Clean Energy Opportunities for Pennsylvania s Small Businesses. Federal and State Incentives to Encourage Energy Efficiency and Save Businesses Money

Transcription

1 Clean Energy Opportunities for Pennsylvania s Small Businesses Federal and State Incentives to Encourage Energy Efficiency and Save Businesses Money

2 Table of Contents ABOUT SMALL BUSINESS MAJORITY... 3 OUR FEDERAL AND STATE RESOURCE GUIDE... 4 FEDERAL PROGRAMS... 5 Energy-Efficient Commercial Buildings Tax Deduction... 5 Modified Accelerated Cost-Recovery System... 6 Business Energy Investment Tax Credit... 7 Rural Energy for America Program Grants and Loan Program... 8 PENNSYLVANIA STATE PROGRAMS... 9 Small Business Pollution Prevention Assistance Account Loan Program... 9 Pennsylvania Green Energy Loan Fund Department of Community and Economic Development High Performance Buildings Incentive Program Sustainable Development Fund Financing Program (PECO Territory) Pennsylvania Public Utilities Commission Solar Alternative Energy Credits PENNSYLVANIA UTILITIES PROGRAMS PPL Electric Utilities Custom Energy Efficiency Program PECO Energy (Electric) Non-Residential Energy Efficiency Rebate Program FirstEnergy (MetEdison, Penelec, Penn Power) Commercial and Industrial Energy Efficiency Program Duquesne Light Company Commercial and Industrial Energy Efficiency Program PENNSYLVANIA NON-PROFIT ORGANIZATION PROGRAMS Sustainable Energy Fund RESOURCES

3 ABOUT SMALL BUSINESS MAJORITY Small Business Majority is a national small business advocacy organization founded and run by small business owners to support America s 28 million small businesses. With offices in Ohio, Missouri, Colorado, Virginia, Washington, DC, New York and California, Small Business Majority conducts extensive opinion and economic research and works with our rapidly growing network of small business owners across the country to ensure their voices are an integral part of the public policy debate. We advocate on behalf of small businesses on issues of top importance to the small business community. Those issues include clean energy, access to capital, healthcare, regulations, taxes and jobs. 3

4 OUR FEDERAL AND STATE RESOURCE GUIDE Small Business Majority aims to provide small business owners with a reference to federal, state, utility and non-profit energy efficiency and clean energy programs that can help you save money and make your businesses more energy efficient. This resource guide is meant to provide ways to help your bottom line, whether you own a body shop or a coffee shop. Government, utilities, and in some states, non-profit organizations are offering incentives to help you lower your energy costs and help meet and exceed federal clean air standards, while helping our country achieve energy independence. Small business owners know they need to innovate and improve efficiency to thrive. In a national poll, we found that 87% of small business owners believe improving innovation and energy efficiency are good ways to increase prosperity for small businesses. Seventy-eight percent have already adopted some energy-efficient and environmentally friendly practices in their business. The federal government recognizes this and offers programs that range from incentives to make your business more energy efficient to offering low-interest loans that help small businesses looking to develop new clean energy technologies. Standard, enacted in 2004, has one of the most ambitious solar provisions in the eastern United States, requiring that solar energy generate 0.5% of the commonwealth's electricity by The Pennsylvania Energy Development Authority has invested more than $10 million each year since 2004 in clean energy projects. The projects selected for 2010 alone are expected to create 1,400 jobs and generate a lifetime energy savings of 10.9 billion kilowatt-hours of electricity. Strong support from the state, in the form of renewable energy mandates and rebates, has made Pennsylvania one of the top 10 states in the nation for installed solar power capacity. Through the state s $100 million Sunshine Solar rebate program, small businesses have been earning rebates for installing solar electric and solar hot water systems. In 2007, Pittsburgh was one of 13 cities to be named a Solar America City by the U.S. Department of Energy, and in 2008 Philadelphia won the same designation. Pennsylvania has taken some important steps to develop its clean energy potential. In 2007, Montgomery County became the first wind-powered county in the nation. Pennsylvania's Alternative Energy Portfolio 4

