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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 incentive

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The numbers

What Pennsylvania actually offers in 2026

MeasureCurrentDetail
SREC / AEC value$25–$45Per 1,000 kWh generated. Traded ~$31–$35 recently
Typical annual SREC income$280–$3509–10 SRECs from a typical 8–10 kW system
Net metering1:1 retailMandatory for investor-owned utilities, systems up to 50 kW
State sales tax exemptionNoneUnlike New Jersey and Maryland
State property tax exemptionNoneUnlike New Jersey and Maryland
Philadelphia Solar Rebate$0.20/WWaitlisted
Federal residential credit (25D)EndedFor systems placed in service after Dec 31, 2025
Pennsylvania has no statewide solar rebate and no sales or property tax exemption. Its solar economics rest on two things: retail-rate net metering and the SREC market.

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.

SRECs belong to whoever owns the panels. Under a lease or a PPA, the system owner keeps that income, not the homeowner. That is one of the clearest financial differences between owning and subscribing in Pennsylvania, and it should be part of how you compare the two.

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 property placed in service 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 property placed in service 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.

PPL Electric Utilities

PPL pays $150 per kW for your battery: the Optimized Battery program

Pennsylvania has no state battery rebate, but PPL pays its customers who own one. Under PPL’s Optimized Battery program, PPL briefly draws on your battery during the highest-demand hours of summer and winter, and pays you $150 for every kilowatt your battery provides each season, up to $400 a season.

SeasonWhen PPL uses your batteryPayment
SummerJune 1 – August 31, 4–7 p.m. on weekdays$150 per kW
WinterJanuary 1 – end of February, 6–9 a.m. and 6–8 p.m. on weekdays$150 per kW
Weekends and holidays are excluded. Rewards are paid each season, up to $400 per season. PPL’s own example: a battery that provides 1.5 kW earns $225 a season.

Your backup stays yours

PPL says it will never fully discharge your battery, and it recharges the same day.

Nothing to do after enrolling

The adjustments happen automatically. Enrollment is open now through PPL Electric Savings.

Pairs with solar

The program is for home backup batteries, including batteries paired with solar panels.

Source: PPL Electric Savings, Optimized Battery, checked October 2026. Program terms and conditions apply; PPL notes that starting with the January 2027 winter season, payments may be prorated based on event participation.

Who you would be working with

SolarAmerica

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20,000+Installations completed
16+States with installations
Inc. 5000Fastest-growing companies

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

What solar incentives are available in Pennsylvania in 2026?

The programs available in Pennsylvania are listed on this page, with what each one pays, who receives it and how it is claimed. Your SolarAmerica proposal shows exactly which ones apply to your home.

Do Pennsylvania solar incentives apply with $0 down?

Some do, and some go only to the owner of the system. Under a $0-down PPA SolarAmerica owns the system, and your proposal lists which benefits reach you. SolarAmerica does not provide tax advice.

Who handles the solar incentive paperwork?

SolarAmerica handles the applications that run through the installer and the utility, including interconnection. Your proposal lists each incentive separately with who applies for it.

Does PPL pay for home batteries?

Yes. PPL's Optimized Battery program pays $150 for every kW your battery provides during summer and winter peak hours, up to $400 a season. PPL never fully discharges the battery, and enrollment is open.

See what your roof and Pennsylvania actually add up to

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Before you get a quote

The two things that stop most people

Do I need a new roof before solar?

Not always, and it is the first thing we check. A roof with ten or more years of life left generally takes panels without any work. If yours is closer to the end, the sensible order is roof first, then solar — because removing and reinstalling an array later costs more than doing it once.

We assess roof condition, age and structure as part of the site survey, before any agreement is signed. If the roof needs work first, we will tell you that rather than sell you a system on top of it.

What happens if I sell the house?

It depends which way you paid. An owned system transfers with the property like any other fixture. A third-party-owned system — a lease or a power purchase agreement — is a contract, and the usual routes are transferring it to the buyer, buying it out, or settling it at closing.

The specific terms are in your agreement, so ask before you sign rather than after. We walk through what happens if you move in more detail.

Sources

Where these numbers come from

Every figure on this page is drawn from a public filing or a published rate schedule. We update it when the utility resets.

Last updated August 2026. Rates change on each utility's published schedule — check your own bill for the rate that applies to your account.

See all Pennsylvania electric rates →