HB 1155 — An Act providing for community solar facilities; imposing duties on the Pennsylvania Public Utility Commission, electric distribution companies and subscriber organizations; and providing for prevailing wage and labor requirements and for ratepayer protections.

PRINTER'S NO.   1279

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        HOUSE BILL
                        No. 1155
                                                Session of
                                                  2025

     INTRODUCED BY SCHWEYER, MATZIE, VENKAT, HANBIDGE, KHAN, BRENNAN,
        FIEDLER, PIELLI, CIRESI, VITALI, NEILSON, HOHENSTEIN, GIRAL,
        SANCHEZ, ISAACSON, McNEILL, HADDOCK, PROBST, BURGOS, WARREN,
        SHUSTERMAN, WAXMAN, FREEMAN, DONAHUE, HILL-EVANS, FRANKEL,
        OTTEN, WEBSTER, DEASY, CERRATO, HOWARD, FRIEL, GREEN,
        KRAJEWSKI, SALISBURY, DAVIDSON, STEELE AND MADDEN,
        APRIL 7, 2025

     REFERRED TO COMMITTEE ON ENERGY, APRIL 7, 2025


                                     AN ACT
 1   Providing for community solar facilities; imposing duties on the
 2      Pennsylvania Public Utility Commission, electric distribution
 3      companies and subscriber organizations; and providing for
 4      prevailing wage and labor requirements and for ratepayer
 5      protections.
 6                              TABLE OF CONTENTS
 7   Section 1.   Short title.
 8   Section 2.   Findings and declarations.
 9   Section 3.   Definitions.
10   Section 4.   Authorization to own or operate community solar
11                facilities.
12   Section 5.   Bill credit for subscribers to community solar
13                facilities.
14   Section 6.   Protection for customers.
15   Section 7.   Duties of electric distribution companies.
16   Section 8.   Compensation and cost recovery for electric
17                distribution companies.
 1   Section 9.    Interconnection standards for community solar
 2                 facilities.
 3   Section 10.    Unsubscribed energy.
 4   Section 11.    Customer participation in community solar programs.
 5   Section 12.    Location of multiple community solar facilities.
 6   Section 13.    Prevailing wage and labor requirements.
 7   Section 14.    Ratepayer protections.
 8   Section 15.    Effective date.
 9      The General Assembly of the Commonwealth of Pennsylvania
10   hereby enacts as follows:
11   Section 1.    Short title.
12      This act shall be known and may be cited as the Community
13   Solar Act.
14   Section 2.    Findings and declarations.
15      The General Assembly finds and declares as follows:
16          (1)    Growth in solar generation provides family-
17      sustaining jobs and investments in this Commonwealth.
18          (2)    Programs for community solar generation provide
19      customers with additional energy choices and access to
20      affordable energy options.
21          (3)    Community solar programs provide customers,
22      including homeowners, renters and businesses, access to the
23      benefits of Pennsylvania community solar energy generation
24      that is unconstrained by the physical attributes of their
25      home or business, including roof space, shading or ownership
26      status.
27          (4)    In addition to its provision of standard electricity
28      market commodities and services, local solar energy
29      generation can contribute to a more resilient grid and defer
30      the need for costly new transmission and distribution system

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 1      investment.
 2          (5)   The intent of this act is to:
 3                (i)     Allow electric distribution customers of this
 4          Commonwealth to subscribe to a portion of a community
 5          solar facility and have the result of the subscription be
 6          guaranteed savings.
 7                (ii)    Reasonably allow for the creation, financing,
 8          accessibility and operation of third-party-owned
 9          community solar generating facilities and enable robust
10          customer participation.
11                (iii)    Encourage the development of community solar
12          programs that facilitate participation by and for
13          accessibility and operation of third-party-owned
14          community solar generating facilities and enable robust
15          customer participation.
16                (iv)    Encourage the development of community solar
17          programs that facilitate participation by and for the
18          benefit of low-income and moderate-income customers and
19          the communities where they live, reduce barriers to
20          participation by renters and small businesses, promote
21          affordability and improve access to basic public utility
22          services.
23                (v)     Maximize the use of Federal money to provide for
24          the development of community solar programs.
25   Section 3.   Definitions.
26      The following words and phrases when used in this act shall
27   have the meanings given to them in this section unless the
28   context clearly indicates otherwise:
29      "Bill credit."      The commission-approved monetary value of
30   each kilowatt hour of electricity generated by a community solar

