On November 16th, 2011, the Pennsylvania Solar Energy Industries Association (PASEIA) released its Ratepayer Cost Analysis regarding PA House Bill #1580. HB1580 was introduced on October 3rd, 2011 by Rep. Chris Ross, and includes 109 co-sponsors as of November 10th, 2011.
The Bill was introduced to address the recent collapse of the PA SREC market by accelerating the solar share requirement from 2012 through 2015. While the solar share requirements from 2012 through 2015 have been accelerated, the solar share requirements in 2016 through 2018 remains the same as SREC prices are expected to have stabilized by then regardless of the present situation. HB1580 will also close the solar market in Pennsylvania to out-of-state systems, thus limiting the supply of SRECs available which will drive up their value. While undoubtedly a blessing for the solar industry within Pennsylvania, some concerns have been raised regarding the impact this program will have on ratepayers. The Ratepayer Cost Analysis aims to address these issues.
Here is the breakdown of HB1580, using figures derived from the Cost Impact Report. The introduction of HB1580 imposes an additional $113,315,417 distributed amongst all residential and commercial power users in Pennsylvania.
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Current Scenario |
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| Reporting Year | Solar Share | SRECs | SREC Price* | Cost | |
| 2012 – 2013 | 0.0510% | 75,189 | $50 | $3,759,453 | |
| 2013 – 2014 | 0.0840% | 123,012 | $50 | $6,250,621 | |
| 2014 – 2015 | 0.1440% | 216,338 | $50 | $10,816,879 | |
| 2015 – 2016 | 0.2500% | 379,150 | $70 | $26,540,513 | |
| 2016 – 2017 | 0.2933% | 449,047 | $80 | $35,923,723 | |
| 2017 – 2018 | 0.3400% | 525,500 | $85 | $44,667,471 | |
| Total | - | 1,770,235 | - | $127,958,661 | |
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Proposed Scenario (HB1850) |
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| Reporting Year | Solar Share | SRECs | SREC Price* | Cost | Increment |
| 2012 – 2013 | 0.1500% | 221,144 | $190 | $42,017,420 | $38,257,967 |
| 2013 – 2014 | 0.1700% | 253,001 | $150 | $37,950,200 | $31,699,579 |
| 2014 – 2015 | 0.2040% | 306,478 | $125 | $38,309,780 | $27,492,901 |
| 2015 – 2016 | 0.2500% | 379,150 | $100 | $37,915,019 | $11,374,506 |
| 2016 – 2017 | 0.2933% | 449,047 | $90 | $40,414,188 | $4,490,465 |
| 2017 – 2018 | 0.3400% | 525,500 | $85 | $44,667,471 | $0 |
| Total | - | 2,134,320 | - | $241,274,078 | $113,315,417 |
* SREC price is based on aggregator feedback, as well as average weighted PA SREC prices in GATS
The cost imposed on each ratepayer is than calculated based on an estimated use of 10,716kWh/yr for residential and 150,000kWh/yr for commercial usage.
| Reporting Year | Estimated Elect Sales | Estimated Increased Cost |
Cost Increase per kWh |
Estimated Increased Residential Cost | Estimated Increased Commercial Cost | ||
| Annual | Monthly | Annual | Monthly | ||||
| 2013 | 147,429,544 | $38,257,967 | $0.0002595 | $2.78 | $0.23 | $38.93 | $3.24 |
| 2014 | 148,824,315 | $31,699,579 | $0.0002130 | $2.28 | $0.19 | $31.95 | $2.66 |
| 2015 | 150,234,430 | $27,492,901 | $0.0001830 | $1.96 | $0.16 | $27.45 | $2.29 |
| 2016 | 151,660,076 | $11,374,506 | $0.0000750 | $0.80 | $0.07 | $11.25 | $0.94 |
| 2017 | 153,101,443 | $4,490,465 | $0.0000293 | $0.31 | $0.03 | $4.40 | $0.37 |
| 2018 | 154,558,725 | $0 | $0 | - | - | - | - |
| Total | $113,315,417 | - | $8.14 | $0.68 | $113.97 | $9.50 | |
| Average | - | $0.0001520 | $1.63 | $0.14 | $22.79 | $1.90 | |
As the table shows, the residential bill on average increases by less than 14 cents over five years and under $2 for commercial customers with an assumed annual electric usage of 150,000kWh/yr. This amounts to less than half a penny a day for residential owners. In addition, these are pre-tax costs, so for-profit commercial and industrial customers will pay less than these estimates based on their effective tax rates..
For more information, please contact: Ron Celentano PASEIA – President CelentanoR@aol.com