Pennsylvania
In This Guide
Solar in Pennsylvania
Solar installation in Pennsylvania is gaining momentum, with the state ranking 13th nationwide for residential installations. Rising electricity costs—up 31% since 2020—make solar an increasingly smart choice for homeowners.
Making the right decision starts with understanding your options. Our home solar guide covers the essentials to help you explore solar installation for your Pennsylvania home.
Key Takeaways
- Pennsylvania ranks 13th nationally for residential solar with 68,000 households already generating clean energy for their homes.
- Rising electricity rates make solar more valuable as Pennsylvania rates jumped 29% from 2021-2024, now averaging 17.8¢ per kWh.
- Solar incentives can save Pennsylvania homeowners around $7,000 through federal tax credits and Solar Renewable Energy Credits (SRECs).
Solar Cost in Pennsylvania
Our solar cost calculator uses real installation data from Pennsylvania homeowners in Philadelphia, Pittsburgh, Allentown, and beyond. Get personalized estimates based on actual local projects, not generic assumptions.
System
Cost
Savings
Looking for More Detailed Pennsylvania City Guides?
Explore our comprehensive solar guides for major cities across Pennsylvania to find location-specific information on incentives, installers, and solar potential.
Pennsylvania Electricity Prices
Pennsylvania electricity costs have risen dramatically, creating financial pressure for homeowners across the state.
From 2021 to 2024, Pennsylvania electricity rates jumped from 13.8 cents to 17.8 cents per kWh—a 29% increase in just three years.
Solar panels generate your own electricity, helping shield your household from these unpredictable utility rate increases that impact your monthly budget.
Over 25 years, solar systems can provide stable energy costs while traditional electricity rates continue climbing, offering long-term financial protection.
Price of Energy: Pennsylvania vs National Average
Pennsylvania Area Utility Providers
Pennsylvania residents pay varying electricity rates depending on their utility provider. Based on 2023 data, rates ranged from 14.7¢ to 22.1¢ per kWh across seven major utilities.
Most Pennsylvania utilities charge above the national average of 16.0¢ per kWh. Duquesne Light leads at 22.1¢, while West Penn Power offers the lowest at 14.7¢ per kWh.
Higher electricity rates mean greater potential savings from solar installation. When utility costs exceed national averages, homeowners can see faster payback periods on their solar investment.
Pennsylvania Utilities Electricity Rates
Pennsylvania Solar Incentives
Pennsylvania homeowners can significantly reduce solar costs through various solar incentives in Pennsylvania at federal and state levels.
Solar Renewable Energy Credits (SRECs) provide ongoing income, typically earning $200-400 annually for homeowners. Net metering allows you to receive bill credits for excess electricity your system produces.
These incentives change frequently and have varying availability. Research current programs thoroughly and consider timing when planning your solar installation.
$6,590
Average savings in Pennsylvania solar rebates
| Incentive | Type | Description | Source |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| Solar Renewable Energy Credits (SRECs) | State program | Roughly $200-400 per year in savings for a typical PA owner. Earn one SREC per 1,000 kWh generated. Typical home system produces 5-10 SRECs annually. Market prices vary based on supply/demand. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Pennsylvania’s Solar Renewable Energy Credits (SRECs) program allows homeowners with solar panels to earn money by selling certificates that represent the clean energy their system produces. For every 1,000 kilowatt-hours (kWh) of solar electricity your panels generate, you earn one SREC that can be sold on the open market. A typical home solar system in Pennsylvania generates about 10 SRECs per year, providing an ongoing income stream from your solar investment.
SRECs currently sell for approximately $25-26 each, meaning homeowners can earn around $250-260 annually from a typical residential solar system. These credits have a three-year lifespan, so an SREC earned in 2025 can be sold anytime through 2027. To participate, you must own your solar system (not lease it) and register with the Pennsylvania Public Utility Commission’s Alternative Energy Credit Program and the Generation Attribute Tracking System (GATS). The program was created under Pennsylvania’s Alternative Energy Portfolio Standards Act to help utilities meet renewable energy requirements, making your home-generated solar power a valuable commodity in the state’s clean energy marketplace.
