Erie, PA
In This Guide
Solar in Erie
Considering solar installation in Erie, PA? With Pennsylvania’s electricity prices soaring 31% since 2020, investing in home solar panels offers a smart alternative to rising utility costs.
Erie homeowners can take advantage of Pennsylvania’s robust solar landscape, ranking 13th nationally for residential installations. Discover how professional solar installation can work specifically for your Erie property while reducing your environmental footprint.
PENNSYLVANIA by the Numbers
Key Takeaways
- Erie homeowners save $60,905 on average over 25 years with solar panels, despite Pennsylvania’s cloudy reputation.
- Pennsylvania’s electricity prices have risen 31% since 2020, making solar an increasingly valuable investment for Erie residents.
- Solar installations in Erie qualify for a 30% federal tax credit, reducing the average system cost by $6,590.
Solar Cost Calculator
Curious about solar costs in Erie, PA? Our calculator uses real installation data from throughout Erie County, including Millcreek, Harborcreek, and Fairview. Get accurate, local estimates based on actual Palmetto installations in your neighborhood, not national averages.
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.
Erie Electricity Prices
Erie residents face steadily rising electricity costs, with Pennsylvania rates consistently exceeding the national average since 2021.
From 2021 to 2023, Erie homeowners witnessed electricity prices surge from 13.8 to 18.1 cents per kWh—a dramatic 31% increase that puts financial pressure on household budgets.
Solar installation offers Erie residents a practical solution to these climbing utility costs. By generating your own clean electricity, you can significantly reduce your dependence on increasingly expensive grid power.
While electricity rates fluctuate seasonally, solar panels provide consistent energy production and predictable savings for 25+ years, protecting Erie homeowners from future utility rate increases.
Price of Energy: Pennsylvania vs National Average
Erie Area Utility Providers
In Erie, PA, Penelec is the primary utility provider, charging 19.1¢ per kWh in 2023—higher than both Pennsylvania’s average (18.10¢) and the national average (16.0¢).
Penelec’s rates exceed state and national averages due to infrastructure maintenance costs and Pennsylvania’s deregulated energy market, which can lead to price fluctuations based on supply and demand.
With Erie’s electricity costs trending upward, solar installation offers homeowners a stable alternative that can protect against future utility rate increases while providing clean, renewable energy for decades.
Erie Utilities Electricity Rates
Pennsylvania Solar Incentives
Erie homeowners can reduce solar installation costs through valuable solar incentives in Pennsylvania, including both federal tax credits and state-specific programs.
Pennsylvania offers Solar Renewable Energy Credits (SRECs), allowing Erie residents to earn $200-400 annually by selling credits generated from their solar production. Net metering provides additional savings through utility bill credits.
These incentives can change over time, so researching current offerings is essential. Taking action sooner rather than later ensures you maximize available benefits while transitioning to clean energy.
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 1 megawatt-hour (MWh)—you earn one SREC that can be sold 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, though market prices fluctuate based on supply and demand. An average Pennsylvania home using about 10,000 kWh annually could generate around 10 SRECs per year. To participate, you must own your solar system (not lease it), register with the Pennsylvania Public Utility Commission as a qualified alternative energy facility, and register on the PJM Generation Attribute Tracking System (GATS). Each SREC has a three-year lifespan before expiring, giving you flexibility in when to sell. 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 produce. Under this 1:1 net metering policy, when your solar panels generate more electricity than you’re using, that excess power flows back to the grid, and you receive a credit on your bill equal to the retail rate of electricity. This essentially allows your electric meter to run backward, offsetting the cost of power you draw from the grid when your system isn’t producing enough.
All major Pennsylvania utilities—including PECO, Duquesne Light, West Penn Power, Penn Power, PPL, MetEd, and Penelec—offer this program with similar terms. Excess credits accumulate month-to-month throughout the year, giving you flexibility during seasons when your system produces less. Each utility conducts an annual true-up, typically following May’s billing cycle or during June, when any remaining credits are paid out at rates ranging from approximately 8-12 cents per kilowatt-hour (depending on your utility’s Price to Compare). After this payment, your credit balance resets to zero for the new annual cycle.
