A new study conducted by Penn State found construction of new community solar facilities would generate an estimated $1.8 billion in economic impact, create over $793 million in labor income, and support over 11,000 jobs in various sectors across Pennsylvania.
The Community Solar program, however, hinges on the quick passage of bipartisan legislation-- House Bill 531 (Kaufer-R-Luzerne) and Senate Bill 705 (Scavello-R-Monroe) in the General Assembly.
The House Consumer Affairs Committee held a hearing on the community solar legislation on September 1 where witnesses said $2 billion in private investment is also waiting on the legislation. Read more here.
The same Committee has another hearing on other community solar-type legislation-- House Bill 1970 (Mizgorski-R-Allegheny) scheduled for October 21. Read more here.
The House and Senate have only three voting days scheduled between now and the November 3 election.
The study, conducted by the Penn State College of Agricultural Sciences’ Center for Economic and Community Development, analyzed 235 planned community solar projects across 48 counties which can move ahead if community solar legislation passes the General Assembly.
According to the study, once operating, these facilities are projected to generate over $83 million in economic output annually and support 520 ongoing full-time jobs across the commonwealth, as well as generate an additional $574,260 in annual real property tax collections for municipalities in 48 rural and urban counties.
“The construction of community solar projects should create economic opportunity across Pennsylvania, for residents of every county,” said report author Tim Kelsey of Penn State’s Center for Economic and Community Development. “These projects will not be confined to just one region, but rather will be spread across broad swaths of the state, offering counties the potential to capture jobs and tax revenues in their own local economies.”
According to the analysis, the top ten statewide sectors expected to benefit from community solar operations include construction, hospitality, and healthcare, which have been among the hardest hit in the COVID-19 pandemic.
“Pennsylvania is a state with diverse energy resources, and community solar provides an important opportunity to foster good-paying renewable energy jobs,” said Anthony Seiwell, Business Manager for the Laborers' District Council of Eastern Pennsylvania. “These projections of construction jobs and wages resulting from the construction of community solar projects offer an exciting opportunity for union workers and their families. We look forward to working with our partners to move this measure forward through the legislative process as quickly as possible.”
Legislation pending in both the state House and Senate would authorize the creation of community solar projects, which refer to small, local solar facilities shared by multiple community subscribers who receive credit on their electricity bills for their share of the power produced. Participation in community solar is voluntary and passage of the legislation would not increase taxes or state investment.
While 20 other states as well as the District of Columbia permit such projects, Pennsylvania utility rules prevent similar installations in the Commonwealth.
House Bill 531 and Senate Bill 705, which are being sponsored by Rep. Aaron Kaufer in the House and Sen. Mario Scavello in the Senate, respectively, would eliminate regulatory red tape and create a community solar program that enables Pennsylvania businesses and families to sign up for community solar projects, regardless of their income level or whether they own their home.
“This new report highlights the tremendous economic boost community solar projects can provide to communities across the commonwealth, including rural, urban and suburban regions,” said Leslie Elder, Mid-Atlantic Regional Director for the Coalition for Community Solar Access, a coalition of businesses and non-profits aiming to expand consumer choice through improving community solar access. “I urge the General Assembly to act quickly to pass community solar legislation so our cities and towns and the hard-working people of Pennsylvania can begin to realize these substantial economic benefits.”
Collectively, each community solar project can lead to significant customer savings. With over 1000 Megawatts (MW) planned across the state, Pennsylvania’s electricity customers will save over $30 million per year through community solar participation.
The Center for Economic and Community Development conducted the study in September 2020 on behalf of the Coalition for Community Solar Access, a member of the PA Community Solar Economic Alliance.
The Center looked at the economic impacts of both building new community solar installations (“construction” phase) and the continuing economic impact of operating these installations (“operation” phase).
The analysis also took into account that construction of manufacturing panels currently takes place outside Pennsylvania’s borders.
A new community solar market will likely lead to the creation of new companies and capabilities, potentially including manufacturing of solar panels and related equipment in-state. If this occurs, it would increase projected economic investment and job creation in the Commonwealth.
Click Here for a copy of the study.
Blocking Solar Energy
While the concept of community solar energy has garnered wide bipartisan legislative and public support, Republicans in the House and Senate have been busy trying to put roadblocks in the way of solar energy development.
On September 10, Sen. Gene Yaw (R-Lycoming), Majority Chair of the Senate Environmental Resources and Energy Committee, announced plans to introduce legislation to load up solar energy projects with new bonding requirements to promote their recycling after their useful life ends, something not done with any other energy generation facility. Read more here.
On September 30, Republicans on the House Environmental Resources and Energy Committee reported out legislation-- House Bill 2197 (Dush-R-Clearfield)-- requiring solar panel makers to set up a program to recycle solar panels under the state’s dysfunctional and broken Electronic Waste Recycling Program. Read more here.
Related Articles:
-- Republicans On House Environmental Committee OK Bills To Slow Down Solar Energy
[Posted: October 13, 2020] PA Environment Digest
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