State & Local News
Centre County Ends Solar Power Agreement
March 20, 2026
Centre County government has terminated its Solar Power Purchase Agreement (SPPA) due to the developer Prospect14's financial inability to continue, which was influenced by changes in federal energy tax codes and regulations. Despite this early termination, the county realized approximately $65,000 in electric cost savings during the agreement period, resulting in a net benefit after accounting for a roughly $6,000 loss. The county is actively exploring new partnerships, including with Penn State and other entities, to secure cost-effective and reliable electricity sources moving forward.
- Why this matters: This development highlights the impact of federal policy changes on local renewable energy procurement and the financial viability of solar projects.
- Procurement professionals should note the risks associated with developer financial stability and evolving regulatory environments when structuring energy agreements.
- Opportunities exist for vendors and contractors to engage with Centre County and similar entities seeking new economical power procurement partnerships.
- Organizations involved in renewable energy projects should consider flexible contract terms and diversified partnerships to mitigate policy-driven risks.
It was not our choice to exit the contract. It was the decision of the developer [Prospect14] who determined that they were unable to move forward financially with the project after long standing federal government, energy tax code and regulations were changed.
— Amber Concepcion, Commissioner
Centre County government has saved roughly $65,000 on electric costs during the period, by procuring electricity at those reduced rates, and therefore has a net benefit from the Solar Power Purchase Agreement process.
— Mark Higgins, Commissioner Chair
We can look for opportunities not only with Penn State, but other entities out there to find inexpensive ways to buy electricity.
— Steve Dershem, Commissioner
Agencies
Centre County Board of Commissioners
Vendors
Prospect14, Solar Group
Contracts
$19,000 invested by Centre County; $135,000 reimbursement to Solar Group to be split among 10 entities; Centre County to receive $13,000