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Pennsylvania Solar Incentives Guide (2025)

The words "Pennsylvania Solar Incentives" on a dark blue background, over and outline of the state silhouette of PA.
ActualizadoMarch 28, 2025
AutorHeadshot of Andrew Blok.Andrew BlokWriter and EditorEditorRyan Barnett HeadshotRyan BarnettSVP, Policy & New Market Development
En este articulo
01.
Federal Solar Tax Credit
02.
Pennsylvania Net Metering
03.
Pennsylvania SRECs
04.
Local Solar Rebates in Philadelphia
05.
Energy Efficiency Rebates
06.
Take Advantage of PA Solar Incentives
07.
Frequently Asked Questions

Pennsylvanians looking to save money and take control of their electric bills can look to home solar panels for help. Further good news is that solar panels in Pennsylvania can be eligible for key incentives that can lower their cost and increase the savings they deliver.

If you’re considering solar panels, there are three key PA solar incentives you should know: the federal solar tax credit, net metering and PA solar renewable energy credits (SRECs). Here’s what you need to know about them, and where to look for other local solar incentives you might be eligible for.

Note: Your eligibility can depend on your location, electric utility provider, income level, interest in battery storage, and more. This is not tax advice, and you should always consult a tax professional.

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Federal Solar Tax Credit

Across the United States, the majority of homeowners who purchase a solar energy system can apply for the federal solar Investment Tax Credit (ITC) worth up to 30% of their total installation cost. Officially titled the Residential Clean Energy Credit and often referred to as simply the ”solar tax credit”, the federal ITC was renewed for another decade by the Inflation Reduction Act of 2022.

The Residential Clean Energy Credit can be claimed against the buyer’s federal income tax liability owed during the calendar year of the solar panel installation. To put it simply, if your Pennsylvania solar panel project had a total cost of $30,000 as an example, you may be eligible to claim up to $9,000 (30% of $30,000) in federal tax credits depending on your eligibility and tax liability.

Both solar energy equipment and electricity storage batteries can qualify for the federal ITC, whether installed together or as separate projects. So, although there are no Pennsylvania-specific solar tax incentives, exemptions, or rebates, the Residential Clean Energy Credit is an extremely valuable tax credit for Pennsylvania homeowners to offset the cost of solar panels in PA by up to 30% through 2032.

Pennsylvania Net Metering

Net energy metering has been available in the Keystone State for over 15 years, making it one of the longest standing solar incentives in Pennsylvania. Overseen by the state’s Public Utilities Commission (PUC), all of Pennsylvania’s investor-owned electric utilities must provide 1-to-1 net metering credits for the excess solar energy generated by their residential customers.

By compensating PA solar panel owners for the electricity they create and send to the electric grid at retail rates, net metering helps to keep PA homeowners’ electric bills and annual energy expenses low, thereby increasing the overall value of their solar panel system. Credits typically roll over from month to month and reset once per year when any excess energy that has been generated is redeemed at a reduced rate, the utility’s price to compare.

Whether you are a customer of Citizens Electric Co, Duquesne Light Co, PPL, PECO, or another utility, we recommend reaching out to your electricity provider directly to learn more. Your eligibility for net metering in Pennsylvania can also be discovered when working with a local solar expert.

If you get electricity from a third-party supplier, it’s often a good idea to switch back to your utility. Utilities are required to provide net metering credits, while third-party suppliers aren’t.

Pennsylvania SRECs

As another great financial incentive for Pennsylvania solar customers, SRECs (Solar Renewable Energy Credits) go above and beyond net metering to compensate homeowners even more for the clean energy they produce. Available for residential solar installations across the state, Pennsylvania’s SRECs are a specific kind of Alternative Energy Credit (AEC) only available to PA homeowners.

In short, PA SRECs can help renewable energy system owners earn real money for the clean electricity their solar panels produce. Under this solar program, energy credits are generated for every 1,000 kilowatt-hours (kWh) of electricity that is generated by the panels and sent to the grid.

To put this in perspective, Pennsylvania homes consume an average of 846 kWh of electricity per month. This means that PA solar systems designed to cover 100% of a property's energy demand will create about 10 SRECs every year, which a homeowner can then sell at current market prices.

SREC prices vary, but Pennsylvania rates are hovering around $30 to $40 per credit. Although Palmetto does not determine eligibility for SRECs, we have partnered with SRECTrade to help PA homeowners make the most out of their solar energy investments. For more information about this valuable PA solar incentive, please see our complete guide to Pennsylvania SRECs.

SRECs go to the owner of the solar panels. If you’re leasing your solar panels, you likely won’t be able to claim them yourself.

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Local Solar Rebates in Philadelphia

Although it is not always sunny in Philadelphia, the City of Brotherly Love is one of the best places to go solar in the state, thanks to Pennsylvania solar rebates. Enacted in 2019, Philadelphia established its Solar Panel Incentive Program to encourage residential photovoltaic (PV) installations for city residents.

Offered as a one-time rebate payment, eligible solar energy adopters in Philadelphia could receive $0.20 per watt for their system once it has been approved for Permission to Operate (i.e. you can turn your system on) by PECO. For instance, if you install a 6 kW solar energy system, those eligible could qualify for a $1,200 rebate (6,000 watts x $0.20) if approved by the Philadelphia Energy Authority.

Other cities, towns, and utilities may offer rebates or other incentives, too. Check directly with yours.

Energy Efficiency Rebates

To further capitalize on the value of clean, renewable energy at home, Pennsylvania solar adopters may also consider taking advantage of federal and state programs for energy efficiency upgrades. By maximizing the energy efficiency of your home, your home uses less energy, thus potentially reducing the need to draw extra power from the electricity grid.

Alongside solar, many federal energy efficiency rebates were extended and/or updated by the Inflation Reduction Act of 2022. Homeowners may be able to cash in on a variety of rebates for many different energy-efficient appliances and features, such as heat pumps, central air conditioning, water heaters, new roofing, insulation, and more.

Although there are no statewide incentives for energy efficiency upgrades in Pennsylvania, residents may be able to redeem rebates offered by equipment manufacturers. Homeowners may also be eligible for financial assistance through programs available in Pennsylvania, such as the Homeowners Energy Efficiency Loan Program (HEELP).

For an electrified life in 2025, Pennsylvania offers rebates for alternative fuel vehicle (AFV) purchases. Like all of the programs we’ve mentioned, eligibility requirements will vary, and rebates may not be available to some individuals based on income, location, or other circumstances.

Take Advantage of PA Solar Incentives

Pennsylvania is a great place to go solar in 2025, thanks to the variety of valuable PA solar incentives offered, including net metering, the federal tax credit, SRECs, and other energy rebates. 

If you’re interested in installing solar panels at your home, it can pay off to work with an experienced and reliable solar installer that can identify the incentives available to you. To get an idea of how solar panels can lower your electric bill, check out Palmetto’s free solar savings calculator or contact a Palmetto solar expert today.

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Frequently Asked Questions

What are the key solar incentives in Pennsylvania?

Key solar incentives you may qualify for in Pennsylvania include the federal solar tax credit, SRECs, and net metering.

Can you get Pennsylvania solar rebates?

There is no statewide solar rebate in Pennsylvania, but the city of Philadelphia has one.

What are Pennsylvania SRECs?

Solar renewable energy credits are generated anytime a solar panel system generates 1,000 kilowatt-hours of electricity. They can be sold to entities that have clean energy requirements. SREC prices in Pennsylvania vary with supply and demand but have been between $30 and $40 recently.

Sobre el AutorHeadshot of Andrew Blok.Andrew BlokWriter and Editor

Andrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.

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