Public Utility Commission Publishes Final Order Implementing Solar Energy Law Changes

The Public Utility Commission formally published the Final Implementation Order for Act 40 of 2017 (Act 40) establishing new qualifications for systems that qualify for the solar photovoltaic (solar PV) requirements under the state’s Alternative Energy Portfolio Standards (AEPS) Act.  (formal notice)

In approving the final order, the Commission voted 5-0 to adopt a joint motion by PUC Chairman Gladys M. Brown and Vice Chairman Andrew G. Place reaffirming the law’s provisions to “close the borders” for Tier 1 solar credit qualifications; thereby eliminating eligibility for certain out-of-state facilities.

“The Commission is clarifying Act 40 implementation in a way that has broad-based support among stakeholders and is consistent with legislative intent,” said Chairman Brown.  “As other states that have passed similar legislation have recognized, this is an important tool for Pennsylvania to promote environmental stewardship and economic development.”

Chairman Brown noted Thursday’s motion still enables some out-of-state facilities - specifically facilities already certified as AEPS Tier 1 Solar Photovoltaic and having contracts with a Pennsylvania utility, supplier, load serving entity, electric or municipal cooperative for the sale of solar credits – to maintain certification until those contracts expire.  

Additionally, any out-of-state Tier 1 solar credit generated before Oct. 30, 2017, retains its Tier 1 solar attribute for the banking life span enumerated in the AEPS.

Pennsylvania’s AEPS Act requires Electric Distribution Companies (EDCs) and Electric Generation Suppliers (EGSs) to source a specific percentage of electricity from alternative resources in the generation that they sell to Pennsylvania customers.

That percentage increases annually and will require 0.5 percent of the electricity supplied by Pennsylvania’s EDCs and EGSs to come from solar PV resources by 2021.

While Act 40 does not change the solar requirements under the AEPS Act, it does modify the requirements that facilities must meet to qualify for Pennsylvania’s solar PV carveout.

Click Here for the Final Order.  Documents related to this action can be found at the PUC Docket No.:  M-2017-2631527.

To learn more the PUC's role in encouraging alternative energy generation, visit the PUC's Alternative Energy webpage.

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