Pennsylvania HB#1580 – Fixing the SREC market

Today MainLine Solar attended the press conference in Harrisburg hosted by PASEIA. During the press conference Pennsylvania State Representative Chris Ross announced he is sponsoring HB #1580 – a bill to reform the Pennsylvania’s solar carve out of its Renewable Portfolio Standard.

This bill, which addresses the issues with the market outlined in the recent MainLine Solar letter about the solar market in Pennsylvania, will help to alleviate the recent volatility in the Pennsylvania solar renewable energy credit (SREC) market.

This will be achieved by raising the SREC requirements for utility companies for the next three years and closing the state SREC borders for systems installed after January 1, 2012. The initial legislation mandating that utilities must buy SRECs was drafted conservatively to avoid overburdening the utility companies while the Pennsylvania solar industry was developing. The expectation was that the solar installation market in Pennsylvania would not mature until 2015. However, due to a combination of factors including the successful PA Sunshine Rebate Program and the opening of the Federal 30% tax credit for solar, the solar industry in Pennsylvania matured last year! This has resulted in Pennsylvania overshooting the conservative solar carve requirements by installing four times more solar than required.

While this means more solar is in the ground (and on the roof) ahead of schedule, it also means that the price of an SREC has decreased from $300 in 2010 to $100 in 2011. This means that systems that were installed last year with the expectation of a 5-7 year payback period may now have to suffer through a 10-12 year payback period. For system owners this is not good news. HB# 1580 would fix this problem if it passes.

A floundering SREC market in Pennsylvania means that sales of (and financing for) solar photovoltaic installations have ground to a halt. If unchecked, this will send solar installers out of state or to the unemployment line. This would be a terrible way to squander the PA Sunshine Rebate money the state has invested in attracting and training solar industry companies and professionals. This is terrible news for employees and companies selling solar in Pennsylvania. HB #1580 would fix this problem if it passes.

We strongly suggest that all advocates of solar in Pennsylvania, especially system owners and installation companies, contact their state legislators! Below are some materials to help convey your message clearly:

• MainLine Solar’s Letter about the PA SREC market
• PASEIA Letter to PA State Representatives
• PASEIA Letter to PA State Senators