Pennsylvania Solar Incentives 2026 — SREC Program + PECO & PPL Rebates
Pennsylvania's SREC market provides ongoing income for solar owners. PECO and PPL both offer rebates for solar installation and heat pumps. The state's net metering law is strong, allowing bill credits that carry forward.
$14,200+
Max potential savings
3
Total incentives
17.9¢
Avg rate / kWh
12.5 yrs
Solar payback
$22,000
25-yr solar savings
1%
EV fleet share
Moderate ☀️
Solar potential
Solar Incentives in Pennsylvania
Pennsylvania SREC Program
Market rate
PA solar owners can earn and sell SRECs to meet the state's renewable portfolio standard.
Eligibility: PA solar homeowners registered in the SREC tracking system.
PECO Solar Rebate
Up to $200
One-time rebate for qualifying solar panel installations for PECO customers.
Eligibility: PECO residential customers.
Heat Pump Incentives in Pennsylvania
HEAR Rebate (High Efficiency Electric Home Rebate)
Up to $14,000
Point-of-sale rebate up to $8,000 for heat pumps, $1,750 for HPWHs, $4,000 for panel upgrades. Income-based.
Eligibility: Households < 150% of Area Median Income. Program administered by state energy offices.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $22,000
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Is Solar Worth It in Pennsylvania?
Pennsylvania offers solid solar economics, driven primarily by above-average electricity rates (17.9¢/kWh) and a functioning SREC market that provides ongoing solar income. With payback around 11–13 years and $20,000+ in 25-year savings, PA is one of the stronger mid-Atlantic solar markets after the federal ITC expiration.
Nationally, EnergySage reports the average homeowner saves about $61,000 over 25 years by going solar — though actual savings vary by state, electricity rate, and system size.
Key Advantage
At 17.9¢/kWh — well above the national average — every kWh Pennsylvania solar generates saves significantly more than in lower-rate states. Strong net metering laws with retail-rate credits maximize the value of solar production.
Watch Out For
Pennsylvania's SREC prices are considerably lower than Maryland's or New Jersey's ($10–20/SREC vs. $60–90), providing only modest supplemental income. Sun hours (4.0/day) are limited vs. southern states.
Solar Cost & Savings in Pennsylvania (8 kW System)
| Item | Amount |
|---|---|
| Gross install cost | $23,040 |
| PECO Solar Rebate | −$200 |
| Net install cost | $23,040 |
| Annual energy savings | $1,673 |
| Simple payback period | 12.5 years |
| 25-year net savings | $22,000 |
The federal residential solar tax credit (Section 25D) expired Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.
* Estimates based on 2.88/W avg install cost, 4 peak sun hrs/day, and 17.9¢/kWh rate with 2.5%/yr escalation. Individual results vary.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $22,000
We may earn a referral commission through EnergySage, at no cost to you.
How to Go Solar in Pennsylvania: Step-by-Step
- 1
Register for PA SRECs through GATS
Register your solar system with PJM's GATS (gats.pjm-eis.com) after interconnection. Your installer should initiate this at commissioning. PA SRECs can also be registered with the Pennsylvania Renewable Energy Credits program. Once registered, sell through brokers like SRECTrade.com.
- 2
Apply for utility interconnection and net metering
Your installer handles interconnection paperwork with PECO, PPL, or your utility. PA's net metering law requires utilities to process standard residential systems within 20 business days. Confirm interconnection timeline is in your installation contract.
- 3
Check for PECO solar rebate eligibility
PECO Energy offers a rebate for qualifying solar installations (up to $200). While modest, it reduces net cost. Check peco.com for current program availability and eligibility requirements before installation.
- 4
Get 3+ quotes targeting $2.70–3.00/W
Pennsylvania has a competitive installer market in the PECO and PPL territories. Use EnergySage for multiple quotes. Insist on a 25-year panel warranty and 10-year workmanship warranty as the minimum standard.
Frequently Asked Questions — Solar & Clean Energy in Pennsylvania
Is solar worth it in Pennsylvania in 2026?
Yes — PA has above-average solar economics for the mid-Atlantic. With 17.9¢/kWh rates and an active SREC market, payback is approximately 11–13 years with 25-year savings around $20,000–25,000. Strong net metering rights reinforce the value. Note: The federal 25D ITC expired Dec 31, 2025 — if installed in 2025, consult a tax professional.
What is Pennsylvania's SREC program?
PA solar owners earn one SREC per 1,000 kWh generated, which can be sold to SREC brokers or directly to utilities. PA SREC prices are currently $10–20/SREC — lower than neighboring MD and NJ due to Pennsylvania's lower renewable energy standard requirements. An 8 kW system earns ~9 SRECs/year, worth $90–180 annually.
What solar incentives are available in Pennsylvania?
Pennsylvania offers: (1) SREC market income ($10–20/SREC), (2) Net metering at retail rates (PECO, PPL, Met-Ed), (3) PECO rebate for solar installations (up to $200). No state solar tax credit. Note: The federal 25D solar ITC expired Dec 31, 2025.
Which Pennsylvania utilities offer the best solar programs?
PECO (Philadelphia area) and PPL (central and eastern PA) both offer retail-rate net metering. PECO also has a small solar rebate ($200). Met-Ed, Penn Power, and Duquesne Light also offer net metering. Rural electric cooperatives vary — contact yours for specific terms.
Recommended Products for Pennsylvania
Deregulated market + PECO/PPL TOU + Philly/PGH metro
Calculate Your Pennsylvania Savings
Use our free calculators with Pennsylvania's electricity rate (17.9¢/kWh) and gas prices ($1.71/therm) automatically applied.
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Data Sources & Methodology
Incentive data: DSIRE, U.S. DOE, IRS, and state energy offices. Electricity rates: EIA Electric Power Monthly (Feb 2026). Solar production: NREL PVWatts v8. Install costs: EnergySage National Market Report Q4 2025. Rate escalation: 2.5%/yr (20-yr EIA avg). Last updated February 2026. Always verify current amounts with the administering agency.