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 1   facility and allocated to a subscriber's monthly bill to offset
 2   any part of the subscriber's retail electric bill other than
 3   volumetric or demand-based distribution charges.
 4      "Brownfield."     Real property, the expansion, redevelopment or
 5   reuse of which may be complicated by the presence or potential
 6   presence of a hazardous substance, pollutant or contaminant.
 7      "Brownfield or rooftop community solar facility."      A
 8   community solar facility that is primarily located on rooftops
 9   or land that is a brownfield.
10      "Commission."     The Pennsylvania Public Utility Commission.
11      "Community solar facility."      A facility that meets all of the
12   following criteria:
13          (1)   Is located within this Commonwealth.
14          (2)   Is connected to and delivers electricity to a
15      distribution system operated by an electric distribution
16      company operating in this Commonwealth and in compliance with
17      requirements under this act.
18          (3)   Generates electricity by means of a solar
19      photovoltaic device with a nameplate capacity rating that
20      does not exceed:
21                (i)    5,000 kilowatts of alternating current for a
22          facility that is not a brownfield or rooftop community
23          solar facility; and
24                (ii)    20,000 kilowatts of alternating current for a
25          facility that is a brownfield or rooftop community solar
26          facility.
27          (4)   Has no single subscriber who subscribes to more than
28      50% of the facility capacity in kilowatts or output in
29      kilowatt hours, except for a master-metered multifamily
30      residential or commercial building.

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 1          (5)   Has no less than 50% of the facility capacity
 2      subscribed by subscriptions of 25 kilowatts or less.
 3          (6)   Credits some or all of the facility-generated
 4      electricity to the bills of subscribers.
 5          (7)   May be located remotely from a subscriber's premises
 6      and is not required to provide energy to on-site load.
 7          (8)   Is owned or operated by a community solar
 8      organization.
 9          (9)   Delivers the amount of energy and capacity that is
10      contracted by each customer.
11      "Community solar organization."        As follows:
12          (1)   An entity that owns or operates a community solar
13      facility and is not required to:
14                (i)     be an existing retail electric customer;
15                (ii)     purchase electricity directly from the electric
16          distribution company;
17                (iii)     serve electric load independent of the
18          community solar facility; or
19                (iv)     operate under an account held by the same
20          individual or legal entity of the subscribers to the
21          community solar facility.
22          (2)   For the purpose of this definition, a community
23      solar organization shall not be deemed a public utility
24      solely as a result of the organization's ownership or
25      operation of a community solar facility.
26      "Department."      The Department of Environmental Protection of
27   the Commonwealth.
28      "Electric distribution company."        As defined in 66 Pa.C.S. §
29   2803 (relating to definitions).
30      "Electric distribution customer."        A customer that takes

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 1   electric distribution service from an electric distribution
 2   company, regardless of whether the company is the customer's
 3   supplier of electric generation or not.
 4      "Guaranteed savings."   Realized savings by a subscriber from
 5   a community solar organization manifested as the difference
 6   between the cost of a subscription paid to a community solar
 7   facility and the credit received on the subscriber's electric
 8   bill for the generation attributed to the subscription.
 9      "Initial and replacement subscribers."    Each subscriber to a
10   single community solar facility over the life of the facility.
11      "Low-income."   A family income at or below 150% of the
12   poverty line as defined in 42 U.S.C. § 9902(2) (relating to
13   definitions) based on the size of the family.
14      "Pennsylvania Prevailing Wage Act."    The act of August 15,
15   1961 (P.L.987, No.442), known as the Pennsylvania Prevailing
16   Wage Act.
17      "Public utility."   As defined in 66 Pa.C.S. § 102 (relating
18   to definitions).
19      "Subscriber."   An electric distribution customer of an
20   electric distribution company who contracts for a subscription
21   of a community solar facility interconnected with the customer's
22   electric distribution company. The term includes an electric
23   distribution customer who owns a portion of a community solar
24   facility.
25      "Subscriber administrator."   An entity that recruits and
26   enrolls a subscriber, administers subscriber participation in a
27   community solar facility and manages the subscription
28   relationship between subscribers and an electric distribution
29   company. The term includes a community solar organization. For
30   the purpose of this definition, a subscriber administrator

