Community solar legislation cleared the Pennsylvania House with some amendments on May 7.

House Bill (HB) 504, sponsored by Rep. Peter Schweyer, D-134, cleared the house in a 114-89 vote. The bill cleared the Appropriations Committee earlier that day in a 22-15 vote.

“This bill allows shared community energy projects where subscribers can access solar or biofuel energy and receive a credit for that on their electric bills,” said Schweyer in a press statement. “This lets families, farmers and businesses in our commonwealth who can’t generate such power on their own partner with other subscribers in receiving solar or biofuel energy.”

HB 504 “reasonably” allows for the creation, financing, accessibility, and operation of third party-owned community solar facilities.

Solar facilities, and as amended, renewable natural gas devices, may be built up to 20 MW on rooftops or brownfields and up to 5 MW for all other projects.

Renewable natural gas (RNG) devices are defined in the bill to generate electricity relying upon fuel source consisting of at least 75% biodiesel or biogas, including biogas derived from municipal solid waste, industrial and food waste, wastewater treatment material, and animal manure, resulting from the decomposition of that organic matter into methane and carbon dioxide and has been upgraded for use in place of fossil natural gas, gasoline, or diesel fuel.

Furthermore, the Pennsylvania Public Utilities Commission (PUC) will be tasked with establishing rules on the location of multiple community solar facilities in close proximity. This includes prohibiting the development of more than one community solar facility on the same parcel or contiguous parcels of land, except for brownfields and rooftop projects, which may be sited on contiguous parcels as long as the project does not exceed limits established by the PUC.

No single subscriber may acquire more than 50% of a community solar facility under the bill, except for a master-metered multifamily residential or commercial building. Facilities also should have no less than 50% capacity subscribed by subscriptions of 25 kW or less.

Additionally, HB 504 directs the PUC to authorize projects that have submitted a properly executed interconnection agreement, proof of site control, non-ministerial permits, proof that a facility will be at least 50% subscribed on the date the facility receives permission to operate, a signed commission-approved workforce development agreement, and proof of construction or an attestation that a facility will be in compliance with prevailing wage and labor requirements.

Utilities will be required to purchase unsubscribed energy from community solar facilities at wholesale energy cost and sell that unsubscribed energy to PJM or its successor service territory markets.

The PUC would also be required to approve the monetary approved value of each kilowatt hour of electricity generated by a community solar facility to be allocated to a subscriber’s monthly bill within 180 days of the bill’s passage, when utilities will be required to begin accepting applications for community solar facilities on a nondiscriminatory basis. Utilities are also directed to study the impact of interconnecting the facilities to the grid using current commission-approved interconnection rules and tariffs.

HB 504 and its companion, Senate Bill (SB) 504, aligns with Gov. Shapiro’s Lightning Plan—a bipartisan initiative launched earlier this year to position Pennsylvania as a national leader in energy production.

The plan outlines several measures to reach this goal including funding new projects through an updated Pennsylvania Economic Development for a Growing Economy (EDGE) manufacturing tax credit, streamlining energy project approvals by creating a state energy siting board, and lowering utility bills through shared energy resources such as community solar.

The bill would take effect 60 days after its passage.

HB 504 has yet to be introduced into the Senate where it needs approval in order to make it to the Governor’s desk.

The Pennsylvania General Assembly 2024-25 session is scheduled to adjourn on November 30, 2026.