Independent solar advice in Philadelphia

Philadelphia Solar Installation 2026

PA's best solar market: 4.8 peak sun hours. PECO EZ Permit same-day to 10 kW. 1:1 NM with no proposed changes. Rowhouse solar guide.

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The federal residential solar tax credit ended on December 31, 2025. We tell you the truth about what is left in 2026: which state programs still apply, and which financing paths can still capture federal value.

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Average local electricity rate (cents/kWh): 21.5
Peak sun hours per day (NREL): 4.8
Typical installed cost per watt: $3.00
Estimated payback (years, zero federal credit): 9

Electricity rate as of 2026-03-01. Sun hours: NREL NSRDB / PVWatts annual average; highest irradiance in Pennsylvania due to southeasterly position; July average 5.75 kWh/m2/day. Cost per watt: NuWatt Energy 2026, Philadelphia; market range $2.80-$3.20/W. Payback estimate assumes zero federal residential credit (Section 25D expired December 31, 2025) and current utility net-metering tariffs.

Net metering in Philadelphia

PECO 1:1 retail rate net metering per PA law. Credits roll month to month. Annual true-up on May 31; surplus purchased at the Price to Compare rate. PECO has NO proposed changes to net metering as of April 2026. Residential cap: 50 kW. PECO supply-only Price to Compare effective June 1, 2026: 11.57 cents/kWh.

Available programs

Solar incentives in Philadelphia, PA for 2026

Incentives available in PA

Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).

Active solar incentives in PA
Program	Benefit	Eligibility	Status	Source
Philadelphia EZ Solar Permit Local/State Incentive	No building permit or plan submission required for systems up to 10 kW on 1-2 family homes not on Historic Register. Building permit fee capped at $200. Same-day in-person at L&I or 3 business days online via eCLIPSE.	Philadelphia homeowners with standard 1-2 family dwellings not on Historic Register, systems up to 10 kW	Active	DSIRE (opens in new tab)
Philadelphia Solar Rebate Local/State Incentive Waitlisted as of 2026-06-29. Apply early; verify at dsireusa.org.	$0.20/watt for residential, capped at $100,000. Annual $500,000 budget with 10% reserved for low-to-moderate income households. Funding may be restored. Apply to be on the waitlist at phila.gov/programs/solar-rebate-program. Check for current status.	Philadelphia residents; waitlist only - program closed due to budget cuts but applications accepted for waitlist	Waitlisted	DSIRE (opens in new tab)
Solarize Greater Philadelphia (PGCC) Local/State Incentive	Free technical assistance and vetted installer access for homeowners and businesses in Philadelphia, Bucks, Chester, Delaware, and Montgomery counties. Over 4,100 participants installed 23+ MW through October 2025. Administered by Philadelphia Green Capital Corp. Visit solarizegreaterphl.org. Provides pre-vetted installers and group purchasing access.	Philadelphia and surrounding county homeowners and businesses	Active	DSIRE (opens in new tab)
PA Solar Renewable Energy Credits (SRECs) Local/State Incentive	$22-$40 per SREC (1 SREC per MWh generated). A typical 11 kW Philadelphia system generates 10-13 SRECs/year worth $220-$520 annually. PA SREC market is in-state only since 2017.	All PA grid-tied residential solar	Active	DSIRE (opens in new tab)
PA HEELP Loan (PA Housing Finance Agency) Local/State Incentive	1% fixed-rate loan $1,000-$10,000 for home energy improvements including prerequisite electrical panel work for solar.	PA homeowners; income limits may apply	Active	DSIRE (opens in new tab)
Solar For All (EPA, Philadelphia cohort) Local/State Incentive	Federal EPA program providing solar access to low-income households. Philadelphia Green Capital Corp (PGCC) is a designated recipient. Verify current enrollment status with Philadelphia Green Capital Corp.	Low-income Philadelphia households; verify current enrollment at PGCC	Limited	DSIRE (opens in new tab)

Data last verified June 29, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.

California property-tax exclusion sunsets December 31, 2026. Solar systems installed and permitted by December 31, 2026 lock in the exclusion for the life of the system under current California law (Revenue and Taxation Code Section 73). Systems installed in 2027 may not qualify if the Legislature does not extend the exemption. Verify current legislative status at ftb.ca.gov before signing a contract.

