Allentown, PA Solar Panels

Under Pennsylvania’s Alternative Energy Portfolio Standards (AEPS) Act, residential solar owners earn one Solar Renewable Energy Credit (SREC) — also called a Solar Alternative Energy Credit (SAEC) — for every 1,000 kilowatt-hours (1 MWh) of electricity their solar system produces. These credits can be sold to electric utilities and suppliers who are required by law to source a portion of their energy from solar, creating a real cash income stream for homeowners.

As of 2025–2026, Pennsylvania SRECs are trading in the range of approximately $26–$35 per credit. Credits are tracked through the PJM Generation Attribute Tracking System (PJM-GATS), and your solar installer typically handles initial registration. Homeowners must own (not lease) their solar system to claim SRECs. Credits are eligible for use in the energy year they are generated and for the following two energy years.

The program is administered by the Pennsylvania Public Utilities Commission (PUC). To participate, you or your installer must register your system with PJM-GATS and install a revenue-grade production meter. Many homeowners in Allentown work with an SREC broker to facilitate sales. Visit the PUC’s AEPS page or pennaeps.com for registration details and program updates.

Under Pennsylvania’s net metering policy (established in Pennsylvania Code Chapter 75.11), residential solar customers of all investor-owned utilities receive bill credits at the full retail rate of electricity for every kilowatt-hour (kWh) their solar system sends back to the grid — up to 100% of their annual electricity consumption. This 1-to-1 credit effectively means your meter runs backward when your panels overproduce, directly offsetting what you owe on your electric bill. Residential systems up to 50 kW in capacity are eligible.

Credits roll over month to month throughout the year. At the end of the net metering year (May 31st), any remaining excess kilowatt-hours are compensated at the “price-to-compare” rate — the generation and transmission portion of the retail rate, which is lower than the full retail rate but still provides meaningful value. PPL Electric Utilities serves the Allentown area and participates in net metering. Municipal utilities and electric cooperatives also participate.

Net metering is one of Pennsylvania’s most valuable ongoing solar incentives, especially now that the federal residential tax credit has expired. By significantly reducing or eliminating your monthly electric bill, net metering can shorten your solar payback period considerably. Contact your specific utility or the Pennsylvania PUC for details on interconnection requirements and how credits are applied to your account.

The Pennsylvania Solar Energy Program (SEP) is administered jointly by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under the direction of the Commonwealth Financing Authority (CFA). The program provides financial assistance in the form of grants and loans to promote the installation and use of solar energy systems across the Commonwealth, with a focus on solar generation and distribution projects.

Grants for solar energy generation or distribution projects are capped at the lesser of $1 million or $1.50 per watt of installed capacity. An important condition of receiving a grant is that Solar PV project recipients must contractually commit to transferring ownership of all Solar Renewable Energy Credits (SRECs) generated by the system to the CFA for the life of the project. Grants are also available for solar component manufacturers — up to $5,000 for every new job created within three years of project approval.

While this program is primarily geared toward commercial, municipal, and institutional applicants rather than individual homeowners, it represents a significant state-level financial resource for larger-scale solar deployments in Pennsylvania. Interested applicants should visit the DCED website for current funding availability, application requirements, and program guidelines.

Pennsylvania’s Sustainable Energy Funds (SEFs) are utility-affiliated financing programs that have collectively provided over $20 million in low-interest loans and nearly $2 million in grant funding to support clean energy projects across the state. The SEFs operate within specific utility service territories and are commonly used to support commercial, municipal, and community-scale solar and solar-plus-storage deployments. Applicable territories include PPL Electric and FirstEnergy utilities such as Met-Ed, Penelec, Penn Power, and West Penn Power.

SEF financing is specifically designed to close capital gaps that remain after other incentives and market revenues have been applied. Financing amounts are determined by remaining capital gaps, project economics, and demonstrated public benefit. These funds are frequently layered with other incentives — such as Act 129 programs and PJM market revenues — to make projects financially viable that might not otherwise pencil out.

While SEF programs are primarily oriented toward commercial, municipal, and larger-scale projects rather than individual homeowners, they represent an important financing tool for solar-plus-storage projects in Pennsylvania, including in the Allentown area. Contact your regional SEF administrator or the Pennsylvania DEP’s Energy Programs Office for information on current availability, eligibility, and how to apply within your utility territory.

The Pennsylvania Solar for All Program was designed to provide solar installations for up to 12,500–14,000 low-income households throughout the Commonwealth over a five-year period, along with financial assistance for home repairs needed to support solar installation. In April 2024, the Pennsylvania Energy Development Authority (PEDA) was awarded a $156 million grant under the U.S. EPA’s Solar for All competition, submitted in coalition with the Philadelphia Green Capital Corp. (PGCC). The program targets low-income homeowners and residents of disadvantaged communities who would otherwise be unable to afford solar.

Current Status — Not Operational: The program is not currently accepting applications. On August 7, 2025, EPA Administrator Zeldin announced that the federal agency would no longer be implementing the $7 billion national Solar for All program, with the Working Families Tax Cut legislation rescinding remaining federal funds. Pennsylvania’s ability to deploy its $156 million award is contingent on state legislative authorization, which was pending as of mid-2025.

Low-income households and residents of disadvantaged communities in Allentown should monitor the Pennsylvania DEP’s Energy Programs Office website for updates on whether the program receives state authorization and begins accepting applications. If activated, this program could provide significant no-cost or low-cost solar access to eligible residents across the Commonwealth.

Pennsylvania’s Commercial Property Assessed Clean Energy (C-PACE) program allows commercial building owners and developers to finance solar energy systems — including solar-plus-storage — with up to 100% of total project costs covered. Financing is repaid through a voluntary special assessment placed on the property, which transfers with the building if it is sold. This structure eliminates the need for large upfront capital and makes solar financially accessible for commercial property owners who may not qualify for traditional loans.

C-PACE financing in Pennsylvania offers terms of up to 30 years, with a minimum financing amount of $100,000. Because repayment is tied to the property rather than the borrower’s credit, it can be easier to qualify for than conventional financing. C-PACE is frequently layered with other incentives such as the commercial Investment Tax Credit (ITC) and MACRS depreciation to maximize project economics.

Important Note for Homeowners: Pennsylvania does not currently have enabling legislation for Residential PACE (R-PACE), so this program is only available to commercial, industrial, and multifamily property owners. Residential homeowners in Allentown should explore other financing options such as solar loans. Visit pennsylvaniacpace.org for program details, eligible project types, and how to apply.