Ordinance Considerations for Grid-Scale Solar Development

Goals of This Publication

Our primary goal with this guide is to explain the emerging grid-scale solar energy development trends occurring in the Commonwealth and what might be expected in the next few years. It is intended to inform municipal and county officials, planners, and solicitors, about grid-scale solar development so they can potentially add clear, regionally consistent language addressing the specific issues around grid-scale solar energy development to their zoning ordinances and other regulations. In practice, this means identifying common ordinance elements, defining key terms, and highlighting considerations that may affect siting, permitting, and enforcement.

A resources list at the end of this publication provides sources of further information. A glossary defines unfamiliar terms. A notes section provides sources for statistics and additional information. Over time, as new information becomes available to further inform this discussion, it will be added to this guide, including information about new legislation affecting solar development and the evolution of new solar technologies.

The Importance of Having a Solar Ordinance

Research at Penn State Dickinson Law reviewing and archiving Pennsylvania's more than 2,500 municipal zoning ordinances, showed that only 5% of municipal ordinances in the state currently provide specific guidance for grid-scale solar (GSS) projects, also known as principal solar energy systems, where the power generated is used off-site. (Throughout this guide, "GSS" refers to grid-scale solar projects, and "GSSD" refers to grid-scale solar development as a land use and permitting context.)

The study sought to determine what guidance is provided for the development of solar energy projects—in particular, authorization of such facilities as a "right" or "conditional use." A conditional use is an exception to the zoning code that allows use of a property in a way that doesn't conform to the zoning code. Conditional uses are typically decided by the municipal governing body (not the zoning hearing board), subject to the standards and procedures in the zoning ordinance. Grid-scale solar development (GSSD) is generally subject to approval as a conditional use in Pennsylvania zoning codes where it is addressed.

The Penn State team started this project in response to requests to Penn State Extension by local government officials seeking guidance on solar ordinances. The team also wanted to identify common practices within Pennsylvania and the U.S., with the goal of preparing a library of information for municipal officials.

Eighty-seven percent of zoning codes in the Commonwealth provide no guidance on the development of solar energy facilities, whether on a home's roof or covering hundreds of acres. The remaining 13% primarily address accessory use solar for the generation of electricity used on-site (typically homes). Since the completion of this study done by Penn State Law, there has been a steady increase in municipalities drafting and adopting solar ordinances addressing both accessory and principal solar development. The Pennsylvania State Association of Township Supervisors (PSATS) has been offering an ongoing training program in solar ordinance design and development for interested municipalities.

Principal use solar is often implicitly or explicitly prohibited in zoning ordinances. Many times, an ordinance fails to mention solar at all or mentions it without specifying where or under what circumstances it is permitted.

In summary, most municipalities in Pennsylvania don't have GSS requirements clearly laid out. Municipalities often don't have the time or the staffing to come up with new site requirements on a case-by-case basis. Laying out clear expectations for GSSD in a zoning ordinance lets developers know the standards they must meet if they are going to receive permits required to site solar projects. Clear ordinance language also offers the residents of the community a voice in developing these standards as they partner with their elected and appointed municipal officials during the drafting process.

The Challenges of Limited Zoning Guidance

The lack of guidance on GSS projects in most municipal zoning codes is important because Pennsylvania has experienced a ten-fold increase in GSS capacity over the past decade. Due to new power demands expected to be placed on the grid, there is an even greater surge of new renewables development anticipated prior to 2030. Some of this is from new electrical power load forecast to originate from data centers, EV charging, the ongoing electrification of residential heating and cooling, and increased industrial utilization of electricity, particularly in advanced manufacturing.

When a municipality does not specifically address GSSD requirements in an ordinance, the uncertainty around permitting normally increases the cost of solar projects. This is due to the need to work through the regulatory process and the potential for late ordinance development addressing solar, including extensive public outreach. This uncertainty can also extend development timelines as municipalities, landowners, and developers work through project-specific questions and community concerns.