Why Philadelphia homeowners are moving now

After the January 2025 wildfires, battery storage became a priority

Philadelphia has the best solar economics of any major Pennsylvania city: highest irradiance in the state at 4.8 peak sun hours per day, the highest PECO all-in rate of 20-23 cents/kWh (up more than 30% since 2020), and the most streamlined permitting pathway in Pennsylvania (EZ same-day permit for systems up to 10 kW). South Philadelphia alone is approaching 1 MW across 205 or more homes. The Germantown Jewish Centre generates 50% of its electricity from 117 solar panels. PECO rates have additional increases expected through late 2026, compressing payback timelines. The Solarize Greater Philadelphia program gives first-time buyers a clear entry point with pre-vetted installers.

Source: PECO rate increases through 2026; South Philadelphia approaching 1 MW installed; Solarize Greater Philadelphia 4,100+ participants (2025).

Illustrative example

What does a typical Philadelphia solar system actually cost and save?

Zero federal residential credit applied (Section 25D expired December 31, 2025). Figures are estimates based on market data as of 2026-06-29. Your numbers depend on your roof, your utility, and your bill.

System inputs

System size: 11 kW
Gross cost ($3/W): $33,000
Federal residential credit: $0 (expired Dec 31, 2025)
Philadelphia EZ Permit (same-day approval, $200 capped fee, no plan submission): Applied
PA SRECs $22-$40/SREC for 10-13 SRECs/year ($220-$520 annually): Applied
Solarize Greater Philadelphia pre-vetted group pricing: Applied
Estimated net cost: $33,000

Estimated outcomes

Annual savings range: $2,200 to $3,400
Estimated payback: 9 years

Philadelphia combines the highest irradiance in PA (4.8 PSH), the highest PECO rate (up to 23 cents/kWh), and the fastest permit in PA (EZ same-day to 10 kW). PECO has no proposed net metering changes, making it the most rate-stable major PA utility. Note: 6% PA sales tax adds approximately $1,980 on equipment and labor on a $33,000 system. SREC income of $220-$520/year supplements bill savings. No federal residential credit in 2026.

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Neighborhoods we serve

Solar in Philadelphia: high-adoption areas, equity zones, and post-fire demand corridors

High-adoption neighborhoods

Established solar saturation; higher installers per block, active neighbor referrals, and permit history at LADBS.

South Philadelphia (ZIP codes 19145-19148)
Germantown
Fishtown
Point Breeze
West Philadelphia

Equity program target areas

Designated disadvantaged communities (DAC) eligible for SGIP equity resiliency, DAC-SASH, and other income-qualified programs. Income verification required.

North Philadelphia
Kensington
Southwest Philadelphia

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Permitting and interconnection

How solar permitting works in Philadelphia

Authority Having Jurisdiction (AHJ)

Permit office: City of Philadelphia Department of Licenses and Inspections (L&I), eCLIPSE portal
SolarAPP+ status: SolarAPP+: Not adopted by this AHJ
Permit fee: Philadelphia EZ Permit: no Building Permit or plan submission required for systems up to 10 kW on 1-2 family dwellings not on the Historic Register. Building permit fee capped at $200. Electrical permit fees substantially reduced (inverters and arrays excluded from calculation). EZ Permit: same-day in-person at L&I or within approximately 3 business days online via eCLIPSE. Systems over 10 kW or on Historic Register properties require full permit review; PA-licensed PE stamp required. No SolarAPP+. PECO Level 1 residential interconnection: $0 application fee, 2-5 weeks.
Typical contract-to-energization: 5 to 10 weeks (EZ Permit same-day or 3 business days, PECO Level 1 interconnection $0 fee 2-5 weeks)

We handle the permit and interconnection filings

LADBS permit application and plan set preparation
SolarAPP+ submission for qualifying systems
LADWP or SCE interconnection application
Inspection coordination and utility sign-off
Certificate of Completion delivery to homeowner

Philadelphia has the most streamlined solar permitting in Pennsylvania. However, over 60% of Philadelphia residences are rowhouses and twins with small, often shared flat roofs. Flat roofs are fully viable using tilt-mounted racking angled south. Systems on Historic Register properties require full permit review. Pennsylvania's statewide F grade (18 out of 100) on the 2026 PennEnvironment/Frontier Group Solar Permitting Scorecard reflects overall state permitting complexity; Philadelphia's EZ Permit is a notable exception. Note: 6% PA sales tax applies to equipment and labor - approximately $1,980 on a $33,000 system.

