There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Pennsylvania has had an up-and-down solar incentives picture for over the past decade. The state currently has a strong net metering policy, which is good for you as a prospective solar panel homeowner. That means you get credited at near retail rate electric prices for the solar power you create but can’t use!
Also, if you’re lucky enough to live in Philadelphia, you can access new $200-per-kilowatt home solar rebates. Philly plays host to 10% of the state’s population, so the rebates have a chance to make a real impact in the lives of people who want to go solar.
There is another strong incentive pending in the form of a requirement for utilities to ramp up their harvest of clean energy from sources like your rooftop, which may lead to higher renewable energy certificate (SREC) prices. You can sell those SRECs your panels produce every year, so read on!
Learn what solar incentives are available to Pennsylvania homeowners
See what Pennsylvania solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Pennsylvania solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Pennsylvania
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume and make sure you get credit for the surplus.
Since 2008, Pennsylvania law has required all investor-owned utilities to offer net metering to all residential customers with solar power systems up to 50 kW in capacity. If you produce more energy than you consume, the surplus is carried over to your next bill at the full retail rate. Net metering gives Pennsylvanian's the opportunity to save big on their electricity bills!
Aside from the federal solar tax credit, there aren't a ton of solar incentives available in Pennsylvania. And there hasn't been much movement from the state legislature on getting more rebates for needy homeowners. The good news is that solar has fallen an additional 60% (and counting) in price over the last 10 years, so even without cashback from utilities, you can be sure you're getting a sweet deal on your shiny new solar panel system.
In addition to making electricity, your home solar panels generate something called a solar renewable energy certificate, or SREC for short. Utility companies can purchase them from you to claim they are hitting their renewable energy targets. The more certificates utilities acquire, the less risk they have of missing the mark.
Currently, state lawmakers require utilities in Pennsylvania to source 0.5% of their electricity from solar power. Therefore, they are willing to pay a small amount to access your SRECs, so they aren’t hit with fees from the state. SRECs are currently selling for about $45 apiece.
Your solar panel system creates an SREC each time you generate a megawatt-hour (MWh) of electricity. An average 6 kW solar system in Pennsylvania makes about 8 MWhs a year, so that’s roughly 8 SRECs. Multiply that by current SREC prices and you can potentially net an extra $360 a year in income. Not a windfall, but still nice.
If you’re lucky enough to live in Philadelphia, you can get a $200 per kW rebate for your home solar system from now until the end of 2024. On an average-sized 6 kW system, you can claim $1,200. However, there are only $500,000 in funds available every year. That means these funds are only going to provide relief to about 500 residences annually.
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Prices based on a 9.2kW system, after 30% federal tax credit
76 solar companies in Pennsylvania provide pricing on SolarReviews. Here are the best rated companies near you.
4.90 305 Reviews
Justin, 1 week ago
Lumina did a good job at providing the service recommended. They talked us through our concerns and put our minds at ease. I felt comfortable trusting them with the numbers and managing the mechanics of the installation. Ultimately, we installed solar panels and have a much more efficient running house. In addition, the software allows me to view how much energy we spend and produce. The installation went smoothly, and they did a very thorough job. However, there were times when communication was lacking, and our sales rep embodied professionalism to maintain the company's appearance instead of showing us authenticity and truthful responses. Overall this was a great experience where they delivered excellent customer service and the requested product while making accommodations for our situation.
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Justin, 1 week ago
Lumina did a good job at providing the service recommended. They talked us through our concerns and put our minds at ease. I felt comfortable trusting them with the numbers and managing the mechanics of the installation. Ultimately, we installed solar panels and have a much more efficient running house. In addition, the software allows me to view how much energy we spend and produce. The installation went smoothly, and they did a very thorough job. However, there were times when communication was lacking, and our sales rep embodied professionalism to maintain the company's appearance instead of showing us authenticity and truthful responses. Overall this was a great experience where they delivered excellent customer service and the requested product while making accommodations for our situation.
4.88 482 Reviews
Kevin Nance, 4 days ago
The Field Energy Advisor, Greg Uhas was nothing less than excellent. Very informative, always available for any questions, and should top notch customer service. The installation process was smooth, they showed up on time, and cleaned up well after the installation was complete. I would highly recommend Solar Energy World if you are on the market for solar energy for your home. Thanks all involved in the process.
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Kevin Nance, 4 days ago
The Field Energy Advisor, Greg Uhas was nothing less than excellent. Very informative, always available for any questions, and should top notch customer service. The installation process was smooth, they showed up on time, and cleaned up well after the installation was complete. I would highly recommend Solar Energy World if you are on the market for solar energy for your home. Thanks all involved in the process.