These "soft" costs (including permitting and inspection, financing, installation labor, land acquisition, etc.) now play a greater role in solar project development, because fixed costs, such as hardware and engineering, have trended downward over the past ten years. The ability of local governments to enact clear guidance for GSS projects has a direct and growing impact on a project's overall costs, along with a similar effect on the acceptance of a project by a municipalities residents.

Most companies would rather try to develop in a jurisdiction where there's a known ordinance, because they know what they're dealing with, whether it's most favorable or not. Even better than a municipal-based approach may be a county-wide or regional approach. Inconsistent and unpredictable land use regulations from one municipality to the next may generate a less comprehensive outcome for this type of energy development on a regional basis. Several multi-county regions in southeast PA have now adopted solar model ordinances with common language for the municipalities in those jurisdictions to consider implementing locally.

Like other energy projects, GSS operates within market and operational constraints that can make permitting uncertainty more consequential. Key contextual factors include:

• Electricity from GSS is sold into a regulated market with strict standards and limited margins
• Storage capacity for electricity is limited but increasing, specifically with the greater utilization of battery energy storage systems(BESS)
• As a comparison with electric, oil and gas margins are greater, and producers can store products and sell when the price is high
• The electricity market is not highly liquid, with relatively few buyers and sellers, and it is not easy to convert the product into cash without affecting its market price
• As a result, the industry has less tolerance for risk and unknowns
• GSS also faces the challenge of being an emerging energy system which is relatively new to many stakeholders

Local Regulation

In Pennsylvania, zoning is done locally by townships under the authority of the Municipalities Planning Code (MPC). Responsibility for siting grid-scale solar development (GSSD) generally lies at the township level, although some counties administer zoning that affects local municipalities. County conservation districts must approve site erosion and sedimentation and stormwater management plans. Planning for GSSD, when done locally, often involves an up-to-date comprehensive plan, a zoning code consistent with that plan, and a solar energy ordinance. Communities should consider being proactive before solar project proposals arise. Local officials should consider whether, and/or where, the development of renewables fit with the community's long-term goals. A community is often best served to plan ahead for where renewables might be properly sited, how it wants to regulate that process through permitting, and limit unintended development on acreage it highly values, such as prime farm land, environmentally sensitive areas, and other locations in the municipality which it looks to protect for the long term. Commonly, new GSSD is occurring in mostly rural areas. Developers will favor places that view this as an economic opportunity to grow property tax revenues. Research from the U.S. Department of Energy's National Laboratory of the Rockies, notes that communities with clear solar zoning code provisions may see higher per-capita solar adoption and associated increased tax revenue.

Establishing specific guidance at the local level clarifies the planning process for officials, residents, and investors by: setting expectations early and reducing case-by-case interpretation. The benefits of this approach include:

• Clarifying regulatory costs through predictable permitting procedures and fees
• Building awareness among residents about the implications of GSSD and reflecting their localized concerns in policy
• Creating a consistent and manageable framework for officials to apply to projects despite variations across location, scale, technologies, and purpose

The Scope of Solar Ordinances

Where GSSD is sited within a municipality is an important local consideration. An effective zoning ordinance outlines GSS to be the principal use of land in certain districts. Some municipalities may say it should be placed only in industrial zones, and in others, it may be permitted in ag districts or other more rural designations.

Some municipalities take a less prescriptive (outcomes-oriented) approach to GSSD. In this approach, the ordinance typically:

• Sets a framework of required development outcomes, rather than prescribing each design choice
• Allows the developer to propose methods to meet those outcomes in a way intended to be less disruptive to the community

For example, an ordinance might specify that the panels not be seen from the frontage road and let the developer decide how to achieve this. Conversely, if a screening requirement is very specific, such as saying that the developer must plant a certain species of tree along the road frontage at certain spacing, the municipality may get frequent variance applications to modify this requirement. Variance applications generally require a zoning hearing board hearing, which increases staff time and costs for the municipality.

If a certain outcome should be avoided, that also should be specified up front in the ordinance. Examples might include a noise level at the perimeter fence or a glare level not to exceed.

