Solar Guide
In This Guide
Solar in Erie
Erie residents are turning to solar energy as electricity costs surge across Pennsylvania. With the state’s electricity prices jumping 31% from 2020 to 2024, many homeowners in the Lake Erie region are discovering how solar panels for home installation can shield them from unpredictable utility bills.
As one of the nation’s leading solar installation companies, Palmetto has helped thousands of homeowners navigate the solar journey. This comprehensive guide covers everything Erie residents need to know—from local weather considerations and available incentives to system sizing and installation timelines—so you can make an informed decision about solar for your home.
PENNSYLVANIA by the Numbers
Key Takeaways
- Erie homeowners can save $61,000 over 25 years with solar panels, even with Pennsylvania’s cloudy winters and lake-effect snow.
- Pennsylvania offers excellent solar incentives including 30% federal tax credits and SRECs worth $200-400 annually for typical homeowners.
- Erie electricity rates are rising fast jumping 31% from 2020-2024, making solar’s fixed costs increasingly valuable.
Solar Cost Calculator
Our Erie solar cost calculator uses real installation data from neighborhoods like Millcreek, Harborcreek, and Fairview. Get accurate pricing based on actual local projects, not estimates. See what your neighbors paid for solar.
System
Cost
Savings
Erie Electricity Prices
Understanding Erie’s electricity costs helps homeowners make informed energy decisions for their families and budgets.
Pennsylvania electricity rates jumped from 13.8 cents per kWh in 2021 to 17.8 cents in 2024, consistently staying above national averages throughout this period.
Solar panels generate electricity at a fixed cost, helping Erie homeowners avoid future rate increases while reducing their monthly electric bills over time.
Over 25 years, solar systems can provide significant savings as utility rates continue rising, offering Erie families long-term energy cost stability and predictability.
Price of Energy: Pennsylvania vs National Average
Erie Area Utility Providers
Erie residents face electricity costs from two main utility providers: Penelec at 19.1¢ per kWh and Penn Power at 17.3¢ per kWh (2023 data).
Both utilities charge above the 2023 national average of 16.0¢ per kWh, with Penelec exceeding Pennsylvania’s state average of 18.1¢ per kWh.
These higher electricity rates make solar installation particularly valuable for Erie homeowners, offering predictable energy costs and protection from future utility rate increases.
Erie Utilities Electricity Rates
Pennsylvania Solar Incentives
Erie homeowners can significantly reduce solar installation costs through solar incentives in Pennsylvania and federal programs designed to make renewable energy accessible.
Pennsylvania offers Solar Renewable Energy Credits (SRECs) that can generate $200-400 annually for typical homeowners. The state’s net metering program provides full retail credit for excess electricity your system produces.
These incentives can change over time, so researching current programs is essential for Erie residents considering 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 for the clean electricity they produce. For every 1,000 kilowatt-hours (kWh) of solar electricity your system generates, you earn one SREC that can be sold on the open market. This means a typical home solar system in Pennsylvania can generate 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 on 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. This program helps utilities meet their renewable energy requirements while providing solar homeowners with additional financial benefits beyond electricity bill savings.
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, the extra electricity flows back to your utility company, and your electric meter literally runs backward, giving you a 1:1 credit for each kilowatt-hour (kWh) you contribute. This means you receive the same value for the electricity you generate as what you pay for electricity you use from the grid.
The financial benefits vary by utility company, with excess credits carrying over month to month throughout the year. At the end of each utility’s annual cycle (typically May or June), any remaining excess credits are paid out at wholesale rates ranging from approximately 8-12 cents per kWh, depending on your utility provider. For example, PECO customers receive around 8-9 cents per kWh, while PPL Electric customers may receive 10-12 cents per kWh. After this annual true-up, your account resets to zero and the cycle begins again.
All major Pennsylvania utilities participate in net metering, including PECO, Duquesne Light, PPL Electric, and FirstEnergy companies like Met-Ed and Penelec. The program is available to residential solar customers without special applications or deadlines, as it’s mandated by state law. However, the annual true-up timing is important to understand, as this determines when you’ll receive payment for excess generation credits that have accumulated over 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 QuoteErie 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.
Erie’s lake-effect snow and cloudy winters might seem challenging for solar, but modern panels work efficiently even in diffuse light conditions.
Solar Production in Erie 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 Erie
We’ve mapped every solar installation across America to show you something exciting: your Erie neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar.
Leasing Solar Panels
Erie homeowners have access to Power Purchase Agreements (PPA) through Palmetto, making solar installation more affordable and accessible. With a PPA, you pay for the actual electricity your solar panels produce at a fixed rate per kilowatt-hour rather than purchasing the system outright.
PPAs offer significant advantages over cash purchases, including no upfront investment, professional maintenance and monitoring handled by Palmetto, and immediate savings on your electric bill. While cash buyers must handle system maintenance and repairs themselves, PPA customers enjoy worry-free solar with guaranteed performance.
This financing option is available throughout Pennsylvania, including all major utility territories like Penelec and Penn Power that serve the Erie area. Learn more about solar financing options or explore our LightReach PPA program designed specifically for homeowners who want solar benefits without the upfront costs.
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 sense in Erie, PA despite the area’s cloudy winters and lake-effect snow. Erie homeowners can save approximately $61,000 over 25 years with solar panels, even with Pennsylvania’s challenging weather conditions.
With electricity rates rising 31% from 2020-2024 and excellent state incentives like SRECs worth $200-400 annually, solar provides long-term energy cost stability and significant financial benefits for Erie residents.
Yes, Erie, PA has net metering through Pennsylvania’s statewide net metering program. Erie residents served by Penelec and Penn Power receive full 1:1 credit for excess solar electricity sent back to the grid.
Both utilities allow monthly credit rollovers, with annual true-ups in May or June where excess credits are paid out at wholesale rates of approximately 9-10.5 cents per kWh, depending on your specific utility provider.
Yes, solar panels increase home value in Erie, PA. Research from Zillow shows solar panels increase home value by 4.1% on average across the United States.
For Erie homeowners, this means a typical $150,000 home could see a value increase of approximately $6,150 with solar panels installed. Solar systems also help homes sell faster and attract environmentally conscious buyers in the Erie market.
Solar costs in Erie, PA 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 approximately $15,376 after the 30% federal tax credit.
Erie homeowners also benefit from Pennsylvania’s SREC program, earning $200-400 annually, and net metering that provides full retail credit for excess electricity. These incentives significantly reduce the overall investment cost.
Yes, solar is financially worth it in Erie, PA. Despite cloudy winters and lake-effect snow, Erie homeowners can save approximately $61,000 over 25 years with solar panels installed.
With electricity rates rising 31% since 2020 and Pennsylvania’s excellent incentives like SRECs worth $200-400 annually, solar provides long-term cost stability and significant financial benefits for Erie families.
We are Palmetto Solar, a trusted national solar company with strong local expertise in Pennsylvania. We’ve completed over 2,131 installations across Pennsylvania since 2020, demonstrating our commitment to the state’s homeowners.
Our comprehensive approach combines competitive financing options with a reliable installation network, ensuring Erie residents receive quality solar solutions backed by proven experience and ongoing support throughout their solar journey.