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:
-
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
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:
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
68 solar companies in Pennsylvania provide pricing on SolarReviews. Here are the best rated companies near you.
4.94 173 Reviews
Latest review
Michael, 6 days ago
From my first virtual meeting with Lumina (Shane Williams is great) to the assistance in turning things on post-permit, Lumina offered terrrific customer support to complement an excellent product. Strongly recommend.
Read more
Latest review
Michael, 6 days ago
From my first virtual meeting with Lumina (Shane Williams is great) to the assistance in turning things on post-permit, Lumina offered terrrific customer support to complement an excellent product. Strongly recommend.
4.85 66 Reviews
Latest review
Great company!, 3 weeks ago
We have had our solar array up and running since late July, and I'm anxious to see our next electric bill to see how much we have saved. Nate was great to work with, and answered all our questions. He is always easy to contact if we have additional questions, and we're waiting for our final "interview" with the company.
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Great company!, 3 weeks ago
We have had our solar array up and running since late July, and I'm anxious to see our next electric bill to see how much we have saved. Nate was great to work with, and answered all our questions. He is always easy to contact if we have additional questions, and we're waiting for our final "interview" with the company.
4.84 111 Reviews
Latest review
Matt, over 1 month
We love the company - from the beginning stages to the end, we had questions about solar (not knowing much about it at the onset). Every person we worked with was knowledgeable, passionate about solar, and patiently answered our questions. We left the process understanding and LOVING our solar system. We cannot say enough positive things about Exact Solar. If you are interested in Solar for your home or business, you will be in the best hands with them! There is not a day that goes by when our family does not think about the awesome fact that we are producing clean energy and doing so with a system that was expertly installed and backed up by an exceptional company who bends over backwards to make sure you are happy.
Read more
Average cost (5kW system)
$12,400 ($2.48 per watt)
Latest review
Matt, over 1 month
We love the company - from the beginning stages to the end, we had questions about solar (not knowing much about it at the onset). Every person we worked with was knowledgeable, passionate about solar, and patiently answered our questions. We left the process understanding and LOVING our solar system. We cannot say enough positive things about Exact Solar. If you are interested in Solar for your home or business, you will be in the best hands with them! There is not a day that goes by when our family does not think about the awesome fact that we are producing clean energy and doing so with a system that was expertly installed and backed up by an exceptional company who bends over backwards to make sure you are happy.
4.77 68 Reviews
Latest review
Dan M, over 1 month
Evoke Solar did an excellent job installing solar panels on my house, and I would highly recommend their services. My house has a slate roof, and multiple solar companies told me they couldn’t install solar panels on this type of roof. Evoke made it work and was very meticulous with the process. The team was detailed and communicative with every task, which has far more steps than you might realize. They collaborated well with a structural engineer, roofer, electrician, inspector, utility company, and energy credits administrator. They also offered ways to move ahead with the process safely throughout the COVID-19 pandemic. They were available to answer any questions I had along the way, and they continued to happily answer my questions even after the solar system was set up. I was very impressed with their customer service, and I’m confident they’ll be available to help should any issues arise.
Read more
Average cost (5kW system)
$23,200 ($4.64 per watt)
Latest review
Dan M, over 1 month
Evoke Solar did an excellent job installing solar panels on my house, and I would highly recommend their services. My house has a slate roof, and multiple solar companies told me they couldn’t install solar panels on this type of roof. Evoke made it work and was very meticulous with the process. The team was detailed and communicative with every task, which has far more steps than you might realize. They collaborated well with a structural engineer, roofer, electrician, inspector, utility company, and energy credits administrator. They also offered ways to move ahead with the process safely throughout the COVID-19 pandemic. They were available to answer any questions I had along the way, and they continued to happily answer my questions even after the solar system was set up. I was very impressed with their customer service, and I’m confident they’ll be available to help should any issues arise.
