Pennsylvania Solar Panels
In This Guide
Solar in Pennsylvania
Thinking about solar energy for your Pennsylvania home? You’re in the right place. With electricity prices climbing 31% from 2020 to 2024, more homeowners across the state are exploring solar panels for home use as a way to take control of their energy costs.
This guide breaks down everything you need to know about solar installation in Pennsylvania—from available incentives to how the process actually works—so you can make an informed decision about your energy future.
Pennsylvania Solar Panel Cost
Our calculator uses real installation data from Pennsylvania homeowners in Philadelphia, Pittsburgh, Allentown, and beyond. See what solar actually costs in your area based on thousands of completed projects across the state.
System
Cost
Savings
Key Takeaways
- Pennsylvania electricity rates jumped 29% from 2021 to 2024—solar panels lock in predictable energy costs for decades.
- The average Pennsylvania solar system costs $21,966 and can save homeowners approximately $69,000 over 25 years.
- SRECs provide ongoing income as your system generates clean energy, typically earning $200-400 annually for Pennsylvania homeowners.
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
Understanding electricity costs in Pennsylvania is essential when evaluating your home energy options. Let’s look at how rates have changed in recent years.
Pennsylvania electricity rates jumped from 13.8 cents per kilowatt-hour in 2021 to 17.8 cents in 2024—a 29% increase in just three years. That’s faster than the national average growth of 20%.
Solar panels generate electricity at a fixed cost, protecting homeowners from these unpredictable rate increases. Once installed, your system produces power at the same rate for decades, regardless of utility price changes.
Over a typical 25-year lifespan, solar panels can shield Pennsylvania homeowners from future rate hikes while reducing monthly energy expenses. It’s a long-term hedge against rising electricity costs.
Price of Energy: Pennsylvania vs National Average
Pennsylvania Area Utility Providers
Pennsylvania residents work with seven major utility companies, each charging different rates. As of 2023, most PA utilities charge above the national average of 16.0¢ per kWh, with the state average reaching 18.10¢ per kWh.
Duquesne Light leads at 22.1¢ per kWh—38% above the national average—while PPL and Penelec also exceed state averages. West Penn Power offers the lowest rate at 14.7¢ per kWh. These variations reflect infrastructure costs, energy sourcing, and regional demand patterns across Pennsylvania.
Higher electricity rates mean your monthly bills add up quickly over time. Solar panels allow you to generate your own power at a predictable cost, helping shield your household from future utility rate increases while reducing your reliance on the grid.
Pennsylvania Utilities Electricity Rates
Pennsylvania Solar Incentives
Pennsylvania homeowners have access to valuable solar incentives in Pennsylvania that help reduce the upfront and ongoing costs of going solar.
The state offers Solar Renewable Energy Credits (SRECs), which provide ongoing income as your system generates clean energy. Pennsylvania also requires net metering, allowing you to earn bill credits when your panels produce more electricity than you use.
These programs change over time, so it’s worth researching current rates and availability. Acting sooner rather than later helps you maximize your savings.
| Incentive | Type | Description | Source |
|---|---|---|---|
| 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 |
Pennsylvania’s Solar Renewable Energy Credit (SREC) program allows solar panel owners to earn money for the clean electricity their system produces. For every 1,000 kilowatt-hours (kWh) of solar electricity you generate, you earn one SREC that can be sold on the open market. An average Pennsylvania home solar system produces about 10 SRECs per year. As of August 2025, each SREC sells for approximately $25-26, which means you could earn around $250-260 annually from your solar system’s electricity production.
To participate, you must own your solar panel system (not lease it) and register with the Pennsylvania Public Utility Commission’s Alternative Energy Credit Program. Once approved, you’ll be registered on the Generation Attribute Tracking System (GATS) trading platform where you can sell your credits. SRECs have a three-year useful life, meaning a credit earned in 2025 can be sold anytime through 2027. Palmetto partners with SRECTrade to help customers sell their SRECs, offering options to either lock in a set rate for 3-5 years or sell at current market value as each credit is generated.
Keep in mind that SREC prices fluctuate based on market supply and demand, similar to electricity rates. Pennsylvania SRECs can only be earned from solar systems installed and operating within Pennsylvania, though they are also eligible for sale in Ohio. This program helps Pennsylvania meet its renewable energy goals while providing solar homeowners with an additional income stream that improves their return on investment.
Net metering in Pennsylvania allows homeowners with solar panels to receive credit for excess electricity their system produces and sends back to the grid. When your solar panels generate more power than your home uses, your electric meter essentially runs backward, crediting your account on a kilowatt-hour (kWh) basis. All major Pennsylvania utilities offer 1:1 net metering, meaning you receive a full credit for each kWh of excess solar energy at the same rate you pay for electricity from the grid.
