Pennsylvania Solar Incentives: Tax Credits & Rebates Guide
Written by Lisa Iscrupe
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Edited by Jamie Cesanek
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Last updated 09/11/2023
Estimate your home’s solar cost and savings
20-year savings
$12,488
Incentives
$5,646
Upfront cost
$19,366
Payback period
9 years
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Key Points
Pennsylvania rooftop solar panels cost around $31,950 for an average-sized 9-kilowatt (kW) system.
Solar panels in PA could save homeowners thousands of dollars in electricity bills over the lifetime of their solar systems.
Your estimated solar savings depend on the solar system size, location, roof, panel type, installer, and more.
Why choose solar power in Pennsylvania?
Solar systems in Pennsylvania can help homeowners save money on energy costs and benefit the environment simultaneously. While they require a high initial investment, installation can bring long-term savings and a return on your solar investment. In 2023, the average solar system cost in Pennsylvania is $3.55 per watt, totaling $31,950 for a typical 9-kilowatt (kW) system, according to Find Energy.
Residential solar energy capacity in the state doubled between 2018 and 2022 from 50 megawatts (MW) to more than 100 MW. Now, the amount of solar installed could power over 150,000 Pennsylvania homes, according to the Solar Energy Industries Association (SEIA). The SEIA expects solar installations in Pennsylvania to surpass 3,717 MW in five years. Keep reading to discover the costs and advantages of the best solar panels in Pennsylvania.
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Pennsylvania solar panel cost
The cost for rooftop solar panels in PA is around $31,950 for an average-sized 9-kW system. Solar panels in PA are customizable based on your energy use. The exact cost of your solar system will depend on its size, configuration, components, local labor and permitting fees, and more. Solar panel cost is measured in dollars per watt. The average price per watt in Pennsylvania in 2023 is $3.55.
While solar is expensive, the custom design of your Pennsylvania solar panels can be modified based on your needs and your budget. When you are ready to go solar, get at least three solar quotes to compare prices in your area. Use a solar calculator to estimate your costs before speaking with solar installers near you.
Average solar system cost in Pennsylvania vs. U.S.
System size
Price per watt
Installed cost
Number of panels*
Pennsylvania
9 kW
$3.55
$31,950
23-30
U.S.
8.6 kW
$3.67
$31,558
22–29
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
Is solar worth it in PA?
Going solar in Pennsylvania can help you save on electricity bills after installation. Consider the following factors to help determine if going solar makes financial sense for you:
If you pay the monthly state average electric bill of $155.39, you could recoup the cost of your Pennsylvania solar investment in about 12 years when you factor in federal rebates and PA solar incentives.
Since electricity rates tend to increase with time, your energy bill savings may be even higher than current estimates.
The bottom line is that there is the potential to save lots of money with solar panels in PA, but they aren’t right for everyone. Pennsylvania solar power is a good investment for most homes with exposure to direct sunlight. In addition, the more energy you use, the higher your energy savings will likely be.
Considering that each household needs a unique solar system size based on energy usage and home size, here is a range of system costs and sizes at Pennsylvania’s price per watt of $3.55:
System size
Total cost
Number of panels*
4 kW
$14,200
10–13
6 kW
$21,300
15–20
8 kW
$28,400
20–27
10 kW
$35,500
25–33
12 kW
$42,600
30–40
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
PA solar incentives or rebates
Is Pennsylvania a solar-friendly state? Does Pennsylvania have a solar tax credit? The good news is that the answer to these questions is yes: Federal and state incentives and tax credits in Pennsylvania can help reduce homeowners’ costs. There’s no doubt that rooftop solar panels are expensive. The following table explains incentives you can use to lower the upfront investment of solar panels in Pennsylvania.
Net metering allows solar system owners to sell unused solar energy to their utility. Pennsylvania’s legislation requires that utilities offer net metering at non-discriminatory rates. They aren’t allowed to impose fees on net-metered customers that they wouldn’t charge a non-net-metered consumer.
The federal government offers the Residential Clean Energy Credit for anyone who purchases or finances a home solar system. The tax credit is 30% for installations on a primary or secondary residence and will fall to 26% in 2033 and 22% in 2034. It’s due to terminate in 2035 unless Congress extends it. Learn more about how to apply for the federal tax credit.
Solar Alternative Energy Credits (SAECs) provide financial compensation for the solar energy you produce. As a qualifying solar customer, you can receive one SAEC for every megawatt-hour of electricity your solar panels generate. The market supply and demand environment dictates SAEC values, which means they can change daily.
Solar incentives in Philadelphia in 2023
Philadelphia offers a solar rebate program encouraging property owners to install solar panels. Under this incentive, a solar system owner will get a one-time payment after a system is installed and approved by a utility to operate.
Residential solar projects can receive $.20 per watt, and the rebate is capped at $100,000 per project.
The program sets aside 10% of the rebate funds to help low- and moderate-income households.
Your system must continue operating for 36 months after installation. It also needs to produce 80% of the energy amount projected in your application each year for at least three years.
