State & Local Programs

Pennsylvania Solar Panel Cost & Incentives

How much do solar panels cost in Pennsylvania? Compare solar panel installation costs across 1 state, utility & local incentive programs. Find solar panels for your home, heat pump rebates, EV charger incentives & more.

Last updated: March 1, 2026

Federal update: The 30% solar ITC (Section 25D) and home improvement credits (Section 25C) expired Dec 31, 2025. Programs listed below are state, utility, and local programs sourced from Rewiring America.

Programs Available in Pennsylvania

1 Program

FederalActive

Tax credit (up to $1,000) for EV chargers. Available in rural or low-income communities.

$1,000 tax credit

electric vehicle charger

Details ↗

Program data sourced live from the Rewiring America API. Utility rates from OpenEI. City solar costs from EnergySage. No data is hardcoded. Run the calculator for your personalised estimate.

Solar Panels for Home in Pennsylvania: Overview

Pennsylvania sits in an interesting position for solar: the state has no solar tax credit, moderate electricity rates, and mediocre-to-decent sunshine — none of which sounds exciting on paper. But Pennsylvania has something most states don't: a functioning Solar Renewable Energy Credit (SREC) market that puts real money in solar homeowners' pockets every year.

Pennsylvania's Alternative Energy Portfolio Standard requires utilities to source a percentage of their electricity from solar. This creates demand for SRECs, which solar system owners generate automatically — one SREC for every megawatt-hour (MWh) produced. Homeowners can sell these on the open market for $30–$50 each, adding several hundred dollars per year in revenue on top of electricity savings.

The state also mandates net metering at the full retail rate for all investor-owned utilities, provides a sales tax exemption for solar equipment, and exempts solar from property tax increases. Combined with the SREC market, this makes Pennsylvania economically viable for solar — especially in the higher-rate PECO (Philadelphia) and PPL (Lehigh Valley) territories.

The federal 30% ITC expired in December 2025, which has lengthened payback periods. But the SREC income helps fill part of that gap.

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Pennsylvania Solar at a Glance

Avg. Electric Bill

~$125/month (varies by EDC territory)

Solar Market

Growing — top 15 for new installations

How Much Do Solar Panels Cost in Pennsylvania?

Pennsylvania averages 3.8–4.5 peak sun hours per day, with the southeastern corner (Philadelphia, Delaware County, Chester County) receiving the best resource and the northwestern counties (Erie) receiving the least. The state's solar resource is comparable to neighboring Ohio and New York — not spectacular, but workable.

Residential solar growth in Pennsylvania has been steady, driven primarily by the SREC market and net metering. The Philadelphia suburbs are the state's hottest solar market, followed by the Lehigh Valley (PPL territory) and the Pittsburgh metro (Duquesne Light territory).

The installer market includes both national companies (SunPower, Tesla Solar) and established regional players (Exact Solar in Lancaster County, Solar Energy World, Momentum Solar). Getting competitive quotes is straightforward in southeastern PA; in rural and western PA, options are more limited.

Pennsylvania's Public Utility Commission (PUC) oversees electricity regulation, including net metering and the SREC program. The state has a deregulated electricity market, meaning you can choose your electric generation supplier — though this doesn't affect net metering, which is handled through your local Electric Distribution Company (EDC).

Is Solar Worth It in Pennsylvania? Installation Cost & Savings

Solar is a reasonable investment in Pennsylvania, particularly in the PECO and PPL territories where electricity rates are higher and the SREC market adds meaningful additional income.

Typical economics (2026, no federal credit): • Average 8 kW system cost: $22,400–$26,400 • Sales tax exemption savings: ~$1,400 • Effective system cost: ~$21,000–$25,000 • Annual electricity savings: $1,200–$1,700 (depends on utility rate) • Annual SREC revenue: $300–$500 (at $30–$50/SREC, ~8 SRECs/year for an 8 kW system) • Combined annual benefit: $1,500–$2,200 • Estimated payback period: 11–16 years • System warranty/lifespan: 25–30 years

SREC market note: SREC prices fluctuate based on supply and demand within Pennsylvania's compliance market. The $30–$50 range reflects recent prices, but future SREC values depend on the Alternative Energy Portfolio Standard requirements and the volume of solar installations in the state. Some analysts expect upward pressure on SREC prices as utilities need more solar credits to meet targets.

Best candidates for PA solar: • PECO customers in the Philadelphia suburbs (higher rates, strong installer market) • PPL customers in the Lehigh Valley • Homeowners with $130+/month electricity bills • Homeowners who will actively sell SRECs (you need to register through a broker like SRECTrade)

Net Metering in Pennsylvania

Pennsylvania mandates net metering for all investor-owned utilities, and the terms are solid:

• Available for residential systems up to 50 kW • Excess generation is credited at the full retail rate • Credits carry forward month-to-month indefinitely • Annual settlement occurs at year-end, with excess credits reconciled at the utility's "price to compare" rate (the generation component) • All major EDCs participate: PECO (Philadelphia), PPL (Lehigh Valley/Central PA), Duquesne Light (Pittsburgh), Met-Ed, Penelec, and Penn Power (all FirstEnergy subsidiaries)

The annual settlement rate is lower than the full retail rate (it excludes distribution and transmission charges), so the best strategy is to size your system to offset your annual consumption without building up large year-end surpluses.

Rural electric cooperatives in Pennsylvania have their own net metering policies, which may differ from the PUC mandate for IOUs. Contact your cooperative directly.

Pennsylvania's net metering policy has been relatively stable. The PUC has not signaled major changes, which provides some policy certainty for new installations.