The financial benefit varies by utility company, with excess credits valued between 8-12 cents per kWh depending on your provider. For example, PECO credits excess generation at approximately 8-9 cents/kWh, while PPL Electric Utilities offers around 10-12 cents/kWh. Any unused credits automatically roll over from month to month throughout the year, allowing you to build up credits during sunny summer months to offset usage during winter. However, it’s important to note that most Pennsylvania utilities conduct an annual “true-up” in May or June, where any remaining excess credits are paid out at the Price to Compare rate and your account resets to zero.
Net metering is available to residential solar customers across Pennsylvania, though specific program details and credit rates depend on your local utility provider—including PECO, Duquesne Light, West Penn Power, Penn Power, PPL Electric Utilities, Metropolitan Edison, and Pennsylvania Electric. There are no application deadlines, as this is an ongoing program required by Pennsylvania law. To maximize your benefit, consider sizing your solar system to match your annual electricity consumption rather than overproducing, since excess credits are settled annually at wholesale rates rather than being carried forward indefinitely.
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 four distinct seasons create varying solar production throughout the year. Winter’s shorter days and snow reduce output, while summer delivers peak performance. Despite cloudy stereotypes, Pennsylvania remains excellent for solar.
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 Pennsylvania to help you explore the clean energy movement in your area. Click any hexagon to see how many neighbors in that community have already made the switch to solar power.
Leasing Solar Panels
Pennsylvania homeowners have flexible options for going solar beyond traditional cash purchases. Palmetto offers Power Purchase Agreements (PPAs) across all major utility territories in the state—including PECO, Duquesne Light, West Penn Power, Penn Power, PPL Electric Utilities, Metropolitan Edison, and Pennsylvania Electric.
With a PPA, you pay only for the electricity your panels generate at a set rate per kilowatt-hour, rather than paying upfront for the system. This means no large initial investment, and Palmetto handles all installation, maintenance, and repairs at no cost to you. Through our LightReach program, you get premium solar panels, comprehensive project management, and a 90% production guarantee—all with predictable monthly costs and zero maintenance responsibilities.
The main advantage over cash purchases is simplicity. You avoid the upfront cost and ongoing maintenance while still reducing your energy bills from day one. Palmetto owns and maintains the system, so you can enjoy clean energy without the complexity 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 strong financial sense in Pennsylvania. The state offers solid sun exposure with 4.8 peak sun hours daily, plus electricity rates jumped 29% from 2021 to 2024—faster than the national average.
Pennsylvania homeowners benefit from Solar Renewable Energy Credits (SRECs) that generate ongoing income, plus net metering that credits excess power at retail rates. The average system costs $21,966 and can save approximately $69,000 over 25 years with a payback period around 10 years.
Yes, Pennsylvania has net metering across all major utility companies. All seven utilities—PECO, Duquesne Light, West Penn Power, Penn Power, PPL Electric, Metropolitan Edison, and Pennsylvania Electric—offer 1:1 net metering, meaning you receive full retail rate credit for excess solar energy sent to the grid.
Excess credits roll over month-to-month throughout the year. However, most Pennsylvania utilities conduct an annual “true-up” in May or June, where remaining credits are paid out at 8-12 cents per kWh (depending on your utility) and your account resets to zero.
Yes, solar panels typically increase home value in Pennsylvania. Research from Zillow shows that homes with solar panels sell for about 4.1% more than comparable homes without solar.
For Pennsylvania’s median home price, this translates to roughly $10,000-15,000 in added value. Owned solar systems provide the most benefit, while leased systems may have less impact on resale value since the new owner must assume the lease agreement.
The average Pennsylvania solar system costs $21,966 for a 7.79 kW system, which works out to about $2.82 per watt. This is based on actual installation data from Pennsylvania homeowners.
Your final cost depends on your home’s energy needs, roof size, and system design. Most homeowners see a payback period of around 10 years, with total savings of approximately $69,000 over 25 years.
For most Pennsylvania homeowners, yes. The average system costs $21,966 and saves approximately $69,000 over 25 years—a 10-year payback period. With electricity rates rising 29% from 2021-2024, solar locks in predictable energy costs.
Pennsylvania’s SREC program adds $200-400 annually in income, while net metering credits excess production at retail rates. Your specific savings depend on your energy usage, roof characteristics, and utility provider.
We’ve completed over 2,100 solar installations across Pennsylvania since 2020, serving homeowners from Philadelphia to Pittsburgh. Our national reach gives us access to competitive financing options, while our local installation partners ensure quality service in your community.
We offer flexible payment options including cash purchases and Power Purchase Agreements (PPAs), plus we handle everything from permitting to activation. Every system comes with comprehensive warranties and ongoing support to protect your investment.