(The Center Square) – While warehouses and data centers rise across Pennsylvania, so does the demand for energy, creating a situation that prompts lawmakers to explore whether solar power on warehouse rooftops could help fill the gap.
House Bill 1260, sponsored by Rep. Joshua Seigel, D-Allentown, was debated in the House Energy Committee on Monday. The bill would require new warehouses to be built solar-ready and create tax incentives for retrofitting existing ones. A similar proposal is being drafted in the Senate.
Advocates argued that commercial rooftop solar offers a rapidly deployed, cost-effective way to expand energy generation while creating revenue streams for developers.
While not completely opposed to the idea, some committee members voiced concerns about mandates amounting to government overreach and suggested incentives would be a better approach.
Pennsylvania ranks eighth in the nation for the number of warehouses, and development continues to grow thanks to its proximity to major East Coast cities and robust transportation networks.
Seigel, in his cosponsorship memo, noted that 44 million square feet of industrial and warehouse space has been approved in Lehigh and Northampton counties alone in the past nine years.
Rob Bair, president of the PA Building and Construction Trades Council, testified that nearly half of all warehouse space in the state, 45.4%, lies along the Route 81 and 78 corridors.
“When you add York and Lancaster counties, that number goes to 54.4%,” he said. “We’re building warehouses along those corridors and employing a lot of people in those jobs. But we have a lot of roof space just sitting there doing nothing – we can put it to use.”
Bair said rooftop solar is low-impact, quick to deploy, and offers an added revenue stream by allowing developers to lease roof space for panels.
“And so, we’re killing a lot of birds with one stone here,” he said.
He also acknowledged concerns about large solar projects taking up farmland and forested areas, but noted that property owners have the right to lease their land as they see fit.
Rep. Jamie Barton, R-Tamaqua, questioned the difference between farmers’ rights to use their land freely while requiring warehouse developers to build solar-ready structures – a concern echoed by Reps. Martin Causer, R-Coudersport and Mike Armanini, R-DuBois, who also raised concerns about the potential cost burden on business owners.
Committee Chair Rep. Elizabeth Fiedler, D-Philadelphia, stated that a commercial construction firm with decades-long experience provided her with an estimate indicating that making a 50,000-square-foot warehouse solar-ready would increase costs by less than 1%.
Rep. Paul Friel, D-Pottstown, noted that building codes are mandates designed for public benefit and believed the proposal would not be out of line. Still, he agreed with others that builders need a clear return on investment.
Large companies are already adopting solar-ready designs because they see that return, said Victoria Moroney, director of market development at ForeFront Power. She explained that solar developers can help warehouse owners monetize rooftops through power purchase agreements or leasing arrangements.
Commercial rooftop solar, she added, makes efficient use of land and generates power close to where it’s needed – reducing the need for costly transmission and distribution system upgrades and benefitting Pennsylvania ratepayers. It creates good family-sustaining jobs and comes online quickly, “which is something we urgently need right now with the PJM capacity crisis.”
The lack of solar energy in the commonwealth has contributed to higher electricity costs, said Penn Future’s Pat McDonnell. He noted that 60% of the state’s electricity is generated by gas and less than 5% from renewables.
He also said that recent hikes in Pennsylvanians’ utility bills – averaging about 15% – were partly due to gas plant failures during winter storm Elliot in 2022, and PJM’s capacity auction prices.
McDonnell pointed to Texas, now leading the nation in solar, wind, and battery development, where consumers are seeing lower energy bills.
“The time to use renewable energy is now,” he said. “It’s the cheapest form of electricity we can put on the grid, and we want to put policies in place that make full use of impervious surfaces to take advantage of an obvious opportunity to deal with energy and the climate.”
A 2023 PennEnvironment report said Pennsylvania’s 16,000-plus warehouses offer more than 516 million square feet of potential solar space – enough to generate power for more than 820,000 homes while significantly reducing greenhouse gas emissions.
There was broad agreement among participants that a balanced energy portfolio is essential in meeting the state’s needs – one that includes solar, natural gas, nuclear, wind and other sources.
“There is no magic bullet,” said Bair. And, although he expects some amendments to the bill, he welcomes the conversations about bringing new power to the grid quickly to help ease shortages.
