Philadelphia, PA Solar Panels
In This Guide
Solar Power in Philadelphia
Rising energy costs are hitting Philadelphia homeowners hard. With electricity prices jumping 31% from 2020 to 2024, many residents are exploring how solar panels for home use can provide long-term savings and greater control over monthly bills.
This guide breaks down everything you need to know about solar installation in Philadelphia—from understanding local incentives to choosing the right system for your home.
PENNSYLVANIA by the Numbers
How Much Do Solar Panels Cost in Philadelphia, PA?
Our calculator uses real installation data from Philadelphia homes—including projects in Chestnut Hill, Fishtown, Queen Village, and surrounding neighborhoods—to show you accurate solar costs. Get personalized estimates based on actual local installations, not national averages.
System
Cost
Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Philadelphia’s electricity rates rose 29% in three years, making solar panels an increasingly valuable investment for long-term energy cost protection.
- Pennsylvania’s SREC program generates ongoing income by paying homeowners for the clean electricity their solar systems produce throughout the year.
- A typical Philadelphia solar system saves around $69,000 over 25 years while reducing your carbon footprint and home energy dependence.
Philadelphia Electricity Prices
Your electricity bill tells an important story. Philadelphia residents are paying more each year, making it essential to understand these costs and explore long-term solutions.
Pennsylvania electricity rates have climbed from 13.8 cents per kWh in 2021 to 17.8 cents in 2024—a 29% increase in just three years. This trend consistently outpaces the national average, impacting household budgets across the Philadelphia area.
Solar panels generate electricity at a fixed cost, insulating homeowners from these price fluctuations. Once installed, your system produces power at the same rate for decades, while grid electricity continues its upward trajectory year after year.
Over a typical 25-year lifespan, solar systems can offset hundreds of thousands of kilowatt-hours at today’s rates. As utility prices continue rising, the value of that self-generated electricity grows, providing long-term financial predictability and protection.
Price of Energy: Pennsylvania vs National Average
Philadelphia Area Utility Providers
Philadelphia residents are served primarily by two utility providers: PECO and Met-Ed. As of 2023, PECO’s electricity rate was 16.2¢ per kWh, while Met-Ed’s rate was 17.2¢ per kWh—both hovering near the national average of 16.0¢ per kWh.
These rates remain below Pennsylvania’s state average of 18.10¢ per kWh, largely due to the region’s diverse energy mix and competitive electricity market. However, utility rates have steadily increased over recent years, and this trend is expected to continue as infrastructure costs rise.
Understanding your current electricity costs helps you evaluate potential savings from solar. By generating your own power, you can reduce reliance on utility rates and gain more predictability over your monthly energy expenses as traditional electricity prices fluctuate.
Philadelphia Utilities Electricity Rates
Pennsylvania Solar Incentives
Pennsylvania offers financial incentives that help offset solar installation costs. These solar incentives in Pennsylvania make the switch more accessible for Philadelphia homeowners.
The state’s Solar Renewable Energy Credits (SRECs) program allows homeowners to earn credits for the clean energy they generate. Net metering ensures you receive full retail value for excess electricity your system produces, turning your meter backward when generation exceeds usage.
These programs can significantly reduce your payback period. Review current incentive details carefully, as program terms and availability can shift with policy changes.
| Incentive | Type | Description | Source |
|---|---|---|---|
| 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 |
Pennsylvania’s Solar Renewable Energy Credit (SREC) program allows homeowners who own 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. An average Pennsylvania home solar system produces about 10 SRECs per year. As of August 2025, each SREC sells for approximately $25-26, providing an ongoing income stream that helps maximize your solar investment and shorten your payback period.
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, you’ll be registered on the Generation Attribute Tracking System (GATS) trading platform where you can sell your credits. SRECs have a three-year useful life, meaning a credit earned in 2025 can be sold anytime through 2027. Pennsylvania SRECs can be sold within PA or in Ohio. Palmetto partners with SRECTrade to help customers sell their credits, offering options to either lock in a set rate for 3-5 years or sell at current market value as each SREC is created.
Net metering in Pennsylvania allows you to earn credits on your electric bill for the excess solar energy your system produces. When your solar panels generate more electricity than your home uses, that surplus power flows back to the grid, and your utility company credits your account on a 1:1 basis. This means every kilowatt-hour (kWh) you send to the grid offsets one kWh you might use later, effectively running your meter backwards.