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 1   shall not be considered a public utility solely as a result of
 2   the subscriber administrator's operation or ownership of a
 3   community solar facility.
 4      "Subscription."     A contract between a subscriber and a
 5   subscriber administrator of a community solar facility that
 6   entitles the subscriber to a bill credit, measured in kilowatt
 7   hours, and applied against the subscriber's retail electric
 8   bill.
 9      "Unsubscribed energy."     The output of a community solar
10   facility, measured in kilowatt hours, that is not allocated to
11   subscribers.
12   Section 4.     Authorization to own or operate community solar
13                facilities.
14      A community solar organization or subscriber administrator
15   may develop, build, own or operate a community solar facility. A
16   community solar organization may serve as a subscriber
17   administrator or may contract with a third party to serve as a
18   subscriber administrator on behalf of the community solar
19   organization. Renewable energy credits that are associated with
20   the generation of electricity by a community solar facility
21   shall be the property of the community solar organization and
22   may be retired or transferred by the community solar
23   organization or retired on behalf of the subscribers.
24   Section 5.     Bill credit for subscribers to community solar
25                facilities.
26      (a)   Credit.--A subscriber to a community solar facility
27   shall receive a monetary bill credit for every kilowatt hour
28   produced by the subscriber's subscription. A community solar
29   facility that demonstrates all of the following to the
30   commission shall have the initial and replacement subscribers of

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 1   the community solar facility receive a bill credit from the date
 2   the community solar facility is authorized by the commission to
 3   operate:
 4            (1)   An executed interconnection agreement with an
 5      electric distribution company obtained in accordance with 52
 6      Pa. Code Ch. 75 (relating to alternative energy portfolio
 7      standards).
 8            (2)   Proof of site control.
 9            (3)   The required nonministerial permits.
10            (4)   Proof that the community solar facility will be at
11      least 50% subscribed on the date the community solar facility
12      receives permission to operate.
13            (5)   A signed agreement for a commission-approved
14      workforce development requirement.
15            (6)   Proof that the community solar facility is
16      constructed or, if not yet constructed, an attestation that
17      the community solar facility will be in compliance with
18      section 13.
19            (7)   A community solar organization or subscriber
20      administrator will not bill a subscriber for services
21      provided by an electric distribution company. An electric
22      distribution company may not bill a subscriber for
23      subscription costs to a community solar organization.
24      (b)     Establishment of credit.--Within 180 days of the
25   effective date of this subsection, the commission shall
26   establish a bill credit for a public utility that appropriately
27   values the energy, capacity and transmission values produced by
28   a community solar facility and is not less than the price to
29   compare. The terms and conditions of receiving the bill credit
30   may not limit or inhibit participation of subscribers from any

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 1   rate class.
 2   Section 6.    Protection for customers.
 3      (a)   Customer protection provisions.--The commission shall
 4   promulgate regulations providing for the protection of a
 5   residential customer who has a subscription with a community
 6   solar organization or subscriber administrator.
 7      (b)   Standardized customer disclosure form.--The commission
 8   shall develop a standardized customer disclosure form in English
 9   and Spanish for a residential customer that identifies key
10   information that is required to be provided by a subscriber
11   administrator to a potential residential subscriber, including
12   future costs and benefits of a subscription and the subscriber's
13   rights and obligations pertaining to a subscription.
14      (c)   Subscription costs.--The subscription costs for a
15   subscriber shall be less than the value of the bill credit and
16   may not include any upfront or sign-on fees or credit checks.
17   The subscription costs shall be nonbasic public utility charges.
18   Failure to pay a subscription may result in the loss of a
19   subscription but shall not impact public utility services.
20      (d)   Benefits and costs.--The commission shall maximize
21   benefits and minimize costs to each rate class, notwithstanding
22   participation in a community solar program.
23      (e)   Fees prohibited.--A community solar organization may not
24   impose a termination or cancellation fee on a subscriber.
25      (f)   Net crediting.--An electric distribution company shall
26   enter into a net crediting agreement with a community solar
27   organization to include a subscriber's subscription fee on a
28   monthly bill and provide a customer with a net credit equivalent
29   to the total bill credit value for the generation period minus
30   the subscription fee. The net crediting agreement shall specify

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 1   payment terms from the electric distribution company to the
 2   community solar organization. The electric distribution company
 3   may charge a net crediting fee to the community solar
 4   organization that may not exceed 1% of the bill credit value. A
 5   nonresidential customer may subscribe to multiple community
 6   solar facilities, except that no more than one of the
 7   subscriptions may be under a net credit agreement with an
 8   electric distribution company. The electric distribution company
 9   shall continue to have the duty for billing all basic electric
10   services, including transmission, distribution and generation
11   charges, consistent in accordance with this act and regulations
12   promulgated by the commission. The electric distribution company
13   shall also continue to maintain customer services, at a minimum,
14   consistent with existing standards prior to the implementation
15   of a net crediting agreement with a community solar organization
16   in accordance with this act and regulations promulgated by the
17   commission.
18   Section 7.    Duties of electric distribution companies.
19      (a)   Report on bill credit.--On a monthly basis, an electric
20   distribution company shall provide to a community solar
21   organization or subscriber administrator a report in a
22   standardized electronic format indicating the total value of the
23   bill credit generated by the community solar facility in the
24   prior month, the calculation used to arrive at the total value
25   of the bill credit and the amount of the bill credit applied to
26   each subscriber.
27      (b)   Application of bill credit.--An electric distribution
28   company shall apply a bill credit to a subscriber's next monthly
29   electric bill for the proportional output of a community solar
30   facility attributable to the subscriber. Excess credits on a

