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Pennsylvania Solar Incentives 2026 — Full-Retail Net Metering & SRECs

Pennsylvania utilities credit residential solar at the full retail rate up to the amount consumed and pay year-end excess at the price to compare. Solar owners can also sell SRECs at market prices.

2

Incentive categories

2

Program entries

21.73¢

Avg rate / kWh

15.7 yrs

Simple solar payback

$33,092

25-yr net solar savings

Moderate

Solar potential

Solar Incentives in Pennsylvania

Grant / PaymentSolar

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.

Source: PA PUC / GATSLearn more

Heat Pump Incentives in Pennsylvania

RebateHeat Pump
Expires: State launch and funding vary

Federal HEAR Framework (State Availability Varies)

Statutory household cap up to $14,000

Federal law sets measure and household caps, but consumers can use rebates only where the state or territory program is active and funded. A listed cap is not an available award.

Eligibility: Income, equipment, project, state-program, and funding rules apply; confirm availability with the administering state program before purchase.

Source: DOE / HEAR Act (IRA)Learn more

Get Free Solar Quotes for Your Home

Open the external EnergySage marketplace to request and compare itemized solar proposals.

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Your estimated 25-year savings: $33,092

We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.

Is Solar Worth It in Pennsylvania?

Pennsylvania offers solid solar economics, driven primarily by above-average electricity rates (21.73¢/kWh) and full-retail net metering, with SREC sales as possible extra income. With an 15.7-year modeled payback and $33,092 in 25-year net savings, PA is one of the stronger mid-Atlantic solar markets after the federal ITC expiration.

Nationally, EnergySage reports the average U.S. homeowner saves about $60,500 over 25 years by going solar, without the expired federal credit (page updated June 2026). Actual savings vary by state, electricity rate, export rules, and system size.

Key Advantage

At 21.73¢/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 SREC prices are set by the market and have historically been modest, so treat them as supplemental income. Sun hours (4.0/day) are limited vs. southern states.

Solar Cost & Savings in Pennsylvania (8 kW System)

ItemAmount
Gross install cost$31,840
Net install cost$31,840
Annual energy savings$2,030
Simple payback period15.7 years
25-year net savings$33,092

The federal residential solar tax credit (Section 25D) is not available for expenditures after Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.

* Planning example for an 8 kW system: $3.98/W installed (LBNL 2024 national median; no state-specific sample), 4 peak sun hrs/day, one 20% system derate, 0.5%/yr panel degradation from year two, and 21.73¢/kWh escalating 2.5%/yr. It assumes all production offsets electricity at the retail rate; actual self-consumption and export credits vary by utility tariff. Tax credits require eligibility and sufficient tax liability.

Get Free Solar Quotes for Your Home

Open the external EnergySage marketplace to request and compare itemized solar proposals.

External site (not affiliated)Review quote assumptionsCompare itemized bids

Your estimated 25-year savings: $33,092

We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.

How to Go Solar in Pennsylvania: Step-by-Step

  1. 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. Once registered, sell through brokers like SRECTrade.com.

  2. 2

    Apply for utility interconnection and net metering

    Your installer handles interconnection paperwork with PECO, PPL, or your utility. Confirm interconnection timeline is in your installation contract.

  3. 3

    Get 3+ quotes and compare price per watt

    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 21.73¢/kWh rates and full-retail net metering, modeled payback is about 15.7 years with $33,092 in 25-year net savings. Note: The federal 25D ITC expired Dec 31, 2025 — if installed in 2025, consult a tax professional.

What is Pennsylvania's SREC program?

Pennsylvania solar owners can earn one SREC per 1,000 kWh generated and sell it through brokers under the state's Alternative Energy Portfolio Standards. Prices are set by the market, so get a current quote before counting them. An 8 kW system would earn roughly 9 SRECs a year.

What solar incentives are available in Pennsylvania?

Pennsylvania offers: (1) full-retail net metering up to your usage, with year-end excess paid at the price to compare, and (2) SREC market income. No state solar tax credit. Note: The federal 25D solar ITC expired Dec 31, 2025.

Which Pennsylvania utilities offer the best solar programs?

Pennsylvania's electric distribution companies, including PECO, PPL, Met-Ed, Penn Power, and Duquesne Light, must credit residential solar at the full retail rate up to the amount consumed. Rural electric cooperatives vary — contact yours for specific terms.

Recommended Products for Pennsylvania

Product examples are provided for comparison only. Confirm electrical compatibility, installer requirements, warranty terms, and any current utility incentive before purchase.

Calculate Your Pennsylvania Savings

The Solar ROI link preselects Pennsylvania's planning inputs, including the listed electricity rate (21.73¢/kWh). Other tools open with their own defaults; review every input before calculating.

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Data Sources & Methodology

Incentive data: DSIRE, U.S. DOE Home Energy Rebates, IRS residential credit guidance, and linked state program pages. Electricity rates: EIA Electric Power Monthly, Table 5.6.A (June 2026). Solar resource: NREL PVWatts reference with state-level planning inputs, not an address-specific API result. Installed price: LBNL Tracking the Sun (Residential systems installed in 2024), a median rather than a quote. The 2.5% annual rate change is a model assumption, not a forecast. Sources and methodology reviewed 2026-09-06. Always verify current amounts with the administering agency and utility.