Allentown, PA Solar Panels

Pennsylvania’s Solar Renewable Energy Credit (SREC) program allows homeowners who own solar panels to earn money for the clean electricity they generate. For every 1,000 kilowatt-hours (kWh) of solar electricity your system produces, you earn one SREC that can be sold on the open market. An average Pennsylvania home solar system generates about 10 SRECs per year. As of August 2025, each SREC sells for approximately $25-26, providing an additional income stream that helps improve your return on investment and shorten your payback period.

To participate, you must own your solar system (not lease it) and register with the Pennsylvania Public Utility Commission’s Alternative Energy Credit Program. Once approved, your system will be registered in the PJM Generation Attribute Tracking System (GATS), where your SRECs are tracked and can be sold to utility companies that need them to meet state renewable energy requirements. Each SREC has a three-year useful life, meaning credits earned in 2025 can be sold anytime through 2027 before they expire.

Palmetto simplifies the SREC process by partnering with SRECTrade, a trusted broker that helps you sell your credits at fair market value. You can choose to lock in a set rate for three to five years or sell at current market prices as each SREC is generated. Keep in mind that SREC prices fluctuate based on supply and demand, similar to electricity rates. Pennsylvania SRECs can also be sold in Ohio, expanding your potential market.

Net metering in Pennsylvania allows homeowners with solar panels to receive credit for the excess electricity their system produces and sends back to the grid. When your solar panels generate more power than your home uses, that surplus energy flows to the utility grid, and your electric meter essentially runs backward. You receive credits on your utility bill for this excess generation at a 1:1 ratio, meaning each kilowatt-hour (kWh) you send to the grid offsets one kWh you might use later when your panels aren’t producing enough power (like at night or on cloudy days).

The financial benefit varies slightly by utility company, but all major Pennsylvania utilities offer this 1:1 credit system. Any excess credits you accumulate during sunny months can roll over month-to-month throughout the year. However, once per year—typically in May or June depending on your utility—any remaining credits are “trued up” and paid out at a lower rate (approximately 8-12 cents per kWh, depending on your utility provider’s Price to Compare rate). After this annual true-up, your credit balance resets to zero. This means net metering works best when you size your solar system to match your annual electricity usage rather than significantly overproduce.

All Pennsylvania homeowners with solar installations are eligible for net metering through their local utility company, whether that’s PECO, Duquesne Light, PPL Electric Utilities, West Penn Power, PennPower, Metropolitan Edison, or Pennsylvania Electric. There are no application deadlines, as this is an ongoing program required by Pennsylvania law. The key consideration is that net metering provides the most value when your solar system is properly sized—generating roughly the same amount of electricity you consume over the course of a year—since excess annual production is compensated at a lower rate than the retail electricity rate you avoid by using your own solar power.