The Delaware House of Representatives has passed the latest revision of SB 119, entitled “AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO THE RENEWABLE ENERGY PORTFOLIO STANDARDS” by a margin of twenty-six to seven. The latest in a series of energy bills, Substitute 1 for SB 119 extends and increases Delaware’s RPS, raises penalties for non-compliance, and requires municipal electricity suppliers and rural cooperatives to submit their own plans for renewable energy, shall they choose to exempt themselves from the program. Already passed by the Senate, the bill is now awaiting the signature of Governor Jack Markell.

   After the bill is signed into law, the current RPS of 20% by 2019 with 2.005% minimum from solar will be increased to 25% by 2025 with 3.5% from solar. Additionally, the Alternative Compliance Penalty will be raised from $250 to $400 per MWh, with the $50 annual increase for non-compliant utilities remaining in effect. This comes as welcomed news for Delaware’s home-grown solar industry and residents, who depend on incentive programs to spur new installations. Short-term solar targets are also slated to increase, with new targets of .2% by 2011 and .354% by 2014 going into effect.
 
   The bill also incentivizes locally-sourced solar. It provides an additional 10% credit toward RPS compliance for SRECs produced by solar facilities that were built using at least 75% in-state labor or consist of at least 50% in-state manufactured components. These provisions demonstrate Delaware’s commitment adopting clean energy while still fostering a robust home-grown solar industry.
 
   Also, new provisions have been added to allow state energy coordinators to adjust the ACP by as much as 20% “to determine reasonableness compared to market-based SREC prices” and another that allows the solar requirement to be frozen all together if the total cost of compliance exceeds 1% of the retail cost of electricity. These amendments demonstrate Delaware’s willingness to provide better incentives for going green while still safeguarding against unreasonable rate hikes.
 
   Delaware’s amendments echo similar legislation in neighboring Maryland, which has recently expanded its own renewable energy portfolio, and demonstrates a growing trend all over the United States toward fostering growth in renewable energy. Delaware and other PJM states are leading the way in creating effective renewable energy programs, striking a balance between increasing clean energy while still protecting tax payers from unfair rate hikes.