Philadelphia, PA
In This Guide
Solar in Philadelphia
Philadelphia homeowners are turning to solar panel installation as Pennsylvania’s electricity prices have soared 31% since 2020. With the state ranking 13th nationally for residential solar and having the 14th highest utility prices, solar power offers a smart solution for cost-conscious Philadelphians.
Curious about how solar works in the City of Brotherly Love? This guide breaks down everything you need to know about solar installation in Philadelphia—from permits to incentives that make clean energy accessible.
PENNSYLVANIA by the Numbers
Key Takeaways
- Philadelphia homeowners can save $68,656 over 25 years with solar panels while protecting against the city’s rising electricity rates.
- Pennsylvania offers valuable solar incentives including SRECs worth $200-400 annually and a statewide net metering program with 1:1 credit for excess energy.
- Solar panels in Philadelphia produce effectively year-round with 2,500+ sunshine hours annually, making it viable despite seasonal weather variations.
Solar Cost Calculator
Discover the true cost of solar in Philadelphia with Palmetto’s calculator, powered by real installation data from across the city and surrounding areas like Chestnut Hill, Manayunk, and King of Prussia. Make informed decisions about your clean energy journey with accurate, local insights.
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Estimated Investment and Savings
Philadelphia Electricity Prices
In Philadelphia, electricity costs have consistently outpaced national averages, with residents paying 17.8¢/kWh in 2024 compared to the U.S. average of 16.5¢/kWh.
Philadelphia homeowners have watched electricity prices surge by 29% since 2021, rising from 13.8¢ to 17.8¢ per kilowatt-hour in just three years – a trend straining household budgets across the city.
Solar installation offers Philadelphia residents a practical solution to these rising utility costs. By generating your own clean electricity, you can significantly reduce monthly bills while protecting against future rate increases.
With the federal 30% tax credit and Pennsylvania’s net metering program, Philadelphia homeowners can secure long-term energy savings while increasing property values – turning an energy expense into a valuable home investment.
Price of Energy: Pennsylvania vs National Average
Philadelphia Area Utility Providers
In Philadelphia, PECO is the primary utility provider with 2023 electricity rates at 16.2¢ per kWh, slightly above the national average of 16.0¢ but below Pennsylvania’s average of 18.10¢.
PECO’s rates reflect Philadelphia’s urban infrastructure and regional energy market dynamics. While higher than the national average, Philadelphia residents benefit from rates lower than the state average, creating a balanced cost environment.
For Philadelphia homeowners, solar installation offers potential long-term savings against these utility rates. With electricity costs continuing to fluctuate, solar provides price stability and energy independence while reducing monthly utility expenses.
Philadelphia Utilities Electricity Rates
Pennsylvania Solar Incentives
Philadelphia homeowners can significantly reduce solar installation costs through available solar incentives in Pennsylvania, including both federal tax credits and state-specific programs.
Pennsylvania offers two key incentives: Solar Renewable Energy Credits (SRECs) that generate $200-400 annually for typical systems, and Net Metering that provides retail-value credits for excess electricity your panels produce.
These incentives can change based on policy updates and market conditions. Research current offerings thoroughly and consider acting promptly to maximize your potential savings.
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 (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.
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 QuotePhiladelphia 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 Philadelphia’s varied seasons, solar panels thrive here. With proper system design, Philly’s 2,500+ annual sunshine hours can generate significant clean energy for your home.
Solar Production in Philadelphia 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 Philadelphia
Discover Philadelphia’s solar revolution! We’ve meticulously mapped every solar installation in the city, creating this interactive heatmap. Explore neighborhoods like Chestnut Hill, Fishtown, and South Philly to see how your community is embracing clean energy. Click any hexagon to reveal local installation counts!
Leasing Solar Panels
In Philadelphia, PA, Palmetto offers Power Purchase Agreements (PPAs) through all major utilities including PECO, Duquesne Light, West Penn Power, Penn Power, PPL Electric, MetEd, and Penelec. With a PPA, you pay only for the electricity your solar panels produce at a set price per kilowatt-hour, rather than paying for the system itself.
Unlike buying solar panels outright, a PPA eliminates upfront costs and maintenance responsibilities. Palmetto handles all system maintenance, monitoring, and repairs, allowing you to enjoy clean energy benefits without the investment. This is particularly valuable in Philadelphia, where homeowners can start saving immediately on electricity bills.
For Philadelphia residents on tight budgets or those hesitant about solar ownership, Palmetto’s LightReach PPA program offers a hassle-free way to reduce electricity costs while supporting renewable energy – no down payment required.
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 Philadelphia despite its seasonal weather. The city receives 2,500+ sunshine hours annually, and with rising electricity costs (up 31% since 2020), solar offers significant savings.
Philadelphia residents benefit from strong incentives including federal tax credits, SRECs worth $200-400 annually, and comprehensive net metering. A typical system pays for itself in 7.3 years and saves $68,656 over 25 years.
Yes, Philadelphia has 1:1 net metering available through all major utilities including PECO, Duquesne Light, and PPL Electric. Excess energy credits carry over month-to-month on a per kWh basis.
At the end of the annual period (typically May/June), any remaining credits are paid out at the Price to Compare rate (approximately 8-12 cents/kWh depending on your utility provider), and your account balance resets to zero.
Yes, solar panels increase home value in Philadelphia. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar.
For the median Philadelphia home value of approximately $250,000, that’s a potential increase of $10,250. This added value reflects both the energy savings and growing demand for sustainable homes in the Philadelphia market.
In Philadelphia, the average cost of solar installation ranges from $15,376 for a medium-sized home (7.79 kW system) to $20,190 for larger homes (10.53 kW system), after applying the 30% federal tax credit.
Factors affecting cost include system size, roof complexity, equipment quality, and installation company. Most Philadelphia homeowners see a payback period of 7-8 years and save approximately $68,656 over 25 years.
Solar is financially worth it in Philadelphia due to high electricity rates (17.8¢/kWh) and strong incentives. The average system pays for itself in 7.3 years while providing $68,656 in lifetime savings.
With SRECs generating $200-400 annually and 1:1 net metering through PECO, Philadelphia homeowners can significantly reduce energy costs while protecting against utility rate increases that have jumped 31% since 2020.
As a national company with a strong local presence, we at Palmetto are proud to be a leading solar installer in Philadelphia. With over 2,131 installations in Pennsylvania since 2020, we offer comprehensive solar solutions backed by competitive financing options.
Our commitment to quality installation, excellent customer service, and long-term system performance makes us a trusted choice for Philadelphia homeowners looking to transition to clean energy.