While the Trump administration turns its back on solar energy, Philadelphia is boldly doubling down with a groundbreaking new deal. But here's where it gets controversial: as federal support for renewable energy wanes, Philly is taking matters into its own hands, raising questions about the future of local climate initiatives in the face of national policy shifts. Could this be a blueprint for other cities, or is it a risky move in an uncertain energy landscape?
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As federal incentives for solar power are rolled back (https://whyy.org/articles/philadelphia-residential-solar-tax-credit-deadline/), Philadelphia is stepping up by investing in more renewable energy. The city has signed a landmark agreement with Oriden Power, a subsidiary of Mitsubishi Power (https://amer.power.mhi.com/), to purchase electricity from the upcoming Abes Run solar farm in Clearfield County, Pennsylvania. Slated to be operational by the end of 2026, this project is a significant stride toward Philly’s ambitious goal of powering 100% of its municipal operations with renewable energy by 2030.
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Abes Run is no small feat—it will generate enough electricity to power six City Hall buildings, covering approximately 5% of the city’s municipal energy needs. “This deal is a critical step toward our renewable energy goal while ensuring we keep energy costs low for Philadelphians,” said Dominic McGraw, program director of energy and climate solutions in the city’s Office of Sustainability. Once online, 36% of the city’s electricity will come from renewable sources, including the Adams Solar Farm near Gettysburg, which already supplies 25% of the city government’s power, and renewable energy credits to meet state standards.
“This is the most impactful way for the city to drive local clean energy development and make our grid as sustainable as possible,” added Emily Schapira, president and CEO of the Philadelphia Energy Authority. But here’s the twist: purchasing power from projects like Abes Run not only supports regional solar growth but also locks in long-term savings for taxpayers.
And this is the part most people miss: the 20-year contract signed by the Philadelphia Energy Authority guarantees a fixed price for the electricity, shielding the city from volatile energy markets. While the final agreement locks in a cost of $85.20 per megawatt-hour—slightly higher than the initial draft of $79 per megawatt-hour (https://whyy.org/articles/philadelphia-solar-power-farm-energy/)—officials argue it’s still a financially sound decision. “This price will be significantly lower than future market rates,” Schapira explained. The increase reflects broader challenges in the solar industry, including tariffs (https://pv-magazine-usa.com/2025/04/03/how-trumps-widespread-tariffs-affect-the-u-s-solar-industry/) and restrictions on tax credits under the “One Big Beautiful Bill Act” (https://whyy.org/articles/energy-efficiency-tax-credits-expiring/) signed by President Trump. Yet, the project is timed to capitalize on a commercial solar tax credit expiring in 2027.
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Controversy Alert: Is Philly’s approach a model for other cities, or is it too risky given the current political climate? And as federal policies continue to shift, how can local governments balance sustainability goals with financial constraints? Let us know what you think in the comments—we want to hear your take on this bold move and its implications for the future of renewable energy.
