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. That 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 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% at the end of 2032.
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 50kW in capacity. If you produce more energy than you consume the surplus is carried over to your next bill at the full retail rate.
If you run a surplus for a full year (measured June 1 – May 31), your utility will cut you a check for all of it at the “price-to-compare” rate, which includes the generation and transmission components, but excludes the distribution component charges of your electric bill. While a check at the full retail rate would be even better, the majority of states do not require the utility to cut you that year-end check at all, so kudos to Pennsylvania on this one, regardless of the slightly reduced rate.
More recently, Pennsylvania has been exploring an expansion to net metering that would allow systems sized to produce up to 200% of the owner's usage. At a time when other states are restricting or eliminating net metering this is great news!
While Pennsylvania does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.
If you’re lucky enough to live in Philadelphia, you can get a $200 per kW rebate for your home solar system now until the end of 2024. On an average sized 6kW 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.
Aside from this incentive, there hasn't been much movement from the Pennsylvania 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 cash back 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 a special invisible renewable energy certificate, called an SREC. Utility companies can purchase them from you to claim they are hitting their renewable energy targets. The more certificates they 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 $24 apiece.
Your solar panel system creates an SREC each time you generate a megawatt-hour (MWh) of electricity. An average 6kW 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 $200 a year in income. Not a windfall, but still nice.
If Pennsylvania SB600 passes however, that would increase the utility solar energy sourcing requirement from .5% to a much more hefty 10%. If that bill becomes law, you can expect SREC prices here to climb much higher!
Showing data for:
Prices based on a 9.2kW system, after 30% federal tax credit
73 solar companies in Pennsylvania provide pricing on SolarReviews. Here are the best rated companies near you.
4.91 254 Reviews
Dan M, 1 day ago
We had a great experience from sale through installation. Our representative, Philip, was very professional and easy to work with. He allowed us to move at our own pace with no pressure. Answered all our questions as they came up. Installation went very smooth, the workers were quick, professional and did a wonderful job. Very good experience with Lumina!
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Dan M, 1 day ago
We had a great experience from sale through installation. Our representative, Philip, was very professional and easy to work with. He allowed us to move at our own pace with no pressure. Answered all our questions as they came up. Installation went very smooth, the workers were quick, professional and did a wonderful job. Very good experience with Lumina!
4.87 405 Reviews
Kelley Reynolds, 1 week ago
Our experience to date with Solar Energy World has been excellent. They have helped arrange for the entire process of putting solar on our roof--purchase, installation, inspection, and financing. They have responded punctually, transparently, and clearly to all our queries and have deftly stewarded the entire process. We are excited to have solar in our house and reduce our carbon footprint!
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Kelley Reynolds, 1 week ago
Our experience to date with Solar Energy World has been excellent. They have helped arrange for the entire process of putting solar on our roof--purchase, installation, inspection, and financing. They have responded punctually, transparently, and clearly to all our queries and have deftly stewarded the entire process. We are excited to have solar in our house and reduce our carbon footprint!
4.84 85 Reviews
Jim, 1 week ago
We just had a solar system installed at our home by Paradise and are completely satisfied. Everyone we worked with was excellent and extremely helpful. Sheldon gave us all the information we needed to make an informed decision without even a hint of pressure. Matt guided us thru the actual installation process and never seemed to mind my numerous questions. Eric and his crew did a great job on the install despite the excessive heat wave. They were very neat and kept me informed during the process. Permitting was handled by Paradise and I just needed to sign the paperwork. I would recommend them to anyone looking to have solar installed. Thank you all.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Jim, 1 week ago
We just had a solar system installed at our home by Paradise and are completely satisfied. Everyone we worked with was excellent and extremely helpful. Sheldon gave us all the information we needed to make an informed decision without even a hint of pressure. Matt guided us thru the actual installation process and never seemed to mind my numerous questions. Eric and his crew did a great job on the install despite the excessive heat wave. They were very neat and kept me informed during the process. Permitting was handled by Paradise and I just needed to sign the paperwork. I would recommend them to anyone looking to have solar installed. Thank you all.
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!
4.79 45 Reviews
Bill, 2 weeks ago
Throughout the entire process from quoting to project closure the team at TerraSol was amazing. Rob and Rasha were very thorough, professional, and quick to respond to any questions I had. The installation team was very efficient and had the panels installed in less than a day. The only issue we had was with the new bidirectional meter install by PECO due to leftover supply chain issues related to the pandemic, which had nothing to do with TerraSol, but even then they were in constant contact with PECO and provided me regular status updates until my new meter was installed. If you are looking for a friendly top notch professional team for your solar panel quote look no further.
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Average cost (5kW system)
$25,900 ($5.18 per watt)
Bill, 2 weeks ago
Throughout the entire process from quoting to project closure the team at TerraSol was amazing. Rob and Rasha were very thorough, professional, and quick to respond to any questions I had. The installation team was very efficient and had the panels installed in less than a day. The only issue we had was with the new bidirectional meter install by PECO due to leftover supply chain issues related to the pandemic, which had nothing to do with TerraSol, but even then they were in constant contact with PECO and provided me regular status updates until my new meter was installed. If you are looking for a friendly top notch professional team for your solar panel quote look no further.
4.76 72 Reviews
David Loew, over 1 month
Evoke Solar, Inc is a truly professional company yet gives you that home town touch. Very knowledgeable, informative, friendly, and helpful. Their product is top notch and hard to beat.
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Average cost (5kW system)
$23,200 ($4.64 per watt)
David Loew, over 1 month
Evoke Solar, Inc is a truly professional company yet gives you that home town touch. Very knowledgeable, informative, friendly, and helpful. Their product is top notch and hard to beat.
4.63 59 Reviews
Pat, over 1 month
We had solar panels put on our house and decided on EIS because of our initial contact with Ian. Their works crews were very professional and reliable. I appreciated all of the education that they provided to us. I highly recommend them.
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Pat, over 1 month
We had solar panels put on our house and decided on EIS because of our initial contact with Ian. Their works crews were very professional and reliable. I appreciated all of the education that they provided to us. I highly recommend them.
4.63 39 Reviews
Irene, over 1 month
SAVKAT is a phenomenal company, phenomenal personnel, and phenomenal products and solar panels! I am so thrilled to be a SAVKAT customer, and give my highest recommendations to everybody I know to get on board with solar power, SunPower, and SAVKAT!
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Irene, over 1 month
SAVKAT is a phenomenal company, phenomenal personnel, and phenomenal products and solar panels! I am so thrilled to be a SAVKAT customer, and give my highest recommendations to everybody I know to get on board with solar power, SunPower, and SAVKAT!
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 />
4.61 40 Reviews
Folmer, over 1 month
Solar Consultant Dan Degler did an excellent job in explaining the Bright Eye Solar System. We were pleased with the courtesy and efficiency of the work crew who installed the system. We also appreciated the prompt replies to questions from all staff members.We would recommend this company.
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Average cost (5kW system)
$12,000 ($2.40 per watt)
Folmer, over 1 month
Solar Consultant Dan Degler did an excellent job in explaining the Bright Eye Solar System. We were pleased with the courtesy and efficiency of the work crew who installed the system. We also appreciated the prompt replies to questions from all staff members.We would recommend this company.