To qualify for net metering in Pennsylvania, you simply need to install a grid-connected solar system at your home. There are no special application deadlines, though you’ll need to complete interconnection agreements with your utility before your system can be activated. For homeowners considering solar, this program significantly improves the financial return on your investment by ensuring you receive value for every kilowatt-hour 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 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.
Despite Erie’s cloudy reputation, its unique seasonal sunlight patterns and moderate temperatures make it surprisingly viable for solar energy production with properly designed systems.
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
Discover Erie’s solar revolution! We’ve mapped every solar installation in the area to show how your neighbors are embracing clean energy. Explore our interactive heatmap to see which Erie communities are leading the charge towards sustainable power—you might be surprised how many homes near you have already made the switch!
Leasing Solar Panels
Erie residents have access to Power Purchase Agreements (PPAs) through Palmetto, available with several utility providers including Pennsylvania Electric (Penelec) which serves the Erie area. With a PPA, you pay only for the electricity your solar panels produce at a predetermined rate per kilowatt-hour rather than a fixed monthly payment.
This financing option eliminates the upfront cost of purchasing solar panels while still allowing you to benefit from clean energy savings. Unlike owning panels outright, PPA customers don’t need to worry about system maintenance, monitoring, or repairs—Palmetto handles everything.
For Erie homeowners seeking budget-friendly solar solutions with no maintenance responsibilities, Palmetto’s LightReach PPA program offers immediate savings with predictable energy costs protected from utility rate increases.
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 despite its cloudy reputation. With Pennsylvania electricity prices rising 31% since 2020, solar panels offer Erie homeowners significant savings—averaging $60,905 over 25 years.
Erie residents benefit from the 30% federal tax credit and Pennsylvania’s net metering program, making solar financially viable even with the region’s weather patterns. Modern panels work efficiently in Erie’s climate, producing enough electricity to offset utility costs year-round.
Yes, Erie has full 1:1 net metering through Penelec (Pennsylvania Electric). When your solar panels produce excess electricity, you receive credits at the retail rate that carry over month-to-month.
During the annual true-up in June, any remaining credits are paid out at approximately 9-10 cents per kWh (based on the Price to Compare rate), and your account balance resets to zero for the new annual cycle.
Yes, solar panels increase home value in Erie, PA. According to a Zillow study, homes with solar panels sell for 4.1% more than comparable homes without solar.
For Erie’s median home value of approximately $180,000, this represents a potential increase of about $7,400. This added value, combined with energy savings, makes solar a worthwhile investment for Erie homeowners.
In Erie, PA, the average cost of solar installation is $2.82 per watt. For a typical 7.79 kW system, homeowners can expect to pay around $21,966 before incentives. After applying the 30% federal tax credit, the final cost drops to approximately $15,376.
System size and complexity, roof condition, equipment quality, and installation company all influence your final price. Most Erie homeowners see a payback period of 8.1 years on their solar investment.
Yes, solar is financially worth it in Erie. With electricity prices up 31% since 2020, the average homeowner saves $60,905 over 25 years with solar panels. The payback period is typically 8.1 years.
When factoring in the 30% federal tax credit, net metering benefits, and protection against future utility rate increases, solar installation provides Erie residents with strong long-term financial returns despite Pennsylvania’s cloudy reputation.
As a national solar company with a strong local presence in Pennsylvania, we at Palmetto offer Erie residents quality solar installations backed by over 2,131 successful projects statewide since 2020.
Our comprehensive financing options and established installer network make solar accessible to Erie homeowners. While we encourage comparing providers, our combination of national resources and local expertise positions us as a leading choice for Erie residents considering solar installation.