4.84 62 Reviews
J Murphy, 2 weeks ago
System has been installed since Feb 2023 (21.75KW) Sales Process- Rob was both knowledgeable and easy to communicate with from the start until today. Planned for future EV in the design. Value- competitively priced Office Staff- very good communication with Rasha all along the way. She is on top of her game! Handled the permitting, inspections, interconnection app, SREC app. Seemless! Timing- They delivered on time, even with supply chain issues Field install- Install took two days. Guys were efficient, answered any questions, cleaned up and they were gone. Great experience. Interconnection with PECO- no issues, Terrasol handled it Sunpower App- Easy and fun to use and see power being produced, by the hour, day, week, month, year etc.
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Average cost (5kW system)
$25,900 ($5.18 per watt)
J Murphy, 2 weeks ago
System has been installed since Feb 2023 (21.75KW) Sales Process- Rob was both knowledgeable and easy to communicate with from the start until today. Planned for future EV in the design. Value- competitively priced Office Staff- very good communication with Rasha all along the way. She is on top of her game! Handled the permitting, inspections, interconnection app, SREC app. Seemless! Timing- They delivered on time, even with supply chain issues Field install- Install took two days. Guys were efficient, answered any questions, cleaned up and they were gone. Great experience. Interconnection with PECO- no issues, Terrasol handled it Sunpower App- Easy and fun to use and see power being produced, by the hour, day, week, month, year etc.
4.84 114 Reviews
Charles L., over 1 month
I started working with Exact Solar in June 2021. They were consistently responsive and very helpful in all aspects of the design and permitting part of the process. Once the necessary approval and supply issues were taken care of, the installation itself was completed quickly and professionally, with the system going online in December/January. Exact Solar was also very helpful with setting up net metering and SREC accounts. I highly recommend their services!
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Average cost (5kW system)
$12,400 ($2.48 per watt)
Charles L., over 1 month
I started working with Exact Solar in June 2021. They were consistently responsive and very helpful in all aspects of the design and permitting part of the process. Once the necessary approval and supply issues were taken care of, the installation itself was completed quickly and professionally, with the system going online in December/January. Exact Solar was also very helpful with setting up net metering and SREC accounts. I highly recommend their services!
4.83 93 Reviews
Jeb Heller, 1 week ago
From our first interaction with them to the last they were always friendly, informative and helpful. There was no pressure from our first meeting to go with them which was really nice. Every step of the way and every interaction was positive. They are an amazing company and I would 100% recommend them to anyone. We absolutely love the system and running our entire house on the sun is so cool. Thank you Paradise Energy Solutions!
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Jeb Heller, 1 week ago
From our first interaction with them to the last they were always friendly, informative and helpful. There was no pressure from our first meeting to go with them which was really nice. Every step of the way and every interaction was positive. They are an amazing company and I would 100% recommend them to anyone. We absolutely love the system and running our entire house on the sun is so cool. Thank you Paradise Energy Solutions!
4.75 77 Reviews
Mike L, 3 days ago
Excellent experience with personnel that were obviously experts in residential solar installation. Great value and return on investment! Can’t imagine anyone doing a better job.
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Average cost (5kW system)
$23,200 ($4.64 per watt)
Mike L, 3 days ago
Excellent experience with personnel that were obviously experts in residential solar installation. Great value and return on investment! Can’t imagine anyone doing a better job.
4.64 406 Reviews
Holiday Jake, 2 days ago
Venture Solar had done an excellent job
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Holiday Jake, 2 days ago
Venture Solar had done an excellent job
4.64 60 Reviews
Jared Fretz, over 1 month
I had a solar project installed in December of 2021. I wanted to wait to see how the system performed before leaving a review. It's now September and I haven't had an electric bill since March. In fact, my energy use has been in the negative. We produce more than we use. I love it! In addition, the monthly loan payment is at or around what my electric bill was. It's a total win. Everyone we had contact with in the company were very friendly, professional and knowledgeable. My wish is that I had done this sooner.
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Jared Fretz, over 1 month
I had a solar project installed in December of 2021. I wanted to wait to see how the system performed before leaving a review. It's now September and I haven't had an electric bill since March. In fact, my energy use has been in the negative. We produce more than we use. I love it! In addition, the monthly loan payment is at or around what my electric bill was. It's a total win. Everyone we had contact with in the company were very friendly, professional and knowledgeable. My wish is that I had done this sooner.
4.63 42 Reviews
Fypackaratta, 2 weeks ago
Working with Jordan at Savkat was wonderful. He lays everything out no-nonsense and is very responsive. One year in and system is working flawlessly and the output is 10% over expectations! Highly recommend!
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Fypackaratta, 2 weeks ago
Working with Jordan at Savkat was wonderful. He lays everything out no-nonsense and is very responsive. One year in and system is working flawlessly and the output is 10% over expectations! Highly recommend!
4.61 35 Reviews
Jim Morano, over 1 month
Charlie, Catherine and the office staff were very responsive to my every call and question. Their installation crew and subcontractors did their jobs on time and very professionally.<br />
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Average cost (5kW system)
$30,950 ($6.19 per watt)
Jim Morano, over 1 month
Charlie, Catherine and the office staff were very responsive to my every call and question. Their installation crew and subcontractors did their jobs on time and very professionally.<br />