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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are! The U.S. Department of Energy and the North Carolina Solar Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in the summer of 2014. Staff are currently working hard on the new DSIRE and are unfortunately only able to make minimal updates to the DSIRE website at this time. We apologize for any inconvenience and thank you for using DSIRE.

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Pennsylvania

Pennsylvania

Incentives/Policies for Renewables & Efficiency

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Solar Alternative Energy Credits   

Last DSIRE Review: 04/17/2013
Program Overview:
State: Pennsylvania
Incentive Type: Performance-Based Incentive
Eligible Renewable/Other Technologies: Photovoltaics
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Multi-Family Residential, Agricultural, Institutional
Amount:Varies based on market conditions; during 2013 the market price for PA-sourced SRECs has ranged from approximately $40 - $120/MWh ($0.04 - $0.120/kWh) although individual trades have taken place at substantially lower and higher prices.
Maximum Incentive:Varies based on market conditions; SACP does not represent a price ceiling because it is only determined after the fact
Eligible System Size:No system size limitations
Equipment Requirements:Systems generally require a utility-grade performance meter (exception exists for some facilities of 15 kW or smaller)
Web Site: http://paaeps.com/credit/
Authority 1:
Date Enacted:
Date Effective:
73 P.S. ยง 1648.1 et seq.
11/30/2004 (subsequently amended)
06/01/2006
Authority 2:
Date Enacted:
Date Effective:
PUC Rulemaking Order Docket No. L-00060180
09/25/2008
11/22/2008
Summary:

Pennsylvania's Alternative Energy Portfolio Standard (AEPS), created by S.B. 1030 on November 30, 2004, requires each electric distribution company (EDC) and electric generation supplier (EGS) to retail electric customers in Pennsylvania to supply roughly 18% of its electricity using alternative-energy resources -- roughly 8% from Tier I technologies and 10% from Tier II technologies -- by 2021. The standard also contains a solar set-aside requiring obligated entities to procure a small percentage of their electricity sales from photovoltaic (PV) systems as part of the Tier I requirement. As with the other components of Pennsylvania's AEPS, the percentage requirement ramps up slowly over time. The obligation was set at 0.0120% for the compliance year running from June 2009 - May 2010, accelerating to an ultimate target of 0.5% in compliance year 2020-2021.

Under Pennsylvania law, a solar alternative energy credit (SAEC) represents proof that 1 megawatt-hour (MWh) of electricity was generated by a qualifying PV facility. In many other states the term "solar renewable energy certificate" or "SREC" is used to represent the functional equivalent (i.e., a means of compliance with a solar energy standard) of an SAEC in Pennsylvania. Electricity suppliers must purchase SAECs in order to meet their compliance obligations under the law, or pay a Solar Alternative Compliance Payment (SACP) for any shortfalls in SAEC purchases.

In Pennsylvania the SACP varies from year to year based largely on the market price of SAECs traded during the prior compliance year, thus it is only known after the end of a compliance year. The SACP is for a given year is calculated as 200% times the sum of (1) the market value of SAECs for the reporting period and (2) the levelized value of up-front rebates received by sellers of SAECs (see PUC order listed above for a more detailed description). For the 2011-2012 compliance year the SACP was $360.79, the largest part of which is attributable to the weighted average SAEC market price of $180.39 per SAEC for the period. The average market price for Pennsylvania-sourced credits has ranged from roughly $40 - $120 per SAEC/SREC during 2013, with significant variations above and below this average for individual transactions.*

Under this system SAECs represent a potentially significant source of revenue for owners of qualifying PV facilities with a value determined by demand in the trading market. Eligible generators in Pennsylvania, including on-site generators, retain ownership of SAECs generated by their system until they voluntarily transfer them to another party. A generator remains eligible to generate SAECs for as long as the facility remains certified as an eligible generator. An SAEC may generally be used for compliance by a utility for the compliance year during which it was generated or the two subsequent compliance years. However, SAECs purchased by a utility during a time period for which the utility is under rate caps -- rate caps for some utilities did not expire until January 1, 2011 -- may be used by the utility in the compliance year the rate caps are lifted or in the subsequent compliance year.

In order to begin producing SAECs that can be used for compliance with Pennsylvania's AEPS, a generator must apply for and be certified as an eligible generator. In order to be considered an eligible generator for the purpose of the AEPS, the generator must generally be located either within the state of Pennsylvania or within the broader PJM region. The exception to this rule is that energy from resources located within the footprint of the Midwest Independent Systems Operator (MISO) -- which also serves a small portion of Pennsylvania -- may be used for compliance in areas served by the MISO. The practical impact of this exception is that out-of-state resources located in the MISO may only be used for compliance by the Pennsylvania Power Co. or energy suppliers operating within its service territory.

Systems must be operational before the owner can apply for a certification number. Once a generator has received a certification number from the program administrator, they may create an account on the PJM-EIS Generation Attributes Tracking System (GATS). The GATS is used to track the generation and transfer of SAECs from an eligible facility. The GATS issues SAECs to correspond with energy generation readings that the system owner uploads to the system. Systems of 15 kilowatts (kW) or less that are not equipped with production meters may elect to use an engineering estimate of expected energy production in lieu of uploading actual meter readings into GATS. The Pennsylvania Sunshine solar rebate program requires that participating systems be equipped with a utility-grade meter to measure energy production, thus the engineering estimate option not available to Pennsylvania Sunshine participants.

Generally, Pennsylvania will only recognize the generation of SAECs by a system after the date of the application for certification. However, if a generator has already been certified in another state and has generated SAECs recorded by the GATS, those SAECs will be recognized by Pennsylvania. If the facility is located in another state that allows the use of energy production estimates for systems of 10 kW or less, the same estimates will be used in Pennsylvania.

The program website contains additional information on Pennsylvania's AEPS, registering a facility, and using credit brokers and aggregators.


*It is important to note that SAECs/SRECs produced by facilities located in Pennsylvania may be eligible for other compliance markets such as that in Ohio. The prices quoted here include transactions where Pennsylvania-sourced SAECs/SRECs have been sold into markets beyond Pennsylvania.


 
Contact:
  Dina Deana
Clean Power Markets, Inc.
511 Schoolhouse Rd, Suite 200
Kennett Township, PA 19358
Phone: (877) 237-7773
Fax: (610) 444-9213
E-Mail: paaeps@cleanpowermarkets.com
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.