PHILADELPHIA, PA (Thursday, December 18) –  Residents, local leaders, business owners, and advocates for clean energy gathered at City Hall Thursday to show their support for lowering energy prices by bringing more renewable energy projects to the region. Since President Donald Trump took office, energy prices have risen by 4.5% and are expected to keep rising. Coal generation costs are up a whopping 28% since 2021—adding $6.2 billion in extra consumer costs in 2024. The PJM Interconnection, which serves much of the Mid-Atlantic region, reported a 44% increase in electricity and gas prices in early 2025 compared to the same period in 2024. Trump’s policies–including rolling back clean energy laws and issuing federal orders to keep costly, inefficient power plants online instead of allowing clean energy to replace them–helped drive these increases, despite the fact that 90% of renewables are now cheaper than fossil fuels worldwide. 

Councilmember Jamie Gauthier, Chair of Philadelphia City Council’s Committee on the Environment, said “This year, Trump gave the American people a lump of coal for the holidays. Unaffordable energy bills aren’t inevitable, they are a direct result of Trump’s Polluter First Agenda – which puts Big Oil above Philadelphia families. All Philly wants for Christmas is for Trump to make energy bills more affordable and protect our planet and health by accelerating clean energy investments.”

“So let’s be clear: we will not stand by while our small businesses are strangled and our communities are asked to shoulder more and more,” said Jennifer Zavala, South Philadelphia Resident and Owner and Operator of Juana Tamale. “We will raise our voices, we will demand action, and we will vote for leaders who put people over polluters”.

“The last thing hard-working families should have to worry about this holiday season is their growing energy bill. Our leaders need to step up and prioritize clean energy projects so we can lower costs and protect each other from the harms of the climate crisis,” said Alice Lu, Clean Air Council Policy Analyst.

“There is no denying that energy bills are rising faster than the cost of inflation. One in five Pennsylvania households report difficulty paying their energy bills. More than 338,000 Pennsylvanians had their electricity turned off in 2025. This is unacceptable. Pennsylvanians need real solutions like clean energy that create jobs, reduce pollution, & provide relief for families facing rising energy bills,” said Annie Regan, PennFuture Campaigns Director.

On January 1, 2026, the federal government’s “Big Beautiful Bill” (BBB) will end a major financial perk for US homeowners: the 30% residential solar tax credit. On average, this credit saved homeowners $7,500 when installing panels and an additional $9,000 in electricity savings.

Wondering if you should still invest in solar panels? The answer is yes. Panels installed and turned on before the end of 2025 will still get the tax credit. And even if you miss the end of year deadline, it is still worth buying panels because we still have fair net metering in PA (getting credits for your solar energy!).

Read on to learn how the BBB will impact your energy bill and how you can lower costs by investing in solar. 

How does the BBB cut the solar tax credit?

The bill ends the residential tax credit of 30% for any clean energy expenses, such as solar panels, paid for after December 31, 2025. Homeowners who install solar panels on or after January 1, 2026 will not receive the 30% federal tax credit. Crucially, the 30% credit only applies to solar panel purchases, not leases.

Why will the BBB raise individuals’ energy bills?

Research from Energy Innovation, Rhodium, the REPEAT Project, and plenty of other groups all indicate that the BBB will raise our electricity costs.  Meanwhile, America is about to need more electricity than ever before. AI companies are building data centers all over the country that are “on course to account for almost half of the growth in electricity demand.” Frequent heat waves are also driving up electricity demand due to air conditioning use.  

Economics 101 teaches us that high demand and low supply lead to high prices. So with this high electricity demand, the best way to keep energy prices low is to maintain a healthy supply of energy sources. 

The BBB takes the opposite approach. It limits our ability to access energy by making clean energy more expensive with tax credit cuts and exclusively benefiting fossil fuel companies—providing generous tax deductions, federal land and water leases, methane fee eliminations, among other perks. 

Fossil fuels are more expensive to generate because companies have to extract and transport the fuel. Their pricing is also volatile because the fuel supply is limited and dependent on global events. Just a few years ago, the Russia-Ukraine war spiked gas prices because so many countries depended on oil from the region. 

Solar lowers energy bills because it’s cheaper to operate than fossil fuel generators, thanks to improved panel technology and efficiency in recent years. In 2023, the International Energy Agency (IEA) reported that an estimated 96% of new solar and wind plants had lower generation costs than new natural gas and coal plants, and 75% of them produced cheaper energy than the natural gas and coal plants. These financial benefits are exactly why so many countries across the world are investing in solar energy—including China, which just opened the world’s largest solar farm.

