Low-income solar installation money inaccessible, for now

(The Center Square) – There’s millions in federal funds for residential solar installation, if only Pennsylvanians could access it.

The House Energy Committee heard testimony last week in support of unlocking the program, which intends to reduce electricity bills for low-to-moderate income households across the commonwealth.

In April 2024, the Environmental Protection Agency awarded the Pennsylvania Energy Development Authority, or PEDA, $156 million under the federal Solar for All grant competition funded by the Inflation Reduction Act of 2022.

The program guarantees 20% savings on electricity bills. It also funds workforce development training programs and upgrades such as roof repairs or electrical work that would otherwise prevent a household from going solar.

The purpose is to increase the accessibility of solar energy to low-income homes in rural, suburban, and urban areas across the state. Under current Pennsylvania law, however, the legislature must approve PEDA before it can access and use these federal funds.

House Energy Committee Chair Rep. Elizabeth Fielder, D-Philadelphia, the prime sponsor of House Bill 362, said the program is fully funded by federal dollars – no state funding is required.

Although a contract between PEDA and the Environmental Protection Agency has been signed to implement the program, she said without swift legislative action, the money is at risk of never reaching the residents it intends to serve.

“Despite some uncertainty from the federal government, it is important to have this hearing. $156 million dollars is not a small amount of money,” Fiedler said. “We can all agree that Pennsylvanians deserve reliable energy and utility bills they can afford to pay. Today we’re tasked with deciding whether we feel this program will accomplish those goals.”

Written testimony submitted by Geoff Bristow, chief operating officer of PEDA, stated that if permitted to proceed with the Solar for All program as planned, they anticipate solar installations for approximately 12,555 households, amounting to an estimated $101.8 million in savings over the five-year term of the program.

“The proof is in the numbers,” said Emily Schapira, president and CEO of the Philadelphia Energy Authority. She stated that their Solarize Philly program has generated $71 million in investment to the local economy and has created 550 direct jobs.

Ian Smith, director of residential consultations for EIS Solar, a leading Pittsburgh-area solar installation company, said they have more than 1,200 homes in the commonwealth being powered by clean energy, the majority of which have deployed American-made solar panels – saving homeowners $6.9 million.

As the solar industry grows, demand for skilled local workers will rise, said Smith. He added that the program’s five-year implementation period provides a stable outlook for hiring and investment in essential equipment.

“Solar is fiscally responsible and allows Pennsylvania to rely on its own innovation and clean energy sources, reducing dependence on imported energy,” said Justin Mason, director of programs and operations of the Pennsylvania Conservative Energy Forum.

Mason also pointed to the need for battery storage in solar-powered homes, especially in rural regions where power outages are more frequent.

Committee members asked questions about grid reliability and solar decommissioning plans, several noting that the trillions of dollars from the Inflation Reduction Act — which the Trump administration is currently paused on — add to inflation.

“Every tax subsidy to offset cost to solar customers costs everyone else something,” said Rep. Craig Williams, R-Chadds Ford.

He also highlighted the distribution costs associated with delivering electricity to homes and returning solar energy to the grid, asking Schapiro if she would commit to net metering reform to ensure solar customers share these costs and prevent the financial burden from falling on non-solar customers.

Schapiro said it is a frequent topic of discussion in Philadelphia, and opinions vary on the value solar energy brings to the grid. However, PECO found that capacity planning has some real financial benefits if distributed energy sources are strategically deployed.

She said they are not prepared to say there is simply a subsidy towards it – that there are benefits to grid development, the utilities, and the distribution system as well.