Pennsylvania Solar Incentives in 2026: Net Metering, SRECs, and More
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Author
Andrew Blok
Electrification and Solar Writer and Editor
Editor
Ryan Barnett
SVP, Policy & New Market Development
Pennsylvanians staring down rising electric bills can turn to home solar panels to help bring them back down. The overall value of those solar panels depends on how much they cost compared to how much they save.
Solar incentives in Pennsylvania can help boost your solar savings. Here’s where things stand in 2026, after a turbulent year for solar incentives at the national level.
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Federal solar tax credit
Through the end of 2025, homeowners who bought solar panels could usually claim a 30% tax credit to offset their federal tax bill. While that tax credit expired at the end of 2025, a separate tax credit for leased solar panels and battery storage still exists.
This tax credit can’t be claimed by the homeowner directly. Instead, the leasing company claims it and can choose to pass those savings on to consumers in the form of lower solar lease payments. As of 2026, leasing solar panels is the only way for consumers to access federal tax incentives, albeit indirectly.
Pennsylvania net metering
All of Pennsylvania’s investor-owned electric utilities provide 1-to-1 net metering, as required by the Public Utilities Commission.
Net metering compensates customers with bill credits for the electricity they generate but don’t use and send to the grid. Under 1-to-1 net metering, every kilowatt-hour of electricity sent to the grid offsets one that’s consumed from the grid. Credits typically roll over from month to month and reset once per year, usually in May or June, when any excess energy is redeemed at a reduced rate called an annual true-up.
Whether you are a customer of First Energy, Duquesne Light, PPL, PECO, or another utility, you can find out the details of their net metering program online. A local solar expert can also help you understand how net metering regulations work in your area.
If you get electricity from a third-party supplier, it’s often a good idea to switch back to your utility. Utilities are required to provide net metering credits, while third-party suppliers aren’t.
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Pennsylvania SRECs
Solar renewable energy credits (SRECs) also compensate homeowners for the clean energy they produce. Available for residential solar installations across PA, Pennsylvania’s SRECs are a specific kind of alternative energy credit (AEC).
In Pennsylvania, an SREC is generated for every 1,000 kilowatt-hours (kWh) of electricity generated by the panels.
To put this in perspective, Pennsylvania homes consume an average of 817 kWh of electricity per month. This means that PA solar systems designed to cover 100% of a property's energy demand will create about 9-10 SRECs every year, which a homeowner can then sell at market prices.
SREC prices vary, but Pennsylvania solar owners can work with an SREC broker to turn theirs into cash. For more information, see our complete guide to Pennsylvania SRECs.
SRECs go to the owner of the solar panels. If you’re leasing your solar panels, you likely won’t be able to claim them yourself.
Energy efficiency rebates
Pennsylvanians may also be able to take advantage of state programs for energy efficiency upgrades, which can further reduce energy bills.
Pennsylvania’s Penn Energy Savers program offers energy efficiency rebates to low- and middle-income households for heat pumps, heat pump dryers, heat pump water heaters, electric cooktops, insulation, electrical panels, and wiring. Your PA electric utility likely offers energy efficiency rebates too regardless of your income.
Pennsylvanians may also be able to redeem rebates offered by equipment manufacturers. Homeowners may also be eligible for financial assistance through programs available in Pennsylvania, such as the Homeowners Energy Efficiency Loan Program (HEELP).
Pennsylvania offers rebates to low and middle income households for alternative fuel vehicles (AFVs), like electric vehicles and plug-in hybrid vehicles. Like all of the programs we’ve mentioned, eligibility requirements will vary, and rebates may not be available to some individuals based on income, location, or other circumstances.
Take advantage of PA solar incentives
Pennsylvania is a great place to go solar in 2026, thanks to the variety of valuable PA solar incentives offered, including net metering, SRECs, and other energy rebates.
With federal incentives for purchasing solar gone, third party ownership, via leases or power purchase agreements, may make more sense for you moving forward. With a TPO agreement, you make predictable monthly payments for your solar panel system (including batteries, if desired) and get installation, regular maintenance, and covered repairs included.
If you’re interested in installing solar panels at your home, it’s best to work with an experienced and reliable solar installer that can identify the incentives available to you. To get an idea of how solar panels can lower your electric bill, check out Palmetto’s free solar savings calculator.
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Frequently asked questions
What are the key solar incentives in Pennsylvania?
Key solar incentives you may qualify for in Pennsylvania include SRECs and net metering.
Can you get Pennsylvania solar rebates?
There is no statewide solar rebate in Pennsylvania.
What are Pennsylvania SRECs?
Solar renewable energy credits are generated anytime a solar panel system generates 1,000 kilowatt-hours of electricity. They can be sold to entities that have clean energy requirements. SREC prices in Pennsylvania vary with supply and demand.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
