Please ensure Javascript is enabled for purposes of website accessibility Fiedler, advocates applaud passage of biggest renewable energy investment in Pennsylvania history

Fiedler, advocates applaud passage of biggest renewable energy investment in Pennsylvania history

HARRISBURG, Oct 19 – Today, the House passed H.B. 1667, which would reform the existing Pennsylvania Economic Development for a Growing Economy, known as EDGE, tax credit and create a new electric usage fee on data centers.

Rep. Elizabeth Fiedler, D-Phila., chair of the House Energy Committee, applauded this passage as a win for renewable energy and affordability in the Commonwealth.

“This is the largest investment in renewable energy in the Commonwealth’s history,” Fiedler said. “This tax credit will get more clean energy online, which we know will help lower electric bills and improve reliability on a strained grid. We need this urgently to combat the rising cost of electricity, which is causing households all over Pennsylvania a lot of pain. This bill represents one of the biggest environmental wins in Pennsylvania in decades.”

"This legislation would impose a fee on the largest energy users, specifically data centers, and turn those revenues into a rebate on the electric bills of average homeowners who are facing rising utility costs," said state Rep. Steve Samuleson, chair of the House Finance Committee.

This bill makes a number of changes to the EDGE tax credit: drastically reducing the original allocation for natural gas and reinvesting it in renewable energy like solar and the clean manufacturing sector. Included in the appropriation is $34.7 million available for a residential clean energy rebate that can return up to $3,000 of the cost to install home solar or heat pumps.

“House Bill 1667 provides a critical tool to expand renewable energy in Pennsylvania and help families lower their electricity bills as so many are struggling to make ends meet,” said Adam Nagel, vice president of government affairs for PennFuture. “Pennsylvanians face rising utility bills and increased concerns over our ability to keep the lights on. Renewable energy sources provide the quickest and cheapest path to reduce costs and help bring greater reliability. PennFuture applauds the state House of Representatives for its continued leadership in passing proactive policies to bring more clean energy to our grid and ensure greater affordability for consumers.”

The incentive for renewable energy generation would create jobs across the Commonwealth. Green energy jobs are projected to be the fastest-growing jobs of any industry over the next decade, according to a 2026 report from the Bureau of Labor Statistics. Pennsylvania remains far behind many other states in renewable energy production, and this legislation will help the Commonwealth become a national leader.

“Pennsylvania is an energy leader, but it’s time we become a leader of the 21st century with renewable energy,” said Rob Bair, president of Union Energy and the PA Building and Construction Trades Council. “These credits are going to infuse millions of dollars of economic activity into the Commonwealth, generating job growth in the energy sector. Pennsylvania workers can build our renewable energy future right now.”

The bill also includes language for a new electric usage fee for data centers at 2 cents per kilowatt hour. The dollars generated from this fee will go directly back to regular ratepayers in the form of a yearly check.

The EDGE tax credit was enacted in 2022 with the intention of bringing next-generation energy, fuel and dairy development to the Commonwealth; however, most of the dollars allocated for EDGE were never spent. This legislation renews the promise of EDGE and improves it to meet the evolving needs of the Commonwealth. The bill now heads to the Senate.