5 FEDERAL PROGRAMS Energy-Efficient Commercial Buildings Tax Deduction The tax deduction program was created on August 8, 2005 under the Energy Policy Act of This Act established a new deduction for expenses incurred for energy-efficient commercial building property. A tax deduction of $1.80 per square foot is available to owners of commercial buildings who install interior lighting, a building envelope (a separator between the interior and exterior part of a building), or heating, cooling, ventilation, or hot water systems that reduce the building s total energy and power cost by 50% or more. This tax incentive is eligible for property placed in service after December 31, 2005, and before January 1, Public Information - IRS U.S. Internal Revenue Service 1111 Constitution Avenue, N.W. Washington, DC Phone: (800) Website: Eligible Industries: Eligible How to Apply: Web Site: Commercial, Construction, State Government, Federal Government Equipment Insulation, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Heat pumps, Central Air conditioners, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Building Insulation, Windows, Doors $0.30-$1.80 per square foot, depending on technology and amount of energy reduction Include deduction amount in the Other deductions line of your tax return. A statement listing the types and amounts of "other deductions" should be attached to the return. In addition, it is important that a taxpayer obtains and retains the necessary certifications and documentation to claim the deduction. 5

6 Federal Programs Modified Accelerated Cost-Recovery System Eligible Industries: Eligible Commercial, Industrial, Agricultural Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, Municipal Solid Waste, CHP/Cogeneration, Solar Hybrid Lighting, Anaerobic Digestion, Fuel Cells using Renewable Fuels, Microturbines, Geothermal Direct-Use Eligible technologies placed in service after September 8, 2010 and before January 1, 2012 qualifies for 100% first-year bonus depreciation. For 2012, bonus depreciation is still available, but the allowable deduction reverts from 100% to 50% of the eligible basis. How to Apply: IRS Form 4562 Under this program, businesses may recover investments in certain property through depreciation deductions. Under The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, eligible clean energy property placed in service after September 8, 2010 and before January 1, 2012 qualifies for 100% first-year bonus depreciation. For 2012, bonus depreciation is still available, but the allowable deduction reverts from 100% to 50% of the eligible basis. To qualify for bonus depreciation, a project must satisfy the following: Property must have a recovery period of 20 years or less under normal federal tax depreciation rules; The original use of the property must commence with the taxpayer claiming the deduction; The property generally must have been acquired during the period from ; and The property must have been placed in service during the period from In addition, a small business owner must fill out Form 4562 (Depreciation and Amortization) and submit it with their tax return. Public Information - IRS U.S. Internal Revenue Service 1111 Constitution Avenue, N.W. Washington, DC Phone: (800) Website: 6

7 Federal Programs Business Energy Investment Tax Credit Eligible Industries: Eligible How to Apply: Expiration Date: Commercial, Industrial, Utility, Agricultural Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Solar Hybrid Lighting, Fuel Cells using Renewable Fuels, Microturbines, Geothermal Direct-Use 30% for solar, fuel cells and small wind 10% for geothermal, microturbines and combined heat and power (CHP) Fuel cells: max. $1,500 per 0.5 kw Microturbines: max. $200 per kw Small wind turbines placed in service after 12/31/08: no limit All other eligible technologies: no limit IRS Form /31/2016 This investment tax credit covers 30% of costs associated with renewable energies as well as 10% of costs associated with heating and power systems. Under the 2009 Act, business owners can instead choose to take the renewable electricity production tax credit or a federal grant from the Department of Treasury. In general, the original use of the equipment must either begin with the taxpayer or be constructed by the taxpayer. The energy property must be operational in the year in which the credit is first taken. Credits are available for eligible systems placed in service on or before December 31, For more information about how to apply for this tax credit, please complete Form 3468 at: Instructions for this form can be found here: Contact the IRS for the exhaustive list on a number of performance and quality standards that must be met. Public Information - IRS U.S. Internal Revenue Service 1111 Constitution Avenue, N.W. Washington, DC Phone: (800) Website: 7

8 Federal Programs Rural Energy for America Program Grants and Loan Program Small businesses are able to obtain assistance under this program that offers both loan guarantees and grants. This assistance allows eligible applicants to install renewable energy systems such as solar panels and make energy efficiency improvements such as replacing ventilation systems. The maximum amount of a guaranteed loan is $25 million, whereas the minimum amount is $5,000. Up to 75% of the total costs can be covered through the guaranteed loan program. There are a number of qualifications for this assistance, such as the loan or grant must go towards the purchase of a renewable energy system or to make energy efficiency improvements. Costs that are covered under these loans and grants include the post-application purchase and installation of new, refurbished or remanufactured equipment, post-application construction or improvements and energy audits. Applications for grants must be received by March 30, Applications for loans must be received by June 29, For applications, contact Rural Business Cooperative Service. Public Information - RBS U.S. Department of Agriculture Rural Business - Cooperative Service USDA/RBS, Room 5045-S, Mail Stop Independence Avenue SW Washington, DC Phone: (202) webmaster@rurdev.usda.gov Website: 8

