Solar power in Pennsylvania is estimated to be capable of providing 12% of electricity used in Pennsylvania, using 20,000 MW of solar panels. A renewable portfolio standard requires 0.0325% from photovoltaics in 2012, 0.051% in 2013, and 0.5% by 2020.
Net metering is available to all residential customers up to 50 kW and others up to at least 3 MW. Excess generation is credited at retail rate to customers next bill, and paid annually at "price-to-compare" (normally referred to as "avoided cost"). Best practices call for no limits (other than to customer's service entrance rating), and perpetual roll over of kilowatt credits, instead of converting to a monetary credit. Annual reconciliation can create problems as annual generation for wind and solar inherently varies from year to year, and during the year large credit surpluses can accrue that would be later consumed, which is why perpetual roll over of kilowatt credits is recommended. Converting to a monetary credit is not recommended because electric rates change over time. In the event that the generation installed is larger than needed to meet local demand, an optional compensation is more practical than a mandatory method, even if the compensation is at retail.
The Pennsylvania Sunshine Solar Program is a program to provide $100 million in funding for solar projects. Projects must be completed by June 1, 2013.
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