3 steps for getting solar panels (and saving as much as possible)

Prepare for rising electricity costs by investing in solar ASAP. With or without the tax credit, solar panels will cut your electricity costs thanks to PA’s fair net metering (more on that below!). Maximize these savings by following these tips throughout your solar panel process. 

1. Collect installer recommendations and quotes ASAP

In an ideal world, you’re able to buy and install solar panels before the end of 2025 and get the 30% residential solar tax credit. That timeline is tight, though—especially since the full process usually takes 6 months, and many people will be trying to get the tax credit. 

If your goal is getting the credit, you’ll need to find potential installers ASAP by:

• Asking local friends and family with solar panels for installer recommendations. A referral you trust is by far the fastest way to find a reliable solar installer. 
• Using an online solar quote comparison tool, like EnergySage or Solar.com. Pick the top 5 to 7 quotes based on your budget. If you’re overwhelmed by the information in each quote, this resource can help you decipher the details. 
• Reading online reviews to narrow down your picks. The solar quote comparison tools, Yelp, and Google are all great resources for finding installer reviews. Check what buyers say about each installer’s quality of service and typical timelines, so you can gauge whether completing your panels by 2025 is realistic. 

Pick your top 3 installers after following the steps above, and call each one to set up consultations. 

2. Determine the best way to pay for your panels

Solar panels are a major purchase, like a car, so most people end up financing them rather than buying them upfront. If you go this route, ask each installer at their consultation if they can set a payback period length that sets the monthly rate at the average amount of your monthly electricity bill. This setup essentially makes the panels free. 

Of course, this monthly rate will change depending on whether you receive the federal 30% tax credit by installing the panels before 2026. Stay on the safe side by assuming you won’t receive the credit when evaluating monthly payments and payback period lengths. This approach will leave you happy with your installer agreement regardless of whether you make the 2026 deadline. And if you do receive the credit, you get the benefit of a lower monthly payment and/or a shorter payback period. 

If you don’t want to finance your panels or pay for them upfront, some installers offer alternative ways to generate and use solar energy at your home. A power purchase agreement allows you to purchase solar energy generated at your home for a set period while the installer owns and maintains the panel system. 

Or, an installer may offer a lease agreement. Never sign a solar lease with escalator pricing, which lets the provider increase the rate over time. Ensure you’ll save money over your entire lease agreement by only agreeing to a flat monthly rate.  

Be sure to closely read the paperwork of your installer agreement so you understand the terms, particularly if you choose one of these alternative options. 

3. Sit back, relax, and enjoy your solar savings

Choose one installer based on the consultations, and they’ll handle the remaining steps of the process. In addition to handling the physical installation, your solar company will manage the various permits and certifications that are required to get your new solar panels up and running (and connected to the grid). 

Once your solar panels are installed, it’s time to enjoy net metering! In PA, net metering is thankfully a fair 1-to-1 credit system–meaning, solar users are paid the same per kilowatt hour as they would have been charged to consume that kilowatt hour. Solar installers here will automatically set up net metering, but this benefit is also common in many other states. If you live outside of PA, be sure to ask your installer (1) if you’re eligible for net metering and (2) if so, what kind of support they offer to set it up for customers. 

Can’t buy or lease panels? Demand community solar!

If buying or leasing panels doesn’t feel right for you, don’t count yourself out of solar! Consider community solar—a system where residents subscribe to a local solar farm and receive credits on their energy bill. 

Community solar isn’t available in PA yet, but Clean Air Council is hoping to change that. Take action and tell your local PA politicians you want them to support legislation that allows community solar. 

HARRISBURG, PA (April 25, 2025) – This week, Pennsylvania legislators introduced six bills as part of Governor Shapiro’s “Lightning Plan,” which was announced in January. These bills include policies for enhancing the siting, production, and usage of renewable and fossil fuel energy sources alike and updating an outdated energy efficiency program. 

Despite growing energy demand from data centers leading to an increased need for clean, reliable energy, only 3% of Pennsylvania’s energy currently comes from renewable sources. Legislation in the Lightning Plan, namely the Pennsylvania Renewable Energy Standards and Sustainability (PRESS), the Reliable Energy Siting and Electric Transition Board (RESET), and the Community Energy bills have the potential to greatly promote the deployment of affordable, renewable energy in Pennsylvania while creating good-paying jobs.

