State solar guide
Pennsylvania has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (verify at your assessment) | EnergySage mid-2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Pennsylvania mandates full retail 1:1 net metering for residential solar systems up to 50 kW under Act 129, with all investor-owned electric distribution companies (EDCs) regulated by the PA PUC required to participate. PECO (Philadelphia and southeastern PA), PPL Electric Utilities (central and eastern PA), Duquesne Light (Pittsburgh), and the three FirstEnergy subsidiaries (Met-Ed, Penn Power, West Penn Power) all offer full retail net metering. Credits carry forward monthly and true-up annually, with excess annual credits settling at the avoided-cost rate rather than retail. Pennsylvania's net metering is strong by policy but the lower retail rate of 20.30 cents per kWh limits annual savings versus New England states. As of 2026-06, verify current policy at dsireusa.org or with your utility.
PECO (southeastern PA including Philadelphia), PPL Electric Utilities (central and eastern PA), Duquesne Light (Pittsburgh metropolitan area), Met-Ed (FirstEnergy, eastern PA), Penn Power (FirstEnergy, western PA), West Penn Power (FirstEnergy, southwestern PA). All are required by PA PUC to offer full retail net metering for systems up to 50 kW.
Program: NM1_full_retail. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Pennsylvania utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Pennsylvania homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
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%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Pennsylvania SREC Market (AEPS Solar Carve-Out) SREC (Solar Renewable Energy Certificate) production income SREC prices are market-determined and volatile. The $25 to $40 per MWh range is an early 2026 estimate, actual prices at the time you sell your SRECs may be higher or lower. Do not rely on a specific SREC price in your payback calculation. The PRESS Act (proposed) could improve prices if enacted. Register in GATS promptly after installation. | Approximately $25 to $40 per MWh at market (volatile; verify current prices before relying on SREC income) Pennsylvania's Alternative Energy Portfolio Standards (AEPS) require electric utilities to purchase Solar Renewable Energy Certificates (SRECs). Residential systems generate approximately 1 SREC per 1,000 kWh produced. Current market prices approximately $25 to $40 per MWh (early 2026). A 10 kW system producing 12,000 kWh per year generates approximately 12 SRECs per year ($300 to $480 per year). SREC prices are set by market forces and are volatile, they can rise or fall significantly. Registration in PJM GATS is required. | Pennsylvania residential solar installations registered in the PJM GATS (Generation Attribute Tracking System). System must be in a Pennsylvania electric distribution company territory. | Active | DSIRE (opens in new tab) |
| Pennsylvania Net Metering (Act 129) Net metering Annual excess credits settle at avoided-cost rate, not retail. Confirm your utility's specific avoided-cost rate for annual settlement. | Full retail rate credit for all exported generation (approximately 20.30 cents per kWh at current PECO/PPL rates) Full retail 1:1 net metering for residential systems up to 50 kW under PA Act 129. All investor-owned EDCs regulated by the PA PUC must offer net metering. Credits carry forward monthly and true-up annually. Excess annual credits are paid at the avoided-cost rate, not retail. | Pennsylvania residential customers of investor-owned EDCs (PECO, PPL, Duquesne Light, FirstEnergy utilities). Municipal electric authorities may have different programs. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in Pennsylvania
No dedicated statewide residential battery storage rebate program in Pennsylvania as of mid-2026. Some utilities may offer periodic battery programs, verify with your specific utility. Battery storage may qualify for commercial ITC (Section 48E) in third-party-owned configurations.
Savings example
This example uses real Pennsylvania market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
Annual production estimated at 12,000 kWh based on 4.0 peak sun hours in southeastern Pennsylvania. Full retail 1:1 net metering at 20.30 cents per kWh. SREC income of $300 to $480 per year at $25 to $40 per MWh market prices (volatile). Rate escalation at 3% annually. System price at $2.56 per watt plus 6% PA sales tax. No property tax exemption, estimated $450 per year increase subtracted from gross savings. Federal residential credit: $0 (expired). SREC prices are market-determined and volatile; do not rely on a specific price. Figures are illustrative.
Pennsylvania homeowner savings example, PECO territory (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Pennsylvania solar permitting is managed at the local municipality level with no statewide permit fee cap or streamlining requirement as of 2026. Permit timelines vary substantially: Philadelphia and Pittsburgh average 4 to 8 weeks; suburban and rural areas average 2 to 6 weeks. Utility interconnection with PECO, PPL, Duquesne Light, or FirstEnergy utilities adds 4 to 10 weeks after permit issuance. SolarAPP+ automated permit approval has limited adoption in Pennsylvania as of 2026. SREC registration through the Pennsylvania Public Utility Commission (PUC) PJM GATS system is required to receive SREC income and must be completed promptly after installation. Contract to energization typically runs 12 to 20 weeks statewide. Pittsburgh and Philadelphia jurisdictions tend to have longer queues.
SREC registration in Pennsylvania's GATS system must be completed to receive SREC income. Confirm with your installer that GATS registration is included in their service, some installers handle this and some do not. Delayed registration means delayed SREC income.
Commercial solar in Pennsylvania
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Pennsylvania business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial 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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