All major Pennsylvania utilities participate in this program, including PECO, Duquesne Light, PPL Electric Utilities, West Penn Power, Metropolitan Edison (MetEd), Pennsylvania Electric (Penelec), and Pennsylvania Power Company (PennPower). Your excess credits roll over from month to month throughout the year, giving you flexibility to use solar energy you generated in sunny summer months during darker winter months. Each spring (typically in May or June, depending on your utility), any remaining unused credits are paid out at your utility’s Price to Compare rate, which ranges from approximately 8 to 12 cents per kWh depending on your specific utility company. After this annual true-up, your credit balance resets to zero and the cycle begins again.
To participate in net metering, you’ll need to have your solar system interconnected with your utility company and meet their technical requirements. There are no application deadlines, and the program is available to residential solar customers across Pennsylvania. Keep in mind that the value you receive for excess credits at the annual true-up is typically lower than the retail rate you pay for electricity, so maximizing your self-consumption of solar energy throughout the year provides the greatest financial benefit.
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.
Philadelphia’s four distinct seasons create varied solar production throughout the year. Despite cloudy winters, the city receives ample annual sunshine for excellent solar performance with properly designed systems.
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 Panel Systems in Philadelphia
We’ve mapped every solar installation across Philadelphia to help you explore the clean energy movement in your community. Click any hexagon to see how many neighbors in that area have made the switch to solar.
Leasing Solar Panels
In Philadelphia, Palmetto offers Power Purchase Agreements (PPAs) through all major utility providers including PECO, Duquesne Light, WestPenn Power, Pennsylvania Power Company, PPL Electric Utilities, Metropolitan Edison, and Pennsylvania Electric. With a PPA, you pay only for the electricity your system generates at a fixed rate per kilowatt-hour, with no upfront costs or maintenance responsibilities.
Unlike purchasing a system outright, a PPA eliminates the need for significant capital investment while still providing immediate energy savings. You avoid equipment ownership concerns, system maintenance, and repair costs—Palmetto handles all of that. Your monthly payments vary seasonally based on production, typically higher in summer when panels generate more electricity.
This approach makes solar accessible without waiting years to recoup an initial investment. Learn more about LightReach, Palmetto’s PPA solution that lets you start saving from day one while we manage system performance and upkeep throughout the agreement term.
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 strong financial sense in Philadelphia. With electricity rates rising 29% since 2021 to 17.8¢/kWh, solar panels provide long-term protection from utility price increases while generating immediate savings on your monthly bills.
A typical Philadelphia solar system saves around $69,000 over 25 years. Pennsylvania’s SREC program adds ongoing income by paying you for clean electricity production, while net metering credits you at full retail rates for excess power sent to the grid.
Yes, Philadelphia has net metering through all major utility providers including PECO, Duquesne Light, PPL Electric, and others. When your solar panels generate more electricity than you use, the excess flows back to the grid and you receive credits on your bill at a 1:1 ratio—meaning each kilowatt-hour sent to the grid offsets one you might use later.
These credits roll over month-to-month throughout the year. Each spring (typically May or June), any remaining unused credits are paid out at your utility’s Price to Compare rate, which ranges from approximately 8-12 cents per kWh depending on your provider. Your account then resets to zero and the cycle begins again.
Yes, solar panels increase home value in Philadelphia. Research from Zillow shows solar panels increase home values by an average of 4.1% across the United States. For a median-priced Philadelphia home, this translates to thousands of dollars in added equity.
Beyond the immediate value boost, solar panels make your home more attractive to buyers seeking lower energy costs and environmental benefits. As electricity rates continue rising, homes with solar systems become increasingly desirable in the Philadelphia real estate market.
Solar installation costs in Philadelphia vary based on your home’s energy needs and roof characteristics. A typical residential system ranges from $16,820 for smaller homes to $28,843 for larger properties, with price per watt between $2.74-$2.93.
Pennsylvania’s SREC program provides ongoing income for the clean electricity your system produces, helping offset initial costs. With average savings around $69,000 over 25 years and a payback period of approximately 10 years, Philadelphia homeowners see strong long-term returns on their solar investment.
Yes, solar is financially worth it in Philadelphia. A typical system saves around $69,000 over 25 years while protecting you from rising electricity rates. With Pennsylvania’s SREC program providing ongoing income and net metering crediting excess power at full retail rates, most homeowners see payback in approximately 10 years.
Beyond direct savings, solar panels increase home values by an average of 4.1% according to Zillow research. As utility rates continue climbing—they’ve risen 29% since 2021—the value of generating your own electricity grows stronger each year.
We’ve completed over 2,131 solar installations across Pennsylvania since 2020, bringing our national expertise to Philadelphia neighborhoods. Our approach combines competitive financing options with a trusted local installation network, making solar accessible without compromising quality.
As a national company with local focus, we handle everything from design through activation. Our financing solutions help homeowners start saving immediately, while our installation partners ensure your system performs reliably for decades.