When a municipality is ready to develop a solar ordinance, they should gather the needed expertise with their solicitor and/or with a consultant familiar with the technology and solar development trends. The municipality should always seek to develop an ordinance compatible with existing land use plans and regulations, including zoning ordinance code already in place.

Content of Solar Ordinances

Many municipalities want to adopt an ordinance that reasonably protects the health, safety, and welfare of the community, but may allow for accessory or principal solar development in designated zoning districts. In deciding what to include in a solar ordinance, municipal officials should consider the unique issues GSSD creates on the landscape and tailor the ordinance to address those concerns.

A solar ordinance starts with clear definitions of terms. If a term in an ordinance is ambiguous, the Pennsylvania Municipalities Planning Code says that the applicant can decide how the term is defined.

A solar ordinance defines the districts where GSSD is allowed, and for each of those districts, whether GSSD is:

• A permitted use, meaning that anyone who chooses to do this has the right to
• A special exception use, which would require approval from the zoning board
• A conditional use, which would require approval from elected officials of the jurisdiction, such as the board of supervisors, county commissioners, or borough council. These groups can attach conditions to the approval

Many municipal ordinances currently have no provision related to solar. If a use is not specifically permitted in the ordinance, it's considered a conditional use or special exception use.

A solar ordinance should also define sensitive areas where GSSD is not allowed, and the required setback from constructed drainage corridors and wetlands, as well as the maximum percent slope of land where GSSD may be placed (10 to 15% is common).

A solar ordinance should address:

• Accessory and principal use systems. Accessory Solar Energy Systems (ASES) generate electricity primarily used on-site. In contrast,  Principal Solar Energy Systems (PSES), including GSSD, generate electricity for use off-site.
• Site layout. A site plan map and details about the type of roads on the site and the number of access points should be required.
• Setback of the site fence from the road and other property lines. Many ordinances use the typical setback requirement for the zoning district where the facility will be, and may require a larger setback in residential districts. A common range for side yard or rear setbacks for solar is 125 to 250 feet, with the larger setback more typical in areas with adjoining residential housing.
• Height limits on the panels. To limit the visibility of the panels from neighboring properties, a maximum of 20 feet is often used.
• Maximum lot coverage regulations. This is a potential limitation on the percentage of a property that may be covered with GSS panels. Some municipalities have attempted to concentrate solar away from other conflicting uses, such as residences.
• Fencing along roads and residential areas. Perimeter fencing 7–8 feet high, with a locked gate, is common, with safety and warning signs as recommended by the industry.
• Screening. A solar ordinance should indicate that vegetative screening is required along all road and residential property lines, including replacement of plants that die. A mixture of trees, shrubs, evergreens, and flowering plants provides the most effective screening. Coniferous trees provide year-round screening. Some ordinances specify the type of plant materials or say that native plants must be used. One of the most locally cited issues with proposed solar development is the change in the viewshed, or the aesthetics of the project.  For this reason, optimizing the screening is critical to resolve this primary siting challenge.
• Buffer. A buffer of 20 feet between panels and the inside of the perimeter fence has become more common for emergency vehicle access and turnaround space. This distance could also count as part of the overall setback to the property line.
• Stormwater management and impervious area. The Pennsylvania Department of Environmental Protection (DEP) has posted a list of frequently asked questions (FAQ) about stormwater management related to GSSD. If the developer plants the land in meadow conditions once the panels are installed, DEP considers this no impact as related to stormwater, if the site is maintained with at least 90% perennial vegetative cover. To meet these impervious surface conditions, the slope of the land should be less than 10% and the vegetation maintained at 4 inches or higher. In some municipalities, this guidance conflicts with impervious surface requirements in some zoning ordinances and may be challenged by a developer.
• Traffic impacts. The permit application should address the effects of the GSSD on traffic on any bordering road, during both construction and operation of the facility, and detail any mitigation practices needed.
• Battery storage. Batteries should be housed within a secure, locked structure, preferably near the middle of a GSS facility, or away from residences, because of battery equipment noise, commonly from cooling fans. All BESS facilities should be designed to adhere to NFPA 855 regulations.
• Glare/reflection mitigation. A solar ordinance should require use of an antiglare coating on the panels. A glare study (see Physical Impacts of Grid-Scale Solar Development) could be required to assess impacts to neighboring residences and roads, but may only be necessary for facilities near airports, as required by Federal Aviation Administration rules.
• Solar access. Panels should be located so that shading from neighboring properties is not a problem, or developers can negotiate solar easements with neighboring property owners to ensure direct sunlight on the panel array and record those easements with the county recorder of deeds. The granting of a permit to construct a solar facility should not be considered a right for solar access on a neighboring property.
• Decommissioning. A solar ordinance should require a decommissioning plan (see Localized Economic Impacts of Grid-Scale Solar Development) that defines the conditions upon which decommissioning must be started (often one year of no commercial production or transmission of power on the site) and who is responsible for the decommissioning. It should require removal of all power production equipment, roads, fencing, etc., and include a timeframe for completion (often six months to one year). In some cases, if agreed to by the landowner, roads and other infrastructure placed on the site might be left in place. With few exceptions, decommissioning should require restoration to the original condition of the property prior to GSS development. A solar ordinance should specify how often this plan must be updated and requirements for financial security (bond, letter of credit, cash, etc.) for decommissioning. The amount of financial security should be periodically assessed (often every 2 to 5 years) and adjusted up or down as needed. Determination of the necessary amount should be done by the solar facility operator/owner’s professional engineer, given to the township for review and concurrence. In some municipalities, the salvage value of the residual equipment at the end of its useful life is considered as a credit, normally at a 10% discount, against the overall bonding requirement. If the developer or holder of the lease (the lessee) fails to maintain the required bond as specified in the decommissioning plan, the municipality can withdraw the facility's permit. Whenever there's a change of lessee or land ownership, there must be a new commitment to the municipality that verifies who the parties are, the maintenance of a decommissioning plan, and proof of ongoing financial security.
• It should be noted that Pennsylvania legislation is still pending(spring 2026) to regulate solar bonding requirements, along with many aspects of decommissioning, at the state level.

