Pennsylvania Solar Incentives
& Tax Credits
PA homeowners can stack six different incentives to dramatically cut the cost of going solar. Here's every program available to you in 2026 — and how to claim them all.
Every Incentive Available to PA Homeowners
Most homeowners qualify for multiple programs simultaneously. Our consultants identify every incentive you're eligible for before you sign anything.
Federal Solar Tax Credit (ITC)
30% of System CostThe federal Investment Tax Credit lets you deduct 30% of your total solar installation cost directly from your federal income taxes. On a $25,000 system, that's $7,500 back in your pocket. This credit applies to both the panels and battery storage.
- Applies to residential and commercial installations
- No maximum cap on the credit amount
- Rolls over to future tax years if you can't use it all at once
- Available through at least 2032 under current law
PECO Solar Rebate Program
Up to $500 RebatePECO customers in the Greater Philadelphia area may qualify for a $500 rebate when installing a qualifying solar system. This is a direct cash rebate on top of the federal tax credit — money back just for going solar in PECO's service territory.
- Available to PECO residential customers
- Applies to qualifying grid-tied solar systems
- Paid directly to the homeowner after installation
- Can be combined with federal and state incentives
Net Metering (PA Act 129)
Earn Credits on Excess PowerPennsylvania's net metering law requires utilities like PECO, PPL, and Met-Ed to credit you for every kilowatt-hour your solar panels send back to the grid. When your panels produce more than you use — like on sunny summer days — that surplus spins your meter backward.
- Required by law for all PA electric utilities
- Credits apply at the full retail electricity rate
- Excess credits roll over month to month
- Dramatically reduces or eliminates your monthly bill
Pennsylvania SREC Market
Earn Per MWh GeneratedSolar Renewable Energy Credits (SRECs) let you earn additional income just for generating solar electricity. Each megawatt-hour (MWh) your system produces earns one SREC, which can be sold to utilities that need to meet Pennsylvania's Alternative Energy Portfolio Standards.
- Earn one SREC per 1,000 kWh of solar production
- SRECs can be sold through brokers or aggregators
- Provides ongoing passive income from your solar system
- PA utilities are required to purchase SRECs
Property Tax Exemption
100% Solar Value ExemptPennsylvania law exempts the added value of a solar energy system from your property tax assessment. Solar panels can increase your home's value by $15,000–$30,000 or more — and in Pennsylvania, that increase is 100% exempt from property taxes.
- Applies to all residential solar installations in PA
- No application required — automatic exemption
- Saves hundreds per year in property taxes
- Permanent exemption for the life of the system
Sales Tax Exemption
No PA Sales Tax on SolarPennsylvania exempts residential solar energy systems from the state's 6% sales tax. On a $25,000 system, that's $1,500 in immediate savings at the point of purchase — no forms to file, no rebate to wait for.
- Applies to solar panels, inverters, and installation
- Automatic at the point of sale — no application needed
- Saves $1,500+ on an average residential system
- Applies statewide to all PA residential installations
Real Savings Example: PA Homeowner
Based on a typical 8kW system in the Greater Philadelphia area
* Estimates only. Actual savings depend on system size, utility company, energy usage, and tax situation. Consult a tax advisor for personalized guidance.
Frequently Asked Questions
How much can I save with solar in Pennsylvania?
Most Pennsylvania homeowners save $1,200–$2,400 per year on electricity. Over 25 years, that's $30,000–$60,000 in savings — and with rising PECO and PPL rates, those numbers keep growing.
Do I need good credit to go solar in Pennsylvania?
No. Our No Credit Solar Program is specifically designed for homeowners who don't qualify for traditional financing. If you own your home and have a qualifying electric bill, you may be eligible regardless of your credit score.
How do I claim the 30% federal tax credit?
You claim it on IRS Form 5695 when you file your federal taxes for the year your system was installed. Your tax preparer can handle this, or we can point you to resources. The credit reduces your tax liability dollar-for-dollar.
Can I combine multiple incentives?
Yes — and you should. Most PA homeowners stack the federal 30% tax credit, PECO rebate, net metering credits, property tax exemption, and sales tax exemption together. Our consultants walk you through every incentive you qualify for.
When do these incentives expire?
The federal 30% ITC is locked in through 2032. Net metering and property/sales tax exemptions are state law with no expiration. The PECO rebate is subject to program funding — the sooner you act, the better.
Find Out Which Incentives You Qualify For
Our free solar consultation identifies every federal, state, and utility incentive available to you — and shows you exactly what your system would cost after stacking them all.
No obligation · No credit check · Takes 2 minutes