Philadelphia, PA Solar Panels
In This Guide
Solar Power in Philadelphia
If you’re considering solar installation in Philadelphia and have noticed your electric bills climbing, you’re not imagining it. Pennsylvania electricity prices have increased 31% from 2020 to 2024, leaving many homeowners looking for a more predictable way to power their homes.
Here, we’ll walk you through what solar installation looks like in Philadelphia, from how the process works to what to expect. For a broader overview first, start with our guide on home solar panels.
PENNSYLVANIA by the Numbers
How Much Do Solar Panels Cost in Philadelphia, PA?
See what solar really costs in Philadelphia. Our calculator uses firsthand data from actual Palmetto installations across the area—from Chestnut Hill and Manayunk to Roxborough, Mount Airy, and nearby suburbs like Bala Cynwyd and Ardmore. Enter your details for a clear, local estimate built on real numbers.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Pennsylvania electricity prices jumped about 29% from 2021 to 2024, so going solar in Philadelphia gives you more predictable, stable energy costs year after year.
- Solar can save the average Philadelphia home around $83,000 over 25 years, with cash systems typically paying for themselves in under 10 years.
- Pennsylvania offers strong state and local incentives, including SRECs, 1-to-1 net metering, a PECO rebate, and a 6% sales tax exemption on equipment.
Philadelphia Electricity Prices
Electricity in Philadelphia keeps getting more expensive. Understanding why can help you make a smarter, more predictable choice for your home.
Pennsylvania electricity prices climbed roughly 29% from 2021 to 2024, rising from 13.8 to 17.8 cents per kWh. For Philadelphia homeowners, that trend hits close to home every billing cycle.
Solar installation offers a way to sidestep some of that volatility. By producing your own power, many Philadelphia homeowners rely less on the grid and gain more predictable monthly energy costs.
Over time, solar panel installation can help protect you from future rate hikes. As utility prices keep rising, generating your own clean energy becomes a steadier, longer-term value for your household.
Price of Energy: Pennsylvania vs National Average
Philadelphia Area Utility Providers
In Philadelphia, most homeowners get their electricity from PECO. In 2023, PECO charged about 16.2¢ per kWh—just above the national average of 16.0¢, but below Pennsylvania’s statewide average of 18.10¢.
PECO’s rates sit near the national average partly due to Pennsylvania’s deregulated market and diverse energy mix. Even so, costs can shift with fuel prices, demand, and grid upgrades, making your monthly bill hard to predict.
This is where solar panel installation in Philadelphia can help. By generating your own power, you gain more control over your energy costs and rely less on changing utility rates year after year.
Philadelphia Utilities Electricity Rates
Pennsylvania Solar Incentives
Philadelphia homeowners can tap several solar incentives in Pennsylvania that help offset the upfront cost of going solar.
These include state and local programs like SRECs, 1-to-1 net metering, a PECO rebate, and a sales tax exemption. Together, they can meaningfully lower what solar panel installation in Philadelphia costs over time.
While the federal residential tax credit ended under the Big Beautiful Bill, these state and local incentives remain. Leasing through LightReach simplifies things, since Palmetto handles the commercial ITC and passes savings along.
| 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 for $25–$40 each to utilities needing to meet clean energy requirements. | Learn More |
| Pennsylvania Net Metering (1-to-1 Retail Rate) | Net Metering | All Pennsylvania investor-owned utilities are required to offer 1-to-1 net metering, crediting residential solar customers at the full retail rate for excess electricity sent to the grid, with an annual cash payout for any year-end surplus. | Learn More |
| PECO Solar Rebate | Rebate | PECO offers a $500 rebate to residential customers in its service territory who install a new solar system and receive Permission to Operate within the program’s eligibility window. | Learn More |
| Pennsylvania Sales Tax Exemption for Solar Energy Systems | Sales Tax Exemption | Solar energy systems and equipment in Pennsylvania are exempt from the state’s 6% sales and use tax, reducing the upfront purchase cost of going solar. | Learn More |
| Penn Energy Savers Program (Pending Launch — Solar-Adjacent) | Rebate | Pennsylvania’s forthcoming Penn Energy Savers program will offer rebates of up to $8,000 for income-qualified households on eligible electrification upgrades; the program has not yet launched as of mid-2026 and does not directly cover solar panels. | Learn More |
Pennsylvania’s Solar Renewable Energy Credit (SREC) program is administered under the state’s Alternative Energy Portfolio Standards (AEPS) Act. Every time your solar system generates 1,000 kilowatt-hours (1 MWh) of electricity, you earn one SREC. Utilities and electricity suppliers are required by law to source a portion of their power from solar, so they purchase SRECs from homeowners to meet that obligation. In early 2026, SRECs are trading between $25 and $40 per credit.
