Erie, 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, which means you could earn around $250-260 annually from your solar panels in addition to your electricity bill savings.

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. Each SREC has a useful life of three years from the date it’s earned, giving you flexibility in when to sell. Palmetto works with trusted partners like SRECTrade to help you sell your credits at fair market value, with options to either lock in a set rate for 3-5 years or sell at current market prices as each SREC is created.

Keep in mind that SREC prices fluctuate based on market supply and demand, similar to electricity rates. The program was created under Pennsylvania’s Alternative Energy Portfolio Standards Act to help the state meet its renewable energy goals, and it remains one of the few active SREC markets in the country. This incentive can meaningfully improve your solar investment’s return and shorten your payback period.

Net metering in Pennsylvania allows homeowners with solar panels to receive credit for the excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses, your electric meter essentially runs backward, giving you a 1:1 credit for each kilowatt-hour (kWh) you export. This means you receive the full retail rate value for your solar energy, which you can then use to offset electricity you draw from the grid during times 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 valuable program. Your excess credits roll over from month to month throughout the year, allowing you to build up credits during sunny summer months to use during winter. At the end of the annual cycle (typically in May or June, depending on your utility), any remaining excess credits are paid out at the Price to Compare (PTC) rate, which ranges from approximately 8 to 12 cents per kWh depending on your utility provider. After this annual true-up, your credit balance resets to zero and the cycle begins again.

Pennsylvania homeowners with solar installations are generally eligible for net metering, though specific system size limits and interconnection requirements may apply depending on your utility company. There are no application deadlines, as this is an ongoing program available to solar customers. It’s important to understand that while credits carry over month-to-month, they don’t roll over year-to-year, so any unused credits after your annual true-up period are settled at the wholesale rate rather than the full retail rate you earned throughout the year.