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Pennsylvania · Updated August 2026
Pennsylvania solar incentives in 2026
Every solar incentive a Pennsylvania homeowner can actually use in 2026, what each one is worth, and what changed when the federal residential credit ended on December 31, 2025.
$25–$45Per SREC — Pennsylvania’s main ongoing incentiveRanked #1 by Solar Power World · Inc. 5000 · 20,000+ installations
The numbers
What Pennsylvania actually offers in 2026
| Measure | Current | Detail |
|---|---|---|
| SREC / AEC value | $25–$45 | Per 1,000 kWh generated. Traded ~$31–$35 recently |
| Typical annual SREC income | $280–$350 | 9–10 SRECs from a typical 8–10 kW system |
| Net metering | 1:1 retail | Mandatory for investor-owned utilities, systems up to 50 kW |
| State sales tax exemption | None | Unlike New Jersey and Maryland |
| State property tax exemption | None | Unlike New Jersey and Maryland |
| Philadelphia Solar Rebate | $0.20/W | Waitlisted |
| Federal residential credit (25D) | Ended | For systems purchased after Dec 31, 2025 |
Figures as published August 2026. Utility rates change on published schedules — check your own bill for the rate that applies to your account.
Why the number is what it is
SRECs are the Pennsylvania-specific piece
Pennsylvania’s Alternative Energy Portfolio Standards Act, signed in 2004, requires electric distribution companies to source a share of their power from alternative energy, with a specific solar sub-requirement. To comply, utilities buy Solar Alternative Energy Credits — Pennsylvania’s version of SRECs.
Every 1,000 kilowatt-hours your system generates earns one SREC. A typical 8 to 10 kW Pennsylvania home produces 9 to 10 SRECs a year. At recent trading prices of roughly $31 to $35 each, that is $280 to $350 a year for doing nothing.
Registration runs through the PJM-GATS system, and your installer normally handles it as part of the job.
Net metering is the bigger number
Pennsylvania law requires investor-owned utilities — PPL, Pennsylvania, Duquesne Light, Met-Ed, Penelec, West Penn Power, Penn Power and UGI — to offer net metering to residential solar customers at the full retail rate, for systems up to 50 kW.
Full retail is better than most states. New York credits exports through the Value Stack at a discount, and Rhode Island credits net-metered exports at roughly 80% of retail. Pennsylvania is 1:1.
That is why the utility rate matters so much here. A Duquesne Light customer at 23.1¢ earns 23.1¢ per exported kilowatt-hour. A West Penn Power customer at roughly 19¢ earns less for the same panel.
The federal residential credit ended. Here is what that actually means.
The 30% federal Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. If you buy a system with cash or a loan in 2026, you cannot claim it. Any site still advertising "30% federal tax credit" for a homeowner purchase is running outdated information.
What remains is Section 48E, the commercial investment credit. It applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it rather than the homeowner. That is precisely what makes $0-down possible: the credit stays with whoever owns the equipment, and under a PPA that is not you.
We would rather tell you that plainly than let you find out at tax time.
Two ways to pay for solar, and they are very different
If you buy the system
You own the equipment, you keep any renewable energy credits, and you carry the maintenance responsibility. Installed pricing varies by roof, shading and system size.
If you use a PPA
$0 upfront. We install and own the system; you buy the power it produces at a rate set in your agreement, and you only pay for what it actually generates. The system owner carries maintenance for the life of the agreement.
The residential federal tax credit (25D) ended for systems purchased after December 31, 2025.
You will still see ads promising a 30% credit that “ends December 31.” Read the date on them. If you buy a system today as a homeowner, you cannot claim that credit. What remains applies to the owner of the system — which, under a PPA, is us. SolarAmerica does not provide tax advice; talk to your tax professional about your situation.
Who you would be working with
SolarAmerica
We design your system and manage the project; installation is performed by vetted licensed partners in your area.
Pennsylvania questions
The things people actually ask
Why is Pennsylvania's Price to Compare lower than PPL's but the all-in rate higher?
Because the two numbers measure different things. Pennsylvania's supply charge is lower; its distribution charges and riders are higher. What matters to your budget is the all-in figure — your bill divided by your kilowatt-hours.
How often does this change?
Four times a year: March, June, September and December.
Can I shop for supply?
Yes. Pennsylvania is deregulated, and switching suppliers changes only the supply portion of your bill.
See what your roof and Pennsylvania actually add up to
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