There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Pennsylvania has had an up-and-down solar incentives picture for over the past decade. The state currently has a strong net metering policy, which is good for you as a prospective solar panel homeowner. That means you get credited at near retail rate electric prices for the solar power you create but can’t use!
Also, if you’re lucky enough to live in Philadelphia, you can access new $200-per-kilowatt home solar rebates. Philly plays host to 10% of the state’s population, so the rebates have a chance to make a real impact in the lives of people who want to go solar.
There is another strong incentive pending in the form of a requirement for utilities to ramp up their harvest of clean energy from sources like your rooftop, which may lead to higher renewable energy certificate (SREC) prices. You can sell those SRECs your panels produce every year, so read on!
Learn what solar incentives are available to Pennsylvania homeowners
See what Pennsylvania solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Pennsylvania solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Pennsylvania
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume and make sure you get credit for the surplus.
Since 2008, Pennsylvania law has required all investor-owned utilities to offer net metering to all residential customers with solar power systems up to 50 kW in capacity. If you produce more energy than you consume, the surplus is carried over to your next bill at the full retail rate. Net metering gives Pennsylvanian's the opportunity to save big on their electricity bills!
Aside from the federal solar tax credit, there aren't a ton of solar incentives available in Pennsylvania. And there hasn't been much movement from the state legislature on getting more rebates for needy homeowners. The good news is that solar has fallen an additional 60% (and counting) in price over the last 10 years, so even without cashback from utilities, you can be sure you're getting a sweet deal on your shiny new solar panel system.
In addition to making electricity, your home solar panels generate something called a solar renewable energy certificate, or SREC for short. Utility companies can purchase them from you to claim they are hitting their renewable energy targets. The more certificates utilities acquire, the less risk they have of missing the mark.
Currently, state lawmakers require utilities in Pennsylvania to source 0.5% of their electricity from solar power. Therefore, they are willing to pay a small amount to access your SRECs, so they aren’t hit with fees from the state. SRECs are currently selling for about $45 apiece.
Your solar panel system creates an SREC each time you generate a megawatt-hour (MWh) of electricity. An average 6 kW solar system in Pennsylvania makes about 8 MWhs a year, so that’s roughly 8 SRECs. Multiply that by current SREC prices and you can potentially net an extra $360 a year in income. Not a windfall, but still nice.
If you’re lucky enough to live in Philadelphia, you can get a $200 per kW rebate for your home solar system from now until the end of 2024. On an average-sized 6 kW system, you can claim $1,200. However, there are only $500,000 in funds available every year. That means these funds are only going to provide relief to about 500 residences annually.
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Prices based on a 9.2kW system, after 30% federal tax credit
77 solar companies in Pennsylvania provide pricing on SolarReviews. Here are the best rated companies near you.
4.90 314 Reviews
Jay Vega, 4 days ago
The entire process from inquiry to install was fantastic! Very good communication and information throughout the process. Installation was efficient and we are very happy with our system. Thank you Andrew Cimino, Cara Fennell, Caitlin Zimmerman, Spencer Brown, and the Lumina Team for your help throughout it all!
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Jay Vega, 4 days ago
The entire process from inquiry to install was fantastic! Very good communication and information throughout the process. Installation was efficient and we are very happy with our system. Thank you Andrew Cimino, Cara Fennell, Caitlin Zimmerman, Spencer Brown, and the Lumina Team for your help throughout it all!
4.88 490 Reviews
D ISOM, 5 days ago
Solar Energy Corporation is INCOMPARABLE.!! Daren W. & his installing Team Zack & Eric are extremely professional, very thorough. They installed all the Q Cell solar panels with in 2 days looks great. Thank you
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D ISOM, 5 days ago
Solar Energy Corporation is INCOMPARABLE.!! Daren W. & his installing Team Zack & Eric are extremely professional, very thorough. They installed all the Q Cell solar panels with in 2 days looks great. Thank you
4.84 62 Reviews
J Murphy, over 1 month
System has been installed since Feb 2023 (21.75KW) Sales Process- Rob was both knowledgeable and easy to communicate with from the start until today. Planned for future EV in the design. Value- competitively priced Office Staff- very good communication with Rasha all along the way. She is on top of her game! Handled the permitting, inspections, interconnection app, SREC app. Seemless! Timing- They delivered on time, even with supply chain issues Field install- Install took two days. Guys were efficient, answered any questions, cleaned up and they were gone. Great experience. Interconnection with PECO- no issues, Terrasol handled it Sunpower App- Easy and fun to use and see power being produced, by the hour, day, week, month, year etc.
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Average cost (5kW system)
$25,900 ($5.18 per watt)
J Murphy, over 1 month
System has been installed since Feb 2023 (21.75KW) Sales Process- Rob was both knowledgeable and easy to communicate with from the start until today. Planned for future EV in the design. Value- competitively priced Office Staff- very good communication with Rasha all along the way. She is on top of her game! Handled the permitting, inspections, interconnection app, SREC app. Seemless! Timing- They delivered on time, even with supply chain issues Field install- Install took two days. Guys were efficient, answered any questions, cleaned up and they were gone. Great experience. Interconnection with PECO- no issues, Terrasol handled it Sunpower App- Easy and fun to use and see power being produced, by the hour, day, week, month, year etc.
4.84 114 Reviews
Charles L., over 1 month
I started working with Exact Solar in June 2021. They were consistently responsive and very helpful in all aspects of the design and permitting part of the process. Once the necessary approval and supply issues were taken care of, the installation itself was completed quickly and professionally, with the system going online in December/January. Exact Solar was also very helpful with setting up net metering and SREC accounts. I highly recommend their services!
