Scavello Provision to Boost Solar Energy in Pennsylvania Becomes Law

Harrisburg – Legislation drafted by Senator Mario Scavello (R-40) to boost the use of solar energy credits in Pennsylvania is now law.

Provisions from Senator Scavello’s Solar Energy Jobs legislation, Senate Bill 404, were amended into House Bill 118, the 2017-18 Administrative Code signed into law Monday.

“Solar energy isn’t a niche industry anymore, it is a viable addition to our diverse energy portfolio,” said Scavello. “We have the best fabrication, engineering, manufacturing and distribution networks in the country. The solar energy industry and the clean energy sector in general, offers communities – both rural and urban – the opportunity to retool, reposition and modernize our economy to attract additional 21st century jobs.”

The 2004 Alternative Energy Portfolio Standards requires that increasing percentages of electricity sold in Pennsylvania be generated through alternative energy sources like solar energy. Solar renewable energy credits (SRECs) are used to demonstrate compliance with the Alternative Energy Portfolio Standards Act through the purchase of these credits from homeowners and businesses with solar panels.

However, Pennsylvania remains at a competitive disadvantage when compared to our neighboring states. Pennsylvania currently allows out-of-state systems to sell SRECs in the Commonwealth.

“Act 40 of 2017 essentially ‘closes the borders’ of the Commonwealth on SREC purchases, similar to many neighboring states,” said Scavello. “Electric distributors will now have to purchase their credits from within the Commonwealth, protecting Pennsylvania-based solar credits and putting us in line with many of our neighboring states. In addition, ‘closing the borders’ ensures that PA rate-payers are supporting jobs, investment and tax revenue here in Pennsylvania.”

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CONTACT: Christine Zubeck czubeck@pasen.gov (717) 787-6123