Philadelphia, PA Solar Panels
In This Guide
- 01 Solar Energy in Philadelphia
- 02 Solar Cost Calculator
- 03 Philadelphia Reviews
- 04 Key Takeaways
- 05 Philadelphia Electricity Prices
- 06 Pennsylvania Solar Incentives
- 07 Philadelphia Solar Production
- 08 Solar Installations in Philadelphia
- 09 Choosing an Installer
- 10 Leasing Solar Panels
- 11 Frequently Asked Questions
Solar Power in Philadelphia
Solar installation in Philadelphia depends on more than sunshine. The city’s rowhomes, historic properties, and mature trees can create different roof, shading, and permitting considerations from one neighborhood to another.
Learn what to evaluate—from roof condition and household energy use to how panels work—in our guide to home solar panels.
PENNSYLVANIA by the Numbers
How Much Do Solar Panels Cost in Philadelphia, PA?
Explore a Philadelphia solar installation estimate based on Palmetto’s real installation data—not a national average. We use costs from homes in Philadelphia and nearby communities, including Abington, Bensalem, Media, and King of Prussia, to help you understand what solar may cost in your area.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Philadelphia solar depends on your roof; rowhomes, shade, roof condition, and historic-property rules can affect system design and permits.
- Solar costs and savings vary by home; Philadelphia estimates compare system size, cash purchase, leasing, and potential bill impact.
- Pennsylvania programs can affect solar value; net-metering credits, solar credits, utility terms, and seasonal production all matter.
Philadelphia Electricity Prices
Electricity prices can shape the value of solar for Philadelphia-area households.
Pennsylvania’s average electricity rate rose from 13.8¢ per kWh in 2021 to 17.8¢ in 2024, after reaching 18.1¢ in 2023. The 2024 rate was above the U.S. average of 16.5¢.
A solar system can generate electricity at home and help offset power purchased from the utility. How much it offsets depends on factors such as roof conditions, system size, and household energy use.
Over time, using solar may reduce exposure to changing electricity rates, but it does not necessarily eliminate utility bills or guarantee savings. Long-term value depends on installation costs, system output, energy use, and utility terms.
Price of Energy: Pennsylvania vs National Average
Philadelphia Area Utility Providers
In Philadelphia, PECO is the utility provider shown here. The latest available figures are from 2023: PECO’s electricity rate was 16.2¢ per kilowatt-hour (kWh).
That was slightly above the 2023 U.S. average of 16.0¢/kWh, but below Pennsylvania’s 18.10¢/kWh average. 2024 utility data is not yet available.
Solar panels generate electricity that a household can use, potentially reducing the amount it buys from the grid. How much this affects a bill depends on household use and solar production.
Philadelphia Utilities Electricity Rates
Pennsylvania Solar Incentives
Philadelphia residents may find state and local programs that help offset solar costs. Explore the solar incentives in Pennsylvania.
Options include net-metering bill credits, solar alternative-energy credits, utility rebates, and battery rewards. Grants and pilot loans support eligible schools; commercial incentives and C-PACE financing serve qualifying businesses and property owners. Eligibility and terms vary.
The Big Beautiful Bill eliminated the federal 30% residential tax credit, but state and local incentives remain. With LightReach, Palmetto handles commercial ITC and passes savings through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Pennsylvania Statewide Net Metering | Net Metering / Bill Credits | Eligible Pennsylvania solar customer-generators can use credits for excess generation to offset later electricity use, with annual excess settled under applicable utility rules. | Learn More |
| Pennsylvania AEPS Solar Alternative Energy Credits (AECs/SRECs) | Solar Renewable Energy Credit (SREC) | Eligible solar owners may register and sell solar alternative-energy credits, with revenue determined by buyer and contract terms rather than a fixed statewide rate. | Learn More |
| Pennsylvania Solar for Schools Grant Program | Grant | Eligible Pennsylvania schools and colleges can receive project grants for solar installations, including eligible energy-storage costs, subject to aid-ratio limits and available funding. | Learn More |
| Pennsylvania C-PACE Financing for Renewable Energy | Commercial Property Assessed Clean Energy Financing | Owners of eligible commercial, industrial, or agricultural properties in participating Pennsylvania jurisdictions may use long-term C-PACE financing for qualifying renewable-energy projects. | Learn More |
Pennsylvania’s net-metering rules let eligible customer-generators receive bill credits for electricity they send to the grid. For residential systems, the general system-size limit is 50 kW. Under default utility service, credits generally offset electricity use at the applicable retail value during the billing year, and unused excess is settled at the utility’s price-to-compare rate at year-end.