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South Philadelphia REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial from South Philly rowhouse with flat roof, EZ Permit experience, and PECO bill comparison]

System: 10 kW rooftop solar, flat row house, EZ Permit, PECO territory

Germantown, Philadelphia REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial from Germantown homeowner mentioning Solarize program and SREC income]

System: 8 kW rooftop solar, PECO territory, Solarize Greater Philadelphia

Fishtown, Philadelphia REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial from Fishtown homeowner on PECO net metering stability and SREC income]

System: 9 kW rooftop solar, PECO 1:1 NM, PA SRECs

For business owners and property managers

Commercial Solar in Philadelphia

Philadelphia commercial and nonprofit solar can access the PA Solar Energy Program (SEP) grants (up to $1.50/W) and loans (up to $3.00/W) via DCED, the Solarize Greater Philadelphia commercial track, and PA Sustainable Energy Fund (SEF) financing. PECO commercial net metering is stable with no proposed changes. The federal 48E commercial credit requires construction to begin by July 4, 2026. Philadelphia Green Capital Corp (PGCC) administers multiple commercial solar programs including the federal Solar For All cohort.

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Commercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.

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Philadelphia solar questions

What Philadelphia homeowners ask

City-specific answers. Every number references your utility and your permit office.

What is Philadelphia's EZ Permit for solar?

Philadelphia's EZ Permit requires no building permit or plan submission for solar systems up to 10 kW on standard 1-2 family dwellings not on the Historic Register. The building permit fee is capped at $200, and electrical fees are substantially reduced because inverters and arrays are excluded from the fee calculation. You can get approval same-day in-person at L&I or within approximately 3 business days online via the eCLIPSE portal. Systems over 10 kW, or on Historic Register properties, require full permit review with a PA-licensed PE stamp.

Can I put solar on a Philadelphia rowhouse?

Yes. Over 60% of Philadelphia homes are rowhouses and twins with flat roofs. Flat roofs are fully viable for solar using tilt-mounted racking angled south to maximize production. South Philadelphia alone has 205 or more homes with solar, approaching 1 MW installed. The Germantown Jewish Centre generates 50% of its electricity from 117 panels. The key is confirming your roof is in good repair and is not in a historic district that requires special permit review.

Does Pennsylvania have a solar sales tax or property tax exemption?

No. Pennsylvania applies the standard 6% sales tax to solar equipment and installation. On a $33,000 system this adds approximately $1,980. There is no statewide property tax exemption for solar in PA (unlike Maryland, New York, and New Jersey). PA SRECs ($22-$40/SREC annually) and PECO 1:1 net metering are the primary financial incentives. Some municipalities may have local property tax options; verify with your township.

Is PECO's net metering changing like PPL's?

No. As of April 2026, PECO has no proposed changes to its 1:1 retail net metering. This makes Philadelphia the most stable major PA solar market in 2026. PPL Electric (serving Allentown, Harrisburg, and surrounding areas) has a pending net metering change effective July 2026. FirstEnergy (Penelec, serving Erie) has a change proposed for June 2027. If solar policy stability matters to you, PECO territory is the lowest-risk major PA market currently.

Is there a federal solar tax credit in 2026?

No. The Section 25D residential solar tax credit expired December 31, 2025, under H.R. 1 (One Big Beautiful Bill Act, signed July 4, 2025). Active Philadelphia incentives: PECO 1:1 retail net metering (no proposed changes), PA SRECs ($22-$40/SREC), Solarize Greater Philadelphia group pricing, and PA HEELP loan for panel upgrades.

More solar resources for Pennsylvania:

Pennsylvania solar guide All cities

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