Recently, the Pennsylvania Department of Environmental Protection (“DEP”) issued a notice that the final draft of the Finding Pennsylvania’s Solar Future plan (“Solar Plan”) will be released this fall.  After receiving comments from businesses, utilities, nonprofits, academia, and citizens, the DEP will hold another stakeholder meeting on November 15, 2018, to discuss the final Solar Plan and present the draft strategy support guide.

By way of background, the Solar Plan began in 2017 as a statewide planning project led by the DEP’s Energy Programs Office (“EPO”).[1]  The goal of the Solar Plan is to equip Pennsylvania to produce more solar energy.  Specifically, the Solar Plan set a target that 10 percent of retail electric sales will come from in-state solar energy sources by 2030.  The DEP indicates that this 10 percent target is achievable but challenges the “business-as-usual” model and promotes development of a variety of strategies that could be pursued.  Essentially, to meet this 10 percent goal, approximately 11 gigawatts of solar energy must be installed in the State.[2]

In developing the Solar Plan, drafters considered five main strategies:[3]

  • Increasing the Alternative Energy Portfolio Standard (“AEPS”) requirements for solar to 4-8 percent by 2030;
  • Providing customers access to capital, including provision of loan guarantees;
  • Adopting carbon pricing;
  • Creating uniform policies for siting and land use; and
  • Considering tax exemptions that encourage solar deployment and assist solar projects in finding project sponsors with tax equity.

In addition to those core five approaches, the Solar Plan’s authors considered other strategies involving decentralized projects (i.e., solar panels on residences) and grid-scale solar projects.[4]

Stakeholder responses to the draft Solar Plan were varied, with some in support of the Plan and others critical.  Some commenters indicated that the Solar Plan impeded the goals of the Electricity Generation Customer Choice and Competition Act (“Competition Act”) because the Solar Plan proposed to reinstate centralized generation planning beyond what has already occurred with the existing AEPS statue.  In addition, concerns were raised about the costs of implementing strategies proposed in the Solar Plan and how those would be recovered.  While the planning phases for the Solar Plan were funded by a combination of a grant from the Department of Energy (“DOE”) and time and resource investments from DEP and other associated partners, it is unclear what the costs of implementing the Solar Plan’s programs would be or how (and from whom) those costs would be recovered.  Those questions may be answered at the November 15 stakeholder meeting with the release of the final Solar Plan.  In the meantime, if you have any questions regarding the information discussed above, please contact Pamela Polacek (ppolacek@mcneeslaw.com) or Aly Hylander at (ahylander@mcneeslaw.com).

[1] https://www.dep.pa.gov/Business/Energy/OfficeofPollutionPrevention/SolarFuture/Pages/Finding-Pennsylvania%E2%80%99s-Solar-Future.aspx

[2] Id.

[3] Id.

[4] Id.