This is an ongoing bill-credit policy, not an upfront solar or battery rebate. If you buy electricity from a competitive supplier, check its contract because the generation-credit terms may differ. Ask your utility about its interconnection process, tariff, and treatment of excess generation before signing a solar contract.
Eligible solar generation may create Pennsylvania Alternative Energy Credits, commonly called solar AECs or SRECs. Owners may be able to register the system and sell the credits to a buyer or aggregator, providing a separate potential revenue stream in addition to net-metering bill credits.
There is no fixed statewide payment rate; prices depend on eligibility, registration, market conditions, and contract terms. Review your installer, lease, power-purchase agreement, or grant documents to confirm who owns the credits, because those agreements may assign them to another party.
The Solar for Schools Grant Program supports eligible school districts, intermediate units, career and technical schools, charter schools, community colleges, and specified state colleges with solar projects. Eligible project costs can include solar equipment and installation, permitting, interconnection, and energy storage. The maximum grant depends on the applicant’s aid ratio: up to the lesser of $900,000 or 75% of project cost for a ratio of at least 0.70; $780,000 or 65% for a ratio of 0.50–0.69; and $600,000 or 50% below 0.50.
This is an institutional grant, not a homeowner incentive. Application rounds, regional allocations, and remaining funds affect availability, so eligible organizations should confirm current requirements and funding with DCED before planning a project.
Pennsylvania C-PACE can provide long-term private financing for qualifying renewable-energy projects, including solar, with repayment made through a property-tax assessment. There is no single statewide award amount; financing terms depend on the project, lender, property, and local program rules.
Eligibility is limited to qualifying commercial, industrial, and agricultural properties in a municipality or county that has adopted C-PACE. Residential properties, including multifamily housing, are excluded. Property owners should confirm that their jurisdiction participates and review project eligibility and financing terms with the local C-PACE program administrator.
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 seasonal sun angle and shorter winter days reduce output, while clouds, rain, and occasional snow can affect panels. Still, well-designed systems can produce reliable solar energy year-round.
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 organized solar installation data from across the country to make this interactive map of Philadelphia. Select a hexagon to see how many installations are in that area, and explore the neighborhoods and communities where your neighbors have made the switch to solar.
How to Choose a Solar Installer in Philadelphia
Verify the license
Pennsylvania does not issue a separate state solar-installer license. Solar installation is generally treated as home improvement, so contractors generally must register with the Pennsylvania Office of Attorney General’s Bureau of Consumer Protection, unless exempt. An exemption includes certain small contractors whose home-improvement work is below the $5,000 annual threshold. Check a contractor in the OAG registration lookup. Registration is not a solar license or an endorsement of skill. Municipalities may have additional licensing or work-qualification rules, so check with your local municipality, too.
Look for certified installers
Ask whether the people who will design and install your system hold a relevant NABCEP certification, and ask what the credential covers. Ask about any manufacturer certifications for the specific panels or inverters in your proposal and who on the crew holds them. Treat certifications as useful points of comparison—not a substitute for checking the company’s registration, experience, contract, and references.
Compare quotes the same way
Request written proposals with the same assumptions, then compare:
- System size: DC capacity in kilowatts (kW), and the price per watt. Make sure the quoted size and equipment are comparable.
- Equipment: Panel and inverter brands and model names.
- Expected production: Estimated electricity generation in kilowatt-hours per year (kWh/year), with the assumptions behind the estimate.
- Warranties: Panel product and performance, inverter, workmanship, and roof penetrations. Ask who handles a warranty claim.
- Project responsibilities: Who obtains permits, schedules inspections, and submits the utility interconnection application?
- Cost and payment: Total cash price or monthly payment, what it includes, and any payment escalator. Compare financing terms separately from system price.
Permits, interconnection and your HOA
Ask your local building-code official which permits and inspections apply. Pennsylvania’s Uniform Construction Code is administered locally in most municipalities; in opt-out municipalities, residential code review and inspections go through a UCC-certified third-party agency. Your serving electric distribution company—not the installer—processes interconnection. Depending on your address, it may be PECO Energy Co, PPL Electric Utilities Corp, West Penn Power Company, or Duquesne Light Co. Ask the installer who will manage the application and keep you informed.
Pennsylvania has no currently enacted statewide solar-access protection that prevents an HOA from banning rooftop solar; current condominium and planned-community association-power statutes do not provide solar-specific protection. Review your association rules and get its requirements or approval before signing. Pennsylvania’s association-power statutes are available to review.
