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.
Pennsylvania solar quick facts
Data verified March 1, 2026| Average system cost | $2.80–$3.30/watt before incentives |
|---|---|
| Average electric bill | ~$125/month (varies by EDC territory) |
| Peak sun hours | 3.8–4.5 hours/day |
| Net metering | Mandatory for all IOUs at full retail rate, annual settlement |
| Top utility | PECO (Philly), PPL (Lehigh Valley), Duquesne (Pittsburgh) |
| Solar adoption | Growing, top 15 for new installations |
Programs Available in Pennsylvania
Tax credit (up to $1,000) for EV chargers. Available in rural or low-income communities.
$1,000 tax credit
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 unusual spot for solar. The state has no solar tax credit, moderate electricity rates, and mediocre-to-decent sunshine. None of that sounds exciting on paper. What Pennsylvania has that most states don't is a functioning Solar Renewable Energy Credit 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. That demand creates an SREC market. Solar system owners generate one SREC for every megawatt-hour produced and can sell those credits on the open market for $30 to $50 each, adding several hundred dollars per year in revenue on top of electricity savings. It's the kind of incentive that surprises people the first time they encounter it.
The state also mandates net metering at the full retail rate for all investor-owned utilities, exempts solar equipment from sales tax, and exempts solar installations from increased property tax assessment. The combination, especially in the higher-rate PECO (Philadelphia) and PPL (Lehigh Valley) territories, makes Pennsylvania economically viable for solar in ways the headline numbers don't capture.
The federal 30% ITC expired in December 2025, which has lengthened payback periods. The SREC income helps fill part of that gap.
Pennsylvania Solar at a Glance
Avg. System Cost
$2.80–$3.30/watt before incentives
Peak Sun Hours
3.8–4.5 hours/day
Avg. Electric Bill
~$125/month (varies by EDC territory)
Net Metering
Mandatory for all IOUs at full retail rate, annual settlement
Top Utility
PECO (Philly), PPL (Lehigh Valley), Duquesne (Pittsburgh)
Solar Market
Growing, top 15 for new installations
How Much Do Solar Panels Cost in Pennsylvania?
Pennsylvania averages 3.8 to 4.5 peak sun hours per day, with the southeastern corner (Philadelphia, Delaware County, Chester County) getting the best resource and the northwestern counties around Erie getting the least. The solar resource is comparable to Ohio and New York. Not spectacular, but workable.
Residential solar growth in Pennsylvania has been steady, driven primarily by the SREC market and full retail-rate net metering. The Philadelphia suburbs are the hottest solar market in the state, followed by the Lehigh Valley in PPL territory and the Pittsburgh metro in Duquesne Light territory.
The installer market includes national companies like SunPower and Tesla Solar alongside established regional players like Exact Solar in Lancaster County, Solar Energy World, and Momentum Solar. Getting competitive quotes is straightforward in southeastern PA; in rural and western PA, options are more limited and pricing reflects that.
Pennsylvania's Public Utility Commission oversees electricity regulation, including net metering and the SREC program. The state has a deregulated electricity market, so you can choose your electric generation supplier, though this doesn't affect net metering. Net metering is handled through your local Electric Distribution Company.
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.
A typical 8 kW system costs $22,400 to $26,400 here. The sales tax exemption saves about $1,400, dropping the effective cost to roughly $21,000 to $25,000. Annual electricity savings come in at $1,200 to $1,700 depending on your utility rate. Annual SREC revenue runs $300 to $500 (at $30 to $50 per SREC and roughly 8 SRECs per year for an 8 kW system). Combined annual benefit: $1,500 to $2,200. Payback periods land at 11 to 16 years. The system itself carries a 25 to 30 year warranty.
A note on the SREC market. Prices fluctuate based on supply and demand within Pennsylvania's compliance market. The $30 to $50 range reflects recent levels, but future SREC values depend on 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 hit targets, but I wouldn't bet the math on that alone.
Where PA solar works best: PECO customers in the Philadelphia suburbs (higher rates, strong installer market), PPL customers in the Lehigh Valley, homeowners with monthly bills above $130, and homeowners willing to actively sell SRECs (you have to register through a broker like SRECTrade for the income to actually flow).
