Philadelphia, PA Solar Panels
In This Guide
Solar Power in Philadelphia
As one of the nation’s leading solar installers, Palmetto has helped homeowners across Philadelphia understand what solar can — and can’t — do for their home. With Pennsylvania electricity prices up 31% from 2020 to 2024, more local residents are asking whether solar makes sense for them.
This guide is designed to answer that question honestly. We’ll walk you through everything you need to know about solar panels for your home — from how they work to what installation looks like right here in Philadelphia.
PENNSYLVANIA by the Numbers
How Much Do Solar Panels Cost in Philadelphia, PA?
Using real installation data from Philadelphia and surrounding communities — including Cherry Hill, Bucks County, Delaware County, and the Main Line — this calculator gives you an honest, localized estimate of what solar installation could cost for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Philadelphia homeowners can save an average of ~$69,000 over 25 years by switching to solar, with a typical payback period of around 10 years.
- Pennsylvania electricity rates have risen 29% since 2021 — generating your own solar power helps protect you from future utility rate increases.
- Philadelphia homeowners can go solar for as little as $94/month through a lease, with no upfront costs and Palmetto handling all maintenance.
Philadelphia Electricity Prices
What Philadelphia Homeowners Are Paying for Electricity
Electricity costs in Philadelphia have been climbing — and Pennsylvania rates are rising faster than the national average.
Pennsylvania electricity rates rose from 13.8 cents per kWh in 2021 to 17.8 cents in 2024 — a nearly 29% increase. Over that same period, the national average rose about 20%, meaning Pennsylvania homeowners are feeling the pinch more than most.
Solar panels generate electricity from sunlight, which means the energy powering your home isn’t tied to utility rate increases. For many Philadelphia homeowners exploring solar panel installation, that’s a meaningful shift in how they manage their monthly energy costs.
Solar systems are designed to last 25 years or more. Over that time, generating your own electricity can provide a real hedge against rate volatility — regardless of where utility prices go from here.
Price of Energy: Pennsylvania vs National Average
Philadelphia Area Utility Providers
Philadelphia’s primary electric utility is PECO. Based on 2023 data — the most recent available — PECO’s residential rate was 16.2¢ per kWh, just above the 2023 national average of 16.0¢ per kWh.
Interestingly, PECO’s rate sits notably below Pennsylvania’s 2023 state average of 18.10¢ per kWh. Philadelphia residents pay slightly more than the national average, but less than many other Pennsylvania households — a nuanced picture worth understanding.
Even modest rates above the national average can improve the financial case for solar over time. As electricity costs fluctuate, homeowners who generate their own power are less exposed to future rate increases from their utility.
Philadelphia Utilities Electricity Rates
Pennsylvania Solar Incentives
Philadelphia homeowners have access to several solar incentives in Pennsylvania that can help reduce the overall cost of going solar.
Pennsylvania offers programs like SRECs, net metering at the full retail rate, low-interest loans, and utility rebates. Each incentive works differently, and not every program applies to every homeowner or utility territory.
Note: recent changes to federal tax policy eliminated the residential solar tax credit. State and local incentives remain available. Homeowners who choose a solar lease through LightReach have Palmetto manage the commercial ITC directly, which can result in lower monthly lease payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Pennsylvania Solar Renewable Energy Credits (SRECs) | SREC | Pennsylvania solar system owners earn one tradeable SREC for every 1,000 kWh of electricity generated, which can be sold to utilities and suppliers for $25–$40 each. | Learn More |
| Pennsylvania Net Metering | Net Metering | All Pennsylvania investor-owned utilities are required to offer 1-to-1 net metering, crediting solar customers at the full retail rate (approximately $0.21/kWh) for excess electricity sent to the grid. | Learn More |
| Federal Commercial Investment Tax Credit (ITC) — Solar Lease & PPA Only | Tax Credit | The 30% federal commercial Investment Tax Credit (Section 48E) remains available for third-party owned solar systems, allowing homeowners who choose a solar lease or PPA to benefit indirectly through lower monthly payments. | |
| Pennsylvania Alternative Energy Portfolio Standard (AEPS) | Renewable Portfolio Standard | Pennsylvania’s AEPS Act requires electric utilities and suppliers to source a percentage of their electricity from alternative energy, creating the market demand that gives PA SRECs their value. | Learn More |
| Pennsylvania Solar Energy Program (SEP) — Loans | Rebate | Pennsylvania’s Solar Energy Program provides low-interest loans of up to $5 million (or $3.00/watt) for solar energy generation or distribution projects statewide, administered jointly by DCED and DEP. | Learn More |
| Homeowners Energy Efficiency Loan Program (HEELP) — Solar-Related Improvements | Rebate | Pennsylvania’s HEELP program offers homeowners loans of $1,000–$10,000 at a fixed 1% interest rate for 10 years to finance energy improvements, including electrical upgrades that support solar installations. | Learn More |
Pennsylvania’s Solar Renewable Energy Credit (SREC) program is part of the state’s Alternative Energy Portfolio Standard (AEPS). Every time your solar system generates 1,000 kilowatt-hours (1 MWh) of electricity, you earn one SREC. A typical 6 kW residential system produces roughly 9–10 SRECs per year, which can translate to approximately $225–$400 in annual income based on current market prices of $25–$40 per SREC.
