Pennsylvania proposes policy statement in bid to promote new solar projects

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Related Documents Industry Document "PUC Seeks Comments on Addressing Possible Barriers to New Solar Development in PA" presented on 11/6/2009 Industry Document "Statement of Commissioner Robert F. Powelson" presented on 11/6/2009 Industry Document "Policy Statement in Support of Pennsylvania Solar Projects" presented on 11/6/2009

Related Articles 12/3/2008 RPS snapshot: Pennsylvania

Concerned that barriers to bringing new solar projects online in Pennsylvania still exist, state regulators on Nov. 6 issued a proposed policy statement designed to overcome those obstacles.

In its proposed policy statement, the Pennsylvania Public Utility Commission said that even though the state has a clear policy to promote the construction of small- and large-scale solar projects, there is worry that projects are not coming to fruition.

"Pennsylvania [electric distribution companies], their customers and those interested in developing solar projects of any size are impeded in their economic analysis of such projects by the uncertainty of a price to assign the [solar renewable energy credits] that would be generated by small or large-scale solar projects," the proposed statement said. "This policy statement outlines a process by which that barrier can be overcome."

The proposed statement defines a large-scale solar project as a system using solar photovoltaic technology with a nameplate capacity of 200 kW or more. Small-scale solar projects are defined as those with a capacity of less than 200 kW.

The proposed statement also recommends using requests for proposals to establish solar renewable energy credit values recoverable as a reasonable expense. It also encourages consumer education of retail customers of the opportunity to sell SRECs in support of local development of solar resources.

Pennsylvania's alternative energy portfolio standard calls for at least 0.5% to be solar photovoltaic energy by June 1, 2020, and thereafter. The state's Alternative Energy Investment Act provides funding through the state Department of Environmental Protection for small-scale solar projects in owner-occupied dwellings and small businesses. The act also provides funding for large-scale solar projects via Pennsylvania's Department of Community and Economic Development.

PUC Chairman James Cawley said the proposed policy statement is designed to provide a foundation from which Pennsylvania can achieve its solar renewable energy goals.

"More specifically, this policy seeks to provide the longer term revenue stability that is likely needed to support both small scale and large scale solar development, and to address other barriers which could prevent new solar projects from coming to fruition in Pennsylvania," he said in a statement.

Commissioner Robert Powelson, in a statement, clarified that the commission is "in no way" expanding the current alternative energy requirements, nor advocating for expansion of those requirements.

"The goal of this policy statement is to provide price transparency for small solar projects in order to make it easier for those projects to sell their solar renewable energy credits," he said. "I believe our actions today represent the 'all hands on deck' approach necessary to meet the commonwealth's AEPS goals. It will also provide the necessary framework for creating long-term contracts necessary to grow this industry by providing financial security needed to finance solar projects."