For easier review, municipalities may also organize decommissioning requirements into a checklist (without changing the underlying requirements), such as:

• Trigger for decommissioning (e.g., one year of non-use) and responsible party.
• Scope of removal (equipment, roads, fencing, etc.) and restoration/grading/landscaping expectations.
• Completion timeframe (often six to 12 months) and update frequency for the decommissioning plan.
• Financial security type (bond, letter of credit, cash, etc.), reassessment cadence (often every two to five years), with PE stamped estimated cost determination.
• Enforcement/permit implications for failure to maintain required financial security.
• Change-of-control documentation when the lessee or landowner changes.

More information about these requirements can be found in Physical Impacts of Grid-Scale Solar Development and Environmental Impacts of Grid-Scale Solar Development.

Other Topics that May Be Addressed in a Solar Ordinance

• Utility line placement. Some municipalities require lines to be underground when feasible.
• Site lighting. Artificial lighting is generally not permitted, except on limited equipment or at the main entrance gate, due to a desire for dark sky environments in rural areas. Any lighting at the site should have shielding to cast light downward only
• Tree cutting. Some ordinances limit maximum tree removal for GSSD.
• Property operation and maintenance provisions. Most municipal ordinances require routine vegetation maintenance for properties within a township. A solar ordinance should address how this relates to GSSD. An outcomes-oriented regulation can be useful here—for example, stating that an operator must maintain a certain standard for pollinator habitat or a certain amount of ground cover. The use of grazing animals for vegetation maintenance can be an effective approach as well. It is also wise to include a built-in remedy for failure to maintain the lease acreage.
• Protection of productive agricultural soils. Some municipalities specify that only a certain percentage of Class I, Class II and/or Class III soils on a parcel may transition to solar. These are the soils, defined by the U.S. Department of Agriculture NRCS, to be most productive for agriculture.
• Dual Use/Agrivoltaics. Some municipalities require that new GSSD projects include provisions for the combination of farming—whether grazing, pollinators, or other conventional cropping (see Land Conversion Issues with Grid-Scale Solar Development)—and GSSD. In a growing number of PA municipalities, exceptions to the amount of acreage transitioning to solar can be increased, if these dual use, agrivoltaics systems are deployed and maintained underneath the operating solar panels.
• Noise. A municipality should make sure that they have current limits on noise. An ordinance may address sound at the fence line. A noise study may be required.
• Repowering. A solar ordinance should specify whether repowering—the process of upgrading or updating the power-generating equipment on a site—requires a new or updated zoning project review. Most ordinances require this additional level of review and new permitting.
• Other. Emergency response planning and safety, permit duration, facility abandonment, and enforcement should all be addressed in a solar ordinance.

