Summary of Pennsylvania solar incentives 2021
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!
On this page, you can:
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Learn what solar incentives are available to Pennsylvania homeowners
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See what Pennsylvania solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Pennsylvania solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Pennsylvania
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% 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 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
Net energy metering in Pennsylvania
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!
Pennsylvania solar rebates
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.
Pennsylvania SREC program
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!
Cost of solar panels in your part of Pennsylvania after all applicable solar incentives
Showing data for:
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Prices based on a 9.2kW system, after 26% federal tax credit
Solar prices near you
Payback period
7.8-9.5 years
Net profit (savings less system cost)
$33,308-$40,710
Average size system installed in PA in 2021
9.2kW
Solar panel cost calculator
Best 10 solar companies in Pennsylvania
66 solar companies in Pennsylvania provide pricing on SolarReviews. Here are the best rated companies near you.
4.91 94 Reviews
Latest review
Bob G, 1 week ago
Very helpful, and patient, through the whole process Alex T is great!). I considered several solar companies, and Lumina did the best job explaining the options and what they could do to best fit my needs/wants, and had a fair price... best value. Their installers did an awesome job, got it installed quickly. And Lumina has been there to answer all my follow-up questions quickly and completely. Highly, highly recommend them. 5+ stars.
Read more
Latest review
Bob G, 1 week ago
Very helpful, and patient, through the whole process Alex T is great!). I considered several solar companies, and Lumina did the best job explaining the options and what they could do to best fit my needs/wants, and had a fair price... best value. Their installers did an awesome job, got it installed quickly. And Lumina has been there to answer all my follow-up questions quickly and completely. Highly, highly recommend them. 5+ stars.
4.84 108 Reviews
Latest review
Alan Silverblatt, over 1 month
Exact Solar installed our solar panel system, we've been extremely pleased with them. They were very nice to deal with, and got the job done when they said they would. What's been even better is the ongoing customer service. They have always been very prompt in responding to my phone calls and emails, and have been cheerful, helpful and proactive in resolving my issues and questions.
Read more
Average cost (5kW system)
$12,400 ($2.48 per watt)
Latest review
Alan Silverblatt, over 1 month
Exact Solar installed our solar panel system, we've been extremely pleased with them. They were very nice to deal with, and got the job done when they said they would. What's been even better is the ongoing customer service. They have always been very prompt in responding to my phone calls and emails, and have been cheerful, helpful and proactive in resolving my issues and questions.
4.81 49 Reviews
Latest review
Extremely satisfied. Everyone wa, 1 week ago
Extremely satisfied. Everyone was extremely professional and personable. Quick responses whenever I had questions.
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Extremely satisfied. Everyone wa, 1 week ago
Extremely satisfied. Everyone was extremely professional and personable. Quick responses whenever I had questions.
4.75 66 Reviews
Latest review
Becky, 3 weeks ago
Great reviews and they earned them!
Read more
Average cost (5kW system)
$23,200 ($4.64 per watt)
Latest review
Becky, 3 weeks ago
Great reviews and they earned them!
4.71 35 Reviews
Latest review
Thomas, over 1 month
I was looking for a local company that had a well established customer base for reliable support of the 25 year, SunPower warranty. That company was SavKat Solar, following an internet conference with their representative, Ben.
Read more
Latest review
Thomas, over 1 month
I was looking for a local company that had a well established customer base for reliable support of the 25 year, SunPower warranty. That company was SavKat Solar, following an internet conference with their representative, Ben.
4.63 59 Reviews
Latest review
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.
Read more
Latest review
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.
4.61 35 Reviews
Latest review
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 />
Read more
Average cost (5kW system)
$30,950 ($6.19 per watt)
Latest review
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 14 Reviews
Latest review
RSH, over 1 month
I inquired multiple solar installation contractors, small & big, local & national. After reviewing all the proposals and comparing the equipments, the services and the warranty they offer, I finalized with Public Service Solar. I was initially skeptical, so I researched further to do my due diligence. Overall, I got a good feeling. Along with solar installation, I also got my roof installed with them. They gave a great combo offer. While reviewing the contract, they took time to explain all that would be done in their job. They followed through their time-line. They did a great job for roof and solar installation. No project is without any issue, so when there was a minor issue (my personal Wi-Fi signal was not strong enough to connect to Enphase system) during the process, Tony and his team were fully willing to resolve the issue and they provided Wi-Fi range extender at no cost. Even after the system is turned on, they are still equally supportive and responsive. Especially Sean, he is very prompt to get back and to address all valid and invalid concerns. They completely lived up to my expectation, so I recommended them to some of my friends and would continue recommending others.
Read more
Latest review
RSH, over 1 month
I inquired multiple solar installation contractors, small & big, local & national. After reviewing all the proposals and comparing the equipments, the services and the warranty they offer, I finalized with Public Service Solar. I was initially skeptical, so I researched further to do my due diligence. Overall, I got a good feeling. Along with solar installation, I also got my roof installed with them. They gave a great combo offer. While reviewing the contract, they took time to explain all that would be done in their job. They followed through their time-line. They did a great job for roof and solar installation. No project is without any issue, so when there was a minor issue (my personal Wi-Fi signal was not strong enough to connect to Enphase system) during the process, Tony and his team were fully willing to resolve the issue and they provided Wi-Fi range extender at no cost. Even after the system is turned on, they are still equally supportive and responsive. Especially Sean, he is very prompt to get back and to address all valid and invalid concerns. They completely lived up to my expectation, so I recommended them to some of my friends and would continue recommending others.
4.59 21 Reviews
Latest review
Ray Glennon, over 1 month
I had used KRES contractors for several household projects prior to this one. I have found them to be extremely professional, and competent. I would not hesitate to recommend this firm to a prospective customer.<br />
Read more
Latest review
Ray Glennon, over 1 month
I had used KRES contractors for several household projects prior to this one. I have found them to be extremely professional, and competent. I would not hesitate to recommend this firm to a prospective customer.<br />
4.58 22 Reviews
Latest review
Eric, 6 days ago
It has been 11 months since the TerraSol team installed our solar system. To start, it is my opinion that the product Sunpower offers is the best overall package when it comes to solar both in components and warranty. To use Sunpower and have their warranty you have to go through one of their dealers. TerraSol is the dealer for the Greater Philadelphia area, and boy are we lucky! Rob is a pleasure to work with, and the entire team are true professionals. They treat you like family, and maybe that is because they are a family. Courtesy, respect, great quality work, great communication, people you can trust, thats is what comes to mind when I think back on my experience working with them. I wish they did more home related projects, as I would welcome them into my home any time.
Read more
Average cost (5kW system)
$25,900 ($5.18 per watt)
Latest review
Eric, 6 days ago
It has been 11 months since the TerraSol team installed our solar system. To start, it is my opinion that the product Sunpower offers is the best overall package when it comes to solar both in components and warranty. To use Sunpower and have their warranty you have to go through one of their dealers. TerraSol is the dealer for the Greater Philadelphia area, and boy are we lucky! Rob is a pleasure to work with, and the entire team are true professionals. They treat you like family, and maybe that is because they are a family. Courtesy, respect, great quality work, great communication, people you can trust, thats is what comes to mind when I think back on my experience working with them. I wish they did more home related projects, as I would welcome them into my home any time.
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