Home Solar in Pennsylvania:
Local installers, tax credits, and rebates.
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7,095,095
Pennsylvania residents who experienced power outages in a span of ten years¹
54%
Prices have fallen 54% over the last 10 years²
$1,500+
Average yearly savings for homeowner's who switch to solar³
Pennsylvania Solar
Residential solar installations have been experiencing a notable upswing in Pennsylvania with enough solar installed to power 139,182 homes. There’s a growing shift towards cleaner and more sustainable energy solutions. Despite being located in the northeastern part of the United States, Pennsylvania's residential solar sector has gained traction due to a combination of supportive policies, technological advancements, and increasing environmental awareness.
While Pennsylvania's climate might not be known for year-round sunshine, modern solar technology has evolved to be more efficient and adaptable. Solar panels are designed to capture energy even on cloudy days, making them a practical choice for homeowners seeking to generate their electricity sustainably.
Pennsylvania homeowners have been quick to recognize the financial benefits of adopting solar energy. The state’s net metering program, which allows excess solar energy to be fed back into the grid in exchange for credits, has been instrumental in reducing electricity bills for solar-equipped homes. Additionally, the federal Investment Tax Credit (ITC) provides a substantial incentive by offsetting a significant portion of the upfront installation costs.
Let’s learn about some of those incentives, the utility policies associated with interconnection and setup, and solar financing plans for solar panels and battery systems in Pennsylvania.
Incentive Programs, Tax Credits, and
Solar Rebates in Pennsylvania
| Incentive | Description |
|---|---|
| Federal ITC - 30% | Solar PV systems installed in 2022 - 2032 are eligible for a 30% tax credit. The credit can only be claimed by on the original installation of the solar equipment located at a residence of yours. You must also purchase it using cash or financing, but you're not leasing the system or paying a solar company for the electricity produced by the system. |
| Instant Rebate from EnergyPal | EnergyPal secures group discounts by leveraging the depth of our network. We pass these savings onto homeowners every day! |
| SRECs - Solar Renewable Energy Certificates | SRECs are publicly traded on sites like SRECtrade and are currently around $35-45/SREC (per 1000kWh) paid out QUARTERLY by check based on performance of system. Note it is not a bill credit and they actually get paid. There is an option for upfront payment but the spot market option is recommended. There is no determined end to the SREC program so as long as it is active the homeowner will still get paid. The program covers a lot of utilities so it is recommended to search for them specifically. |
| SREC - Upfront | Exchange their future SREC generation for a fixed, upfront payment through Skyview. This option pays homeowners upfront at a fixed price based on the size of their system (in kW). |
| Net Metering | Net metering enables owners of solar systems to sell any surplus solar energy they generate back to their utility company. In Pennsylvania, the law mandates that utilities must provide net metering at fair rates without discrimination. Utilities are prohibited from imposing fees on net-metered customers that they wouldn't apply to non-net-metered consumers. Through net metering, surplus solar power can be sold back to the utility at the purchasing price, facilitating the exchange of electricity. This capability to contribute energy to the grid is crucial as it enables homeowners to store their solar energy during periods of high production and utilize it when required. PECO Energy provides Pennsylvania's leading utility net metering program. |
| Duquesne Light Company - Residential Solar Water Heating Program | Home customers of Duquesne Light may be entitled to special rebates on new solar water heaters. The rebate amount is currently fixed at $300. Qualifying systems should be installed by a participating solar contractor and meet efficiency, performance, and warranty standards set by the utility. Application forms should be submitted after the subject equipment has been purchased and installed. Should the application be approved, the rebate will be awarded as a prepaid reward card. |
| High Performance Building Incentives Program | As part of Pennsylvania's 2008 energy conservation bill, Pennsylvania has a statewide fund established for residential and commercial buildings constructed to green construction standards. Loans, grants, or default protections may apply to homes or businesses that are formally certified at the LEED Gold level or higher. Facilities that earned 3 Green Globes may also qualify, so long as they follow additional state standards. The maximum available loan principal is $100,000 for homes and $2 million for small businesses. Grants top out at $500,000 and may be awarded alongside loans for a different project. |
| Alternative and Clean Energy Program | A major 2008 energy bill passed by the Pennsylvania legislature created loan and grant funds for businesses and local/state government agencies making energy efficiency improvements or constructing new sustainable facilities. This fund differs from similar initiatives in that it supports renewable energy aside from solar. Grants may be available for lower-income entities. The maximum available grant is currently $2 million or 30% of project expenditures. Loan principal varies depending on the type of applicant and the specific project. |
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Other Solar Energy Incentives
The US federal government helps residents and businesses pay for their solar systems. The federal investment tax credit (ITC) allows for a tax deduction of 30% of the cost of a solar system currently. Tax credits can be rolled over if you can’t use the whole credit this year. The ITC cannot be claimed for solar leases or power purchase agreements (PPAs) where the third party financier takes the credits themselves, but that is typically baked into a reduced lease/PPA monthly for you.
