Pennsylvania
In This Guide
Solar in Pennsylvania
Pennsylvania homeowners are turning to solar panel installation in record numbers, with the state ranking 13th for residential solar installations nationwide. As electricity prices have surged 31% from 2020 to 2024, families across Pennsylvania are discovering how solar can provide long-term energy savings and greater control over their monthly bills.
At Palmetto, we’ve helped thousands of homeowners navigate their solar journey with confidence. Whether you’re curious about costs, installation timelines, or how solar works in Pennsylvania’s climate, our comprehensive guide to home solar panels provides the clear, honest information you need to make an informed decision.
Key Takeaways
- Pennsylvania ranks 13th nationally for residential solar with over 68,000 homes already enjoying solar energy benefits.
- Average Pennsylvania homeowners save approximately $69,000 over 25 years with solar panel installation and available incentives.
- Pennsylvania electricity rates have increased 31% since 2020 making solar panels an effective way to lock in predictable energy costs.
Solar Cost in Pennsylvania
Our Pennsylvania solar cost calculator uses real installation data from homes across Philadelphia, Pittsburgh, Allentown, and other PA cities. Get personalized estimates based on actual local project costs, not generic national averages.
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Looking for More Detailed Pennsylvania City Guides?
Explore our comprehensive solar guides for major cities across Pennsylvania to find location-specific information on incentives, installers, and solar potential.
Pennsylvania Electricity Prices
Pennsylvania electricity costs have climbed steadily, making energy bills a growing concern for homeowners across the state.
From 2021 to 2023, Pennsylvania electricity rates jumped from 13.8 to 18.1 cents per kWh, outpacing the national average significantly.
Solar panels allow homeowners to generate their own electricity, reducing dependence on the grid and protecting against future rate increases.
Over 25 years, solar systems can provide decades of predictable energy costs while traditional electricity rates continue climbing upward.
Price of Energy: Pennsylvania vs National Average
Pennsylvania Area Utility Providers
Pennsylvania residents pay varying electricity rates depending on their utility provider. Based on 2023 data, rates range from 14.7¢ to 22.1¢ per kWh across seven major utilities.
Most Pennsylvania utilities charge above the national average of 16.0¢ per kWh. Duquesne Light leads at 22.1¢, while West Penn Power offers the lowest at 14.7¢ per kWh.
Higher electricity rates mean greater potential savings with solar. Pennsylvania homeowners can lock in predictable energy costs while reducing dependence on fluctuating utility rates over time.
Pennsylvania Utilities Electricity Rates
Pennsylvania Solar Incentives
Pennsylvania residents can significantly reduce solar installation costs through various solar incentives in Pennsylvania at federal and state levels.
These programs include Solar Renewable Energy Credits (SRECs) that provide ongoing annual payments and net metering policies that credit excess electricity back to homeowners at full retail rates.
Understanding these incentives helps maximize your solar investment, though programs can change over time requiring careful research.
$6,590
Average savings in Pennsylvania solar rebates
| Incentive | Type | Description | Source |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| 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 |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Pennsylvania’s Solar Renewable Energy Credits (SRECs) program allows homeowners with solar panels to earn money for the clean electricity they generate. For every 1,000 kilowatt-hours (kWh) of solar electricity your system produces, you earn one SREC that can be sold on the open market. This creates an additional income stream beyond your electricity bill savings, helping maximize your solar investment.
As of January 2025, each SREC sells for approximately $31.25, though prices fluctuate based on market conditions. A typical Pennsylvania home solar system generates about 10 SRECs per year, potentially earning around $312 annually. SRECs have a three-year lifespan, meaning you can sell credits earned in 2025 anytime through 2027. 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 and registered in the Generation Attribute Tracking System (GATS), you can begin earning and selling your credits through trusted brokers like SRECTrade.
Net metering in Pennsylvania allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses, that extra energy flows to the electric grid and you receive a 1:1 credit on your electric bill – meaning you get full retail rate credit for every kilowatt-hour (kWh) you contribute. This credit system is available through all major Pennsylvania utilities including PECO, Duquesne, PPL Electric, and others.
