Is solar worth it in Philadelphia?

Yes, Philadelphia offers solid solar economics with PECO net metering and Pennsylvania SRECs. While not as lucrative as neighboring New Jersey, Philly's moderate rates ($0.14-0.17/kWh) plus SREC income make typical payback 8-11 years.

How do Pennsylvania SRECs work?

Pennsylvania SRECs (Solar Renewable Energy Credits) are tradeable certificates for solar energy production. Each SREC represents 1,000 kWh produced. PA SREC prices fluctuate ($20-40/SREC typically) but add income over your system's life.

What does solar cost in Philadelphia?

Philadelphia solar costs $2.70-3.30 per watt. A typical 7 kW system costs $18,900-23,100 gross. Pennsylvania offers no state tax credit, but PECO net metering and SRECs add value.

Can I install solar on a Philadelphia row home?

Yes, Philly row homes with flat roofs are actually well-suited for solar—flat roofs allow optimal panel tilt. Historic district installations require additional review but are generally approved. Shared walls don't affect roof access.

How long does solar installation take in Philadelphia?

The full process from signing a contract to flipping the switch typically takes 2-4 months in Philadelphia. The actual roof installation is usually 1-3 days, but permitting and utility interconnection add weeks. Local permit processing times vary by jurisdiction.

Can I go solar if I have an HOA in Philadelphia?

Yes. Most states have solar access laws that prevent HOAs from banning solar panels outright. Your HOA may have aesthetic guidelines about placement, but they generally cannot deny your right to install solar. Check your state's solar access law for specifics.

Philadelphia Solar Guide 2026 | PECO Net Metering & PA SRECs

Quick Answer

Philadelphia offers solid solar economics: PECO net metering at $0.14-0.17/kWh plus Pennsylvania SREC income ($20-40 per 1,000 kWh produced). Expect $2.70-3.30/watt and 8-11 year paybacks. Philly row homes with flat roofs are well-suited for solar. Pro tip: if you're in the Philly suburbs on the NJ side, check NJ incentives—they're significantly better.

Philadelphia Solar Overview

Philadelphia offers a solid solar market with PECO's net metering program (rates average $0.14-0.17/kWh per EIA data) and Pennsylvania's SREC market providing additional income. While not quite as lucrative as neighboring New Jersey, Philly's combination of moderate electricity rates and SREC income makes solar a viable investment for many homeowners.

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From my experience:Here's what I tell Philly homeowners: you're close to New Jersey, which has one of the best solar markets in the country. PA's SRECs are worth less, but they're not nothing. If you're in the Philly suburbs and your address happens to be on the Jersey side, check if you qualify for NJ incentives—it could be a completely different calculation. Either way, Philly's row homes with flat roofs are actually great for solar even if they're smaller. The historic district stuff is navigable.

Philadelphia Solar Stats

Philadelphia averages about 4.5 peak sun hours daily. A typical 7 kW system produces approximately 8,200 kWh/year. PECO rates average $0.14-0.17/kWh, with Pennsylvania SRECs adding additional income. (Source: NREL Solar Resource Data)

[Editor's Note, Jan 2026]:Local utility rates, incentive programs, and installer availability verified for current accuracy.

PECO Net Metering

How PECO Net Metering Works

PECO, the primary utility in Philadelphia, offers net metering for residential solar:

Full retail credit: Excess generation credited at retail rate
Monthly rollover: Credits carry forward month to month
Annual settlement: Paid out at avoided cost at year end
System size limit: 50 kW for residential

PECO Rate Details

Rate Component	Details
Average Rate	~$0.14-0.17/kWh
Net Metering Credit	Full retail rate
Customer Charge	~$12-15/month (not offset)
Rate Trend	Gradually increasing

Pennsylvania SRECs

Pennsylvania's SREC market provides additional income for solar system owners. You earn one SREC for every 1,000 kWh (1 MWh) your system produces.

PA SREC Details

Value: $30-50 per SREC (market fluctuates)
Earning rate: ~7-8 SRECs per year for 7 kW system
Additional income: $200-400/year
Market: Sold through SREC brokers or aggregators

PA SREC Reality

Pennsylvania SRECs are worth less than New Jersey or Massachusetts SRECs, but they still add meaningful value. A 7 kW system earning 7 SRECs at $40 each = $280/year additional income on top of electricity savings. (Source: SRECTrade and state program data)

Federal Tax Credit (2026 Update)

Purchase Type	Federal Credit	Notes
Cash/Loan Purchase	None (25D expired)	Ended Dec 31, 2025
PPA/Lease	30% (48E)	Through Dec 2027

Costs & Savings in Philadelphia

Typical System Costs

System Size	Gross Cost	Est. Annual Value*
5 kW	$14,500-16,000	$900-1,100
7 kW	$20,000-22,500	$1,250-1,550
10 kW	$29,000-32,000	$1,800-2,200

*Includes electricity savings + SREC income

Savings Breakdown

Electricity offset: $165-200/year per kW
SREC income: $30-50/year per kW
Total value: $200-250/year per kW
Payback period: 9-12 years
25-year savings: $22,000-38,000

Philadelphia-Specific Considerations

Row Homes & Urban Roofs

Philadelphia's famous row homes present unique solar opportunities:

Flat roofs: Common on row homes; good for ballasted systems
Shared walls: Less roof area per home than detached houses
North-south orientation: Many row homes face east-west (less ideal)
Shading: Neighboring buildings may cast shadows

Historic Districts

Old City, Society Hill: May have historic review requirements
Visibility: Some districts limit street-visible installations
Flat roof advantage: Rear flat roofs often avoid visibility issues

Permits & Process

Philadelphia's permitting process is generally straightforward but can vary:

Standard electrical permit required
Inspection after installation
PECO interconnection application
Typical timeline: 8-12 weeks from contract to power-on

The Bottom Line

Philadelphia is a good solar market with solid economics. PECO's net metering and PA SRECs create reasonable returns. Payback periods of 9-12 years are typical, with decades of post-payback savings.

Best candidates: Homeowners with good roof exposure (ideally south-facing), electric bills over $100/month, and plans to stay 10+ years. Row home owners should get careful shading analysis given urban density.

Consider nearby NJ: If you're in the Philadelphia suburbs on the New Jersey side, you may have access to NJ's stronger SREC market—worth investigating.

Questions About Philadelphia Solar?

Our AI can help you understand PECO programs, PA SRECs, and solar options for your Philly home.

Ask About Philadelphia Solar

Pennsylvania Solar Guide

Statewide policies and SRECs

PPL Solar Guide

For PA suburbs outside PECO

SREC Guide

How SRECs work

New Jersey Solar

Nearby NJ comparison

Written by

Lincoln Panasy

Founder, SolarQuest AI • Solar Expert Since 2018

Lincoln created SolarQuest AI after seeing too many homeowners get burned by pushy solar salespeople. With 8 years of experience in the solar industry since 2018, he writes and reviews all content on this site—combining his real-world expertise with AI tools to deliver accurate, unbiased solar education.

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