Net metering in Pennsylvania allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses, that extra energy flows to the electric grid and you receive a 1:1 credit on your electric bill – meaning you get full retail rate credit for every kilowatt-hour (kWh) you contribute. This credit system is available across all major Pennsylvania utilities including PECO, Duquesne, PPL, and others.
The financial benefit varies by utility company, with excess credits valued between 8-12 cents per kWh when cashed out annually. Your monthly credits can roll over throughout the year, but each utility conducts an annual “true-up” process – typically in May or June – where any remaining excess credits are paid out at the wholesale electricity rate and your account resets to zero. For example, PECO pays around 8-9 cents per kWh during their May true-up, while PPL pays 10-12 cents per kWh during their June settlement.
This program is automatically available to solar customers through their utility company with no special application required beyond standard solar interconnection. The key consideration for homeowners is timing – since excess credits are cashed out annually rather than carried forward indefinitely, it’s important to size your solar system appropriately to maximize the value of your credits throughout the year.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Pennsylvania incentives.
Get a Free QuotePennsylvania Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Pennsylvania’s four distinct seasons create varying solar production throughout the year. Despite snowy winters and cloudy days, proper system design maximizes year-round energy generation effectively.
What Can the Average Pennsylvania Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Pennsylvania homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average Pennsylvania homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Pennsylvania
We’ve mapped every solar installation across America to show you something exciting: your Pennsylvania neighbors are embracing clean energy! Explore this interactive map to discover which communities near you have made the switch to solar power.
Leasing Solar Panels
Pennsylvania homeowners have Power Purchase Agreement (PPA) options available across all major utility territories. With a PPA, you pay a set price per kilowatt-hour for the electricity your panels produce, rather than a fixed monthly payment.
PPAs offer significant benefits over traditional cash purchases. You avoid the large upfront investment, eliminate maintenance responsibilities, and start saving immediately. Comparing solar financing options shows PPAs provide predictable energy costs without ownership burdens.
Palmetto’s LightReach program takes PPAs further by centralizing everything under one inclusive price. We handle design, installation, maintenance, and monitoring while guaranteeing 90% production performance, giving you worry-free solar with immediate savings and long-term protection from rising electricity rates.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes excellent financial sense for Pennsylvania homeowners. With electricity rates at 17.8¢ per kWh and rising 29% since 2021, solar provides protection against unpredictable utility costs.
Pennsylvania ranks 13th nationally for residential solar adoption, with 68,000 households already saving money through solar installations. Federal tax credits and state SREC programs reduce upfront costs significantly.
Yes, Pennsylvania has comprehensive net metering available through all major utilities including PECO, Duquesne Light, PPL, and others. You receive 1:1 credit for excess electricity your solar panels send to the grid.
Monthly credits roll over throughout the year, then utilities conduct an annual “true-up” in May or June where remaining excess credits are paid out at 8-12 cents per kWh and your account resets to zero.
Yes, solar panels typically increase home value in Pennsylvania. According to a Zillow study, solar panels increase home value by 4.1% on average nationwide.
For Pennsylvania homeowners, this translates to significant value gains. Solar panels are viewed as permanent home improvements that reduce long-term electricity costs, making properties more attractive to buyers seeking energy-efficient homes with predictable utility expenses.
Solar installation costs in Pennsylvania average $15,376 after the 30% federal tax credit for a typical 7.79 kW system. Before incentives, the system costs around $21,966.
Pennsylvania homeowners save approximately $7,000 through federal tax credits and state SREC programs. With rising electricity rates at 17.8¢ per kWh, most systems pay for themselves within 7.4 years through utility bill savings.
Yes, solar is financially worth it for most Pennsylvania homeowners. With electricity rates at 17.8¢ per kWh and rising 29% since 2021, solar provides immediate bill reduction and long-term protection from utility rate increases.
The average Pennsylvania solar system costs $15,376 after incentives, pays for itself in 7.4 years, and saves approximately $68,655 over 25 years. Federal tax credits and state SREC programs provide around $7,000 in upfront savings.
We believe we offer excellent solar installation services in Pennsylvania. Since 2020, we’ve completed 2,131 installations across the state, bringing clean energy to homes in Philadelphia, Pittsburgh, Allentown, and beyond.
We provide competitive financing options and work with trusted local installation partners to ensure quality service. Our focus is on making solar accessible and straightforward for Pennsylvania homeowners seeking reliable clean energy solutions.