Legislation has been introduced in the Pennsylvania State Senate to help the State’s declining solar renewable energy credit (“SREC”) market. Pennsylvania’s SREC market has been in decline as a result of oversupply. To increase the demand for SRECs Senate Solar Bill (SB 1350) proposes to: (1) increase Pennsylvania’s alternate energy portfolio standard solar carve out requirements starting with compliance years 2015 to 2015: (2) change the alternate compliance payment to $285 per SREC starting with compliance years 2013 to 2015; and (3) allow for solar thermal facilities to qualify. While previous versions of the Senate Bill included language to close the market to out of state systems such language was not included in the current version of the Bill. If passed this Bill would spur Pennsylvania’s declining SREC market.
New Financing Models for Energy Retrofits
The energy retrofit of a building is the analysis and implementation of energy efficiency measures such as energy efficient equipment, air sealing, moisture management, controlled ventilation, insulation, and solar control so that dramatic energy savings are achieved alongside optimal building performance. One of the greatest barriers to improving energy efficiency in buildings is the high capital cost of projects. However, new financing techniques for energy retrofits have developed which include anchor tenant financing, shared saving agreements, capital leases, power purchase agreements, property assessed clean energy bonds, green leases, and on bill financing. These innovative financing methods now make it easier to complete retrofits which result in cost savings as well as an increase in the value of the property.