Update on Proposed Changes to Pennsylvania’s Alternative Energy Portfolio Standard

This week, the Pennsylvania House of Representatives will review the Clean Energy and Jobs Bill (HB-2405), a proposed amendment to the Alternative Energy Portfolio Standards Act.  The bill includes a solar carve-out, which would mandate an Alternative Compliance Payment of $450 in 2011 for utilities that do not meet solar output requirements. The newly proposed solar carve-out would raise the required solar component of Pennsylvania’s RPS from .5% to 3% by the year 2025. The proposed bolstering of PA’s solar carve-out mirrors recent legislative changes in New Jersey and Maryland that mandate a solar RPS component of 2% or higher. The net result will be greater financing incentives for Pennsylvania homeowners and small businesses looking at solar energy, as well as a stronger platform for installers located in Pennsylvania looking to include SREC values in their sales.

Under HB-2405, Pennsylvania’s RPS would cease to accept SRECs from solar systems located outside PA but within the PJM region. If passed, this component of the bill would be detrimental to out of state homeowners and businesses looking to take advantage of PA SREC income to defray the high installation costs of solar energy. The bill also adversely affects regional developers who incorporate the value of PA SRECs into the financing of solar energy systems located outside the state.

Sol Systems will continue to monitor and provide updates on HB-2405 in the coming weeks.

Comments are closed.