The State of the Industry: Ray of Sunshine Winds its Way through Pennsylvania State Legislature

Over the past year Pennsylvania has been a tough spot for the solar industry. Solar power benefited greatly from the enacting of the Pennsylvania Sunshine Program in 2008, which created a $100 million fund for residential consumers and business owners to tap into to help offset the cost of going solar.

This created a boom in solar installations, but now the fund is all but depleted and state has outpaced its renewable portfolio standard carve out for solar, meaning that the value of SRECs (the certificates or credits generated based on kilowatts of solar installed and then sold back into the grid) in Pennsylvania has tumbled from over $300 to around $50 over the last year.

This crash of SREC prices and disappearance of subsidies is compounded by a less than proactive approach from the Governor’s Office in Harrisburg. Governor Corbett has focused almost all energy policy on the exploitation of natural gas from Marcellus Shale. Additionally he has banned state agencies from investing in infrastructure upgrades or repairs that involve the use of renewable technologies.

Many companies are diversifying or relocating, opening offices in more renewable energy friendly states like New Jersey or Massachusetts or simply leaving the state altogether. The state’s share of solar jobs has gone from near 7000 to under 5000 in the course of one year.

The one ray of sunshine in this landscape is coming from a new proposed law entitled “Alternative Energy Portfolio Standards Act” (HB 1580) sponsored and promoted by State Representative Chris Ross (R – Chester County). The bill would increase the solar carve-out in the Pennsylvania’s RPS to .5% and also close the state’s borders to purchases of SRECs from outside Pennsylvania.

Rep. Chris Ross

Rep. Ross has been buoyed by a tremendous amount for support. Legislators were signing on as cosponsors before the legislation was even written. As it stands now, the bill is before the Consumer Affairs committee. It is not known for certain when the bill will make it out of their deliberations and to a vote on the assembly floor, but experts in the industry believe it will not only pass, but will also be signed by Governor Corbett if it makes it to his desk.

HB 1580 is a very promising initiative and, assuming it passes, should stabilize the solar industry in Pennsylvania. It will take longer for the industry to undergo the necessary market shakeout and for supply to come into line with demand. Nonetheless, it is more than a little encouraging to see local lawmakers fighting for the jobs and welfare of the solar industry and understanding the promise that renewable energy holds, not just for Pennsylvania, but for the United States and beyond.

- by Richard Harrod