Summary of Pennsylvania solar incentives 2020
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 in 2020.
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% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 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 2020
9.2kW
Solar panel cost calculator
Best 10 solar companies in Pennsylvania
50 solar companies in Pennsylvania provide pricing on SolarReviews. Here are the best rated companies near you.
4.89 74 Reviews
Latest review
Eric, 1 day ago
I spent months researching Solar companies before deciding on Lumina and I couldn't be more pleased. They were honest, efficient and the installation is excellent, both in how it works and the aesthetics. I own a historic home and Lumina took great care to hide every conduit and wire from sight. They have been equally helpful with the process to file for all the grants and tax incentives coming my way. Everyone was friendly, respectful and eager to answer my many questions. Shane was our sales and point person, and is more responsive over text and email than many of my colleagues at work. Everyone else from the engineers to the installers and the electricians were top notch. I am happy to recommend Lumina for anyone starting their solar journey.
Read more
Latest review
Eric, 1 day ago
I spent months researching Solar companies before deciding on Lumina and I couldn't be more pleased. They were honest, efficient and the installation is excellent, both in how it works and the aesthetics. I own a historic home and Lumina took great care to hide every conduit and wire from sight. They have been equally helpful with the process to file for all the grants and tax incentives coming my way. Everyone was friendly, respectful and eager to answer my many questions. Shane was our sales and point person, and is more responsive over text and email than many of my colleagues at work. Everyone else from the engineers to the installers and the electricians were top notch. I am happy to recommend Lumina for anyone starting their solar journey.
4.84 107 Reviews
Latest review
Josh B, over 1 month
I am very happy we chose Exact Solar for our solar installation. I got several quotes (several via EnergySage). I ultimately chose Exact Solar primarily because of their reputation, especially after I spoke with several people who used Exact Solar for their solar installation. Choosing the right installer is about getting the installation done right and having the same high level of service after the installation is complete. This is why I chose Exact Solar. It's somewhat analogous to buying a car where you're required to service the vehicle at the dealership where you bought it. You should be really happy with the dealership. The entire process of quote, contract signing, scheduling and install was smooth and professional. The installation team was great. On the second morning of the install, my car battery was dead and the guys gave me a jump right away. Post installation, Exact Solar responded to my numerous questions promptly and professionally (and I had many, many questions). And they facilitated the process of signing me up with an SREC broker. Our solar production is already ahead of forecast. We're still in our first year and our production so far is ~11% above our estimated production for the entire first year.
Read more
Latest review
Josh B, over 1 month
I am very happy we chose Exact Solar for our solar installation. I got several quotes (several via EnergySage). I ultimately chose Exact Solar primarily because of their reputation, especially after I spoke with several people who used Exact Solar for their solar installation. Choosing the right installer is about getting the installation done right and having the same high level of service after the installation is complete. This is why I chose Exact Solar. It's somewhat analogous to buying a car where you're required to service the vehicle at the dealership where you bought it. You should be really happy with the dealership. The entire process of quote, contract signing, scheduling and install was smooth and professional. The installation team was great. On the second morning of the install, my car battery was dead and the guys gave me a jump right away. Post installation, Exact Solar responded to my numerous questions promptly and professionally (and I had many, many questions). And they facilitated the process of signing me up with an SREC broker. Our solar production is already ahead of forecast. We're still in our first year and our production so far is ~11% above our estimated production for the entire first year.
4.77 34 Reviews
Latest review
Lou Huzella, 2 weeks ago
This is my second Paradise Energy Solutions solar project over the past 3 years. I have been very satisfied with Brian's expertise in sales and Charlie, my project manager's expertise in creating solutions. The installation teams were very professional and efficent. They worked hard getting the job done, and surmounting obstacles, including antiquated electrical panels. I think it is a great long term investment, and production thus far has exceeded estimates. I am glad I went with Paradise Energy Solutions for both projects. If you are interested in solar energy and want to work with a good company give them a call.
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Lou Huzella, 2 weeks ago
This is my second Paradise Energy Solutions solar project over the past 3 years. I have been very satisfied with Brian's expertise in sales and Charlie, my project manager's expertise in creating solutions. The installation teams were very professional and efficent. They worked hard getting the job done, and surmounting obstacles, including antiquated electrical panels. I think it is a great long term investment, and production thus far has exceeded estimates. I am glad I went with Paradise Energy Solutions for both projects. If you are interested in solar energy and want to work with a good company give them a call.
4.71 34 Reviews
Latest review
Scott, over 1 month
After months of researching solar panel technology; installers and expenditures for my central CT location I found Savkat and Sunpower. The information on the panels, technology, warranty, efficiency made them the only viable choice. Next i came down to who would the installer be. Well I only had 1 choice and THANKFULLY it was Savkat. From start to finish of the project it could not have gone better. The pre-acceptance video call, emails, phone calls were all very precise, business professional and met all of the questions that I could think of. Once I made the decision for purchase each and every step to having functioning panels was planned out to t "T". As a former project manager myself, I was well aware at the steps along the way. Savkat had them laid out and milestones were made aware immediately. Design was perfect; installation was perfect; inspection was quick and perfect; signoff was perfect. Did I mention the whole project went PERFECT. I am absolutely please with my decision and the product received. With Savkat as my go-to contractor Sunpower has a true diamond of an installer. Happy - yes. Recommend both companies - already doing it. Thank you.
