Solar power in Pennsylvania currently provides less than 1% of the state's electricity, but there are many policies in place to regulate and incentivize its use.

Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...

mandates the use of solar power through a renewable portfolio standard, which requires a percentage of electricity from each providers to come from solar, and

net metering Net metering (or net energy metering, NEM) is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly importa ...

, which compensates small-scale solar generation through net metering. By 2021, Pennsylvania was required to have 0.5% of its electricity from

solar Solar may refer to: Astronomy * Of or relating to the Sun ** Solar telescope, a special purpose telescope used to observe the Sun ** A device that utilizes solar energy (e.g. "solar panels") ** Solar calendar, a calendar whose dates indicate t ...

. Their following goal is 10% by 2030. Solar power could theoretically provide over 30% of the state's electricity, but growth in solar generation has slowed due to a reduction in solar grants and the low price of solar energy credits. Efforts have also seen blowback from citizens, most notably from Mount Joy Township. Although, Pennsylvania has ruled solar as a legal use, meaning local governments can only restrict size and placement, but can't disband the projects.

Solar power policies

Net metering

Net metering Net metering (or net energy metering, NEM) is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly importa ...

is available to all residential customers up to 50 kW and others up to at least 3 MW. Excess generation is credited at retail rate to customer's next bill, and paid annually at "price-to-compare" (normally referred to as "avoided cost"). Best practices call for no limits (other than to customer's service entrance rating), and perpetual roll over of kilowatt credits, instead of converting to a monetary credit. Annual reconciliation can create problems as annual generation for wind and solar inherently varies from year to year, and during the year large credit surpluses can accrue that would be later consumed, which is why perpetual roll over of kilowatt credits is recommended. Converting to a monetary credit is not recommended because electric rates change over time. In the event that the generation installed is larger than needed to meet local demand, an optional compensation is more practical than a mandatory method, even if the compensation is at retail.

Alternative Energy Portfolio Standard

Pennsylvania has a renewable portfolio standard titled Alternative Energy Portfolio Standard (AEPS), which mandates use of solar photovoltaics (PV) for electricity. All electrical utilities in Pennsylvania must supply a percentage of their electricity from alternative sources, which fall into two tiers: Tier I, which includes biomass, wind, and geothermal; and Tier II, which includes waste coal,

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syngas Syngas, or synthesis gas, is a mixture of hydrogen and carbon monoxide, in various ratios. The gas often contains some carbon dioxide and methane. It is principly used for producing ammonia or methanol. Syngas is combustible and can be used as ...

), and utility-scale

hydropower Hydropower (from el, ὕδωρ, "water"), also known as water power, is the use of falling or fast-running water to Electricity generation, produce electricity or to power machines. This is achieved by energy transformation, converting the Pot ...

.Pennsylvania General Assembly, 2004. ''Alternative Energy Portfolio Standards Act'', United States: State of Pennsylvania. Available at: http://www.legis.state.pa.us/cfdocs/legis/li/uconsCheck.cfm?yr=2004&sessInd=0&act=213 . Each tier has a separate standard; by 2021, 8% of generation must come from Tier I, and 10% must come from Tier II.Pennsylvania General Assembly, 2007. ''Alternative Energy Portfolio Standards Act - Alternative Energy Portfolio Standards, Portfolio Requirements In Other States and Interconnection Standards for Customer-Generator Facilities'', United States: State of Pennsylvania. Available at: http://www.legis.state.pa.us/cfdocs/Legis/LI/uconsCheck.cfm?txtType=HTM&yr=2007&sessInd=0&smthLwInd=0&act=35. Solar PV and solar thermal fall under Tier I, but the AEPS also contains a requirement that a percentage of Tier I electricity be generated specifically from solar PV – 0.5% by 2021. To comply with the standard, Pennsylvania utilities must obtain Alternative Energy Credits (AECs), which are equal to one megawatt-hour (MWh) of energy generated from Tier I or Tier II sources. Surplus AECs can be bought and sold between utilities or stored for a maximum of two years before being used. Utilities that do not comply must pay an alternative compliance payment (ACP), which goes to the state's Sustainable Energy Funds. The ACP for solar PV is dependent on the cost of solar PV electricity (in 2016 it was $124.14), while for all other sources the ACP is set at $45.

