{"id":5694,"date":"2025-07-29T16:33:18","date_gmt":"2025-07-29T21:33:18","guid":{"rendered":"https:\/\/www.paenergyratings.com\/blog\/?p=5694"},"modified":"2025-07-29T16:33:25","modified_gmt":"2025-07-29T21:33:25","slug":"pa-school-districts-lose-federal-credits-for-solar-panels","status":"publish","type":"post","link":"https:\/\/www.paenergyratings.com\/blog\/pa-school-districts-lose-federal-credits-for-solar-panels\/","title":{"rendered":"PA School Districts Lose Federal Credits for Solar Panels"},"content":{"rendered":"\n<h2>OBBBA Scuttles Federal Funding for PA School Districts<\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright size-medium\"><img loading=\"lazy\" width=\"300\" height=\"200\" src=\"https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/07\/school-energy-costs-solar-300x200.jpg\" alt=\"PA school districts lost federal credits for solar panels in the OBBBA. Learn how this could hike tax rates in your area.\" class=\"wp-image-5711\" title=\"OBBBA Scuttles Federal Funding for PA Schools\" srcset=\"https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/07\/school-energy-costs-solar-300x200.jpg 300w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/07\/school-energy-costs-solar-150x100.jpg 150w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/07\/school-energy-costs-solar-230x153.jpg 230w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/07\/school-energy-costs-solar-350x233.jpg 350w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/07\/school-energy-costs-solar-480x320.jpg 480w, https:\/\/www.paenergyratings.com\/blog\/wp-content\/uploads\/2025\/07\/school-energy-costs-solar.jpg 724w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption><center><em>The recently signed One Big Beautiful Bill Act (OBBBA) cuts federal credits for PA school districts looking to install solar panels. Learn how rising school energy bills could affect tax rates.<\/em><\/center><\/figcaption><\/figure><\/div>\n\n\n\n<p>With <a href=\"https:\/\/www.paenergyratings.com\/electricity-rates\" target=\"_blank\" rel=\"noreferrer noopener\">electricity rates<\/a> skyrocketing, PA leaders have been looking for cost-saving solutions for the state&#8217;s schools. One of those is a popular, bipartisan program enacted last year titled the <a href=\"https:\/\/dced.pa.gov\/programs\/solar-for-schools-grant-program-s4s\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Solar for Schools Act<\/a>. This program is designed to help school districts install solar panels to use <a href=\"https:\/\/www.paenergyratings.com\/deals\" target=\"_blank\" rel=\"noreferrer noopener\">cheap electricity<\/a>. School districts have to front the initial costs. But federal and state grants would cover almost the entirety of the funding. <br><br>However, with the One Big Beautiful Bill Act (OBBBA), federal funding vanishes for solar projects that don&#8217;t break ground before July 2026. But with PA facing a <a href=\"https:\/\/www.spotlightpa.org\/news\/2024\/08\/budget-deficit-surplus-revenue-pennsylvania-legislature\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">budget deficit<\/a>, even state funding for the project is in question.<\/p>\n\n\n\n<h3>PA School Districts Fighting for Funding<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.spotlightpa.org\/news\/2025\/07\/trump-bill-solar-energy-schools-pennsylvania-budget\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Solar for Schools <\/a>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&#8217; plans.<\/p>\n\n\n\n<p>Many schools applied hoping for both federal and state grants. But without the additional federal funding, <a href=\"https:\/\/whyy.org\/articles\/pennsylvania-schools-house-budget-bill-solar\/\" target=\"_blank\" rel=\"noreferrer noopener\">solar<\/a> becomes costly. Additionally, under the OBBBA, to be eligible for the <a href=\"https:\/\/www.mwe.com\/insights\/the-one-big-beautiful-bill-act-navigating-clean-energy-tax-credits-in-a-new-era\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">solar credits<\/a>, 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. <\/p>\n\n\n\n<p>Still, schools and lawmakers are fighting for the <a href=\"https:\/\/www.pahouse.com\/Fiedler\/InTheNews\/NewsRelease\/?id=134435\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">solar program<\/a>. 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. <\/p>\n\n\n\n<h3>PA School Districts and Citizens Plagued by an Unstable Energy Market <\/h3>\n\n\n\n<p>Energy cost savings are needed now more than ever. The PA energy market has become volatile for a number of reasons. Massive <a href=\"https:\/\/www.nesdis.noaa.gov\/news\/noaa-satellites-monitor-record-breaking-heat-wave\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">heat waves<\/a>, a nervous natural gas market, aging infrastructure, and higher power demand from&nbsp;<a href=\"https:\/\/www.wesa.fm\/environment-energy\/2025-05-29\/hot-temperature-ai-data-centers\">data centers<\/a>&nbsp;are all helping to hike rates. <\/p>\n\n\n\n<p>At the center of it all is PJM. They&#8217;re the largest electrical grid in the US, covering PA and 12 other states. A year ago, their capacity auction results sent <a href=\"https:\/\/www.paenergyratings.com\/blog\/your-pa-electric-utility-rates-went-up-heres-what-you-can-do\/\" target=\"_blank\" rel=\"noreferrer noopener\">pa utility rates<\/a> skyrocketing. And this most <a href=\"https:\/\/www.reuters.com\/business\/energy\/biggest-us-power-grid-auction-prices-rise-by-22-new-heights-2025-07-22\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">recent auction<\/a> jumped even higher, which will ultimately take utility rates with it. PA Gov Shapiro has even made repeated threats to leave the <a href=\"https:\/\/www.utilitydive.com\/news\/governors-pjm-interconnection-crisis-electric-bills-capacity\/753421\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">PJM<\/a> grid if they can&#8217;t bring costs down.<\/p>\n\n\n\n<h3>Future of PA Solar<\/h3>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>In the meantime, there are ways you can save on rising energy costs. For instance, you can secure a <a href=\"https:\/\/www.paenergyratings.com\/solar\" target=\"_blank\" rel=\"noreferrer noopener\">free solar quote<\/a> 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&nbsp;<a href=\"https:\/\/www.paenergyratings.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.paenergyratings.com<\/a>&nbsp;to explore the various electric plans in your area.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>OBBBA Scuttles Federal Funding for PA School Districts With electricity rates skyrocketing, [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":5712,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mbp_gutenberg_autopost":false},"categories":[63,90,9],"tags":[],"_links":{"self":[{"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/posts\/5694"}],"collection":[{"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/comments?post=5694"}],"version-history":[{"count":10,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/posts\/5694\/revisions"}],"predecessor-version":[{"id":5716,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/posts\/5694\/revisions\/5716"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/media\/5712"}],"wp:attachment":[{"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/media?parent=5694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/categories?post=5694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paenergyratings.com\/blog\/wp-json\/wp\/v2\/tags?post=5694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}