Solar Guide
Solar in Allentown
Allentown homeowners are exploring solar as Pennsylvania electricity prices have increased 31% from 2020 to 2024. With rates above the national average, solar installation offers a path to energy independence.
This guide covers everything Allentown residents need to know about home solar panels in their area.
PENNSYLVANIA by the Numbers
Key Takeaways
- Allentown electricity rates increased 31% from 2020-2024, making solar panels an increasingly attractive investment for local homeowners.
- Solar systems in Allentown save homeowners an average of $65,000 over 25 years through reduced electricity bills.
- Pennsylvania offers excellent solar incentives including 30% federal tax credits and Solar Renewable Energy Credits (SRECs).
Solar Cost Calculator
Our solar cost calculator uses real installation data from Allentown neighborhoods like West End, East Side, and South Mountain. Get accurate pricing based on actual local projects, not estimates.
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Cost
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Allentown Electricity Prices
Understanding Allentown’s electricity costs helps residents make informed decisions about their home energy options and long-term financial planning.
Pennsylvania electricity rates jumped from 13.8 cents per kWh in 2021 to 17.8 cents in 2024, consistently exceeding national averages throughout this period.
Solar panels generate electricity at a fixed cost, protecting homeowners from future rate increases while providing predictable monthly energy expenses for decades.
Over 25 years, solar systems can shield Allentown families from rising utility costs while contributing to cleaner air and energy independence for their community.
Price of Energy: Pennsylvania vs National Average
Allentown Area Utility Providers
Allentown residents receive electricity from two main utilities: Met-Ed at 17.2¢ per kWh and PPL Electric at 19.5¢ per kWh, based on 2023 data.
Both utilities charge above the 2023 national average of 16.0¢ per kWh, with PPL Electric rates exceeding even Pennsylvania’s state average of 18.1¢ per kWh.
Higher electricity rates make solar panel installation more attractive for Allentown homeowners, as solar energy can help offset these above-average utility costs over time.
Allentown Utilities Electricity Rates
Pennsylvania Solar Incentives
Allentown homeowners can reduce solar installation costs through federal tax credits and solar incentives in Pennsylvania.
The federal solar tax credit covers 30% of installation costs through 2032. Pennsylvania offers Solar Renewable Energy Credits (SRECs) and net metering programs for additional savings.
These incentives change regularly and have varying deadlines. Research current programs thoroughly before making solar decisions.
$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 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. This means a typical Pennsylvania home solar system generates about 10 SRECs per year, providing an ongoing income stream from your solar investment.
As of January 2025, each SREC sells for approximately $31.25, though prices fluctuate based on market demand. SRECs have a three-year lifespan, so credits 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. Once approved and registered in the Generation Attribute Tracking System (GATS), you can begin earning and selling your credits. Pennsylvania SRECs can also be sold in Ohio, expanding your market opportunities.
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 typically 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” period (usually in May or June) where any remaining excess credits are paid out at the prevailing electricity rate and your account resets to zero. For example, PECO pays out excess credits at around 8-9 cents per kWh during their May billing cycle, while PPL pays around 10-12 cents per kWh during June. This system helps maximize the value of your solar investment by ensuring you’re compensated for all the clean energy your system produces.
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.
Allentown’s four-season climate and variable cloud cover create unique solar conditions. Despite winter snow and summer humidity, proper system design maximizes year-round energy production potential.
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
We’ve mapped every solar installation across America to show you something exciting: your Allentown neighbors are already embracing clean energy! Explore this interactive map to discover which local communities have made the switch to solar power.
Leasing Solar Panels
Allentown homeowners have access to Power Purchase Agreements (PPAs) through all major Pennsylvania utilities, including PPL Electric Utilities and Metropolitan Edison, which serve the Allentown area.
With a PPA, you pay only for the solar power your system generates at a set rate per kilowatt-hour, typically lower than your current utility rates. Unlike purchasing panels outright, PPAs require no upfront investment and include system maintenance, making solar accessible without large cash payments or loan obligations.
PPA benefits include predictable energy costs, professional system monitoring, and immediate savings on your electric bill. Learn more about solar financing options or explore our LightReach program for Allentown residents.
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. With electricity rates at 17.8¢ per kWh—above the national average—solar panels offer significant savings potential for local homeowners.
Allentown residents can save an average of $65,000 over 25 years while benefiting from Pennsylvania’s solar incentives, including 30% federal tax credits and Solar Renewable Energy Credits (SRECs).
Yes, Allentown has net metering. Both major utilities serving the area—Met-Ed and PPL Electric—offer 1:1 net metering, giving you full retail credit for excess solar power sent to the grid.
Credits roll over monthly and are cashed out annually at 10-12 cents per kWh during June (PPL) or 10-11 cents per kWh during June (Met-Ed), then your account resets to zero.
Yes, solar panels increase home value in Allentown. A Zillow study shows solar panels increase home value by 4.1% on average across the United States.
For Allentown’s median home price of approximately $180,000, this translates to roughly $7,380 in added value. Solar panels also make homes more attractive to buyers seeking energy-efficient properties with lower utility costs.
Solar installation costs in Allentown typically range from $11,774 to $20,190 after federal tax credits, depending on your home size and energy needs.
A typical medium-sized home (2,000-3,000 sq ft) requires a 7.79 kW system costing $15,376 after the 30% federal tax credit. This system saves homeowners an average of $65,000 over 25 years through reduced electricity bills.
Yes, solar is financially worth it in Allentown. With electricity rates at 17.8¢ per kWh—above the national average—homeowners save an average of $65,000 over 25 years through reduced utility bills.
The typical payback period is 7.7 years, after which your system generates free electricity for decades. Combined with Pennsylvania’s 30% federal tax credits and rising electricity costs, solar provides strong long-term financial returns.
We believe Palmetto Solar is the best choice for Allentown homeowners. As a national company with local focus, we’ve completed 2,131 installations across Pennsylvania since 2020, bringing proven expertise to your community.
We offer competitive financing options and work with trusted local installation partners to deliver quality solar systems. Our comprehensive approach includes system design, permitting, installation, and ongoing support to ensure your solar investment performs as expected.