Pennsylvania solar energy market

Solar energy has failed to penetrate the Pennsylvania energy market to the extent that it has in other states due to in part to inconsistent financial incentives. In 2009, Pennsylvania created the PA Sunshine Rebate program, which allocated $100 million in state funds to offer rebates for small-scale solar installations. This program led to a short-term increase in the rate solar installations. Since then, the program has run out of funding and is no longer offering rebates, causing the number of new installations to drop. It has been replaced by the Solar Loan Program, which provides loans for building components for solar plants and for installing new solar generation. In addition, several Pennsylvania utilities offer grant, rebate, and loan programs for solar applications. Solar_Power_Capacity_in_PA_by_Year

Solar generation in Pennsylvania has also been made less financially attractive by low prices for solar alternative energy credits (SAECs). This is due to an oversupply of SAECs compared to what is required under the AEPS. Pennsylvania accepts SAECs from out-of-state solar generation within the PJM Interconnection, regardless of whether the state has a renewable portfolio standard. This allows Pennsylvania-based electrical providers to buy out-of-state SAECs cheaply rather than build new solar generation within the state. The influx of out-of-state credits causes the supply of SAECs to exceed the total number required for compliance, resulting in low prices for credits and a reduced incentive to construct solar power facilities in Pennsylvania. Phipps_Conservatory_24

The average price of Pennsylvania SAECs peaked in 2010 at $310. Since the beginning of 2013, prices have fluctuated between $12 and $60. As of October 2017, the price has fallen to $3.50. The following table summarizes the growth of solar power capacity and generation in Pennsylvania. Table Key: Total Solar Capacity: The U.S. Energy Information Administration (EIA) best describes total solar capacity as the maximum output of electricity that a generator can produce under perfect conditions. Newly Installed Capacity: Also referred to as the ICAP, refers to the maximum capacity that the system is expected to run at. Also referred to as “peak installed capacity”. * The 2020 generation percentage number is up to the third quarter of 2020, and does not comprise the entire year.

Outlook

Solar power in Pennsylvania has potential for expansion and could both reduce greenhouse gas emissions and improve public health, but growth is limited by the state's low sun exposure. If all usable rooftop space in Pennsylvania had

photovoltaic panels Photovoltaics (PV) is the conversion of light into electricity using semiconducting materials that exhibit the photovoltaic effect, a phenomenon studied in physics, photochemistry, and electrochemistry. The photovoltaic effect is commercially us ...

installed, those panels would be capable of providing 34.5% of the state's electricity. Each kilowatt of installed solar capacity has a societal benefit of over $100 in parts of western and

southeastern The points of the compass are a set of horizontal, radially arrayed compass directions (or azimuths) used in navigation and cartography. A compass rose is primarily composed of four cardinal directions—north, east, south, and west—each se ...

Pennsylvania, when combining environmental and public health benefits from emissions reductions. However, solar plants in Pennsylvania frequently have low capacity factors (ratio of power produced to maximum possible power), in large part due to low levels of incoming solar radiation. The state on average receives approximately 60% - 65% as much radiation as the southwest United States. The requirements for solar generation stop increasing under the Pennsylvania AEPS in 2021, when it will remain at 0.5% going forward. Using funding from the

U.S. Department of Energy The United States Department of Energy (DOE) is an executive department of the U.S. federal government that oversees U.S. national energy policy and manages the research and development of nuclear power and nuclear weapons in the United States. ...

, the state began a new program in 2017, Finding Pennsylvania's Solar Future, that aims to take input from stakeholders and produce new policy recommendations regarding solar power in the state. A preliminary goal is to increase the percentage of electricity sales coming from in-state solar to 10%, with a final goal and timeline for implementation to be determined. In February 2022,

Sheetz Sheetz, Inc. is an American chain of convenience stores and coffee shops owned by the Sheetz family. The stores sell custom food, beverages and convenience store items, with all locations having offered 24/7 service since the 1980s. Nearly all of ...

announced a long-term renewable supply agreement that would provide solar power for about 70% of its Pennsylvania facilities by 2024.

References

External links

Incentives and Policies
{{Energy in the USA Energy in Pennsylvania