Benefits of Pennsylvania solar power
The benefits of installing residential solar panels Pennsylvania offers are reduced energy costs, a lower carbon footprint, and greater energy independence.
Lower energy costs
Solar systems in Pennsylvania on your home can save you thousands in energy costs over the lifetime of your solar array. Solar panel installation captures sunlight and turns it into usable electricity to power your home with a solar inverter. The money you save will depend on what you pay for electricity and the power your solar panels can produce.
Establish energy independence
Another benefit of solar panels is that you can improve your energy independence, meaning you aren’t entirely reliant on the traditional electricity grid to power your home. If you include a top-rated solar battery with your system, you don’t have to worry about power outages due to storms or downed power lines. Additionally, using Pennsylvania solar power won’t leave you as vulnerable to potential price spikes when energy demand is high.
Go green
Traditional electricity generation harms the environment by emitting carbon dioxide, which pollutes the air and water and contributes to climate change. Solar in Pennsylvania is a renewable source; its production doesn’t emit harmful greenhouse gasses. For this reason, installing solar panels for your home can reduce your family’s carbon footprint.
Should I buy or lease my solar panels?
You can make the most long-term savings by purchasing your solar panels in PA. However, there are many other ways to access solar if an upfront purchase is not accessible to you. Solar loans, leases and power purchase agreements (PPA), or community solar projects each have unique features. Here’s a breakdown of the benefits and drawbacks of each solar financing option.
Payment Method
Benefits
Drawbacks
Cash purchase
Full ownership of solar panels, more long-term savings, eligible for incentives, electricity bill savings
High upfront cost, expensive to relocate solar panels to a new home
No upfront costs, power home with clean energy, electricity bill savings, more accessible for more Pennsylvania families
No ownership
Pennsylvania solar panel companies
The Pennsylvania solar industry has grown over the last decade, with about 467 solar companies in the state. The best solar companies offer a range of products, services, and solar warranties. When shopping for a solar provider, consider several companies and compare offers, including price, installation, warranty, and system setup, to find one that best fits your needs.
SaveOnEnergy can help you narrow down your choices while providing necessary information. We can match you with dependable Pennsylvania solar installers in your area. Start here by getting a free solar estimate.
Solar installer
Year founded
Financing options
Warranty terms
2010
Cash purchase, solar loan, lease, or PPA
Minimum 12-year product warranty and 25-year performance guarantee
1985
Cash purchase, solar loan, or lease
25-year full system warranty
2018
Cash purchase or solar loan
30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
2009
Cash purchase, solar loan, or lease
25-year quality of work and 25-year product warranties
1994
Cash purchase, solar loan, lease, or PPA
5-year quality of work and 25-year panel warranties
Beware of free solar panels in Pennsylvania scam
Are solar panels free in Pennsylvania? No. There is no Pennsylvania solar program that will render rooftop solar completely free, even for low-income solar initiatives.
You may come across solar advertisements promoting free panels, but these promises are misleading. Although there may not be an upfront payment, this gimmicky wording doesn’t tell you that the solar panels will cost money later. The bottom line is, don’t trust solar quotes for free panels.
If you’re considering going solar and want to find a trustworthy solar installer, use Save On Energy to connect with a vetted solar company that will be transparent with all the details of your solar contract. Start by getting a quick estimate with our solar calculator.
Important solar installation factors to consider
Solar panels in PA offer homeowners plenty of benefits, but there are a few things to consider before you purchase them:
Roof condition: According to the U.S. Department of Energy, solar panels are best for newer roofs and those in good shape since they won’t need to be replaced soon. They’re also most effective on south-facing roofs with slopes between 15 and 40 degrees. Extensive roof repairs can add to the cost of solar panels in Pennsylvania.
Direct sunlight: Solar panels function best in areas with direct exposure to sunlight. Before installing them, consider removing any obstructions blocking sunlight around your home to make the most efficient use of Pennsylvania solar power.
HOAs: Some homeowners associations (HOAs) and neighborhood organizations may impose restrictions on solar panels, such as limiting the size of your solar systems in Pennsylvania or requiring approval before you install them. Using the most efficient solar panels and enlisting your solar installer to work through potential neighborhood rules or solar permitting issues can help.
Residential solar panel systems in Pennsylvania cost about $31,950 for an average 9-kW system. However, the exact cost will depend on your location, local labor, permitting fees, system size and components, and solar panel types.
The federal tax credit and Pennsylvania solar incentives can help you save thousands of dollars on your solar purchase. In addition, solar system owners in Pennsylvania could save over $1,800 on energy bills each year.
There are hundreds of solar companies operating in Pennsylvania. It’s important to thoroughly research options before signing a solar contract for solar panels in PA. SaveOnEnergy can help you find a quality, vetted solar panel installer. To get started, enter your information or call the number on your screen, and we’ll connect you with a solar installer in your area.
Solar is a renewable energy resource. Unlike traditional electricity generation, solar generation doesn’t emit harmful greenhouse gasses into the air. As a result, installing solar systems in Pennsylvania homes can reduce your carbon footprint.