A typical 6–8 kW residential system in Pennsylvania produces roughly 9–12 SRECs per year, translating to approximately $225–$480 in annual income on top of your regular electric bill savings. To participate, you must register your system with the Pennsylvania Public Utility Commission (PUC) and enroll in the PJM Generation Attribute Tracking System (PJM-GATS), through which credits are issued and sold. PA SRECs have a useful life of three years from the date they are generated.
Important eligibility notes: Only solar systems physically located in Pennsylvania qualify — out-of-state systems are not eligible. SRECs belong to the system owner, so if you lease your panels, the leasing company typically retains the SREC rights. Proposed state legislation (the PRESS Act) could significantly increase the solar carve-out target, which may push SREC prices higher in the future.
Pennsylvania law requires all investor-owned electric utilities — including PECO, which serves Philadelphia — to offer 1-to-1 net metering for residential solar systems up to 50 kW. Under this policy, every kilowatt-hour your solar panels send to the grid offsets one kilowatt-hour you consume from the grid, credited at the full retail rate (approximately $0.21/kWh). Monthly excess credits roll forward indefinitely and are reconciled at an annual true-up each May 31.
Pennsylvania’s net metering policy includes an unusually homeowner-friendly feature: if your system produces more electricity than you consume over the entire year, your utility is required to issue you a cash payment for the surplus. Most other states simply zero out leftover credits — Pennsylvania actually pays you. This makes right-sizing your solar system especially valuable for homeowners in Philadelphia.
Note that customers of rural electric cooperatives and municipal utilities are not covered by the state net metering mandate — contact your utility directly to confirm eligibility.
PECO Energy Company, which serves Philadelphia, offers a $500 rebate for new residential solar installations in its service territory. To qualify, your solar system must receive its Permission to Operate (PTO) between September 1, 2024, and April 30, 2026. This rebate is part of PECO’s Act 129 energy efficiency and conservation programs, which are mandated by Pennsylvania state law.
The rebate is straightforward: once your system is installed, inspected, and granted PTO by PECO, you can apply for the $500 payment. This incentive is stackable with other programs — for example, Philadelphia residents in PECO’s territory may be able to combine this with the Philadelphia Solar Rebate Program for additional savings.
Important: Program funding and eligibility windows can change. The current program window closes April 30, 2026, so homeowners should act promptly and confirm current availability directly with PECO before proceeding. Visit peco.com or call PECO’s customer service line for the most up-to-date application instructions and deadlines.
Under Pennsylvania law, solar energy systems and their components are exempt from the state’s 6% sales and use tax. This means that when you purchase solar panels, inverters, racking, wiring, and other system components, you do not pay Pennsylvania sales tax on those items. For a typical residential solar installation costing $20,000–$30,000, this exemption can save homeowners $1,200–$1,800 at the point of purchase.
The exemption applies to the equipment itself and is typically handled automatically by your solar installer at the time of sale — you should not see Pennsylvania sales tax charged on qualifying solar equipment on your contract or invoice. If you believe sales tax has been incorrectly charged, contact the Pennsylvania Department of Revenue for guidance.
Note: Pennsylvania does not currently offer a statewide property tax exemption for the added value that solar panels contribute to your home’s assessed value. This means your property taxes could increase modestly after installation as your home’s assessed value rises. Check with your local county assessor’s office for specifics, as assessment practices can vary by municipality.
The Penn Energy Savers Program, administered by the Pennsylvania Department of Environmental Protection (DEP), is a federally funded initiative backed by $129 million in IRA funding. It consists of two components: the Home Efficiency Rebates (HER) program for whole-home energy retrofits, and the Home Electrification and Appliance Rebate (HEAR) program for point-of-sale rebates on high-efficiency electric appliances. Eligible products include heat pump water heaters, electric panels, wiring, insulation, and similar upgrades — not solar panels or battery storage directly.