9 PENNSYLVANIA STATE PROGRAMS Small Business Pollution Prevention Assistance Account Loan Program State: Incentive Type: Eligible Efficiency Eligible Renewable/Other Applicable Sectors: Maximum Incentive: Pennsylvania State Loan Program Lighting, Chillers, Furnaces, Boilers, Heat pumps, Central Air conditioners, Motors, Processing and Manufacturing Equipment, Custom/Others pending approval Not specified, but must meet general project eligibility criteria Commercial, Industrial, (no more than 100 full-time employees) Up to 75% of total eligible project cost $100,000 within any 12-month period The Pollution Prevention Assistance Account offers low-interest loans to help small businesses (100 full-time employees or fewer) in the state implement energy efficiency and pollution prevention projects. Loans may be issued for 75% of project costs up to $100,000, with terms of up to 10 years. The program is only available to qualifying businesses that adopt or install pollution prevention, or energy efficient equipment or processes, that reduce or reuse raw materials on-site, reduce the production of waste, or significantly reduce energy consumption and are directly related to the business activity. Renewable energy systems are eligible for loans under this program if they meet the project eligibility criteria. A list of potentially eligible projects is provided in the program guidelines. The program is administered by the Pennsylvania Department of Environmental Protection and the Pennsylvania Department of Community and Economic Development. In order to qualify, the project must have a payback that is less than or equal to the loan term, and the expected benefits must extend past the term of the loan. There is no application deadline for this program. Gene DelVecchio Pennsylvania Department of Environmental Protection Office of Energy and Technology Deployment Rachel Carson State Office Building 400 Market Street, 15th Floor Harrisburg, PA Phone: (717) gdelvecchi@pa.gov Website: 9

10 PENNSYLVANIA STATE PROGRAMS Pennsylvania Green Energy Loan Fund State: Incentive Type: Eligible Efficiency Eligible Renewable/Other Applicable Sectors: Maximum Incentive: Terms: Pennsylvania State Loan Program Water Heaters, Lighting, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Heat pumps, Central Air conditioners, Energy Mgmt. Systems/Building Controls, Duct/Air sealing, Building Insulation, Windows, Roofs, Custom/Others pending approval, Appliances and Plug Loads Solar Water Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, CHP/Cogeneration, Other Distributed Generation Technologies Commercial, Industrial, Nonprofit, Schools, Local Government, Multi-Family Residential Varies by project; loans may range from $100,000 to $2.5 million $2.5 million loan maximum (approximately) Interest rates vary on a case-by-case basis, but generally from %; loan terms determined by life of equipment for up to 15 years; loans secured by financed assets or other collateral. The program is funded by the American Recovery and Reinvestment Act. Loans are available in amounts from roughly $100,000 to $2.5 million. Interest rates will be determined on a case-by-case basis but are generally expected to be from 4% to 6.5%. The loan term will be set to correspond to the expected life of the equipment, up to 15 years. Loans will be secured by the financed assets, or other collateral such as personal or corporate guarantees. Applications will be accepted on a rolling basis. The Pennsylvania Green Energy Loan Fund will provide loans to finance energy conservation and energy efficiency improvements in buildings throughout Pennsylvania. Supported improvements generally include energy retrofit measures (limited or extensive), equipment replacement, or gut rehabs in existing, occupied buildings. Projects involving new construction may be eligible on a caseby-case basis. In order to qualify for a loan, a project must result in an estimated energy consumption reduction of at least 25%. Eligible improvements are generally custom in nature, but the following possible improvements are listed in the program application: Air sealing Building insulation HVAC systems and controls Interior and exterior lighting and controls Domestic hot water (heating system and plumbing) Appliances and other plug loads Windows, exterior, doors and roofs On-site energy systems such as PV, solar water heating, geothermal, wind, biomass and CHP systems. Program Information - PA Green Energy Loan Fund The Reinvestment Fund (TRF) 718 Arch Street, Suite 300 North Philadelphia, PA Phone: (215) PaGELF@trfund.com Website: 10

