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)
No Longer AvailableThe federal Investment Tax Credit (ITC) is no longer available to new residential solar customers. We recommend speaking with a licensed tax professional for the most current federal incentive information. Our team will walk you through every incentive you still qualify for in Pennsylvania.
- Federal ITC is no longer available for new installations
- Pennsylvania state incentives remain fully in effect
- Net metering and PA tax exemptions still apply
- Speak with a tax professional for personalized guidance
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?
Most homeowners can go solar with $0 down financing. We also offer a PPA Solar Program where you pay only for the electricity your panels produce — no purchase or loan required. Ask us which option fits your situation best.
Is the federal solar tax credit still available?
The federal Investment Tax Credit (ITC) is no longer available for new residential solar installations. We recommend consulting a licensed tax professional for the most up-to-date federal incentive information. Pennsylvania homeowners still benefit from strong state incentives — net metering, and property/sales tax exemptions.
Can I combine multiple incentives?
Yes — and you should. Most PA homeowners stack net metering credits, the property tax exemption, and the sales tax exemption together. Our consultants walk you through every incentive you qualify for.
When do these incentives expire?
Net metering and property/sales tax exemptions are state law with no expiration. Act now to lock in your savings before utility rates rise further.
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 · Takes 2 minutes