Pennsylvania PUC clarifies solar credit provisions under Alternative Energy Portfolio Standards Act
The Pennsylvania Public Utility Commission (PUC) formally established last week new qualifications for systems that qualify for solar photovoltaic (solar PV) requirements under the state’s Alternative Energy Portfolio Standards (AEPS) Act.
The PUC did so by approving a Final Implementation Order for Act 40 of 2017.
The commission voted 5-0 to adopt a joint motion by PUC Chairman Gladys M. Brown and Vice Chairman Andrew G. Place that will “close the borders” for Tier 1 solar credit qualifications, 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,” Brown said. “As other states that have passed similar legislation have recognized, this is an important tool for Pennsylvania to promote environmental stewardship and economic development.”
Under the motion, out-of-state facilities that are already certified as AEPS Tier 1 Solar Photovoltaic and have contracts with a Pennsylvania utility, supplier, load serving entity, electric or municipal cooperative for the sale of solar credits will be able to maintain certification until those contracts expire. Any out-of-state Tier 1 solar credit generated before Oct. 30, 2017, will also retain its Tier 1 solar attribute for the banking lifespan enumerated in the AEPS.
Act 40 does not change the solar requirements under the AEPS Act but does modify the requirements that facilities must meet to qualify for the solar PV carveout.
The AEPS Act requires Electric Distribution Companies (EDCs) and Electric Generation Suppliers (EGSs) to source a specified percentage of electricity from alternative resources in the generation that they sell to Pennsylvania customers. That percentage will grow annually and, by 2021, will require 0.5 percent of the electricity supplied by Pennsylvania’s EDCs and EGSs to come from solar PV resources.