11 PENNSYLVANIA STATE PROGRAMS Department of Community and Economic Development High Performance Buildings Incentive Program State: Incentive Type: Eligible Eligible Renewable/Other Applicable Sectors: Maximum Incentive: Equipment Requirements: Pennsylvania State Grant Program Comprehensive Measures/Whole Building Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Bio-gas, Daylighting, Small Hydroelectric Commercial, Residential Vary by project, but program generally requires matching funds at least equivalent to DCED funding Residential loans/loan guarantees: $100,000, Commercial loans/loan guarantees: $2 million, Grants: Lesser of 10% of project costs or $500,000 Projects must achieve minimum certification under LEED, Green Globes, or the National Green Building standard (e.g., Gold under LEED NC); projects must also meet additional requirements in certain categories. This state loan program supports requirements in certain categories. years. renewable energy and energy efficiency technologies. This program offers support for green buildings in the form of loans (a maximum of $2 million), grants and loan guarantees. In order to be eligible for incentives, new construction and major renovation projects must achieve the applicable certification and meet other requirements. The program is funded by Alternative Energy Investment Fund (state-issued bonds) with a budget of $25 million. The fund is designed to provide support for a variety of renewable energy and energy efficiency technologies. The program is jointly administered by the Department of Community and Economic Development and the Department of Environmental Protection, under the direction of Commonwealth Finance Authority. Buildings must also meet additional Funds may be used for the following project costs: Acquisition of land and buildings, rights-of-way and easements necessary for project construction Clearing and preparation of land to build an eligible project Construction or renovation of a high performance building Project planning, design, and modeling work Fees for registration and certification of a project Commissioning and enhanced verification of building performance Loans Loans are available at a fixed interest rate -- 4% as of March and must be repaid within 10 years. The maximum loan is $100,000 for residential projects and $2 million for small business projects. Loans may be amortized over a period of up to 25 Grants Grants are available for up to 10% of eligible project costs or $500,000. Applicants may request both a grant and a loan, but not for the same project. Loan Guarantees Loan guarantees will take the form of a grant that may be used in the event of financing default on the part of the applicant, up to $100,000 for residential projects and $2 million for small business projects. Performance Building Program, Department of Community and Economic Development, Center for Business Financing 400 North Street, 4th Floor Harrisburg, PA Phone: (717) ra-dcedcbf@state.pa.us Website: 11

12 PENNSYLVANIA STATE PROGRAMS Sustainable Development Fund Financing Program (PECO Territory) State: Incentive Type: Eligible Efficiency Eligible Renewable/Other Applicable Sectors: Pennsylvania Local Loan Program Lighting, Chillers, Boilers, Heat pumps, Central Air conditioners, Comprehensive Measures/Whole Building, Custom/Others pending approval, Unspecified Technologies Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Fuel Cells using Renewable Fuels Commercial, Industrial, Nonprofit, Schools, PECO Service Territory Varies by project The Pennsylvania Public Utility service companies who want to finance determined on a case-by-case basis. Commission created the Fund in its equipment upgrades or electricity SDF also has a lease-financing product final order of the PECO Energy electric energy savings improvements to their for large nonprofit institutions utility restructuring proceeding. The plant/office facilities; end-user (schools and hospitals) and Reinvestment Fund, Inc. administers companies wishing to purchase commercial real estate owners for the Fund. In total, the fund has advanced clean energy systems; and energy conservation improvements. received approximately $31.8 million start-ups and expansions of companies The SDF Commercial Financing in income over its lifetime. The producing clean energy. Program provides flexible business 12 program provides financial assistance to eligible projects in the form of commercial loans, subordinated debt, royalty financing, and equity financing. The Fund provides financial assistance for the following types of ventures: companies and ventures that generate electricity using renewable energy sources and companies that are end-users of renewable energy, advanced clean energy and energyconserving products and technologies. Specific terms of the financial support are flexible and are determined on a case-by-case basis. The program also has a lease-financing product for commercial real estate owners for energy conservation improvements. This program provides flexible business loans to: manufacturers, wholesalers/distributors, retailers and The SDF provides financial assistance to eligible projects in the form of commercial loans, subordinated debt, royalty financing and equity financing. The SDF provides financial assistance for the following types of ventures: Companies and ventures that generate electricity using renewable energy sources; Manufacturers, distributors and installers of renewable energy, advanced clean energy and energyconserving products and technologies; and, Companies and organizations that are end-users of renewable energy, advanced clean energy and energyconserving products and technologies. The specific terms of the financial support are flexible and are loans to: Manufacturers, wholesalers, distributors, retailers and service companies who want to finance equipment upgrades or electricity energy savings improvements to their plant/office facilities; End-user companies wishing to purchase advanced clean energy systems; and start-ups and expansions of companies producing clean energy. Robert Sanders Sustainable Development Fund 718 Arch Street, Suite 300 North Philadelphia, PA Phone: (215) energy@trfund.com Web Site:

13 PENNSYLVANIA STATE PROGRAMS Pennsylvania Public Utilities Commission Solar Alternative Energy Credits State: Incentive Type: Eligible Renewable/Other Applicable Sectors: Maximum Incentive: Eligible System Size: Equipment Requirements: Pennsylvania Performance-Based Incentive Photovoltaics Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Multi-Family Residential, Agricultural, Institutional Varies based on market conditions; during 2012 the market price for PA-sourced SRECs has ranged from approximately $120 - $170/MWh ($ $0.17/kWh) although some individual trades have taken place at substantially lower and higher prices. Varies based on market conditions; SACP does not represent a price ceiling because it is only determined after the fact No system size limitations Systems generally require a utility-grade performance meter (exception exists for some facilities of 15 kw or smaller) This program allows you to trade excess electricity you generate from a renewable energy source. First, you must apply for and be certified as an eligible generator. In order to be considered, the generator must generally be located either within the state of Pennsylvania or within the broader region. The exception to this rule is that energy from resources located within the footprint of the Midwest Independent Systems Operator, which also serves a small portion of Pennsylvania, may be used for compliance in areas served by the Operator. The practical impact of this exception is that out-of-state resources located in the Operator may only be used for compliance by the Pennsylvania Power Co. or energy suppliers operating within its service territory. Systems must be operational before the owner can apply for a certification number. Once a generator has received a certification number from the program administrator, they may create an account on the Generation Attributes Tracking System. The System is used to track the generation and transfer of credits from an eligible facility. It issues credits to correspond with energy generation readings that the system owner uploads to the system. Systems of 15 kilowatts or less that are not equipped with production meters may elect to use an engineering estimate of expected energy production in lieu of uploading actual meter readings into the system. Dina Deana Clean Power Markets, Inc. 511 Schoolhouse Rd, Suite 200 Kennett Township, PA Phone: (877) paaeps@cleanpowermarkets.com Website: 13

14 PENNSYLVANIA UTILITIES PROGRAMS PPL Electric Utilities Custom Energy Efficiency Program State: Incentive Type: Eligible Efficiency Applicable Sectors: Maximum Incentive: Eligible System Size: Installation Requirements: Pennsylvania Utility Rebate Program Custom/Others pending approval Commercial, Industrial, Nonprofit, Schools, State Government, Institutional Custom Incentive: $0.10 per projected first year kwh savings Technical study: 50% of cost Custom Efficiency Rebates: 50% of incremental cost, $500,000 per customer site per year, or $2 million per parent company Technical Study: $100,000 annually Applicant must document that efficiency measures will pass cost-effectiveness and technical criteria. To qualify, installations must be extensive energy-efficiency projects, retrocommissioning, equipment optimization, or process improvements. Prospective applicants should contact their PPL Electric Utilities Key Account Manager before beginning any project. If applicants do not have one, they should contact the utility. To receive custom incentives, applicants should submit an application for a technical study to install measures not covered by any of PPL's other programs, such as the Commercial and Industrial Energy Efficiency Rebate Program. PPL will rebate up to 50% of the Technical Study if the customer implements measures that lead to at least 50% of recommended identified electricity savings. After the Technical Study, applicants can complete the Custom Incentive Application, install the measures, and expect payment six weeks after approval of the Commissioning Report. A site visit may be required, and incentives are based on projected savings for the first 12 months following installation. If PPL C&I customers have already installed energy efficiency measures after July 1, 2009 and before March 1, 2010, they may be eligible for a retroactive rebate. PPL Electric Utilities Custom 827 Hausman Road Allentown, PA Phone: (866) businessaccounts@pplweb.com Web Site: 14