Future-Proofing a Solar Ordinance

Municipalities should attempt to "future-proof" their solar ordinances. Given the recent rapid changes in solar technologies and project designs, it's wise to include general, forward-looking language that allows the municipality to be a leader rather than a follower in GSSD permitting. Including future-proofing language will help municipalities to write a solar ordinance today that's still relevant in 10 years.

For example, one Pennsylvania city zoning ordinance states that a solar collection system is "a panel or other solar energy device, the primary purpose of which is to provide for the collection, inversion, storage, and distribution of solar energy for electricity generation, space heating, space cooling or water heating." The bolded words (emphasis added) reflect potential forward-looking trends in the GSS industry. The city has allowed for these innovations in its ordinance.

Another example is that a new ordinance under consideration today should spell out the locality's requirements around battery storage at GSS sites. More GSS sites are being built with batteries, which allow the storage of energy, because solar energy production does not always match energy demand. Even if a permit application doesn't include plans for battery storage, the operator may want to add it later, so it's helpful if the municipality's requirements for this are already spelled out in the ordinance.

Ordinances Are Evolving

Despite developers' preference that all solar ordinances be the same, some municipalities are pushing on the standard terms to make GSSD more environmentally sustainable and to counter concerns about the loss of farmland.

For example, the solar ordinance in Montour County, Pennsylvania, limits development of Class I and Class II soils for GSS to 75% of those soils on a parcel of land. However, if the site plan includes agrivoltaics—the colocation of GSS panels and a farming use—100% of a site can be developed for GSS. The ordinance requires no-till, shade-tolerant crops, and the use of an erosion and sedimentation plan or best management practices for stormwater management. Vegetation may be cut or grazed no less than 4 inches tall. The use of chemical fertilizers and herbicides is limited to meeting the agronomic needs of the crops.

Montour County's solar ordinance was enacted in conjunction with a solar overlay district that follows the proximity to high tension powerlines. A potential project is judged to lie within the overlay district even if only some of the proposed area for development is within the overlay district.

Examples of Recent Solar Ordinances in Pennsylvania

Examples of contemporary solar ordinances which have been developed in PA in the past several years are now readily available from PSATS. Also, the Penn State Center for Energy Law and Policy has built and maintained an indexed, searchable repository of solar ordinances.

Conclusion

The potential pace of GSSD in the next decade is expected to be substantial due to the lower cost and normally quick pace to bring one of these systems online. That is paired with the rapidly increasing need for new power capacity in PA and surrounding states in the PJM grid. But GSSD may not fit with every community's development plans. Communities would do well to consider whether GSSD fits with their plans before a developer shows up. If a community wants to benefit from the expected economic infusion from GSSD, community leaders should define their terms before a project is proposed. Developers want predictability and stability, as defined by an up-to-date solar ordinance. Having requirements spelled out will reduce the time and cost needed for municipalities to assess GSSD proposals. Investment and related economic benefits may flow to communities that signal they are ready for renewables, as well as other currently expanding energy infrastructure.

For More Information

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PV Magazine. "Community solar bill passes Pennsylvania House after years of stalemate."

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