SDF was created by the Pennsylvania Public Utility Commission in its final order in the PECO electric utility restructuring proceeding. A group of environmental and consumer organizations known as the Environmentalists made the SDF a key element of their terms for settlement. Their vision was for the SDF to help make a sustainable energy future for southeastern Pennsylvania by growing a renewable and clean energy infrastructure in the region.
SDF received additional funding and responsibilities as a result of the PECO/Unicom merger settlement. That settlement provided funding earmarked for new wind development, solar photovoltaics and renewable energy education and an increase in SDF’s core fund.
As a result of these two proceedings, SDF’s total funding was approximately $32 million. SDF has provided over $48 million of financial assistance for clean energy since it began operations in December, 1999. SDF is managed by Reinvestment Fund.
SDF Financing is available for:
- For-profit companies
- Non-profit organizations
- Local government entities (including schools)
SDF Financing is available for projects involving:
- Energy conservation and energy efficiency improvements in buildings (including energy retrofits, gut rehab and new construction).
- Installation of new energy-efficient production equipment.
- Implementation of demand-response solutions, including electric storage.
- Construction of energy projects that generate electricity from renewable energy sources such as solar, wind, hydro or biomass.
- Construction of energy projects that generate electricity from other advanced clean energy technologies such as fuel cells, combined-heat-and-power (CHP) or other advanced solutions.
All SDF projects must be located in the Commonwealth of Pennsylvania.
SDF’s affordable, flexible financing products include:
- Commercial debt
- Subordinated debt
- Lease financing
- Energy Performance Contract financing
In the past, SDF provided equity investments and grants, but today SDF only provides the various forms of debt financing listed above.
Note about Consumer Energy Loans. While SDF does not provide consumer energy loans, interested homeowners can contact Renew Financial for the Keystone Home Energy Loan Program (Keystone HELP) for financing of a variety of energy-efficient home improvements and appliances. Their energy loan is an unsecured, no-hassle consumer loan for up to $20,000 at an interest rate that is below the market rate of traditional unsecured consumer credit.
How to Apply for Financing
The first step is to complete and submit the relevant Initial Financing Request Form for your project. One form is for energy efficiency projects and the other is for clean energy production projects. See the “Important SDF Documents” box to download these forms.