15 PENNSYLVANIA UTILITIES PROGRAMS PECO Energy (Electric) Non-Residential Energy Efficiency Rebate Program State: Incentive Type: Eligible Efficiency Applicable Sectors: Maximum Incentive: Eligible System Size: Installation Requirements: Pennsylvania Utility Rebate Program Custom/Others pending approval Commercial, Industrial, Nonprofit, Schools, State Government, Institutional Custom Incentive: $0.10 per projected first year kwh savings Technical study: 50% of cost Custom Efficiency Rebates: 50% of incremental cost, $500,000 per customer site per year, or $2 million per parent company Technical Study: $100,000 annually Applicant must document that efficiency measures will pass cost-effectiveness and technical criteria. To qualify, installations must be extensive energy-efficiency projects, retrocommissioning, equipment optimization, or process improvements. This program offers reimbursements for energy-efficient appliances and renewable energy sources; however, new project applications received on or after October 1, 2011 have been placed on a wait list with no incentive funds reserved or guaranteed. PECO energy provides custom and prescriptive incentives for commercial energy efficiency retrofits. Customers should mail completed, signed incentive application forms with receipts. PECO Commercial 4377 County Line Road Chalfont, PA Phone: (888) smartideas@peco-energy.com Web Site: 15

16 PENNSYLVANIA UTILITIES PROGRAMS FirstEnergy (MetEdison, Penelec, Penn Power) Commercial and Industrial Energy Efficiency Program State: Incentive Type: Eligible Efficiency Applicable Sectors: Equipment Requirements: Installation Requirements: Ownership of Renewable Energy Credits: Pennsylvania Utility Rebate Program Clothes Washers, Refrigerators, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers, Heat pumps, Central Air conditioners, Motors, Motor VFDs, Custom/Others pending approval, Led Exit Signs, Vending Machine Controls, Food Service Equipment, Audit Program, LED Lighting, Heat Pump Water Heaters Commercial, Industrial, Schools, Local Government, State Government, Institutional Custom Lighting Incentive: 0.05/kWh saved annually Screw-In CFL Lamp: $1 Hard-Wired CFL Lamp: $15 Lighting Controls: $35/sensor Street Lights (w/ Photocell Sensor): $140 - $800 Outdoor Area Lights (w/ Photocell Sensor): $65 - $100 LED Traffic/Pedestrian Signals: $ /unit HVAC Maintenance: $25/unit serviced LED Exit Sign: $15 Motors: $20 - $400 Motor VSD (Newly Installed): $30/HP Unitary/Split HVAC Systems: $150 - $350/unit Air Source Heat Pumps: $150 - $350/unit Package Terminal Heat Pumps: $150/unit Water Source Heat Pumps: $150/ton Ground Source/Ground Water Source Heat Pumps: $250/unit Chillers: $12.50-$25/ton Custom: 0.05/kWh saved annually Refrigeration/Food Service Equipment: Varies See program web site and forms for details All projects requesting incentives more than $3,000 must submit the application prior to purchasing equipment. Credits are given for equipment purchased and installed, and the companies have rights to any credits associated with incentives for the equipment. FirstEnergy's Pennsylvania companies (and funding sources) MetEdison, Penelec, and Penn Power provide energy efficiency incentives for a variety of equipment. A participant or contractor should submit an application package before the equipment is purchased, install the equipment after receiving an approval letter, and submit proof of purchase/manufacturing specifications within nine months to receive available incentives. Contact FirstEnergy for more information on this offering. FirstEnergy Commercial FirstEnergy Incentives for Business Program - SAIC 6059 Allentown Blvd., PMB573, PA Harrisburg, PA Phone: (866) Fax: (610) energysavepa@saic.com Web Site: 16