The financial benefit varies by utility company, with excess credits typically valued between 8-12 cents per kWh when cashed out annually. Your monthly credits can roll over throughout the year, but each utility conducts an annual “true-up” process where any remaining credits are paid out at a lower wholesale rate (rather than the full retail rate) and your account resets to zero. Most utilities perform this true-up in May or June, so timing your solar installation to maximize credit accumulation before the annual reset can impact your overall savings.
All Pennsylvania homeowners with solar installations are eligible for net metering, though specific system size limits and interconnection requirements may apply depending on your utility company. It’s important to understand your utility’s specific true-up schedule and credit valuation, as this affects how you’ll be compensated for any excess solar production at the end of each annual cycle.
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 QuotePennsylvania Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Pennsylvania’s variable weather and seasonal sun angles create unique solar conditions. Despite cloudy winters, proper system design maximizes year-round energy production effectively.
What Can the Average Pennsylvania Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Pennsylvania 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 Pennsylvania 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 Installations in Pennsylvania
We’ve mapped every solar installation across the United States to show you something exciting: your Pennsylvania neighbors are embracing clean energy! Explore this interactive map to discover which communities near you have made the switch to solar power.
Leasing Solar Panels
Pennsylvania homeowners have access to Power Purchase Agreements (PPAs) through all major utilities including PECO, Duquesne Light, PPL Electric, and others. With a PPA, you pay a set price per kilowatt-hour for the solar electricity your system generates rather than a fixed monthly payment like traditional solar leases.
PPAs offer significant advantages over purchasing solar panels outright. You avoid the large upfront investment, don’t handle maintenance responsibilities, and benefit from Palmetto’s comprehensive LightReach program that includes design, installation, monitoring, and ongoing system care. Learn more about solar financing options to understand which approach works best for your situation.
Palmetto’s LightReach program centralizes everything into one worry-free experience with our 90% production guarantee and comprehensive protection program, ensuring your solar investment delivers reliable savings from day one without the complexities of system ownership.
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 sense in Pennsylvania for most homeowners. With electricity rates 13% above the national average and rising 31% since 2020, solar provides predictable energy costs and substantial savings.
Pennsylvania ranks 13th nationally for residential solar installations, with over 68,000 homes already benefiting from solar energy. The combination of federal tax credits, SREC payments, and net metering creates strong financial incentives for homeowners.
Yes, Pennsylvania has net metering through all major utilities including PECO, Duquesne Light, PPL Electric, and others. You receive 1:1 credit for excess solar electricity sent to the grid at full retail rates.
Excess credits roll over monthly but are cashed out annually at wholesale rates (8-12 cents per kWh) during each utility’s true-up period, typically in May or June.
Yes, solar panels increase home value in Pennsylvania. Research from Zillow shows solar panels increase home value by 4.1% on average nationwide.
For Pennsylvania homeowners, this typically translates to thousands of dollars in added value. Solar panels are viewed as permanent home improvements that reduce future energy costs, making properties more attractive to buyers in today’s market.
The average cost to go solar in Pennsylvania is approximately $15,376 after the federal tax credit for a typical 7.79 kW system. Before incentives, the system costs around $21,966.
Pennsylvania homeowners can take advantage of the 30% federal tax credit ($6,590 average) plus Solar Renewable Energy Credits (SRECs) worth $200-400 annually. With rising electricity rates, most families see a payback period of about 7.4 years.
Yes, solar is financially worth it in Pennsylvania for most homeowners. With average savings of $68,655 over 25 years and a payback period of 7.4 years, solar provides strong long-term returns.
Pennsylvania electricity rates have risen 31% since 2020 and average 17.8¢/kWh, making solar savings more valuable. Federal tax credits reduce upfront costs by 30%, while SREC payments provide ongoing income of $200-400 annually.
We believe we’re among the best choices for Pennsylvania homeowners considering solar. Since 2020, we’ve completed 2,131 installations across Pennsylvania, giving us deep experience with local permitting, utility interconnection, and state incentives.
Our comprehensive approach includes some of the industry’s most flexible financing options and a trusted network of certified installers. We focus on making solar accessible and straightforward, helping Pennsylvania families transition to clean energy with confidence and support throughout the entire process.