UNIVERSITY PARK, Pa. — With global energy prices trending upwards, Penn State’s solar energy purchasing agreement with Lightsource bp, now nearing the completion of its second year, has saved the University more money than expected while also contributing to greenhouse gas reductions and University research efforts.
In October 2020, Penn State began purchasing 100% of the renewable energy generated at three solar farms in Franklin County, Pennsylvania. At the time, it was estimated the solar arrays, which are owned and operated by Lightsource bp, would produce over 100 million kilowatt-hours of electricity annually and save the University approximately $600,000 in energy costs in the first two years of operations and more than $14 million over the 25-year contract.
As the two-year mark approaches, Penn State has far exceeded the original estimates, already saving an estimated $2.5M in energy costs.
“The last two years have been a rollercoaster for energy costs; first they plummeted due to the pandemic and now they are well above pre-pandemic levels in most cases,” said Rob Cooper, senior director of energy and sustainability in the Penn State Office of Physical Plant. “When it comes to our solar energy agreement, the University made the right decision at the right time, and we are already seeing many of its benefits.”
If energy market prices return to pre-pandemic levels in the future, the savings experienced to date, combined with the projected near-term savings over the next two years will set Penn State to far exceed its original savings projections.
“Penn State is proving that clean energy can be both good for the environment and good for the budget. It’s a win-win situation,” added Cooper, who also co-chaired the Carbon Emissions Reduction Task Force.