17 PENNSYLVANIA UTILITIES PROGRAMS Duquesne Light Company Commercial and Industrial Energy Efficiency Program State: Incentive Type: Eligible Efficiency Applicable Sectors: Pennsylvania Utility Rebate Program Refrigerators, Equipment Insulation, Lighting, Lighting Controls/Sensors, Central Air conditioners, Motors, Motor VFDs, Led Exit Signs, Commercial Refrigeration Equipment, Food Service Equipment, Channel Signs, Time Clock, Ice Machines, Evaporator Fan Motor, Copiers, Network Power Management, Other Measures as Approved Commercial, Industrial, Schools, Government, Institutional, Health Care Providers Screw-in CFL's: $1.75-$3.50 Interior/Exterior Compact Fluorescent Fixture: $9-$20 Display/Accent Lighting: $2-$25 Interior Induction Fixtures: $35-$50 Linear Fluorescent Packages: $7.50- $93.50 Linear Fluorescent Lamp Removal: $4-$9 Pulse-Start Metal Halide Fixtures: $40- $114 Controls and Sensors: $10-$40 Time Clock: $75 Exit Sign: $27 VFD for Chilled Water Loop $150/hp VFD for HVAC Fans: $80/hp Packaged Terminal AC: $45-$75/ton Insulated Holding Cabinets: $200 - $300 Boilerless/Connectionless Steamer: $750 Grill to Order Production Line Equipment Replacement: $1,500 Commercial Ice Machines: $300-$500 Solid Door Freezers: $75-$150 Solid Door Refrigerators: $100-$225 Refrigerated Display Case with Doors: $150- $200 Miscellaneous Refrigeration Equipment: Varies Evaporative Fan Motor: $20/motor Insulate Bare Suction Pipes: $1/ln. ft. Evaporative Fans Controller for Walk-in Coolers: $75 Vending Machine Controller: $90 Motors: $35-$1,260/motor Equipment Requirements: See rebate application and rebate catalog for equipment requirement Installation Requirements: Must have been installed after November 30, 2009 Duquesne Light provides rebates on energy-saving equipment to customers in the eligible service territory. There are 2 types of rebate programs available to all customers. One is the rebate catalog listing specific equipment and its rebate amount. After purchasing and installing the equipment, the customer submits the necessary paperwork and the rebate is paid to the customer by check. The second program is the customized rebate program where customers are encouraged to undertake energy efficiency projects customized to their facilities that include items not found in the rebate catalog. Rebates for the projects will be based on kilowatts saved in a year. Customers will provide details of the planned installations and removals, hours of operation, etc. Customers will be informed of the rebate amount before they start the project. Rebate checks for customized projects will be issued after installation is complete. Duquesne Light has partnered with conservation service providers to work with specific segments of customers. These conservation service providers can assist customers with energy audits, project identification, cost and savings calculations, equipment specification, project management and rebate paperwork. Dave Defide, Duquesne Light Company, Energy Efficiency & Demand Response Program 411 Seventh Avenue Pittsburgh, PA Phone: (412) ddefide@duqlight.com Website: 17

18 PENNSYLVANIA NON-PROFIT ORGANIZATION PROGRAMS Sustainable Energy Fund State: Incentive Type: Eligible Efficiency Eligible Renewable/Other Applicable Sectors: Maximum Incentive: Pennsylvania Local Loan Program Lighting, Lighting Retrofits, HVAC Upgrades, Building Envelope Improvements, LEED Energy Saving Measures, and other technologies which yield measurable energy savings Solar Water Heat, Solar Space Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Fuel Cells using Renewable Fuels, Other Distributed Generation Technologies Commercial, Industrial, Nonprofit, Schools, Local Government, State Government, Agricultural, Eastern PJM, including PA and parts of NJ Varies by project; may provide up to 100% of financing needs Minimum $35,000 direct or $10,000 through an Energy Services Provider (ESP) $1 million The Sustainable Energy Fund (SEF) promotes and invests in energy efficiency and renewable energy projects, and energy education initiatives. Financial incentives are offered as loans to promote clean energy technologies and for projects where energy savings are measurable. Eligible clean technology applications include energy efficiency, renewable energy, green building and clean transportation. Financing terms are customized to the unique requirements of individual projects. The SEF has also developed Energypath, a comprehensive resource intended to assist Pennsylvanians in locating contractors, grants, loans, equipment manufacturers, rebates and technical assistance. This organization works with numerous partners to reduce energy consumption from harmful sources. It helps small businesses with funding acquisition for programs and removing educational barriers to knowledge of the technology. Public Information - Sustainable Energy Fund Financing Programs 1005 Brookside Road, Suite 210 Allentown, PA Phone: (610) Fax: (610) TheSEF@TheSEF.org Web Site: 18

19 RESOURCES Center for Climate and Energy Solutions Clean Energy Authority Database of State Incentives for Renewables and Efficiency Department of Energy Natural Resources Defense Council Pennsylvania Department of Environmental Protection Small Business Majority U.S. Environmental Protection Agency The United States Environmental Protection Agency has offered a guide to greening your small business. U.S. Small Business Administration 19

20 Small Business Majority th Street, Suite 1001 Washington, DC,