Renewable Energy Program (REP) – Geothermal and Wind Projects

The Renewable Energy Program for Geothermal and Wind Projects is a grant and loan initiative administered by the Pennsylvania Department of Community and Economic Development (DCED) in collaboration with the Department of Environmental Protection (DEP), under the direction of the Commonwealth Financing Authority (CFA). Its core objective is to promote alternative energy development within Pennsylvania, specifically through geothermal and wind energy technologies. This program reflects the state’s commitment to diversifying its energy portfolio and reducing reliance on conventional energy sources by offering financial assistance for renewable energy installations, manufacturing facilities, and feasibility planning. Eligible applicants for the program span a wide spectrum, including for-profit businesses (including not-for-profit entities), economic development organizations, political subdivisions such as municipalities and school districts, and individuals installing geothermal systems in their primary residences. Eligible projects under this program include the installation of geothermal technologies—like closed-loop geothermal heat pumps utilizing underground resources—and wind energy systems, which can encompass generation and distribution infrastructure or manufacturing facilities for turbines and related components. Fund usage is restricted to direct project costs such as land acquisition, site preparation, construction, equipment purchase and installation, feasibility studies, and necessary administrative expenses capped at 2% of the total grant or loan. To qualify for funding, applicants must provide a dollar-for-dollar match, demonstrating a minimum 1:1 ratio of new public or private investment to program funds. Additionally, various legal and procedural compliance requirements apply, including nondiscrimination policies, conflict of interest disclosures, prevailing wage adherence where applicable, and proof of municipal notification. Projects receiving over $100,000 in grant funds are subject to an audit by a Pennsylvania-licensed CPA. The CFA charges a non-refundable $100 application fee, and loans incur a commitment fee of 1% of the approved amount, capped at $10,000. Grant and loan parameters vary depending on project type. For component manufacturers, grants are capped at $5,000 per job created and loans at $40,000 per projected new job. Wind energy project grants are limited to $1 million or 30% of total cost (whichever is less), though higher amounts may be considered if the project significantly aligns with CFA goals. The grant and loan combination must not exceed 50% of the total cost. Planning or feasibility-only projects may receive grants up to $175,000 or 50% of project cost. Notably, no grants are offered for geothermal installations due to favorable return-on-investment characteristics. Loan ceilings for wind or geothermal systems are set at $5 million, with geothermal residential systems capped at 50% of cost. Applications must be submitted electronically via DCED's Single Application for Assistance portal, followed by mailing nine physical copies with supplemental materials. Required documentation includes detailed project descriptions, funding commitments, financial statements, engineering estimates, maps, and zoning certifications. The CFA evaluates projects based on matching investment ratio, technical and financial feasibility, energy and environmental impacts, job creation potential, and regional development benefits. Approved applicants receive a commitment letter and, upon acceptance, proceed to contract execution and disbursement, with funds released at intervals up to twelve times throughout the project lifecycle. For questions or assistance, applicants are directed to contact the Center for Business Financing – Site Development Division at DCED, via phone at (717) 787-6245 or email at [email protected]. While the program does not follow an explicitly stated annual cycle, applicants must submit proposals at least 60 days prior to the CFA’s next scheduled meeting. The guidelines were last updated in January 2018, and applications are considered on a rolling basis in coordination with scheduled CFA meetings.