Pennsylvania Solar Overview
Pennsylvania is what I call a "steady performer" for solar. You will not get the flashy incentives of neighboring New Jersey or Maryland, but the math still works out. The SREC values are modest, but installation costs are below average, which helps. PECO and PPL customers in the eastern part of the state tend to see better economics than western PA.
Pennsylvania sits in the middle tier for solar attractiveness. While incentives aren't as generous as Massachusetts or New Jersey, moderate electricity rates and reasonable installation costs make solar a solid investment for most PA homeowners.
Payback Period: 8-11 years
SREC Value: $30-$50 per SREC
Net Metering: Full retail credit (varies by utility)
State Tax Credit: None (Source: EnergySage Marketplace Data, 2025)
Pennsylvania Solar Costs
Pennsylvania solar costs are slightly below the national average, making it one of the more affordable states for installation.
| System Size | Gross Cost | Monthly Bill Offset |
|---|---|---|
| 5 kW | $13,500-$15,500 | $80-$100 |
| 7 kW | $18,900-$21,700 | $110-$140 |
| 10 kW | $27,000-$31,000 | $160-$200 |
Pennsylvania SRECs
Pennsylvania has an SREC market, though values are lower than neighboring New Jersey or Maryland.
PA SREC Details
- Current Value: $30-$50 per SREC
- One SREC = 1,000 kWh of production
- 7 kW system ≈ 7-8 SRECs/year = $210-$400 annually
- SREC-II requirements increasing through 2030
While PA SREC values are modest compared to MA or NJ, they still provide meaningful additional income over your system's life—potentially $5,000-$10,000 over 25 years.
Pennsylvania Incentives
State-Level
- SRECs: $30-$50/SREC (see above)
- Sales Tax Exemption: No state sales tax on solar equipment
- Property Tax Exemption: Some municipalities exempt solar
- No state tax credit for residential solar
Local Incentives
- Philadelphia Solar Rebate: Various programs through Philadelphia Energy Authority
- PECO Territory: Check for utility-specific programs
- Solarize Campaigns: Group-buy programs in various communities
Federal
- Cash/Loan: No federal credit (25D expired)
- PPA/Lease: 30% federal credit (claimed by solar company)
Net Metering Rules
Pennsylvania's net metering rules vary by utility, but generally provide good value:
- Credit rate: Full retail rate for most utilities
- System size limit: 50 kW for residential
- Credit rollover: Monthly rollover, annual true-up
- Annual true-up: Excess credits paid at avoided cost rate
Utility Information
PECO (Philadelphia Area)
- Full retail net metering
- Easy interconnection process
- Good installer availability
PPL Electric (Eastern PA)
- Full retail net metering
- Moderate interconnection timeline
Duquesne Light (Pittsburgh Area)
- Full retail net metering
- Growing solar adoption
West Penn Power/FirstEnergy
- Net metering available
- Check specific terms for your territory
Is Solar Worth It in Pennsylvania?
Yes, for most homeowners. While PA doesn't have the generous incentives of MA or NJ, the math still works.
Pennsylvania Solar Makes Sense If:
- Your electric bill is $100+/month
- You plan to stay in your home 8+ years
- Your roof has good sun exposure
- You value energy independence and predictable costs
25-Year Savings Example (7 kW System)
| Benefit | Estimated Value |
|---|---|
| Electricity Savings | $45,000-$55,000 |
| SREC Income (25 years) | $5,000-$10,000 |
| Total Benefit | $50,000-$65,000 |
| System Cost | $19,000-$22,000 |
| Net Savings | $28,000-$46,000 |
Questions About Pennsylvania Solar?
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