For income-qualified households, the program is significant: households below 80% of Area Median Income (AMI) may receive rebates covering up to 100% of project costs (up to $8,000), while moderate-income households (80–150% AMI) may receive rebates covering 50% of costs. Electrical panel and wiring upgrades covered by this program can reduce the cost of preparing your home for a future solar or battery installation.
⚠️ Important: As of June 2026, the Penn Energy Savers program is still awaiting final U.S. Department of Energy approval and has not yet officially launched. Do not begin work or purchase equipment in anticipation of this rebate until the program formally opens. Sign up for updates at www.pennenergysavers.com or contact the DEP directly at [email protected] to be notified when applications open.
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 enjoys four distinct seasons, with strong summer sun and shorter winter days. Despite occasional clouds and snow, its solar potential is solid year-round, making it a great place for solar.
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 solar installations across the country, and now you can explore Philadelphia. See how neighborhoods from Fishtown to Chestnut Hill are switching to solar. Click any hexagon to discover how many of your neighbors have already made the change to clean, home-generated energy.
Leasing Solar Panels
In Philadelphia, homeowners served by PECO can go solar through a Power Purchase Agreement (PPA) with Palmetto’s LightReach program. With a PPA, you don’t buy the system—you simply pay for the power it produces at a set rate per kilowatt-hour, often lower than PECO’s utility rate.
A PPA differs slightly from a lease. Instead of a fixed monthly amount, your payment follows how much your panels generate, so bills run a bit higher in sunny summer months and lower in winter. Averaged across the year, savings are similar—just tied to real production.
Compared to paying cash, a PPA means no large upfront cost and no maintenance worries, since Palmetto owns and services the system. If you’d like to compare buying versus a PPA, we’re happy to walk you through it.
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 homeowners served by PECO have access to 1-to-1 net metering. Every kilowatt-hour your panels send to the grid earns a credit at the full retail rate, offsetting the power you pull from PECO later.
Excess credits carry over month to month. Any leftover surplus is trued-up at the Price to Compare (about 8–9 cents/kWh) after your May billing cycle, then your account resets to zero.
Yes, but it depends on ownership. When you own or purchase your solar panels, they can add value to your Philadelphia home. A Zillow study found that homes with solar panels sell for about 4.1% more on average.
Leased or PPA systems, like those through LightReach, work differently. Because Palmetto owns the equipment, a buyer would typically assume the existing agreement, so resale is handled separately rather than adding directly to home value.
With Palmetto’s LightReach lease, Philadelphia homeowners can go solar for a low fixed monthly payment—as little as $113/mo for an average-sized home—with no upfront cost. Palmetto owns and maintains the system, so there’s nothing to buy or repair.
If you prefer to buy, a cash system for a typical home runs about $26,000. Note the federal 30% tax credit is no longer available for residential cash purchases after the 2025 federal law change. See the calculator above for pricing based on your home size.
With Palmetto’s LightReach lease, you make one simple monthly payment that covers everything: the solar panel system, installation, monitoring, maintenance, and a comprehensive protection program with a 90% Production Guarantee. There’s no upfront cost, and payments are typically less than your PECO bill, so you can start saving from day one.
For a typical 9.43 kW system in Philadelphia, the estimated payment is about $113/month. Because Palmetto owns the system, it claims the commercial tax credit and passes those savings along through lower payments.
At Palmetto Solar, we combine national scale with a local focus, having completed 4,780 installations across Pennsylvania since 2020. Philadelphia homeowners work with our trusted local install network, backed by industry-leading financing options.
We help you understand your options clearly, from PECO net metering to leasing through LightReach. Our approach is transparent and customer-focused, making solar simple and predictable for your Philadelphia home.
Philadelphia homeowners can access several state and local solar incentives. These include Pennsylvania Solar Renewable Energy Credits (SRECs), 1-to-1 retail-rate net metering with an annual cash payout for surplus, a $500 PECO rebate, and a 6% state sales tax exemption on solar equipment.
Following the 2025 federal law change, the 30% residential tax credit is no longer available for cash purchases. However, LightReach leasing still benefits, since Palmetto claims the commercial ITC and passes those savings through.
For many Philadelphia homeowners, solar can make financial sense. With a LightReach lease, you skip the upfront investment and start saving from day one, because your monthly lease payment is typically lower than your current PECO electricity bill.
Instead of waiting years to break even, your savings begin as soon as your panels turn on. Palmetto owns and maintains the system, giving you more predictable energy costs while local incentives like net metering remain available.