In addition to the amounts previously listed, households and small businesses can also qualify for $100 million to support the installation of solar energy technology. Solar power is a key cost-saving technology that enables homes and businesses to generate their own electricity and sell any excess power back to the grid through net metering.

Carnegie Mellon University estimates the technology could help reduce electricity demand by 5 percent during the 100 most expensive hours of the year-typically, times when the sun is most intense and temperatures the highest-which would save Pennsylvania ratepayers $1.9 billion annually. Electricity rates can be 15 to 30 times more during periods when demand is highest.

The Governor said these kinds of investments are important today because consumers who now find it difficult to pay for gasoline, diesel fuel, natural gas and heating oil will only face greater financial hardship when the generation rate caps that have held electricity prices in check since the mid-1990s expire, leading to double-digit rate increases.

In addition to supporting energy conservation, efficiency measures, and financial assistance, new strategic investments were outlined that will be made possible under the fund. According to the Governor's office, this will spur billions of dollars in new, private economic development projects from alternative energy companies and early stage businesses that will create thousands of jobs in a rapidly growing industry.

Included among the new $650 million fund is $500 million that provides:

• $165 million for loans and grants to spur the development of alternative and renewable energy projects (except solar) among businesses and local governments
• $100 million to provide loans, grants and rebates that cover up to 35 percent of the costs residential consumers and small businesses incur for installing solar energy technology
• $80 million in grants and loans for economic development projects in the solar sector
• $40 million to the Ben Franklin Technology Development Authority to support early stage activities, such as incubator support services, translational and early stage research in startup businesses that develop and implement energy efficiency technologies
• $25 million for wind energy and geothermal projects
• $25 million for green buildings. Homeowners and small businesses will benefit from grants and loans to build energy efficient structures or renovate an existing building to improve its energy efficiency
• $40 million ($10 million annually for four years) to support LIHEAP so the commonwealth can help low-income customers manage higher energy prices, severe weather conditions, or disasters
• $25 million for pollution control technology to help energy generators meet state and federal standards

The law, originally Special Session House Bill 1, will also establish a $150 million consumer energy program for individuals and small businesses that will support projects that conserve energy and use it more efficiently-something that is increasingly important as the costs for electricity, fuels and natural gas continue to increase.

The $150 million will be allocated over eight years, with $20 million annually through 2014-15 and another $10 million in 2015-16 that will include:

• $92.5 million so homeowners and small business owners can cover 25 percent of the cost of purchasing and installing energy conservation tools and weatherize their buildings;
• $50 million in tax credits of up to $1 million a year per project for developing and building alternative energy projects, which will help Pennsylvania companies invest and grow here; and.
• $5 million to support an Energy Efficiency Loan Fund through the Pennsylvania Housing Finance Agency.

If you have questions related to our Small Business Services, you may contact Small Business Manager Jim Gante, CPA at 717-757-6999 or 800-745-8233. You may also send him an email by using the form below.