Red flags
- Pressure to sign the same day, before you can compare proposals or review the contract.
- An unregistered contractor where registration is required, or an unclear answer about who will do the work. An out-of-state crew alone does not establish a problem; verify the contractor and any local requirements.
- A vague production estimate with no annual kWh figure or explanation.
- A large upfront deposit without a clear written schedule of payments and project milestones.
- A promise that you can claim a federal homeowner tax credit for a 2026 purchase; homeowner credits ended December 31, 2025.
Palmetto is one installer you can include in your comparison, and it offers a lease option through LightReach.
Leasing Solar Panels
For Philadelphia homes served by PECO, Palmetto lists a solar power purchase agreement (PPA) as available. A PPA lets you pay for the electricity your panels produce at an agreed price per kilowatt-hour, rather than buying the system upfront. Confirm availability and terms for your address and utility.
Unlike a lease’s fixed monthly payment, PPA bills can change with seasonal production: panels typically generate more in summer, so payments may be higher then. Over a full year, savings are typically similar between a PPA and lease. Learn more about buying or leasing solar.
With a PPA, the provider owns the system and handles maintenance under the agreement, so you can avoid a large cash purchase and taking on system upkeep yourself. Review the contract, including its rates and service terms. See Palmetto LightReach for details.
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. Philadelphia has net metering through PECO. Eligible solar customers receive a 1:1 credit for each kilowatt-hour (kWh) of excess electricity sent to the grid. Credits carry forward from month to month and can offset electricity used later.
After PECO’s May billing cycle, remaining credits are settled at the utility’s Price to Compare—about 8–9 cents per kWh—and the credit balance resets to zero. Check PECO’s current terms, especially if you buy electricity from a competitive supplier.
Often, yes: solar panels can increase a Philadelphia home’s resale value when the homeowner owns the system. A Zillow study found homes with solar sold for about 4.1% more, but that national estimate is not a guaranteed premium; value varies by home and market.
This potential increase applies to purchased or homeowner-owned systems, not leased or other third-party-owned (TPO) systems. Resale may differ with a lease or PPA because the buyer may need to assume the agreement, depending on its transfer terms.
Philadelphia homeowners can go solar with a LightReach lease for a low fixed monthly payment and no upfront cost. The calculator above estimates $79 per month for a small home, $113 for a medium home, and $163 for a large home.
Cash purchase estimates range from $18,878 to $36,373, with a medium-home system estimated at $26,082. The federal 30% tax credit is no longer available for residential cash purchases following the 2025 federal law change. See the calculator above for pricing details.
With Palmetto’s LightReach lease, there is no upfront cost. One monthly payment covers the solar panels, installation, monitoring, maintenance, and protection program, including a 90% Production Guarantee.
For a typical 9.43 kW system in Philadelphia, the estimated lease payment is about $113 per month, based on Pennsylvania’s production ratio of 1,068 kWh per kW per year and an electricity rate of $0.135/kWh. Payments are typically below the current electricity bill, so savings may begin once the system is operating; actual bills depend on usage and solar production.
Palmetto Solar is a strong option for solar installation in Philadelphia, PA. We’ve completed 4,780 installations in Pennsylvania since 2020 and work with an installation network serving local homeowners.
Philadelphia’s rowhomes, mature trees, roof condition, and historic-property rules can affect system design and permits. Compare an installer’s roof assessment, project and utility coordination, and financing terms; Palmetto offers a range of financing options to consider.
Philadelphia homeowners may benefit from Pennsylvania’s net-metering rules, which credit eligible excess solar power against later electricity use. Eligible system owners may also register and sell solar alternative-energy credits (AECs/SRECs); their value depends on buyer and contract terms. The article lists no general homeowner rebate.
Solar for Schools grants and C-PACE financing serve eligible institutions and commercial, industrial, or agricultural properties—not typical homes. The federal 30% residential tax credit is no longer available for cash purchases after the 2025 law change. With LightReach leasing, Palmetto claims the commercial ITC and says it passes savings through in lower monthly payments.
Solar can be financially worthwhile in Philadelphia. With a LightReach lease, there’s no upfront investment, and the monthly lease payment is typically less than your current electricity bill, so savings can begin once the panels are active.
Your actual savings depend on your roof, shade, energy use, system production, and PECO’s billing terms. Solar may lower your utility costs, but it won’t always eliminate your PECO bill.