Pennsylvania

Pennsylvania’s Solar Renewable Energy Credits (SRECs) program allows homeowners who own solar panel systems to earn additional income from the electricity their panels generate. For every 1,000 kilowatt-hours (1 megawatt-hour) of solar electricity your system produces, you earn one SREC that you can sell on the open market. These credits help Pennsylvania meet its renewable energy goals while providing you with a financial benefit beyond just saving on your electric bill.

As of January 2025, Pennsylvania SRECs are selling for approximately $31.25 each. An average Pennsylvania home with solar panels can generate about 10 SRECs annually, potentially adding hundreds of dollars to your solar savings each year. SRECs in Pennsylvania have a three-year useful life before they expire, giving you flexibility in when to sell them for maximum value.

To qualify for the SREC program, you must own your solar panel system (not lease it), register with the Pennsylvania Public Utility Commission as a qualified alternative energy facility, and register on the PJM Generation Attribute Tracking System (GATS) trading platform. Your solar installation must be located within Pennsylvania state lines to be eligible for PA SRECs.

While there are no specific deadlines to enroll in the program, it’s important to note that SREC prices fluctuate based on market conditions. Working with a broker like SRECTrade can help ensure you receive fair market value for your credits. Remember that each SREC expires three years after it’s created, so it’s important to sell them before they lose their value.

Net Metering in Pennsylvania is a valuable program that allows solar homeowners to receive full credit for the excess electricity their system generates. Under this 1:1 net metering policy, when your solar panels produce more electricity than you’re using, that excess power flows back to the grid, and you receive a credit on your bill equal to the retail rate of electricity. This essentially allows your electric meter to run backward, offsetting the cost of power you draw from the grid when your system isn’t producing enough.

All major Pennsylvania utilities—including PECO, Duquesne, WestPenn Power, PennPower, PPL, MetEd, and Penelec—offer this program with similar terms. Excess credits accumulate month-to-month throughout your billing year, helping offset your electricity costs during less sunny periods. At the end of the annual period (typically following May’s billing cycle or during June), any remaining credits are paid out at the utility’s Price to Compare rate, which ranges from approximately 8-12 cents per kilowatt-hour depending on your utility. After this annual payout, your credit balance resets to zero for the new year.

To qualify for net metering in Pennsylvania, you simply need to have a properly installed and connected solar system that meets your utility’s interconnection requirements. There’s no deadline to enroll—this is an ongoing program available to new solar customers. However, it’s worth noting that utility rates and policies can change over time, so the current favorable 1:1 credit structure represents an excellent opportunity for homeowners considering solar today.