Pennsylvania has a long and proud tradition of producing copious amounts of energy, from early oil discoveries and rich coal deposits to modern solar energy production. When it comes to energy, this state has a way of getting things done. Thanks to supportive government policies, going solar in Pennsylvania is easier than ever.
The best way to compare your solar options and save money at the same time is by registering on the EnergySage Marketplace. When you compare quotes for solar panels on EnergySage's competitive solar marketplace, you can expect to see prices up to 20% lower than working with a single solar company. Read our updated article on the cost of solar panels to compare solar costs across states and by panel brand.
SRECs and net metering in PA
Pennsylvania has two main programs to support the development of residential solar systems: net metering and solar renewable energy certificates.
Pennsylvania net metering
This is one of the most important policies for solar in Pennsylvania, as in many other states, because it governs how your residential system interacts with the grid. Net metering allows you to sell excess solar electricity back to the utility at the same price at which you would buy it. The ability to send electricity back to the grid is key, as it allows homeowners to “bank” their solar energy when production is up and use it when they need it later on. PECO Energy offers the top utility net metering program in Pennsylvania.
Solar Renewable Energy Certificates (SRECs)
This program enables Pennsylvanians to sell the SRECs that their panels generate. In 2021, the going rate for these credits was between $24 and $41. At the lower end of this range, an 8-kilowatt (kW) system that generates 8 MWh per year could make an extra $192 per year from selling SRECs.
Pennsylvania solar tax credits
The federal solar tax credit
Don’t forget about federal solar incentives! With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless you’re a tax-exempt entity, in which case you might be eligible for a direct payment).