Duquesne Light Overview
Duquesne Light Company serves approximately 600,000 customers in Allegheny and Beaver counties in Western Pennsylvania, including the City of Pittsburgh. While Pennsylvania isn't known for its sunshine, the combination of higher electricity rates and the state SREC program improves solar economics significantly.
Pennsylvania SRECs
Pennsylvania's Solar Renewable Energy Credit (SREC) program is a major factor in Pittsburgh solar economics. SRECs provide income beyond your electricity savings:
- What are SRECs: 1 SREC = 1,000 kWh of solar production
- PA SREC value: $30-50+ per SREC (market varies)
- Annual production: 7 kW system produces ~7-8 SRECs/year
- Additional income: $250-400/year on top of net metering
SREC Value Example
| System Size | Annual SRECs | Est. Value/Year |
|---|---|---|
| 5 kW | 5-6 | $175-275 |
| 7 kW | 7-8 | $245-385 |
| 10 kW | 10-11 | $350-550 |
SREC Market Notes
SREC values fluctuate based on market conditions. Pennsylvania's SREC program has been relatively stable, but future values depend on state policy decisions. Consider SRECs as a bonus that improves economics rather than a guaranteed income stream.
Net Metering
Pennsylvania law requires net metering for all utilities:
| Feature | Duquesne Light Policy |
|---|---|
| Credit Rate | Full retail rate |
| System Size Limit | Up to 50 kW residential |
| Monthly Rollover | Credits carry forward 12 months |
| Annual Settlement | Excess paid at price-to-compare rate |
| Interconnection | Pennsylvania standard process |
Pittsburgh Solar Considerations
- Solar resource: 4-4.5 peak sun hours/day (moderate)
- Weather: Cloud cover reduces production vs. sunnier states
- Roof pitch: Steeper roofs help with winter production and snow shedding
- Shading: Pittsburgh's hilly terrain requires careful shade analysis
Rates & Economics
Duquesne Light's rates around $0.14/kWh, combined with PA SRECs, create reasonable solar economics despite moderate solar resources:
| System | Gross Cost | Annual Savings + SRECs | Payback |
|---|---|---|---|
| 5 kW | $14,500-17,000 | $1,000-1,300/yr | 12-15 years |
| 7 kW | $20,000-23,500 | $1,400-1,800/yr | 11-14 years |
| 10 kW | $28,500-33,500 | $2,000-2,600/yr | 11-14 years |
Federal Tax Credit (2026)
The residential federal tax credit (25D) for cash or loan purchases expired at the end of 2025. However, PPA/Lease options still benefit from the 30% credit through 2027 - the solar company claims it and passes savings to you.
| Purchase Type | Federal Credit | Notes |
|---|---|---|
| Cash/Loan | None (25D expired) | No homeowner credit available |
| PPA/Lease | 30% (through 2027) | Company claims, you benefit from lower rates |
Pennsylvania State Incentives
- SRECs: Additional income as described above
- Sales tax exemption: Solar equipment exempt from PA sales tax
- Property tax: No specific solar exemption at state level
- Local programs: Check for Pittsburgh-area rebates
The Bottom Line
Pittsburgh solar is viable thanks to SRECs and higher rates. While Pennsylvania's solar resource is moderate, the combination of $0.14/kWh electricity rates and SREC income creates 11-14 year payback periods - reasonable for a northeastern state.
The SREC program is crucial to Pittsburgh solar economics. If you're considering solar, understand how SRECs work and factor in some conservatism on future SREC values. They've been stable but aren't guaranteed.
Pittsburgh's hilly terrain means shade analysis is especially important. Get multiple quotes and make sure installers use tools like satellite imaging or on-site shade assessments to accurately predict production.
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