Alex Bomstein, Clean Air Council Executive Director, issued the following statement:

“Our Commonwealth is experiencing an ever-increasing demand for energy that is clean and affordable, especially as more extreme weather events threaten the reliability of gas-fired power plants and as we fail to take aggressive action against polluting industries that increase energy demand while contributing to climate change. These bills that are part of Governor Shapiro’s Lightning Plan are overall an important step in tackling this issue. However, it is critical that Pennsylvania prioritize renewable energy over adding more unreliable fossil fuels to our grid. We look forward to working with the Governor’s office and the Legislature to ensure this plan helps realize new, clean energy projects that keep our air clean, our communities healthy, and our energy affordable.” 

PHILADELPHIA (January 31, 2025) – This week, Governor Shapiro announced a new energy plan for Pennsylvania, the “Lightning Plan,” to cut energy costs for consumers and boost energy efficiency, renewables, and fossil fuels alike. Currently, only 3% of Pennsylvania’s energy comes from renewable sources. As AI and cryptocurrency demand ever more electricity, Pennsylvania must respond swiftly by bringing more renewable energy online to ensure the affordability of energy costs. 

The Governor’s plan aims to grow Pennsylvania’s energy sector by revamping tax credits to incentivize energy investment, speeding project permitting, updating Pennsylvania’s flagship energy efficiency program, and enhancing access to community energy, such as solar. The plan also includes energy policies introduced by the Governor last year, which would increase renewable energy standards and cap pollution from the power sector.

Alex Bomstein, Clean Air Council Executive Director, issued the following statement:

“There is much to like in Governor Shapiro’s ambitious energy plan, such as its support for renewable energy development and modernizing energy standards. At the same time, fossil fuels compete with renewables, and the details of some of these proposals will be critical to ensure they help more than they harm. We must take every available action to ensure Pennsylvania doesn’t lose out on this opportunity to create jobs, lower energy costs, diversify our energy mix, and cut harmful pollution by boosting cheap and abundant renewables.” 

Sean Deresh is an undergraduate student in the Vagelos Integrated Program in Energy Research studying Earth Science in the College of Arts and Sciences and Chemical and Biomolecular Engineering in the School of Engineering and Applied Science at the University of Pennsylvania. He is a volunteer advocate with the Clean Air Council, a member of Penn Sustainability’s Student Advisory Group for the Environment, and a research assistant at Penn’s Kleinman Center for Energy Policy. 

Sean is interested in the future direction of the global oil market and what factors might help reduce our reliance on oil as a primary energy source. 

Recent fluctuations of the oil industry: a call for energy policies that embrace renewable development

Given the magnitude of the impending effects of climate change, many sectors have begun to explore alternative avenues for energy consumption that either reduce or eliminate greenhouse gas emissions. Crude oil, one of the primary fossil fuels, has proven to become a driving force in the US energy industry due to its high energy density and low cost. The current US energy policy landscape is still in a transitional phase, and as the Biden administration continues to set goals for expanding renewable energy supply in the US, it is only a matter of time before oil dependency is minimized. The volatility of the global oil market due to drastic fluctuations in supply and demand and recent geopolitical tensions are clear indicators that energy policy must be restructured to help foster a landscape that is not so dependent on oil and can withstand potential changes in energy resource supply. Oil prices are currently hovering around $100 per barrel due to a combination of upward pricing pressure on concerns of reduced Russian oil supply and fears of a renewed COVID-19 economic attenuation in China²⁴. A decline in US oil inventories is putting even more pressure on the price of oil as the nation’s strategic reserve is depleted and the Russia-Ukraine war continues. Through time, mass electrification will inevitably emerge as one of the primary solutions to high gas prices, as global oil trends favor enhanced clean development. 

The current dilemma

The balance of international power is a key factor in the oil industry, with the future fortunes of countries such as Russia and Iran tied to crude oil. Geopolitical tensions and the disparity between supply and demand have led to an increase in the price of crude oil. Prices increased by more than 15% in January, as the global benchmark price crossed $90/b for the first time in over seven years, as fears of Russian invasions in Ukraine grew¹⁴. Upon the Russian invasion of Ukraine, the price of crude oil rose to nearly $96/bbl and Brent crude — the global benchmark for oil prices — went as high as $105.79 for the front-month contract²⁰. The tension between Russia and the West is growing and President Putin is willing to take geopolitical risks to assert his power. If Russian production is interrupted, the US, Japan, European countries, and China could release mode crude oil from their reserves in the event of a crisis. This invasion has caused many entities such as the EIA and investment banking firms to increase their oil price predictions. 