4.67 37 Reviews
Latest review
AndrewKennedyLive, over 1 month
I spent almost 14 months researching solar companies. Having them come into my home and selling me on their systems. But instead of selling me, SavKat did something quite remarkable. They “shared” with me why they were my best choice. They were true to their word in every way. It could not have gone smoother or their crews been more professional. They kept their word every step of the way and the knowledge that they are a local company that will be there for me over the next 20 years, played a big role. Everyone will be going solar. The decision left to be made is with who. Call SavKat Solar today and let them share with you why it should be them.
Read more
Latest review
AndrewKennedyLive, over 1 month
I spent almost 14 months researching solar companies. Having them come into my home and selling me on their systems. But instead of selling me, SavKat did something quite remarkable. They “shared” with me why they were my best choice. They were true to their word in every way. It could not have gone smoother or their crews been more professional. They kept their word every step of the way and the knowledge that they are a local company that will be there for me over the next 20 years, played a big role. Everyone will be going solar. The decision left to be made is with who. Call SavKat Solar today and let them share with you why it should be them.
4.67 29 Reviews
Latest review
SLS , 3 weeks ago
I can't say enough great things. Rob and his team were stellar to work with. I fully researched this project and got at least 7 quotes from local companies. TerraSol's price was exceptional for the quality of the product. Sunpower is one of the best panels you can buy and beats the competition on efficiency, warranty, and aesthetics, but TerraSol was the main reason I went with Sunpower. Rob is very customer-oriented, wants to make sure you are comfortable and satisfied, and is just a very nice person to deal with. I'm confident he will be responsive if I have any problems. TerraSol took care of everything from permits to PECO from start to finish. It took roughly 3 months from signing of contract to turning on the system. 99% of this is permits and other approvals. Actual installation was only a day. So far, in September, I seem to be producing a lot of energy. I have received many compliments on the look of the system. This was very important to me because my panels face the street. The A400 black-on-black are super sleek. They are beautiful, and no doubt adds value to my home. Outside of this, it just feels good to generate my own energy and reduce my footprint. Hope this was helpful.
Read more
Average cost (5kW system)
$25,900 ($5.18 per watt)
Latest review
SLS , 3 weeks ago
I can't say enough great things. Rob and his team were stellar to work with. I fully researched this project and got at least 7 quotes from local companies. TerraSol's price was exceptional for the quality of the product. Sunpower is one of the best panels you can buy and beats the competition on efficiency, warranty, and aesthetics, but TerraSol was the main reason I went with Sunpower. Rob is very customer-oriented, wants to make sure you are comfortable and satisfied, and is just a very nice person to deal with. I'm confident he will be responsive if I have any problems. TerraSol took care of everything from permits to PECO from start to finish. It took roughly 3 months from signing of contract to turning on the system. 99% of this is permits and other approvals. Actual installation was only a day. So far, in September, I seem to be producing a lot of energy. I have received many compliments on the look of the system. This was very important to me because my panels face the street. The A400 black-on-black are super sleek. They are beautiful, and no doubt adds value to my home. Outside of this, it just feels good to generate my own energy and reduce my footprint. Hope this was helpful.
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 />
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 />
4.56 12 Reviews
Latest review
Gordon Wildermuth, over 1 month
<br />
Read more
Average cost (5kW system)
$29,500 ($5.90 per watt)
Latest review
Gordon Wildermuth, over 1 month
<br />
Useful links
Related solar news
Ben Zientara
January 26, 2021
The state of net metering in the United States in 2021
This annual report ranks the states for friendliness to home solar based on their net metering programs.
Ben Zientara
January 21, 2019
What is a solar carve-out?
A solar-carve out sets a specific goal for electricity generation from solar panels in a state’s energy mix. It often includes incentives for installing solar.
Zeeshan Hyder
October 19, 2021
What is a solar array and are they right for your home?
Solar arrays are collections of solar panels. We explain what they are, how they work, and whether you should get one for your home.
Ben Zientara
October 18, 2021
How SCE customers can save money with solar panels
Southern California Edison (SCE) has solar programs that can help you save money on energy bills, but they are set to expire soon.
Ana Almerini
October 15, 2021
Top 5 benefits of solar energy
Find out what the main benefits of solar energy are, from saving money to reducing your reliance on the aging utility grid.