Read more
Latest review
Scott, over 1 month
After months of researching solar panel technology; installers and expenditures for my central CT location I found Savkat and Sunpower. The information on the panels, technology, warranty, efficiency made them the only viable choice. Next i came down to who would the installer be. Well I only had 1 choice and THANKFULLY it was Savkat. From start to finish of the project it could not have gone better. The pre-acceptance video call, emails, phone calls were all very precise, business professional and met all of the questions that I could think of. Once I made the decision for purchase each and every step to having functioning panels was planned out to t "T". As a former project manager myself, I was well aware at the steps along the way. Savkat had them laid out and milestones were made aware immediately. Design was perfect; installation was perfect; inspection was quick and perfect; signoff was perfect. Did I mention the whole project went PERFECT. I am absolutely please with my decision and the product received. With Savkat as my go-to contractor Sunpower has a true diamond of an installer. Happy - yes. Recommend both companies - already doing it. Thank you.
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 />
4.59 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 />
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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 13 Reviews
Latest review
ScottO, over 1 month
I investigated solar several years ago and wasn't eligible because of shade from a large tree. With the tree gone, I started the process again and found several companies willing to overcharge me. I found Public Service Solar on Energy Sage. Their response to my inquiry was almost instant and their willingness to jump on the phone, hold frank conversations, and answer every (somewhat ridiculous) question I had was appreciated. The process started in February 2020 - less than a month before COVID-19 took over the world. Public Service Solar didn't slow down - from the roof tear off and installation to completing the process for installing and lighting up the panels - the only thing that slowed them down was bureaucracy enhanced by a pandemic that was outside their control. I was kept abreast of every step in the process - even when the process was delayed - so I was never left wondering "what next?" The roof, the panels, the installation and follow-up were top notch. Their price was the best, too. I wouldn't be more pleased. Oh, and my electric bill for several months (during peak cooling season) has been zero.
Read more
Latest review
ScottO, over 1 month
I investigated solar several years ago and wasn't eligible because of shade from a large tree. With the tree gone, I started the process again and found several companies willing to overcharge me. I found Public Service Solar on Energy Sage. Their response to my inquiry was almost instant and their willingness to jump on the phone, hold frank conversations, and answer every (somewhat ridiculous) question I had was appreciated. The process started in February 2020 - less than a month before COVID-19 took over the world. Public Service Solar didn't slow down - from the roof tear off and installation to completing the process for installing and lighting up the panels - the only thing that slowed them down was bureaucracy enhanced by a pandemic that was outside their control. I was kept abreast of every step in the process - even when the process was delayed - so I was never left wondering "what next?" The roof, the panels, the installation and follow-up were top notch. Their price was the best, too. I wouldn't be more pleased. Oh, and my electric bill for several months (during peak cooling season) has been zero.
4.57 29 Reviews
Latest review
Van Dyke, over 1 month
After meeting with 3 other solar companies, we decided to go with Bight Eye. They provided more info, and offered the most details of the inspection, installation, activation, and monitoring of the system. E-mail communication was convenient and efficient. Most document signing was done online, and they took care of all the legal, and technical aspects. Installation took only 3 days. The crew was skilled, friendly, and professional. Explained what they were doing, and left only when the job was complete and the area was clean. The financing was flexible with no money down, and a good interest rate. Monitoring the system is easy on my computer or smartphone. I highly recommend Bright Eye for all your solar needs.
Read more
Average cost (5kW system)
$12,000 ($2.40 per watt)
Latest review
Van Dyke, over 1 month
After meeting with 3 other solar companies, we decided to go with Bight Eye. They provided more info, and offered the most details of the inspection, installation, activation, and monitoring of the system. E-mail communication was convenient and efficient. Most document signing was done online, and they took care of all the legal, and technical aspects. Installation took only 3 days. The crew was skilled, friendly, and professional. Explained what they were doing, and left only when the job was complete and the area was clean. The financing was flexible with no money down, and a good interest rate. Monitoring the system is easy on my computer or smartphone. I highly recommend Bright Eye for all your solar needs.
4.56 19 Reviews
Latest review
Dunlap Review , 2 weeks ago
The Terra Sol staff were excellent to work with from start to completion! Rob answered all questions and explained the entire process in a simple, easy to follow manner. Rob and Matt kept us informed throughout the project and Matt was thorough in explaining the details when he set up the outside monitors. Rob always answered emails, phone calls and emails quickly and came out to personally make sure the system was working and that we understood how to monitor our solar power system! The Terra Sol staff handled all aspects of our solar project and made it completely easy because they handled everything expertly! We highly recommend them!
Read more
Average cost (5kW system)
$25,900 ($5.18 per watt)
Latest review
Dunlap Review , 2 weeks ago
The Terra Sol staff were excellent to work with from start to completion! Rob answered all questions and explained the entire process in a simple, easy to follow manner. Rob and Matt kept us informed throughout the project and Matt was thorough in explaining the details when he set up the outside monitors. Rob always answered emails, phone calls and emails quickly and came out to personally make sure the system was working and that we understood how to monitor our solar power system! The Terra Sol staff handled all aspects of our solar project and made it completely easy because they handled everything expertly! We highly recommend them!
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