Energy experts and E.U. Officials have expressed that Russia’s invasion of Ukraine is poised to add more urgency to Europe’s efforts to reduce its dependence on Russian oil and gas and to compel Europe to speed up its transition to renewable energy. Discussions of accelerating the transition toward alternative sources of energy began months ago as oil and gas prices began to rise and recently intensified as tensions grew closer to war with Russia. The recent invasion of Ukraine then increased the risk of Europe’s reliance on Russian gas. For instance, Germany, which has been ramping up its wind and solar capacity and shuttered coal-fired and nuclear facilities, has viewed natural gas as a reliable fuel that can get the country through the transition. However, Germany currently receives about half of its gas supply through pipelines from Russia and does not have the infrastructure to take shipments of liquefied natural gas (LNG) from other sources. As Russia’s gas flows have slowed, Germany’s feeling of reliability has shifted. 

The energy transition will be easier for some countries in Europe than others. Some countries could actually return to polluting fuels such as coal-reliant Poland, as renewables still have a long way to go there and it might not seem feasible to meet demand amidst such heightened geopolitical tensions and risks. If the alternative is to stay on course with decarbonization at the expense of high energy prices or vulnerability, this will be hard to achieve, and compromises that will soften climate ambitions set out by the E.U. will have to be established. A European gap without gas could mean relying more on coal and sources such as nuclear by bringing them back online or reducing demand among households and the industry. An E.U. plan to tax carbon-intensive imported goods could have costly impacts on countries such as China and Russia, which have weaker environmental regulations. Absolutely everything could change if the invasion expands beyond Ukraine, and depending on how long this conflict lasts, it could affect U.N. climate talks when countries revise goals for reducing emissions. Geopolitical tensions could drive Russia toward China or even into isolation. If sanctions affect Russia’s access to the markets in the West, they will have to seek other economic opportunities. Losing Europe as a major customer would leave Russia with few options to sell its gas in the short term. 

The crude oil landscape

         In recent years, American consumers have been facing a sustained increase in prices for oil products¹. As a global commodity and primary source of fuel for the global economy, crude oil has a price that is determined by both supply and demand, reflects buyer-seller interactions¹, and has recently experienced an unprecedented shift amidst the COVID-19 pandemic. The primary activities required to move crude oil from source to consumer include production, refining, distribution, and marketing¹, and such activities take place in the global marketplace. The world currently consumes over 97 million barrels of oil per day², and its proven reserves are equivalent to 46.6 times its annual consumption levels, suggesting that planet Earth has 47 years of oil left under current consumption rates². This would be the equivalent of going above and beyond the “business as usual” emissions scenario of global circulation models, resulting in the strongest possible set of climate change effects¹⁸.

The global oil market is complex. Various countries currently produce oil, but only a few of them dominate production³. Nearly 100 countries produce crude oil around the globe, but in 2020, only five of them accounted for 50% of the world’s total crude oil production: United States with 15%, Russia with 13%, Saudi Arabia with 12%, Iraq with 6%, and Canada with 5%⁴. There are three types of companies that supply crude oil in the global market⁴. International oil companies (IOCs) such as ExxonMobil, BP, and Royal Dutch are investor-owned. National oil companies (NOCs) are extensions of government or government agencies and include companies such as Saudi Aramco (Saudi Arabia), Pemex (Mexico), the China National Petroleum Corporation (CNPC), etc. The Organization of Petroleum Exporting Countries (OPEC), an international cartel of oil-producing countries, is the most powerful production-level entity. In 2020, OPEC’s members held 71% of the world’s total proven crude oil reserves and accounted for 36% of total world crude oil production⁴.

Crude oil is bought and sold throughout a chain of distribution and its price is a function of supply and demand conditions, which are more important in determining the price of oil than trade flows in the long term. Recent changes in supply and demand have increased the prices paid by retailers and consumers for crude oil.

Looking ahead

         The burning of gasoline and diesel are primary forces for global warming. As the years progress, the world will indubitably continue to perpetuate the transition toward clean energy sources and reduce its reliance on oil. Fortunes could be made or lost from shifts in the energy economy, which is controlled by some of the largest private and state corporations in the world. Oil companies will be at the forefront of change and undercut their own businesses. Regardless, there are still clear indications that the global demand for oil will peak and decline by the late 2030s¹¹. 

Electric vehicles certainly have the potential to drive the crude oil market towards a new trend against its perpetuation as an energy source. Federal transportation and energy officials recently detailed where the first millions of the government’s $7.5 billion funding for electric vehicle charging infrastructure will go, laying the foundation of a system that could establish where Americans fuel for decades to come¹⁹. 