To participate, you must register your solar system with the Pennsylvania Public Utility Commission (PUC) through the Alternative Energy Credit Administration and list it on the Generation Attribute Tracking System (GATS) trading platform. Once registered, you can sell your SRECs through brokers such as SRECTrade or Flett Exchange, either at spot market prices or through fixed-rate contracts lasting 3–5 years. Note that SRECs have a useful life of three years, so credits must be sold within that window before they expire.
Important eligibility details: only Pennsylvania-sited solar systems qualify for PA SRECs (out-of-state systems are not eligible), and SRECs belong to the system owner — if you lease your panels, the leasing company typically retains the SREC rights. Solar-plus-battery systems also qualify, as long as the solar generation is metered separately.
Pennsylvania law requires all investor-owned electric utilities — including PECO, PPL Electric, Duquesne Light, Met-Ed, Penelec, Penn Power, and West Penn Power — to offer 1-to-1 net metering to residential solar customers. Residents of Philadelphia are served by PECO, which is required to offer this benefit. Under this policy, every kilowatt-hour your solar system sends to the grid offsets one kilowatt-hour you consume from the grid, effectively crediting you at the full retail electricity rate (approximately $0.21/kWh). Residential systems up to 50 kW are eligible, and nonresidential systems up to 3,000 kW can also participate.
Excess credits roll over month to month throughout the year. At the end of the net metering year (typically May 31), any remaining surplus kilowatt-hours are settled at the full retail value in most utility territories. This annual true-up ensures you receive fair compensation for all the solar energy you contribute to the grid over the course of the year.
While the federal residential solar tax credit (Section 25D) expired on December 31, 2025, the commercial Investment Tax Credit under Section 48E remains active at 30% of system costs. This credit applies to solar systems owned by third-party companies — meaning it is directly relevant to Philadelphia homeowners who choose to go solar through a lease or power purchase agreement (PPA) rather than purchasing a system outright.
In a lease or PPA arrangement, the solar company retains ownership of the panels installed on your roof and claims the 30% federal ITC. The financial benefit is then passed through to you indirectly in the form of lower monthly lease payments or a reduced per-kilowatt-hour PPA rate compared to what the company would otherwise charge. This makes leases and PPAs a potentially attractive option for homeowners who cannot benefit from a direct tax credit.
Keep in mind that with a lease or PPA, you do not own the solar system, which means you also do not own the SRECs generated by the panels — those typically belong to the third-party company. Carefully review your contract terms to understand how savings are structured and whether the arrangement makes financial sense for your household over the full contract term (often 20–25 years).
The Pennsylvania Alternative Energy Portfolio Standards Act (Act 213 of 2004) is the foundational policy that drives the value of Solar Renewable Energy Credits (SRECs) in the state. Under AEPS, electric distribution companies (EDCs) and electric generation suppliers (EGSs) are required to include a specific percentage of electricity from alternative energy resources — including solar — in the power they sell to Pennsylvania customers. Utilities that fail to meet these requirements must pay an Alternative Compliance Payment (ACP), which effectively sets a price ceiling for SRECs.
The AEPS includes a solar-specific carve-out within its Tier I requirements, meaning utilities must source a defined portion of their electricity specifically from solar photovoltaic systems. This solar carve-out is what creates consistent buyer demand for PA SRECs and keeps the market active. Compliance is tracked through the PennAEPS system and the Generation Attribute Tracking System (GATS).
Note that Pennsylvania’s original RPS goal expired in 2021 and a new long-term target has not yet been legislatively established. While the SREC market remains active, the absence of an updated RPS goal introduces some long-term uncertainty about future SREC prices and demand. Homeowners should factor this into their financial projections when evaluating the value of SRECs over a 20–25 year system lifetime.
The Pennsylvania Solar Energy Program (SEP) is a state-administered financing program that provides loans to support solar energy installations across Pennsylvania. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP). Loans for solar energy generation or distribution projects are capped at $5 million or $3.00 per watt of installed capacity, whichever is less, making it particularly useful for larger commercial or community solar projects.
SEP loans are designed to fill financing gaps for solar projects that may not qualify for or fully benefit from other incentive programs. By offering below-market loan rates, the program helps make solar installations financially viable for a broader range of Pennsylvania property owners, businesses, and organizations. Eligible projects must be located within Pennsylvania and must involve the generation or distribution of solar energy.
Homeowners and businesses in Philadelphia interested in the SEP should contact the DCED directly to confirm current loan terms, interest rates, and application requirements, as program details may be updated periodically. The SEP can be combined with other incentives such as SRECs and net metering to further improve the financial return on a solar investment.
The Homeowners Energy Efficiency Loan Program (HEELP), administered by the Pennsylvania Housing Finance Agency (PHFA), provides low-cost financing to help Pennsylvania homeowners make energy-related improvements to their homes. Loans range from $1,000 to $10,000 at a fixed 1% annual interest rate, repaid over 10 years with no prepayment penalties. While HEELP is not exclusively a solar program, it can be used to finance electrical panel upgrades, roof repairs, or wiring improvements that are necessary prerequisites for a solar installation.