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 1   subscriber's bill shall roll over from month to month. An
 2   electric distribution company shall automatically apply excess
 3   credits to the final electric bill when a subscription is
 4   terminated for any cause.
 5      (c)   Transferability.--An electric distribution company shall
 6   permit the transferability and portability of subscriptions if a
 7   subscriber relocates within the same electric distribution
 8   company territory.
 9   Section 8.     Compensation and cost recovery for electric
10                  distribution companies.
11      (a)   Compensation.--A community solar organization shall
12   compensate an electric distribution company for the electric
13   distribution company's reasonable costs of interconnection of a
14   community solar facility.
15      (b)   Cost recovery.--An electric distribution company may
16   recover reasonable administrative costs from each subscriber
17   organization, subject to approval by the commission, to
18   administer a community solar program within the electric
19   distribution company's service territory of a community solar
20   facility. The Commonwealth shall maximize Federal and State
21   funds for energy assistance, clean energy deployment or any
22   other applicable funding to minimize the cost recovery impact on
23   each subscriber.
24   Section 9.     Interconnection standards for community solar
25                  facilities.
26      (a)   Applications.--Beginning on the effective date of this
27   subsection, an electric distribution company shall have the
28   following duties:
29            (1)   Accept interconnection applications for community
30      solar facilities on a nondiscriminatory basis and study the

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 1      impact of interconnecting the facilities to the grid using
 2      the current commission-approved interconnection rules and
 3      tariffs and in accordance with best practices.
 4            (2)   Include, in an interconnection application for a
 5      community solar facility, proof of site control by the
 6      community solar facility for the purposes of the study under
 7      paragraph (1).
 8      (b)   Administrative fees.--The commission may impose an
 9   administrative fee on an initial interconnection application for
10   community solar facilities under subsection (a). The commission
11   may impose a fee equivalent to up to 5% of the electric
12   distribution company's initial interconnection application fee.
13   The commission may use fees collected under this subsection for
14   the administrative costs directly associated with this act.
15   Section 10.    Unsubscribed energy.
16      An electric distribution company shall purchase unsubscribed
17   energy from a community solar facility at the electric
18   distribution company's wholesale energy cost as determined by
19   the commission. To offset real or perceived costs, an electric
20   distribution company shall sell unsubscribed energy to
21   PJM Interconnection, L.L.C., regional transmission organization
22   or its successor service territory markets or otherwise decrease
23   energy purchases.
24   Section 11.    Customer participation in community solar programs.
25      (a)   Participation in programs.--The commission shall
26   promulgate permanent regulations to enable participation in
27   community solar programs by each customer class and economic
28   group in accordance with the laws of this Commonwealth, within
29   365 days of the effective date of this subsection.
30      (b)   Temporary regulations.--In order to facilitate the

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 1   prompt implementation of this section, the commission and
 2   department may promulgate temporary regulations. The temporary
 3   regulations shall be implemented within 180 days of the
 4   effective date of this subsection and expire following the date
 5   of publication of the permanent regulations under subsection (a)
 6   in the Pennsylvania Bulletin. The temporary regulations shall
 7   not be subject to any of the following:
 8            (1)   Section 612 of the act of April 9, 1929 (P.L.177,
 9      No.175), known as The Administrative Code of 1929.
10            (2)   Sections 201, 202, 203, 204 and 205 of the act of
11      July 31, 1968 (P.L.769, No.240), referred to as the
12      Commonwealth Documents Law.
13            (3)   Sections 204(b) and 301(10) of the act of October
14      15, 1980 (P.L.950, No.164), known as the Commonwealth
15      Attorneys Act.
16            (4)   The act of June 25, 1982 (P.L.633, No.181), known as
17      the Regulatory Review Act.
18      (c)   Expiration.--The authority of the commission and
19   department to promulgate temporary regulations under subsection
20   (b) shall not expire until the commission promulgates the
21   permanent regulations under subsection (a).
22      (d)   Contents.--The temporary regulations under subsection
23   (b) shall meet all of the following criteria:
24            (1)   Be based on consideration of formal and informal
25      input from all stakeholders.
26            (2)   Establish requirements that ensure access to
27      programs and equitable opportunities for participation for
28      residential and small commercial customer classes.
29            (3)   Establish a registration process for community solar
30      organizations.

