Allentown, PA
Solar in Allentown
Considering home solar panels in Allentown, PA? With Pennsylvania’s electricity prices having increased 31% from 2020 to 2024, solar installation offers a practical solution for homeowners looking to gain energy independence.
As Allentown residents face the state’s above-average utility rates of 17.79 cents per kWh, solar power provides a sustainable alternative that benefits both your wallet and the environment.
PENNSYLVANIA by the Numbers
Key Takeaways
- Allentown residents can save $64,871 over 25 years with solar panels, offsetting high electricity costs that have increased 29% since 2021.
- Pennsylvania offers valuable solar incentives including federal tax credits worth 30% of system cost and SRECs that can generate $200-400 annually.
- Solar panels work effectively in Allentown despite seasonal variations, with systems producing enough electricity to power multiple homes even in winter.
Solar Cost Calculator
Discover the true cost of solar in Allentown with our exclusive calculator, powered by real installation data from neighborhoods like West End, South Side, and East Side. As Palmetto’s local experts, we’ve analyzed actual solar projects across Lehigh Valley to give you accurate, transparent pricing information—no guesswork, just facts.
Select Your Home Size
Estimated Investment and Savings
Based on Palmetto Solar installations in Pennsylvania. Current electricity rate: 17.8¢/kWh. Assumes 100% credit of retail rate.
Allentown Electricity Prices
Allentown residents face rising electricity costs that significantly impact household budgets. Understanding these trends can help homeowners make informed energy decisions.
Electricity rates in Allentown have climbed from 13.8 cents per kWh in 2021 to 17.8 cents per kWh in 2024 – a 29% increase that exceeds the national average of 16.5 cents.
Solar installation offers Allentown homeowners a practical way to stabilize energy costs. By generating your own clean electricity, you can reduce dependence on increasingly expensive utility power.
While electricity prices continue their upward trend, solar systems provide predictable energy costs for 25+ years, allowing Allentown families to take control of their energy future and protect against rate hikes.
Price of Energy: Pennsylvania vs National Average
Allentown Area Utility Providers
Allentown residents are primarily served by two utility companies: PPL charging 19.5¢ per kWh and Met-Ed at 17.2¢ per kWh in 2023, both exceeding the national average of 16.0¢.
These Allentown utilities surpass the national average by 7.5-21.9%, with PPL even exceeding Pennsylvania’s state average of 18.1¢. Higher regional infrastructure costs and energy demand contribute to these elevated rates.
With Allentown’s electricity costs consistently higher than national averages, solar panels offer homeowners a path to predictable energy expenses and reduced dependence on fluctuating utility rates.
Allentown Utilities Electricity Rates
Pennsylvania Solar Incentives
Allentown homeowners can significantly reduce solar installation costs through solar incentives in Pennsylvania at both federal and state levels.
Pennsylvania offers Solar Renewable Energy Credits (SRECs), allowing homeowners to earn $200-400 annually by selling credits generated from their solar production. Additionally, net metering provides full retail value for excess electricity.
These incentives can change over time, so research thoroughly and act promptly to maximize your savings. Contact local solar experts to understand how these programs apply to your Allentown home.
Save an average of
$6,590
in solar rebates in Pennsylvania
| 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 who own solar panel systems to earn additional income from the electricity they generate. For every 1,000 kilowatt-hours (kWh) of solar electricity your system produces—approximately one megawatt-hour (MWh)—you earn one SREC that you can sell to utility companies. 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 valued at approximately $31.25 per credit. An average Pennsylvania home using about 10,000 kWh of electricity annually could generate around 10 SRECs per year, potentially adding over $300 in annual income. To participate, you must own your solar system (not lease it), register with the Pennsylvania Public Utility Commission’s Alternative Energy Credit Program, and be approved on the Generation Attribute Tracking System (GATS) trading platform. SRECs have a three-year useful life before expiring, and prices fluctuate based on market conditions. Working with a broker like SRECTrade can simplify the selling process and help ensure you receive fair market value for your credits.