Solar Tax Exemptions in Pennsylvania

Pennsylvania's tax treatment of solar is mixed:

Sales tax exemption: • Solar equipment is exempt from Pennsylvania's 6% state sales tax • This saves approximately $1,200–$1,600 on a typical residential system

Property tax exemption: • Solar installations are generally exempt from increased property tax assessment • Implementation varies by county, but the state legislature has supported this exemption

What Pennsylvania does NOT offer: • State solar income tax credit • State solar rebate program • State battery storage incentive

The federal 30% ITC expired December 2025. Without it, the SREC market and net metering savings are the primary economic drivers for PA solar.

Battery Storage Incentives in Pennsylvania

Battery storage in Pennsylvania is in an early adoption phase for residential customers. There is no statewide storage incentive, and the federal battery ITC expired alongside the solar ITC in December 2025.

That said, battery storage has growing appeal for Pennsylvania homeowners for several reasons: • Pennsylvania experiences seasonal severe weather (ice storms, summer thunderstorms, remnants of tropical systems) that can cause extended outages • PECO's time-of-use rate options make batteries economically interesting for some customers — store cheap off-peak energy and use it during expensive on-peak hours • Self-consumption optimization — if your annual solar production exceeds your consumption, you lose value at the year-end settlement when excess credits are paid at the lower "price to compare" rate. A battery can help you use more of your own generation.

Duquesne Light has explored demand response programs in the Pittsburgh area that could eventually benefit battery owners.

Frequently Asked Questions About Solar in Pennsylvania

What are Pennsylvania SRECs and how do they work?

Solar Renewable Energy Credits (SRECs) are certificates you earn for every megawatt-hour your solar system produces. Pennsylvania's Alternative Energy Portfolio Standard requires utilities to buy SRECs. Homeowners sell them through brokers (like SRECTrade) for $30–$50 each, adding $300–$500/year in revenue for a typical residential system. Registration is required.

Does Pennsylvania have a state solar tax credit?

No. Pennsylvania does not offer a state solar income tax credit or rebate. The primary financial incentives are the SREC market (ongoing revenue), sales tax exemption (6% savings on equipment), property tax exemption, and mandatory net metering at the full retail rate. The federal 30% ITC expired December 2025.

How much does solar cost in Pennsylvania?

Average residential solar costs in Pennsylvania range from $2.80 to $3.30 per watt. An 8 kW system costs approximately $22,400–$26,400 before incentives. The sales tax exemption saves about $1,400. With net metering and SREC income, payback periods are typically 11–16 years.

Does Pennsylvania have net metering?

Yes. Pennsylvania mandates net metering for all investor-owned utilities (PECO, PPL, Duquesne Light, etc.) for residential systems up to 50 kW. Credits are at the full retail rate month-to-month. Annual excess is settled at the utility's price-to-compare rate, which is lower than retail.

Is solar worth it in Pennsylvania with moderate sun?

Pennsylvania's sun is moderate (3.8–4.5 peak hours), but the SREC market adds $300–$500/year in extra income on top of electricity savings. In the higher-rate PECO and PPL territories, combined annual benefits of $1,500–$2,200 produce payback periods of 11–16 years. After payback, the system generates free electricity for 10–15+ more years.

Reviewed by the Net-Zero USA editorial team

Last reviewed: March 1, 2026

Sources: PA PUC, PECO, PPL Electric, Duquesne Light, SRECTrade, PA Alternative Energy Portfolio Standard, EIA State Electricity Profiles, SEIA PA Solar Spotlight, Congress.gov (One Big Beautiful Bill Act)

NuWatt Energy

Preferred

4.3

129 reviewsEst. 2010Ardmore, PA

At NuWatt Energy, we strive to empower our clients by offering genuine energy independence and enhanced efficiency through our top-notch solar energy and heat pump AC systems. We carefully select premium products from financially stable manufacturers, ensuring that our solutions not only meet but exceed warranty terms, providing long-lasting value. By partnering with us, you are investing in a future of exceptional performance, reduced energy costs, and a positive environmental impact. Trust NuWatt Energy to deliver professional, honest, and reliable renewable energy solutions for your home or business.

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Pennsylvania Solar Energy Co Inc

Verified

5.0

26 reviewsEst. 1999Washington, PA

"Powering Today For A Better Tomorrow" Since 1999 we have been providing the highest quality solar and storage services to the residential, commercial and industrial markets in Pennsylvania, Ohio and West Virginia. Recognized as the only Enphase Platinum Installer in the Tri State Area. A result of our impeccable customer satisfaction, quality and industry experience over the past 25 years. This results in a flawless installation by a company that has exclusive manufacture backing and a track record to match the warranties provided. Our installations are professionally designed and engineered to meet your site specific requirements by trained and industry certified sales/installation professionals consisting of Tier 1, North American components. Ultimately providing a system that complements your residential property while maximizing production. All systems carry an industry leading equipment and workmanship warranty exceeding 30 years, this is handled in house eliminating the disconnects and unavailability experienced with third party service contracts. Proudly named to the National Top 500 Solar Contractors List for the 10th consecutive year as well as recognized as the only Enphase and Unirac Platinum Installer in the Tri State area. With over 15 MW of solar deployment, our installations have produced more than 29 GWh of renewable energy. Why choose Pennsylvania Solar Energy over the competition? With our unmatched experience, commitment to quality, and dedication to customer satisfaction, we're confident that we're the best choice for all your solar and storage needs. Contact us today to learn more and start producing your own energy today.

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