The Pennsylvania Department of Environmental Protection Is Now Accepting Applications For The Small Business Energy Efficiency Grant Program

January 13, 2009

On January 12, 2009, the Pennsylvania Department of Environmental Protection opened the first application period for the Small Business Energy Efficiency Grant program (the “Program”).  The Program, created under the state’s Alternative Energy Investment Act of 2008, invites small Pennsylvania businesses to apply for a 25 percent reimbursement matching grant of up to $25,000 to implement a variety of qualified energy efficiency projects.  Funds will be allocated on a first-come-first-served basis and the application period will close on May 1, 2009 or when the funds are depleted, whichever comes first.

The Program provides funding for energy-efficient changes to the applicant’s manufacturing processes, business operations, or building insulation.  To be considered for a grant, projects must 1. reduce energy consumption by at least 20 percent for either the system being replaced or the entire business and 2. save the business at least $1,000 in annual energy costs.  Projects installing energy efficient lighting, high efficiency furnaces, boilers, air conditioners, geothermal heat pumps, energy saving windows, insulation, or energy efficient refrigeration and process equipment are some of the types of projects that may qualify for funding under the Program. 

The Alternative Energy Investment Act of 2008 provides for a variety of grant and loan opportunities for different types of entities.  For this Program, applicants must be for-profit businesses with 100 employees or fewer and the improved facilities must be in Pennsylvania.  Eligible businesses include but are not limited to manufacturers, retailers, service providers, mining businesses and agricultural concerns.  Non-profit entities, tax exempt organizations and residential rental units and dwellings, however, are not eligible.  In addition, the small business receiving the grant money must have at least one full-time employee.  If your business or entity does not qualify for this incentive, you may qualify under one of the state’s other programs. 

In addition to possible grant funding from the state, some projects improving the energy efficiency of commercial buildings may be eligible for a federal tax deduction.

If you would like to learn more about the Program or other incentives, or obtain assistance in applying for grant funds, please contact Tricia Sadd at 215-772-7697 or