Renewable Energy Permitting in Pennsylvania
Pennsylvania offers a deregulated electricity market, active SREC market, and net metering through multiple utilities including PECO, PPL, and FirstEnergy subsidiaries.
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Key Permitting Highlights in Pennsylvania
Active SREC market (~$45/MWh)
Deregulated retail electricity market
Net metering up to 50 kW residential
Multiple utility territories
Overview
Pennsylvania operates a deregulated electricity market regulated by the Public Utility Commission, allowing customers to choose from competitive Electric Generation Suppliers (EGS). The state maintains an active SREC market with prices around $35-50/MWh, providing additional revenue streams for solar projects. Major utilities include PECO, PPL Electric Utilities, Duquesne Light, and FirstEnergy subsidiaries (West Penn Power, Penn Power).
Permitting Guide
Common Challenges & Landmines
Local moratoria + ordinance churn (solar setbacks, BESS bans, decommissioning bonds) are usually the #1 surprise cost. Stormwater + erosion compliance (CGP/SWPPP) enforcement risk + stop-work exposure. Wetlands/401/404 + floodplain can be route/site killers—plan alternatives early. BESS fire code adoption + AHJ posture: IFC/NFPA 855/UL 9540A documentation expectations vary by locality.
Tax Considerations
Property tax is commonly local and negotiable; incentives are often deal-specific.
Data Center Considerations
Incentives vary widely and often include sales/use exemptions and sometimes property tax relief.
Net Metering & Tariffs
Net metering is available for systems up to 50 kW residential and 3,000 kW non-residential, with provisions for systems up to 5 MW under specific conditions. Credits are applied at retail rate with excess carried over month-to-month and compensated at price-to-compare rate at year-end. Virtual Net Metering allows multiple properties under single ownership to share output from one system.
Utility Rate Structures
FirstEnergy (West Penn) offers residential rates around 8.78¢/kWh and small commercial at 9.19¢/kWh. Interconnection fees vary: Level 1 is $50, Level 2 is $50 plus $1/kW, and Level 3 is $100 plus $2/kW of nameplate capacity. PECO and PPL have similar structures with utility-specific rate schedules.
SREC Market
Pennsylvania maintains one of the more active SREC markets in the PJM region, with prices approximately $45/MWh (2023). Projects can also sell into the broader PJM Tier I REC market. The REC market provides meaningful additional revenue alongside net metering credits.
Frequently Asked Questions
How does retail choice work in Pennsylvania?
Customers can choose their electricity supplier from licensed Electric Generation Suppliers (EGS) while utilities maintain distribution infrastructure. Municipal aggregation is also available. The PUC regulates utilities while EGS rates are unregulated and market-driven.
What SREC revenue can I expect?
Pennsylvania SRECs trade between $35-50/MWh. Projects generate one SREC per MWh of solar production. Revenue varies with market conditions but provides a significant supplement to net metering savings, particularly for larger systems.
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