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Average cost (5kW system)
$12,400 ($2.48 per watt)
Charles L., over 1 month
I started working with Exact Solar in June 2021. They were consistently responsive and very helpful in all aspects of the design and permitting part of the process. Once the necessary approval and supply issues were taken care of, the installation itself was completed quickly and professionally, with the system going online in December/January. Exact Solar was also very helpful with setting up net metering and SREC accounts. I highly recommend their services!
4.83 95 Reviews
MichaelsA, 3 days ago
Paradise Energy Solutions is the place to start looking for a knowledgeable, professional, customer-service-friendly solar energy installer. After doing your due diligence and considering several bids, Paradise Energy will likely not be the least expensive. Whatever the price difference, the customer communications, quality of service, workmanship, deft navigation of the local permit bureaucracy, and follow-up monitoring are worth every cent. You will not regret using them for your solar installation. In addition, you will be very happy with your electric utility bills. Thank you Sheldon, Zane, Jeff, Tim, Michelle, and the entire Paradise Energy Solutions team for a great job on our 10.7 kW system.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
MichaelsA, 3 days ago
Paradise Energy Solutions is the place to start looking for a knowledgeable, professional, customer-service-friendly solar energy installer. After doing your due diligence and considering several bids, Paradise Energy will likely not be the least expensive. Whatever the price difference, the customer communications, quality of service, workmanship, deft navigation of the local permit bureaucracy, and follow-up monitoring are worth every cent. You will not regret using them for your solar installation. In addition, you will be very happy with your electric utility bills. Thank you Sheldon, Zane, Jeff, Tim, Michelle, and the entire Paradise Energy Solutions team for a great job on our 10.7 kW system.
4.75 77 Reviews
Mike L, over 1 month
Excellent experience with personnel that were obviously experts in residential solar installation. Great value and return on investment! Can’t imagine anyone doing a better job.
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Average cost (5kW system)
$23,200 ($4.64 per watt)
Mike L, over 1 month
Excellent experience with personnel that were obviously experts in residential solar installation. Great value and return on investment! Can’t imagine anyone doing a better job.
Gina, 1 day ago
Excellent customer service
4.66 45 Reviews
Vinod Krishnamoorthyu, 1 week ago
I have read about the transition to Solar and had got the quote from few other providers. While other providers were trying to upsell their product and finance options, Jordan from SAVKAT was very professional and his first meeting with me was very open to tell me that the project is not likely to have the expected ROI for the electricity rates in my City. Since I was in the market for EV, wanted to pursue this further and requested Jordan to give me a quote anyways and he worked with me addressing all my needs to share various option to address my current and future needs. The one stop shop for all Solar needs and warranty provided by SAVKAT (SunPower) made this deal a preferred option for me and from the time I signed the contract with them the communication was follow up constantly by the various people involved from SAVKAT and coordinated by Jordan all along. The team was quite professional and took care of all the formalities and the pre-inspection, installation and inspection process seamlessly to secure the activation ahead of time. Jordan has continued to stay in touch to share updates about the App and also about the functioning of the installation. Overall I am a very happy customer and strongly recommend SAVKAT
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Vinod Krishnamoorthyu, 1 week ago
I have read about the transition to Solar and had got the quote from few other providers. While other providers were trying to upsell their product and finance options, Jordan from SAVKAT was very professional and his first meeting with me was very open to tell me that the project is not likely to have the expected ROI for the electricity rates in my City. Since I was in the market for EV, wanted to pursue this further and requested Jordan to give me a quote anyways and he worked with me addressing all my needs to share various option to address my current and future needs. The one stop shop for all Solar needs and warranty provided by SAVKAT (SunPower) made this deal a preferred option for me and from the time I signed the contract with them the communication was follow up constantly by the various people involved from SAVKAT and coordinated by Jordan all along. The team was quite professional and took care of all the formalities and the pre-inspection, installation and inspection process seamlessly to secure the activation ahead of time. Jordan has continued to stay in touch to share updates about the App and also about the functioning of the installation. Overall I am a very happy customer and strongly recommend SAVKAT
4.64 60 Reviews
Jared Fretz, over 1 month
I had a solar project installed in December of 2021. I wanted to wait to see how the system performed before leaving a review. It's now September and I haven't had an electric bill since March. In fact, my energy use has been in the negative. We produce more than we use. I love it! In addition, the monthly loan payment is at or around what my electric bill was. It's a total win. Everyone we had contact with in the company were very friendly, professional and knowledgeable. My wish is that I had done this sooner.
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Jared Fretz, over 1 month
I had a solar project installed in December of 2021. I wanted to wait to see how the system performed before leaving a review. It's now September and I haven't had an electric bill since March. In fact, my energy use has been in the negative. We produce more than we use. I love it! In addition, the monthly loan payment is at or around what my electric bill was. It's a total win. Everyone we had contact with in the company were very friendly, professional and knowledgeable. My wish is that I had done this sooner.
4.61 35 Reviews
Jim Morano, over 1 month
Charlie, Catherine and the office staff were very responsive to my every call and question. Their installation crew and subcontractors did their jobs on time and very professionally.<br />
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Average cost (5kW system)
$30,950 ($6.19 per watt)
Jim Morano, over 1 month
Charlie, Catherine and the office staff were very responsive to my every call and question. Their installation crew and subcontractors did their jobs on time and very professionally.<br />