The Alternative Clean Energy Program (ACE) represents Pennsylvania’s commitment to advancing renewable energy initiatives across the state. Established to stimulate the development of alternative and clean energy projects, the ACE program provides crucial financial support through loans and grants to eligible businesses, economic development organizations, and political subdivisions. This innovative program is a cornerstone of Pennsylvania’s strategy to promote sustainable energy solutions, reduce carbon emissions, and foster economic growth through community solar projects and other clean energy initiatives.
Alternative Clean Energy Program, Explained
Administered under the direction of the Commonwealth Financing Authority (CFA), the ACE program specifically targets projects that utilize or develop alternative energy resources, including solar photovoltaic energy, wind, hydropower, geothermal, biologically derived methane gas, and other alternative energy sources. The program’s comprehensive approach aims to create a more diverse energy portfolio for Pennsylvania while simultaneously creating jobs and enhancing environmental sustainability across communities statewide.
The ACE program operates with a dual focus on providing both loans and grants to qualified applicants.
Loans
The program offers manufacturers of alternative and/or clean energy generation equipment or components a maximum of $40,000 for every new job created within three years after the loan has been approved. Alternative energy production or clean energy projects may receive a maximum of $5 million or 50% of the total project cost, whichever is less, providing substantial support for ambitious clean energy developments.
Grants
Grants under the ACE program complement the loan structure with specific allocation guidelines. For manufacturers of alternative and/or clean energy generation equipment or components, grants are capped at $10,000 for each job projected to be created within three years after grant approval. For alternative energy production or clean energy projects, grants shall not exceed $2 million or 30% of the total project cost, whichever is less.
Guarantees
The program also offers loan guarantees as an additional financial support mechanism. These guarantees 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% of the deficiency. This comprehensive funding approach creates a flexible financing framework that accommodates various project scales and needs.
Terms
The ACE program requires a matching investment of at least $1 for every $1 of program funds awarded. Applicants must submit a $100 non-refundable application fee to the CFA when applying. All approved loans include a 1% commitment fee.
How Does the ACE Program Work for PA Community Solar?
The ACE program drives community solar Pennsylvania development by providing financial support for shared solar facilities that allow multiple participants to benefit from a single installation. For developers, the program’s blended financing approach helps overcome capital barriers, funding everything from site assessment and engineering studies to equipment acquisition and construction.
Applying for ACE funding requires submitting project plans, cost estimates, and implementation timelines to the Commonwealth Financing Authority. Projects are evaluated on technological feasibility, energy production potential, economic impact, and community benefits. Successful projects receive funding that reduces costs and accelerates development.
Pennsylvania’s community solar framework, supported by ACE, creates inclusive clean energy access for renters, homeowners, and businesses, democratizing renewable energy while building resilient local energy systems.
Key Benefits of the ACE Program
Economic Development and Job Creation
The ACE program serves as a powerful economic engine, generating employment opportunities throughout the clean energy value chain. From initial project development and construction to ongoing operations and maintenance, ACE-funded initiatives create jobs across multiple skill levels and sectors. Also, these projects inject capital into local economies, supporting businesses and expanding the tax base for communities across Pennsylvania.
Environmental Sustainability
The ACE program delivers significant environmental benefits by accelerating the deployment of alternative energy technologies. Clean energy projects funded through the program help reduce greenhouse gas emissions, improve air quality, and decrease dependence on fossil fuels. This environmental stewardship protects Pennsylvania’s natural resources while contributing to broader climate goals and sustainability initiatives.
Energy Independence and Security
ACE-supported projects enhance Pennsylvania’s energy security by diversifying the state’s energy portfolio. By developing local renewable energy resources, communities can reduce their vulnerability to energy price fluctuations and supply disruptions. This increased energy independence creates more stable and predictable energy costs for businesses and residents throughout the state. Subscribers to community solar can save a guaranteed 10% on their energy bills.
Technology Innovation
The ACE program fosters technological advancement in the clean energy sector by providing crucial funding for innovative projects. This support enables the testing and deployment of cutting-edge alternative energy technologies, positioning Pennsylvania as a leader in clean energy innovation. The resulting technological progress helps drive down costs and improve the efficiency of renewable energy systems statewide.
Explore Pennsylvania Community Solar Opportunities with US Light Energy
U.S. Light Energy (USLE) stands at the forefront of community solar development in Pennsylvania, offering comprehensive services to landowners, businesses, and communities seeking to participate in the clean energy transition. With extensive experience in solar project development and a deep understanding of Pennsylvania’s renewable energy landscape, U.S. Light Energy provides end-to-end support for community solar initiatives. Our development services include site assessment, permitting assistance, interconnection management, and project financing guidance, making USLE an ideal partner for ACE program applications.
As a trusted solar developer, U.S. Light Energy works closely with landowners to identify optimal sites for community solar installations, creating long-term revenue streams through land lease agreements while contributing to sustainable energy production. Our team navigates the complexities of program requirements and regulatory frameworks, ensuring seamless project development from initial concept through construction and operation. U.S. Light Energy’s commitment to community engagement ensures that each solar project delivers maximum benefit to local stakeholders while advancing Pennsylvania’s clean energy goals.
Ready to explore how your community can participate in Pennsylvania’s growing community solar market? Contact US Light Energy today to learn more about our development services. U.S. Light Energy is leading the charge for a new generation.
References:
https://greenport.pa.gov/elibrary/GetFolder?FolderID=43140
https://uslightenergy.com/development/development-services/
https://dced.pa.gov/programs-funding/commonwealth-financing-authority-cfa/
https://dced.pa.gov/programs/alternative-clean-energy-program-ace/
https://uslightenergy.com/solar-farms-in-pennsylvania-what-you-need-to-know/
https://uslightenergy.com/what-is-the-positive-environmental-impact-of-solar-energy/
https://uslightenergy.com/how-does-community-solar-billing-work/
https://uslightenergy.com/land-leasing/solar-land-lease/
https://uslightenergy.com/about/contact/