Western oil companies, under pressure from investors and environmental activism, are drilling less oil wells than before the pandemic restrained supply increases. Biden has been urging OPEC to pump more oil, and OPEC’s members and their allies have recently agreed to plan to increase production¹⁴. The Biden administration also announced that it would release 50 million barrels of oil from its strategic reserves to relieve pressure put on consumers. These recent calls for OPEC to increase production amidst increased demand is not consistent with his ideals of carbon neutrality and emissions reductions. The Biden administration continues to refuse to confront the oil industry even though it continues to develop at an outstanding pace. As the uncertainty of the future oil market grows given recent events, the Biden administration must consider environmental justice in its development of new initiatives to reduce the intensity of the instability of the oil industry. 

Recent changes in supply and demand have increased the prices paid by retailers and consumers for crude oil. By the end of 2022, the price of crude oil will have increased due to the recovery from strained supply caused by the COVID-19 pandemic, the initiation of increased production from OPEC members, and tensions between foreign nations. Near 2030, oil demand will begin to peak as consumption growth diminishes and global inventories are greatly replenished, causing the price of crude oil to decrease. It might sound like a long time, but in the grand scheme of things it would be beneficial for the Biden administration to develop regulatory reforms that limit or inhibit oil extraction and development so as to initiate a decay in the Nation’s dependence on the source. 

Energy policy outlook²³

1. We must develop novel energy policies that embrace renewable energy for electricity generation to achieve significant carbon pollution reductions by midcentury.

The US needs to do more to avert the impacts of climate change. Meeting climate goals will require the implementation of new policies that control emissions of carbon and other greenhouse gases. The US cannot simply rely on fossil fuels in the way it has in the past. By adopting sustainable policies, the US has the potential to generate a large portion of its electricity from zero-carbon emitting sources by the target dates. Strong domestic cooperation will be needed to facilitate international action. The US electricity sector is responsible for a large percentage of the nation’s carbon dioxide emissions. Long-term dependence on fossil fuels for power generation is incompatible with the response needed to mitigate the impacts of climate change. Renewable energy is booming but still lags behind traditional fuels. Policymakers must promote the rapid decarbonization of the power sector and the deployment of renewable energy technology.

2. We must invest in safe, resilient, and reliable energy infrastructure. 

Decisions that policymakers make today will last for decades to come. The modern electricity grid must accommodate expanded and diverse generation from renewable energy sources and provide reliable service. In the future, reliability will go hand in hand with ensuring that our energy infrastructure is resilient to the impacts of climate change, such as extreme weather. All energy infrastructure (pipelines, railroads, production facilities, etc.) should adhere to the highest standards of public safety so as to ensure proper climate action.

3. We must reduce the transportation sector’s dependence on oil. 

In order to meet the nation’s emission reduction goals, the US needs to continue to make cars and trucks cleaner and more efficient. The US should envision moving away from a transportation sector that is highly dependent on oil to one that relies on alternative energy sources, electricity being one of them. Manufacturers have already developed low-emission or zero-emission vehicles, and new technologies are appearing every year. Policymakers should provide consumers and governments with incentives to continue the transition to a cleaner transportation system.

4. We must empower the energy consumer by ensuring equitable access to clean energy.

Energy policy is about more than supply and demand and market interactions. As technology and innovation change to the energy industry, consumers will have new opportunities to benefit from clean technologies to lower their energy costs. Consumers should be free to make sustainable energy decisions, such as installing solar panels or purchasing an electric car, without paying ridiculous fees that are designed to inhibit development. A clean energy economy must also be inclusive in that consumers from all income levels should have the opportunity to experience the benefits of clean energy technology.

5. We must balance the impacts of energy production with the protections of citizens’ public lands and fair returns to taxpayers. 

Oil and gas drilling, coal mining, and even renewable energy production in some cases, all have environmental costs associated with them. Policymakers should minimize these impacts by deciding which locations are appropriate for development and which are simply not feasible. Energy development should be balanced with protections for landscapes, the reinvestment of energy revenues in the conservation of land, water, and wildlife, and the enforcement of mitigation and reclamation requirements. Public lands and waters belong to all citizens, so taxpayers should be compensated for the extraction and development of their energy resources.

Email: sderesh@sas.upenn.edu

References

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For those concerned about drilling and fracking to supply their home’s natural gas, Clean Air Council and The Energy Co-op are joining forces to present a workshop on an alternative – Renewable Natural Gas (RNG)!

RNG is biogas, a compound of methane and carbon dioxide, that comes naturally from the decomposition of organic waste, like landfills and other waste management facilities. It’s often flared, reducing it to C02 and wasting the energy content of its methane component, however, it can also be like conventional natural gas – without any drilling or fracking.

Join us in this FREE webinar to learn about the problems with drilling and fracking, the benefits of RNG, and what you can do to get involved!

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