OBBBA Scuttles Federal Funding for PA School Districts
With electricity rates skyrocketing, PA leaders have been looking for cost-saving solutions for the state’s schools. One of those is a popular, bipartisan program enacted last year titled the Solar for Schools Act. This program is designed to help school districts install solar panels to use cheap electricity. School districts have to front the initial costs. But federal and state grants would cover almost the entirety of the funding.
However, with the One Big Beautiful Bill Act (OBBBA), federal funding vanishes for solar projects that don’t break ground before July 2026. But with PA facing a budget deficit, even state funding for the project is in question.
PA School Districts Fighting for Funding
Solar for Schools has been popular. The program received applications requesting nearly 3x the available funding. Over $22.5 million in grants were awarded to schools in three districts. That covers 73 separate projects. But, federal funding is key to many of these schools’ plans.
Many schools applied hoping for both federal and state grants. But without the additional federal funding, solar becomes costly. Additionally, under the OBBBA, to be eligible for the solar credits, schools must break ground on the projects before next year. These projects must also be operational in 2028, and avoid using materials from certain countries. And this last requirement is one many solar industry experts warn is difficult to meet.
Still, schools and lawmakers are fighting for the solar program. And for good reason. One school distric estimates that they will save $1.6 million in energy costs over the next 20 years thanks to their solar power. In short, solar can keep districts from raising property taxes to fund school energy needs.
PA School Districts and Citizens Plagued by an Unstable Energy Market
Energy cost savings are needed now more than ever. The PA energy market has become volatile for a number of reasons. Massive heat waves, a nervous natural gas market, aging infrastructure, and higher power demand from data centers are all helping to hike rates.
At the center of it all is PJM. They’re the largest electrical grid in the US, covering PA and 12 other states. A year ago, their capacity auction results sent pa utility rates skyrocketing. And this most recent auction jumped even higher, which will ultimately take utility rates with it. PA Gov Shapiro has even made repeated threats to leave the PJM grid if they can’t bring costs down.
Future of PA Solar
Despite the current market and federal funding, PA school are still holding out hope. Solar energy promises big savings, as well as a clean environment. But at this point, school districts will depend on PA for the funds.
In the meantime, there are ways you can save on rising energy costs. For instance, you can secure a free solar quote for your home. But the best way you can save money is to lock in a fixed-rate electricity plan before rates jump again. Find the best plan for your home with us. Visit https://www.paenergyratings.com to explore the various electric plans in your area.