Net Metering in Pennsylvania
Pennsylvania mandates net metering for all investor-owned utilities, and the terms are solid. Residential systems up to 50 kW qualify. Excess generation gets credited at the full retail rate. Credits carry forward month to month indefinitely. Annual settlement happens at year-end, with excess credits reconciled at the utility's "price to compare" rate (the generation component, lower than retail). All major EDCs participate, including PECO (Philadelphia), PPL (Lehigh Valley and Central PA), Duquesne Light (Pittsburgh), and the FirstEnergy subsidiaries Met-Ed, Penelec, and Penn Power.
The annual settlement rate is lower than the full retail rate because it excludes distribution and transmission charges. The practical implication: size your system to offset your annual consumption without building up large year-end surpluses, since those surpluses settle at a worse rate.
Rural electric cooperatives in Pennsylvania have their own net metering policies, which may differ from the PUC mandate that applies to IOUs. Call your cooperative directly before assuming the IOU rules apply.
Pennsylvania's net metering policy has been relatively stable. The PUC hasn't signaled major changes, which gives new installations more policy certainty than you'd get in some neighboring states.
Solar Tax Exemptions in Pennsylvania
Pennsylvania's tax treatment of solar is mixed but mostly favorable.
Sales tax exemption: solar equipment is exempt from Pennsylvania's 6% state sales tax. That saves approximately $1,200 to $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 the exemption, and most counties honor it.
What Pennsylvania doesn't offer: a state solar income tax credit, a state solar rebate program, or a state battery storage incentive.
The federal 30% ITC expired in 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 still early for residential customers. There's no statewide storage incentive, and the federal battery ITC expired alongside the solar ITC in December 2025.
There are still real reasons to consider it. Pennsylvania experiences seasonal severe weather (ice storms, summer thunderstorms, remnants of tropical systems) that causes extended outages, and a battery turns into actual infrastructure during those events. PECO's time-of-use rate options make batteries economically interesting for some customers; you store cheap off-peak energy and use it during expensive on-peak hours. And there's a subtler self-consumption case: if your annual solar production exceeds your consumption, you lose value at the year-end settlement when excess credits get paid at the lower price-to-compare rate. A battery can help you use more of your own generation directly.
Duquesne Light has explored demand response programs in the Pittsburgh area that could eventually pay battery owners for grid support. Worth watching if you're in that territory.
Frequently Asked Questions About Solar in Pennsylvania
What are Pennsylvania SRECs and how do they work?
Solar Renewable Energy Credits are certificates you earn for every megawatt-hour your solar system produces. Pennsylvania's Alternative Energy Portfolio Standard requires utilities to buy SRECs to meet renewable targets. Homeowners sell them through brokers like SRECTrade for $30 to $50 each, adding $300 to $500 per year in revenue for a typical residential system. You have to register to participate.
Does Pennsylvania have a state solar tax credit?
No. Pennsylvania has no state solar income tax credit or rebate. The primary financial incentives are the SREC market (ongoing revenue), the sales tax exemption (6% savings on equipment), the property tax exemption, and mandatory net metering at the full retail rate. The federal 30% ITC expired in December 2025.
How much does solar cost in Pennsylvania?
Residential solar in Pennsylvania runs $2.80 to $3.30 per watt. An 8 kW system costs roughly $22,400 to $26,400 before incentives. The sales tax exemption saves about $1,400. With net metering and SREC income, payback periods come in around 11 to 16 years.
Does Pennsylvania have net metering?
Yes. Pennsylvania mandates net metering for all investor-owned utilities (PECO, PPL, Duquesne Light, and the FirstEnergy subsidiaries) for residential systems up to 50 kW. Credits apply 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 sunshine?
Pennsylvania's sun is moderate (3.8 to 4.5 peak hours), but the SREC market adds $300 to $500 per year of extra income on top of electricity savings. In the higher-rate PECO and PPL territories, combined annual benefits of $1,500 to $2,200 produce payback periods of 11 to 16 years. After payback, the system generates essentially free electricity for 10 to 15+ more years.
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)
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Calculate My SavingsSolar Companies in Pennsylvania
11 verified installers serving Pennsylvania
Public Service Solar, LLC
EliteWe are rooted in the community and pride ourselves on our custom installation services and extreme attention to detail. We are an installation/operations minded company that can offer flexibility for anything that you are looking for; We offer the finest products and equipment that is available. Our company leadership has been installing solar since 2009!
