Solar Guide
In This Guide
Solar in Philadelphia
Philadelphia homeowners are discovering solar power as electricity prices surge 31% since 2020. With Pennsylvania ranking 13th for residential solar installations, more residents are choosing clean energy.
Whether you’re exploring solar panel installation for the first time or ready to make the switch, understanding your options helps you make the best decision for your Philadelphia home.
PENNSYLVANIA by the Numbers
Key Takeaways
- Philadelphia solar systems save homeowners an average of $69,000 over 25 years with current electricity rates.
- Pennsylvania offers federal tax credits worth 30% plus Solar Renewable Energy Credits for ongoing savings.
- Net metering allows Philadelphia homeowners to earn credits for excess solar energy sent to the grid.
Solar Cost Calculator
Our Philadelphia solar cost calculator uses real installation data from homes across the region, including Bensalem, King of Prussia, and Chester. Get personalized estimates based on actual local projects in your area.
System
Cost
Savings
Philadelphia Electricity Prices
Philadelphia electricity costs have climbed significantly, making solar an increasingly smart choice for local homeowners seeking energy independence.
Pennsylvania electricity rates jumped from 13.8 cents per kWh in 2021 to 18.1 cents in 2023, outpacing national averages consistently.
Solar panels generate your own electricity, protecting Philadelphia homeowners from these rising utility costs while reducing monthly energy bills.
Over 25 years, solar systems can save thousands of dollars while providing predictable energy costs regardless of future utility rate increases.
Price of Energy: Pennsylvania vs National Average
Philadelphia Area Utility Providers
Philadelphia residents primarily receive electricity from two major utilities: PECO at 16.2¢ per kWh and PPL at 19.5¢ per kWh based on 2023 data.
PECO’s rates sit slightly above the 2023 national average of 16.0¢, while PPL exceeds both national and Pennsylvania’s state average of 18.10¢ per kWh.
With electricity costs consistently rising, solar panels can help Philadelphia homeowners reduce their dependence on utility rates and gain more control over energy expenses.
Philadelphia Utilities Electricity Rates
Pennsylvania Solar Incentives
Philadelphia solar installation comes with valuable solar incentives in Pennsylvania that help reduce your upfront costs.
Federal tax credits and Pennsylvania state programs work together to make solar more affordable. These incentives include earning credits for excess energy and generating renewable energy certificates.
Incentive programs change regularly, so research current offerings carefully. Acting promptly helps you secure available benefits for your home.
$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 means a typical Pennsylvania home solar system generates about 10 SRECs per year, providing an ongoing income stream from your solar investment.
As of January 2025, each SREC sells for approximately $31.25, though prices fluctuate based on market conditions. SRECs have a three-year lifespan, so you can choose when to sell them within that window to maximize value. 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. Pennsylvania SRECs can also be sold in Ohio, expanding your market opportunities.
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 utility bill – meaning you get full retail value for every kilowatt-hour (kWh) you contribute. This credit system works across 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 roll over throughout the year, then get settled at a “true-up” period – usually in May or June depending on your utility. At true-up, any remaining credits are paid out at the Price to Compare rate (your utility’s wholesale electricity cost), and your account resets to zero. This means you can bank solar credits during sunny months and use them during times when your system produces less energy, maximizing your solar investment’s value year-round.
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 four distinct seasons and moderate sun exposure create unique solar conditions. Despite cloudy winters, proper system design maximizes year-round energy production effectively.
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 Installations in Philadelphia
We’ve mapped every solar installation across America to show you something exciting: your Philadelphia neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar power.
Leasing Solar Panels
For Philadelphia homeowners served by PECO and other Pennsylvania utilities, Palmetto offers Power Purchase Agreement (PPA) options to make solar accessible without large upfront costs. With a PPA, you pay only for the electricity your solar panels generate at a fixed rate per kilowatt-hour, typically lower than your current utility rate.
Unlike purchasing a system outright, a PPA eliminates the need for system maintenance, repairs, or performance monitoring – Palmetto handles all of that for you. This means you can start saving on electricity immediately while avoiding the responsibilities and costs that come with system ownership. Learn more about solar financing options to find the best fit for your situation.
Ready to explore solar without the investment? Discover LightReach, our comprehensive solar solution that combines the benefits of solar energy with professional maintenance and support, making clean energy simple and worry-free for Philadelphia homeowners.
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 excellent sense in Philadelphia. With electricity rates rising 31% since 2020 and averaging 17.8¢ per kWh, solar panels provide significant long-term savings for Philadelphia homeowners.
A typical Philadelphia solar system saves homeowners an average of $69,000 over 25 years while taking advantage of federal tax credits worth 30% of system costs plus Pennsylvania’s Solar Renewable Energy Credits program.
Yes, Philadelphia has net metering. Pennsylvania utilities including PECO and PPL offer 1:1 net metering, meaning you receive full retail credit for excess solar energy sent to the grid.
Credits roll over monthly and are settled annually during May or June true-up periods. Excess credits are paid out at wholesale rates (8-12 cents per kWh) before your account resets to zero.
Yes, solar panels increase home value in Philadelphia, PA. A Zillow study shows solar panels increase home value by 4.1%, meaning a $300,000 Philadelphia home could see a $12,300 value increase.
Solar panels are viewed as premium home improvements that reduce energy costs and appeal to environmentally conscious buyers. The investment in solar typically pays for itself through both monthly savings and increased resale value.
Solar costs in Philadelphia range from $11,774 to $20,190 after federal tax credits, depending on your home size and energy needs. A typical medium-sized home requires a 7.79 kW system costing $15,376 after the 30% federal tax credit.
System prices include equipment, installation, and permits. Pennsylvania’s Solar Renewable Energy Credits provide additional ongoing savings of $200-400 annually, making solar increasingly affordable for Philadelphia homeowners.
Yes, solar is financially worth it in Philadelphia. With electricity rates at 17.8¢ per kWh and rising 31% since 2020, a typical solar system saves homeowners $69,000 over 25 years with a 7.3-year payback period.
Federal tax credits reduce upfront costs by 30%, while Pennsylvania’s Solar Renewable Energy Credits provide ongoing income of $200-400 annually. Net metering allows you to earn full retail credits for excess energy production.
We believe Palmetto Solar is the best choice for Philadelphia solar installation. As a national company with local expertise, we’ve completed 2,131 installations across Pennsylvania since 2020, building deep knowledge of local conditions and regulations.
Our comprehensive approach includes some of the industry’s best financing options and a trusted installation network. We focus on making solar accessible and straightforward for Philadelphia homeowners, handling everything from permits to interconnection with local utilities like PECO and PPL.