PennsylvaniaSolar Incentives 2026: Tax Credits, Rebates & Net Metering
Pennsylvania homeowners can reduce solar installation costs by up to 30% through state and federal incentives. With average monthly bills of $145 and 4.3 peak sun hours per day, the average PA homeowner saves $36,400 over 25 years.
State Solar Tax Credit
Pennsylvania does not offer a state income tax credit specifically for residential solar. Most homeowners rely on the 30% federal Residential Clean Energy Credit as the primary up-front incentive.
Net Metering in Pennsylvania
Pennsylvania requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is the full retail electricity rate.
In practice, this means a properly sized Pennsylvania system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under PA net metering rules include PECO, PPL, Duquesne, FirstEnergy PA.
Utility Rebate Programs
4 major utilities operate in Pennsylvania: PECO, PPL, Duquesne, FirstEnergy PA. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.
Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most Pennsylvania installers will pull up-to-date rebate data during a site assessment.
Property & Sales Tax Exemptions
Pennsylvania does not currently offer a property tax exemption for solar. The added home value from a solar installation is generally included in the next assessment cycle.
Pennsylvania does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.
PA SREC Market
Pennsylvania has an active Solar Renewable Energy Certificate (SREC) market. Homeowners earn one SREC for every megawatt-hour produced and sell them on the PA compliance market.
At current clearing prices, the average PA homeowner earns approximately $7,400 in SREC income over the first five years of operation. SREC values are volatile and depend on the state's Renewable Portfolio Standard compliance demand each year.
How Pennsylvania Compares to Neighboring States
Compare Pennsylvania's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.