Net Metering in Pennsylvania is a valuable program that allows solar homeowners to receive full credit for the excess electricity their systems generate. 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 at the same retail rate you would normally pay for electricity. This essentially allows your electric meter to run backward when you’re producing more than you’re consuming.
Each utility in Pennsylvania handles net metering similarly, with minor variations. PECO, Duquesne, WestPenn Power, PennPower, PPL, MetEd, and Penelec all offer 1:1 credit for excess generation, allowing unused credits to carry over from month to month. At the end of the annual period (typically following the May billing cycle or during June), any remaining credits are paid out at the 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 be eligible for net metering in Pennsylvania, you must be a customer of one of the participating utilities with a properly installed and inspected solar system. There are no specific deadlines to enroll, but it’s important to understand that the annual credit payout occurs only once per year, so timing your solar installation to maximize production before the annual true-up period could be beneficial. Additionally, while there are no stated system size limitations in the provided information, Pennsylvania generally allows net metering for residential systems up to 50 kW in capacity.
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 QuoteAllentown Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Despite Allentown’s seasonal climate variations, its 183 sunny days per year make it viable for solar energy. With proper system design, solar panels can effectively produce energy year-round, even during winter months.
Solar Production in Allentown by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average 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 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 Allentown
Discover Allentown’s solar revolution! We’ve mapped every solar installation in your area, showing how neighborhoods across Allentown are embracing clean energy. Explore our interactive heatmap to see which communities are leading the charge and find out just how many of your neighbors have already made the switch to solar.
Leasing Solar Panels
In Allentown, PA, Palmetto offers Power Purchase Agreements (PPAs) through all major utility providers including PPL Electric Utilities, MetEd, and others serving the area. With a PPA, you pay only for the power your solar panels produce at a set price per kilowatt-hour instead of a fixed monthly payment.
This flexible option means your payments naturally align with your system’s seasonal production—typically higher in summer months when your system generates more electricity and lower in winter. The primary benefit is avoiding the upfront investment of purchasing a system while still enjoying clean energy savings.
With Palmetto’s LightReach program, you’ll also benefit from professional maintenance, monitoring, and repairs at no additional cost, eliminating the responsibility of system upkeep that comes with ownership.
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 sense in Allentown, PA despite its seasonal climate. With electricity rates having increased 29% since 2021 to 17.8¢/kWh, solar offers significant financial benefits.
Allentown receives sufficient sunlight to make solar viable year-round, and Pennsylvania’s incentives including SRECs and net metering enhance the value. The average homeowner can save approximately $64,871 over 25 years while protecting against future utility rate increases.
Yes, Allentown has 1:1 net metering available through all major utilities serving the area. PPL Electric Utilities, the primary provider in Allentown, offers full retail credit for excess electricity your solar panels produce.
Unused credits carry over month-to-month, with any remaining balance paid out at approximately 10-12 cents per kWh during the annual June true-up period, after which your account resets to zero.
Yes, solar panels increase home value in Allentown. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.
For Allentown’s median home value of around $225,000, this could mean an added value of $9,225. This premium reflects both the energy savings potential and growing buyer interest in sustainable home features.
In Allentown, solar installation typically costs between $15,376-$20,190 after the federal tax credit for medium to large homes. The average cost is around $2.80 per watt before incentives.
System prices vary based on home size, electricity usage, and roof characteristics. With Pennsylvania’s electricity rates at 17.8¢/kWh and rising, most Allentown homeowners see payback periods of 7-8 years.
Yes, solar is financially worth it in Allentown. With electricity rates having increased 31% since 2020 to 17.79¢/kWh, a typical 7.79 kW system can save homeowners approximately $64,871 over 25 years.
The average payback period is just 7.7 years, after which your electricity is essentially free. Additional financial benefits include the 30% federal tax credit, SREC income of $200-400 annually, and increased home value of around 4.1%.
As a national company with a strong local presence in Pennsylvania, Palmetto offers some of the best solar installation services in Allentown. We’ve completed over 2,100 installations across Pennsylvania since 2020.
Our comprehensive approach includes competitive financing options, professional installation through our trusted network, and ongoing system monitoring and support. We’re committed to making clean energy accessible and affordable for Allentown homeowners.