Senator Yaw’s Solar Decommissioning Bill Ensures Responsible Development for Groundmount Solar Projects in Pennsylvania

July 20, 2026 - Governor Josh Shapiro signed Senate Bill 349 into law, creating Pennsylvania’s first statewide framework governing the decommissioning of ground-mount solar projects. The legislation replaces a patchwork of municipal ordinances with uniform statewide standards, providing greater certainty for landowners, developers, lenders, and investors.

Projects with solar energy facility agreements executed before July 20, 2026, are grandfathered and exempt from SB 349's requirements.

The law requires all new solar energy facility agreements to make the project operator responsible for decommissioning and restoring the property. Decommissioning generally must be completed within 18 months after a facility permanently ceases producing electricity.  

Before construction begins, operators must record a decommissioning plan and provide financial assurance equal to an independently estimated decommissioning cost, subject to a phased schedule. The required security begins at 10% of the estimated cost and increases every five years until reaching 100% of the estimated net decommissioning cost after 25 years, with salvage value expressly credited against the required amount. Independent engineers selected from a Department of Environmental Protection (DEP)-maintained list must update both the cost estimate and decommissioning plan every five years to reflect current market conditions.

The statute also establishes baseline restoration standards, including removal of equipment to at least three feet below grade, restoration of the site to substantially its pre-construction condition, and reseeding, unless the parties agree otherwise. When projects are transferred, replacement financial assurance must be filed before the prior owner’s security is released, preventing any lapse in coverage. DEP is directed to develop standardized forms and implementation regulations.

SB 349 applies prospectively. As stated above, existing projects operating under agreements executed before the law’s effective date are grandfathered and remain governed by their current contracts and applicable local requirements. However, new or materially amended agreements entered into after the effective date may become subject to the statute.

The legislation addresses two longstanding issues. First, it ensures that decommissioning obligations are backed by dedicated financial security rather than relying solely on a project company’s long-term solvency. Second, it replaces inconsistent municipal bonding requirements with a predictable statewide framework. The phased financial assurance schedule aligns with project risk, recognizing that abandonment risk is minimal during the early operating years while increasing as facilities age.

The bill benefits landowners by ensuring funded end-of-life restoration, municipalities by providing a consistent statewide framework, responsible developers through predictable requirements, and lenders and investors by converting decommissioning obligations into independently verified, periodically updated liabilities that can be incorporated into project financing.

SB 349 passed the Senate 49-1 and the House 196-6, with backing from both the Pennsylvania Farm Bureau and solar industry organizations. Supporters emphasized statewide consistency and stronger protection for property owners. Opposition focused primarily on the statute’s preemption of local decommissioning ordinances, with some municipalities arguing that the law limits local control over bonding and enforcement.

Implementation now shifts to the DEP, which must publish standardized decommissioning forms, establish procedures for financial assurance, and maintain the roster of qualified engineers. Developers entering new Pennsylvania solar projects should incorporate these requirements into site agreements, project schedules, financing, and construction planning.

For long-term owner-operators, the legislation provides a clear and consistent framework that strengthens project financeability, protects host landowners, and reinforces confidence in responsible solar development across Pennsylvania.