HEELP is particularly valuable when bundled with a solar project, as many homes require electrical system upgrades before solar panels can be safely and legally installed. By financing these ancillary costs through HEELP at just 1% interest, homeowners in Philadelphia can reduce the total out-of-pocket cost of going solar without rolling these expenses into a higher-rate solar loan. The program is available statewide to eligible Pennsylvania homeowners.
Eligibility requirements apply, and not all homeowners will qualify. HEELP can be stacked with other Pennsylvania solar incentives, including SRECs and net metering credits, to maximize overall savings. Contact the Pennsylvania Housing Finance Agency directly for current eligibility criteria, income limits, and application instructions.
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 gets four distinct seasons, with cold, cloudy winters affecting output. But like Boston or Seattle, the right solar system still makes Philadelphia a surprisingly strong candidate for solar energy.
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 thousands of solar installations across Philadelphia so you can see just how many of your neighbors have already made the switch. Explore the map below to discover which communities and neighborhoods are leading the way in clean energy adoption across the city.
Leasing Solar Panels
Philadelphia homeowners served by PECO have access to a Power Purchase Agreement (PPA) through Palmetto’s LightReach program. With a PPA, you pay for the solar energy your panels produce at a set rate per kilowatt-hour (kWh) — rather than paying a large upfront cost to own the system outright.
Compared to a cash purchase, a PPA removes the need for any upfront investment and eliminates the responsibility of maintenance and repairs — Palmetto handles all of that. Your monthly bill simply reflects how much energy your system generated, which means you’ll typically see higher solar bills in sunny summer months and lower ones in winter. Across the full year, the costs even out — and you’re paying for clean energy instead of rising utility rates.
Another meaningful advantage: when you own a system outright, you take on the full cost with no tax credit available for residential buyers. With a PPA, Palmetto owns the system and qualifies for the commercial Investment Tax Credit — passing those savings through to you in the form of a lower per-kWh rate. Learn more about how buying compares to leasing solar to find the right fit for your home.
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!
Explore LightReach LeasingFrequently Asked Questions
Yes, solar makes sense for many Philadelphia homeowners. With Pennsylvania electricity rates up nearly 29% since 2021 and Philadelphia averaging 4.8 peak sun hours per day, a properly sized system can offset most of your electricity bill — with estimated savings of ~$69,000 over 25 years.
Upfront cost is no longer a barrier. Palmetto’s LightReach solar lease lets Philadelphia homeowners go solar with no money down, starting savings from day one — with Palmetto handling all maintenance and passing through commercial tax credit savings via lower monthly payments.
Yes, Philadelphia has net metering. Philadelphia is served by PECO, which is required by Pennsylvania law to offer 1-to-1 net metering to residential solar customers. For every kilowatt-hour your solar panels send to the grid, you receive a full retail-rate credit on your bill.
Excess credits roll over month to month throughout the year. At the end of PECO’s net metering year (following the May billing cycle), any remaining surplus is settled at the Price to Compare (PTC) rate — approximately 8–9 cents/kWh — and your account resets to zero.
Yes, solar panels can increase your home value in Philadelphia. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a median-priced Philadelphia home, that could represent a meaningful bump in resale value.
It’s worth noting that this benefit typically applies to owned systems, not leased panels. If you purchase your solar system outright, the added home value is generally recognized by appraisers and buyers in the Philadelphia market.
The most accessible way for Philadelphia homeowners to go solar is through Palmetto’s LightReach lease — starting as low as $94/month with no upfront cost. Palmetto owns and maintains the system, and passes through commercial tax credit savings via lower monthly payments.
For a cash purchase, a typical medium-sized system in Philadelphia runs around $21,966. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For Philadelphia homeowners, solar can make strong financial sense — especially through a lease. With Palmetto’s LightReach program, your monthly lease payment is typically less than your current electricity bill, meaning you start saving from day one with no upfront investment.
With Pennsylvania electricity rates up nearly 29% since 2021, locking in a predictable solar payment helps protect your household budget. Over 25 years, Philadelphia homeowners can save an estimated ~$69,000 by going solar.
Palmetto is a top solar installation company serving Philadelphia, PA. As a national company with a local focus, we’ve completed 2,131 installs across Pennsylvania since 2020, with a strong network of vetted local installers and an approval rating over 85%.
We offer some of the most flexible financing options available, including our LightReach lease — starting at just $94/month with no upfront cost. Whether you’re buying or leasing, Palmetto guides Philadelphia homeowners through every step of the solar process.
With Palmetto’s LightReach program, Philadelphia homeowners can lease solar with no upfront cost. One simple monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. For a typical 7.79 kW system, the estimated monthly payment is approximately $94/month — often less than your current electricity bill, so you can start saving from day one.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage not available with cash purchases today. Philadelphia’s production ratio of 1,068 kWh/kW/year makes leasing a practical, low-risk way to go solar.