If you purchased a $20,000 system, your savings from the federal tax credit would look like this:
$20,000 X 0.30 = $6,000 savings
Home Solar Financing in Pennsylvania
There are three pathways to powering your home with solar energy in Pennsylvania: purchasing the solar system outright, obtaining a loan for its financing, or opting for a leasing program. Solar systems can be financed by bank loans, solar installer financing, new home mortgages, energy loans and home equity loans or lines of credit. Cash works too. Regardless of your choice, solar panels can reduce your home energy expenses, contributing to financial savings and a cleaner power supply. Our Energy Advisors can guide you to the best solar deals in Pennsylvania. Here's a comparison:
Solar Purchase
- Optimal Return-On-Investment
- Potential Reduction of Bills to near $0
- Enhances Property Value
Outright Solar Purchase: Homeowners with a stronger financial position often cover the full cost of solar upfront, yielding the highest return-on-investment over the system's lifespan. By paying in cash, homeowners in Pennsylvania can claim tax credits and rebates, avoid interest charges, and directly enjoy the savings on their electricity bills. Some of our customers experience virtually no electricity expenses from the moment they install solar. We offer top-tier products at attractive cash prices.
Solar Loan
- No Initial Expenses
- Ownership of the System
- Appreciates Property Value
Solar Loan Financing: Utilizing a solar loan enables you to save and own your solar system, as our financiers cover the upfront expenses (similar to an auto loan). Homes equipped with solar systems command higher value due to their lower operational costs. Depending on the chosen solar loan, you can achieve greater monthly savings or complete your financing earlier. Our team will help you secure the most favorable rates and terms to match your requirements. To learn about our latest offerings, connect with us
Solar Lease
- No Initial Investment Required
- Complete Maintenance Coverage
- Lower Monthly Payments
- Guaranteed Rates
Solar Leasing: Leasing solar panels provides an accessible and cost-effective path to solar adoption. With zero upfront costs—often referred to as “$0 down solar financing“—installation and maintenance are entirely managed, and your home benefits from the energy generated by the solar panels. You pay a consistent monthly fee and save compared to your existing electricity bill. The reduced electricity rate are what many homeowners like about this option.
Talk to your EnergyPal Advisor about financing solar options in Pennsylvania. We regularly source the best deals and terms for our customers. Let us guide you through the finance and application process from A-Z.
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Frequently Asked Questions
Is it worth going solar in Pennsylvania?
In most cases, yes, solar will save you a significant amount of money. Solar panels produce electricity and reduce how much power you have to purchase from your electric company. The typical homeowner in Pennsylvania pays around 18.26¢ cents per Kilowatthour.
What is the payback period for solar panels in Pennsylvania?
Homeowners who install a solar array sized to meet 100 percent of their energy needs can still pay off the upfront cost in as little as 5-6 years. The typical payback period in Pennsylvania averages 7 years.
How much are solar panels in Pennsylvania?
As of August 2023, the average solar panel cost in Pennsylvania is $3.06/W. Given a solar panel system size of 6 kilowatts (kW), an average solar installation in Pennsylvania is $12,852 with 30% tax credit applied.
What incentives are available for solar in Pennsylvania?
Solar installations in Pennsylvania are eligible for the 30% solar tax credit. Connect with us to learn more about all the local Pennsylvania incentives, tax credits & rebates you qualify for.
¹https://www.eaton.com/content/dam/eaton/products/backup-power-ups-surge-it-power-distribution/backup-power-ups/blackout-tracker-/blackout-tracker-annual-report-2018-mz153043en.pdf
²https://www.seia.org/solar-industry-research-data
³https://www.energy.gov/articles/4-reasons-go-solar-summer
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