Community Solar Projects

Community Solar Projects

Is there preemption?

Yes.

What is the preemption statute?

The preemption for community solar is implicit but widely understood. The definition of Electric Generation Supplier (EGS) explicitly “excludes electric cooperative corporations.”^[1]

Additionally, net metering is the mechanism by which solar power users are able to trade excess power generated by solar generation back to the power companies to offset the customer-generator’s traditionally generated power usage.^[2] Title 52 of the PA Code limits net metering to individual customer-generators who use systems that have capacity of MAX 50 kW for residential properties and MAX 3MW (or in some instances up to 5MW) for “customer service locations.”^[3] This prevents community solar projects that would exceed the capacity limits set by the provision.

Recent developments

There are currently advocates in the state legislature attempting to remove this preemption and allow for the development of community solar projects. State Senator Rosemary Brown has introduced SB 550 to do just that which was referred to the Consumer Protection and Professional Licensure Committee on April 13, 2023.

Are there other options?

While community solar is not currently an option in Pennsylvania, there are some strategies that could be used to create related programs. For example, the law does not prohibit customer-generators from selling the alternative energy credits they accumulate from selling solar power back to the grid to a third party.^[4] Some communities have begun creating their own self run marketplaces operating through the blockchain.^[5]