kilowatt and 10 kilowatts. For low-income residents, the grant is automatically 35 percent of the project cost. Grants are also awarded to commercial solar projects to develop solar technologies.

Pennsylvania Alternative Energy Credit Program

• The Pennsylvania Alternative Energy Credit Program provides Pennsylvania residents with grants in the form of annual rebates for each 1,000 kilowatt-hours produced using solar energy. In 2008, the average annual rebate was $230, according to the State of Pennsylvania. This program, along with accelerated depreciation benefits the state allows for solar projects, allows up to 95 percent of a project's cost to be recovered.