Green Power Energy
EliteGreen Power Energy offers a variety of flexible financing options to ensure that the solar program you choose is the right fit for you. A home improvement project like solar should not be a cookie cutter process so we don't treat it that way. We listen to your requests and do our best to find you the best solution possible. Whether it is comparing multiple financing options or equipment choices you can trust us to get you exactly what works best for your family. Green Power Energy does business the right way and our reputation reflects that. Turn around time for installation is 8 to 12 weeks, keeping you updated at every milestone along the way.
Palmetto Energy
ElitePalmetto is leading the world into a clean energy future by making it easy for homeowners across the United States to switch from fossil fuels to solar energy. Our end-to-end approach takes the guesswork out of solar savings, guarding individual and natural resources from unnecessary waste.
Integrated Home Energy
PremierWe are a local installer offering the industry's best warranties and post-installation system monitoring in Pennsylvania, Delaware, and New Jersey. Our services include Solar, Storage, and home electrification for HVAC and Plumbing products.
Sunforce Solar
PremierSunforce Solar makes the transition to clean energy simple and reliable. Our end-to-end approach removes complexity, delivering high-performance solar systems with confidence from start to finish.
Green Rack Solar
PremierWelcome to Green Rack Contracting! We're not your average solar company. With our focus on quality and customer satisfaction, we've quickly become one of the most trusted names in the solar industry. What sets us apart from our competitors? First and foremost, we're proud to say that we've installed more solar systems than any other company in the region. Our experienced technicians have installed thousands of solar panels, and we have the expertise to handle even the most complex installations. But it's not just about quantity - it's about quality too. We use only the highest-quality solar panels and equipment, ensuring that your system will perform at peak efficiency for years to come. And we stand behind our work with industry-leading warranties and guarantees. At Green Rack, we understand that going solar is a big investment, which is why we're committed to providing exceptional customer service every step of the way. From your initial consultation to your final inspection, our team will work with you to design a system that meets your unique needs and fits your budget. So why choose Green Rack 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 needs. Contact us today to learn more about how we can help you go solar!
Exact Solar
VerifiedLearn why Exact Solar is Pennsylvania’s 2024 EnergySage Installer of the Year, as well as the official local installation partner for Solarize Philly, Solarize Delco, and Solarize Southeast PA! Exact Solar, based in Bucks County, PA, has passionately served our community since 2005. Unlike most solar companies, we don’t subcontract our work. Our experienced in-house team of installers, master electricians, and engineers are with you from first contact through the whole life of your solar system. In two decades, we’ve installed more than 2,500 systems in the area, earned over 400 five-star reviews, and received countless community favorite awards. Our team would love to help you decide if solar is right for you! We’re thrilled to patiently support and educate you throughout your entire solar journey.
Lumina Solar
PreferredOur founding and management team has over 50 years of combined residential solar experience. We have built our company efficiently to offer our customers a high quality experience. At Lumina, everything is about the customer. We make the process of going solar simple and enjoyable. We take care of all potential hassles, paperwork, and permits. Our goal is to help you get the best possible return from your solar panels. We work tirelessly to offer the best possible price and drive value up for our customers. We are a full-service solar company, handling the entire process for you. From sale to installation, you will be dealing solely with Lumina Solar. We provide the highest quality components and ensure the most seamless installation possible. We have a variety of cash, loan, and PPA options to help find what works best for each customer.
NuWatt Energy
PreferredAt 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.
SunnyMac Solar
PreferredChoosing the right solar partner is about more than panels, it’s about trusting who you’re working with. You deserve clear guidance, quality workmanship, and a system designed for long-term performance. At SunnyMac, solar is at the core of what we do. With over 16 years of experience and more than 15,000 successful installations, we help homeowners take control of rising electricity costs while building lasting value in their homes. As a locally owned and operated company, we take pride in serving our communities with a personal, accountable approach. All of our work is handled in-house by SunnyMac employees, from design to installation, so you can expect consistent quality and a team that stands behind every project. We also provide peace of mind with an industry-leading 25-year warranty and flexible financing options tailored to your needs. What sets us apart is our broader view of home energy. With expertise in HVAC, we consider how your home uses energy to ensure your solar system is designed for real-world performance, comfort, and efficiency. Our team is here to guide you every step of the way, delivering a smooth, transparent experience and service that goes beyond expectations. With SunnyMac, you’re not just installing solar, you’re making a smart, stable investment in your home’s energy future..
Pennsylvania Solar Energy Co Inc
Verified"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.
Supplier data sourced from the EnergySage API via our backend. Ratings and reviews are verified by EnergySage.
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