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 1            (4)   Address the reasonable enforcement of minimum
 2      subscription requirements for a community solar facility.
 3      (e)   Low-income customers.--The commission, in collaboration
 4   with the Office of Consumer Advocate, electric distribution
 5   companies, community solar organizations and low-income
 6   stakeholders, may promulgate regulations adopting mechanisms to
 7   increase participation by low-income customers in community
 8   solar programs. The commission shall increase participation by
 9   low-income customers in community solar programs in a manner
10   that allows the commission to use available Federal funds to do
11   all of the following:
12            (1)   Deliver larger guaranteed savings to income-
13      qualified households than those households that would receive
14      guaranteed savings without the Federal funds.
15            (2)   Maximize State energy assistance programs.
16   Section 12.    Location of multiple community solar facilities.
17      The commission shall promulgate regulations establishing
18   limitations on the location of multiple community solar
19   facilities in close proximity. The regulations shall meet all of
20   the following criteria:
21            (1)   Prohibit an entity or affiliated entity under common
22      control from developing, owning or operating more than one
23      community solar facility on the same parcel or contiguous
24      parcels of land.
25            (2)   Authorize a brownfield or rooftop community solar
26      facility to be sited on contiguous parcels if the total
27      brownfield or rooftop community solar facility capacity on
28      all contiguous parcels does not exceed the limits established
29      by the commission.
30   Section 13.    Prevailing wage and labor requirements.

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 1      (a)     Prevailing wage.--A community solar facility for which a
 2   bill credit is sought and awarded to a subscriber under this act
 3   shall be deemed to meet each of the minimum requirements
 4   necessary to apply the wage and benefit rates and related
 5   certification of payroll records required under the Pennsylvania
 6   Prevailing Wage Act. A community solar organization and each of
 7   the organization's agents, contractors and subcontractors shall
 8   comply with the Pennsylvania Prevailing Wage Act as attested
 9   under section 5 for work undertaken at the community solar
10   facility in which a bill credit for a subscriber is sought and
11   awarded.
12      (b)     Solar energy projects.--Any contractor, subcontractor or
13   worker performing construction, reconstruction, demolition,
14   repair or maintenance work on a solar energy project funded
15   under this act shall meet all of the following requirements:
16            (1)   Maintain all valid licenses, registrations or
17      certificates required by the Federal Government, the
18      Commonwealth or a local government entity that is necessary
19      to do business or perform applicable work.
20            (2)   Maintain compliance with the act of June 2, 1915
21      (P.L.736, No.338), known as the Workers' Compensation Act,
22      the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897,
23      No.1), known as the Unemployment Compensation Law, and
24      bonding and liability insurance requirements as specified in
25      the contract for the solar energy project.
26            (3)   Has not defaulted on a project, declared bankruptcy,
27      been debarred or suspended on a project by the Federal
28      Government, the Commonwealth or a local government entity
29      within the previous three years.
30            (4)   Has not been convicted of a misdemeanor or felony

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 1      relating to the performance or operation of the business of
 2      the contractor or subcontractor within the previous 10 years.
 3            (5)   Has completed a minimum of the United States
 4      Occupational Safety and Health Administration's 10-hour
 5      safety training course or similar training sufficient to
 6      prepare workers for any hazards that may be encountered
 7      during their work.
 8      (c)   Violations.--The Department of Labor and Industry shall
 9   enforce this section in accordance with the laws of this
10   Commonwealth. The Department of Labor and Industry shall apply
11   the same administration and enforcement applicable under the
12   requirements of the Pennsylvania Prevailing Wage Act to ensure
13   compliance with subsection (a). In addition to enforcement
14   authorized under the Pennsylvania Prevailing Wage Act, if the
15   Department of Labor and Industry determines that the community
16   solar organization intentionally failed to pay prevailing wage
17   rates or benefit rates in violation of section 11(h) of the
18   Pennsylvania Prevailing Wage Act for work specified under
19   subsection (a), the community solar organization or the
20   organization's agents, contractors and subcontractors shall pay
21   a fine equivalent to 10% of the value of the bill credit
22   multiplied by the estimated 25-year production of the community
23   solar facility.
24   Section 14.    Ratepayer protections.
25      This act shall minimize direct or indirect costs related to
26   community solar facilities to ratepayers of an electric
27   distribution company that are not subscribers. The commission
28   shall maximize benefits to all rate classes, regardless of
29   participation in a community solar program.
30   Section 15.    Effective date.

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1     This act shall take effect in 60 days.




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