Pennsylvania Alternative and Clean Energy Program (ACE)

Summary

NOTE: It is important to note that some applicants are only eligible to apply under some aspects of the program. Political subdivisions are only permitted to apply for loans or grants for Clean Energy Projects. Businesses and non-profits may apply for loans for Alternative Energy Production Projects and Clean Energy Projects, but may only apply for grants for Alternative Energy Production Projects and for site preparation for an alternative energy system as a Clean Energy Project.

In July 2008, Pennsylvania enacted a broad $650 million alternative energy bill designed to provide support for a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a grant and loan program for alternative energy and clean energy production projects. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). The most recent Program Guidelines were issued in October 2013 available here. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.).

Program Goals: Promote the utilization, development and construction of alternative and clean energy projects, infrastructure associated with compressed natural gas and liquefied natural gas fueling stations, plus energy efficiency and energy conservation projects in the state.

The Alternative and Clean Energy Program (ACE) provides financial assistance in the form of grant and loan funds that will be used by eligible applicants for the utilization, development and construction of alternative and clean energy projects in the state. The program is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of the Commonwealth Financing Authority (CFA).

Eligibility:

• Businesses
• Economic development organizations
• Political subdivisions; includes municipalities, counties and school districts

Funding:

• Loans: Loans for manufacturers of alternative and/or clean energy generation equipment or components shall not exceed $40,000 for every new job created within three years after approval of the loan. Loans for any alternative energy production or clean energy project shall not exceed $5 million or 50 percent of the total project cost, whichever is less.
• Grants: Grants for manufacturers of alternative and/or clean energy generation equipment or components shall not exceed $10,000 for every job projected to be created by the business within three years after approval of the grant. Grants for any alternative energy production or clean energy project shall not exceed $2 million or 30 percent of the total project cost, whichever is less.
• Guarantees: Grants shall not exceed $5 million and have a term of not more than five years. In the event of a default, the grant will pay up to 75 percent of the deficiency.

Terms: There is a matching investment requirement of at least $1 for every $1 of program funds awarded. There is a $100 non-refundable application fee due at the time of submission made payable to the CFA. There is a 1 percent commitment fee on all approved loans.

For specific program guidelines, go here.

Special Session H.B. 1 authorized a total of $165 million for this program. Visit the program web site and review the funding guidelines for additional program details and application procedures.


*While solar energy is in fact eligible under the state AEPS, a specific solar energy program was also authorized as part of the enabling legislation and as a result solar energy projects have been excluded from some other programs created by the same legislation. The program guidelines do not list solar energy as an eligible technology. However, it appears that some solar technologies could qualify if they are incorporated into the broader design of a High Performance Building.