Philadelphia, PA

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 (1 megawatt-hour) of solar electricity your system produces, you earn one SREC that you can sell on the open market. These credits help Pennsylvania meet its renewable energy goals while providing you with a valuable financial benefit beyond just saving on your electric bill.

As of January 2025, Pennsylvania SRECs are selling for approximately $31.25 each. An average Pennsylvania home with solar panels might generate about 10 SRECs annually, potentially adding hundreds of dollars to your solar savings each year. SRECs in Pennsylvania have a three-year useful life, meaning credits earned in 2023 can be sold anytime until the end of 2025 before they expire.

To qualify for the program, you must own your solar panel system (not lease it), and your system must be installed and operating within Pennsylvania. You’ll need to register with the Pennsylvania Public Utility Commission’s Alternative Energy Credit Program and the PJM Generation Attribute Tracking System (GATS) to start earning and selling your credits.

While SREC prices fluctuate based on market conditions, working with a broker like SRECTrade can simplify the selling process. You can choose to lock in a set rate for 3-5 years or sell at current market rates as credits are generated. This program represents an important opportunity to maximize the financial return on your solar investment while supporting Pennsylvania’s clean energy transition.

Pennsylvania’s Net Metering program allows solar homeowners to receive full credit for the excess electricity their systems generate and send back to the grid. Under this 1:1 net metering policy, for every kilowatt-hour (kWh) your solar panels export to the grid, you receive a credit for one kWh on your electric bill. This essentially allows your electric meter to run backward when your system produces more electricity than you’re using, helping to offset the cost of electricity you draw from the grid when your system isn’t producing enough.

The financial benefit varies slightly depending on your utility provider, but all major Pennsylvania utilities offer the same core structure. Unused credits accumulate month-to-month throughout the year, giving you flexibility during seasons when your solar production might be lower. At the end of the annual period (typically following May’s billing cycle or during June), any remaining credits are paid out at the utility’s Price to Compare rate, which ranges from approximately 8-12 cents per kWh depending on your provider. After this annual payout, your credit balance resets to zero for the new year.

All residential solar customers in Pennsylvania are eligible for net metering, regardless of which major utility serves them – including PECO, Duquesne Light, West Penn Power, Penn Power, PPL Electric, MetEd, and Penelec. There’s no deadline to enroll, as this is an ongoing program established by state regulation. However, it’s worth noting that net metering policies can change over time, so installing solar sooner rather than later ensures you’ll benefit from current favorable terms.

When planning your solar system, consider sizing it appropriately for your annual electricity usage. While the program allows you to earn credits throughout the year, the annual reset means extremely oversized systems that consistently produce far more than you consume annually may not be as financially beneficial, since the credit payout rate is typically lower than the retail rate you pay for electricity.