How New Legislation Could Reshape the Solar Power Landscape in Pennsylvania

While many Pennsylvanians are discovering the benefits of switching to solar power, plenty of work remains before the state can reach a future truly powered by renewable energy. Pennsylvania currently ranks just 45th in the country when it comes to investments in clean energy including solar, wind, and hydropower, and only four percent of the state’s energy comes from renewable sources.

There are signs those trends might be changing, though, thanks to the Josh Shapiro administration, which has made investing in renewable energy sources a legislative priority. In July, Shapiro signed a bill into law that will allow school districts to convert to solar power at minimal cost. In addition, there are currently two other bills in Harrisburg that, if passed, would represent a significant shift in the state’s renewable-energy landscape. Here’s what you need to know about each of the bills.

Solar for Schools

Schools—long, flat buildings—have always been a logical place for solar power. With the Solar for Schools bill, it will be easier than ever for schools in Pennsylvania to make the switch to solar energy. Under the new law, a state grant will cover 50 percent of the cost of installing solar panels, while the remaining 30 to 50 percent will be covered by federal Inflation Reduction Act dollars. That means a school will be able to convert to solar power for as little as 20 percent of the full cost—and potentially for free. Schools around the country that have already made the switch report that they’re on pace to save millions of dollars on energy costs over the coming decades.

Pennsylvania Reliable Energy Sustainability Standard (PRESS)

Pennsylvania is already a leader among state governments for its own clean energy generation, thanks to a program known as the Project to Utilize Light and Solar Energy (PULSE). By 2025, 10 different solar arrays across the Commonwealth will account for 50 percent of the Pennsylvania government’s total energy consumption, reducing the state’s carbon footprint by more than 150,000 metric tons of CO2.

The proposed PRESS legislation would expand this commitment to renewable power across the entire Commonwealth. Under the terms of the bill, utilities in Pennsylvania would be required to boost the proportion of their power that comes from renewable sources. By 2035, 35 percent of the utilities’ power would have to come from clean-energy sources including solar and wind. This would be a considerable shift in Pennsylvania’s energy mix, considering the state currently receives just four percent of its power from these sources.

Pennsylvania Climate Emissions Reduction Act (PACER)

The second bill making the rounds in Harrisburg also bears a fancy acronym; this one is known as PACER. Intended as a complement to the PRESS legislation, this bill would create a new cap-and-trade system exclusively for Pennsylvania.

Currently, Pennsylvania is part of a multi-state cap-and-trade entity called the Regional Greenhouse Gas Initiative (RGGI). Under RGGI, states set a cap on carbon emissions and charge polluters a fee for the amount of carbon they emit. Those proceeds then fund the Clean Air Fund, a pollution-reduction effort.

The Shapiro Administration is proposing that Pennsylvania leave the RGGI and establish its own cap-and-trade policy. This would give the Commonwealth the freedom to set its own cap on carbon emissions, as well as determine how to spend the program’s revenue. Shapiro has suggested that 70 percent of revenue from PACER would go back to consumers in the form of electricity bill rebates, while 30 percent would either fund new clean-energy projects or support programs like the Low-Income Home Energy Assistance Program.

Taken together, the PRESS and PACER legislation would amount to a radical change in the way Pennsylvania regulates energy and works toward its clean-energy goals. According to the governor’s office, the two bills, in their first five years alone, would save ratepayers more than $250 million and produce $5.1 billion of investment in clean-energy sources.

At BAI, we are constantly monitoring the energy landscape in Pennsylvania and the region. Contact us today to learn more about renewable power in Pennsylvania and how this new legislation could make solar power projects even more economically beneficial for you and your business.