- Pennsylvania residential power runs about 20.92 cents per kWh (EIA, as of March 2026), near the national average, so the bill PECO solar offsets is moderate, not huge.
- PECO net metering credits exports at the full retail rate on a monthly basis for residential systems up to 50 kW, and credits roll forward (PECO net metering).
- The catch is the annual true-up: PECO’s net-metering year ends May 31, and any leftover surplus is cashed out at a lower generation-based rate, not full retail, so sizing a system to your usage matters.
- You also earn SRECs: Pennsylvania’s statewide market pays about $25 for each 1,000 kWh your system produces, separate from your bill credits, though the price moves with the market (DSIRE).
- To connect, you need written approval before you install and Permission to Operate before you switch on.
- PECO is Pennsylvania’s largest electric utility, serving about 1.7 million electric customers in Philadelphia and its southeastern suburbs.
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
If PECO is your electric utility in the Philadelphia area, this is how rooftop solar pays you back in 2026. PECO credits the power you export under Pennsylvania’s net-metering rules, and on top of that you can sell SRECs for the power your system makes. Pennsylvania’s rates are closer to the national average than its neighbors, so the SREC market and good net metering are what make the math work. This page explains what PECO pays, how to connect, and how to tell if your home is a good fit.
PECO Pennsylvania at a glance
PECO runs the net-metering and interconnection process in its southeastern Pennsylvania territory, while the SREC market you also tap into is statewide.
| Detail | What to know |
|---|---|
| Service territory | Philadelphia plus Bucks, Chester, Delaware, and Montgomery counties |
| Electric customers | About 1.7 million, the largest in Pennsylvania |
| Net metering | Full retail on monthly excess for residential systems up to 50 kW |
| Annual true-up | Net-metering year ends May 31; leftover surplus paid at a lower generation rate |
| SRECs (statewide) | About $25 per 1,000 kWh produced, sold on the PA market, separate from net metering |
| Before you switch on | Written approval to install, then Permission to Operate |
| Source | PECO net metering |
Two ways your PECO solar pays. First, net metering offsets your bill at the full retail rate for the power you export each month. Second, the statewide SREC market pays you separately, about $25 for every 1,000 kWh your system makes, regardless of whether you use that power or export it. The two stack, which matters in Pennsylvania because the electricity rate you offset is only moderate. Estimate your roof’s likely output with NREL’s free PVWatts calculator, since production drives both your bill credits and your SREC income.
How PECO credits the power you send back
Net metering is full retail month to month, but the annual true-up is not. When your panels make more than your home uses in a billing period, PECO credits the excess at the full retail rate and rolls any extra credits forward (PECO net metering). The detail to understand is the annual reconciliation: PECO’s net-metering year ends May 31, and any surplus you have banked but not used by then is cashed out at a lower generation-based rate, which is well below the retail value of those credits (DSIRE). Because the year-end rate is roughly half the retail value, the smart move is to size a system close to your annual usage rather than oversizing it to bank a big surplus. Residential systems up to 50 kW qualify. For the mechanics of export credits, see how net metering credits your solar exports.
| What you earn | How it is valued | Who receives it |
|---|---|---|
| Monthly net-metering credits | Full retail rate, rolled forward | The PECO account holder |
| Year-end surplus (May 31 true-up) | A lower generation-based rate, below retail | The PECO account holder |
| SREC sales (statewide) | About $25 per 1,000 kWh, market-driven | The system owner |
To see how the bill credit lowers your monthly cost, read how solar lowers your electricity bill, and to weigh payback, see the financial case for whether solar panels are worth it.
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How to connect solar to PECO in Pennsylvania
Connecting a home system to PECO follows a set order, and two rules matter most: do not install before PECO approves, and do not switch on before PECO grants Permission to Operate. The general path is:
- Interconnection application. You or your installer file an application through PECO’s MyGeneration portal, part of My Green Power Connection.
- Approval to install. PECO reviews the system and issues a written Approval to Install. Systems up to 10 kW use the simplest Level 1 path; larger residential systems, up to 50 kW, go through a higher review level. Do not start construction before this approval.
- Install and inspect. The system is installed and passes your local electrical inspection.
- Meter set. PECO installs a bidirectional meter that measures both the power you use and the power you export; PECO offers a credit of up to $400 toward a second meter board where one is needed.
- Permission to Operate. PECO issues a Permission to Operate letter. The system may not run on the grid before this.
A licensed installer normally manages this whole process for you, but knowing the order helps you spot a quote that promises an instant switch-on. For the questions to ask, see the right questions to ask a solar installer.
What Pennsylvania does and does not offer, beyond PECO
Pennsylvania has fewer solar perks than its neighbors, so it pays to be clear about what is real on a PECO account in 2026:
- Net metering and SRECs are the two real benefits, as described above.
- Pennsylvania has no statewide solar rebate and no state solar income-tax credit.
- There is no solar sales-tax exemption, so you pay sales tax on the equipment.
- There is no statewide property-tax exemption, and a system can add to your home’s assessed value, which may raise your property tax depending on your county.
- Pennsylvania’s Solar for All program is on pause and not funding homeowners.
So on a PECO account, the payback comes from the bill you offset plus your SREC income, not from upfront cash or tax breaks. That makes sizing the system right and selling your SRECs the two levers that matter most.
What changed federally, and what it means for PECO customers
The federal homeowner credit is gone, and Pennsylvania has no state cash to replace it. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a PECO customer who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). PECO net metering and the statewide SREC market were not affected, so with no state rebate either, the SREC income matters more to your payback. For the full timeline, see what the federal solar tax credit change means in 2026.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner, and it runs for projects placed in service through 2027, with a begin-construction safe harbor by July 4, 2026 (IRS Clean Electricity Investment Credit; SEIA tax policy). For a leased system on a PECO account you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025.
How to choose a solar installer in PECO territory
The Philadelphia area is a deep solar market, so you have many licensed installers to compare. Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper Pennsylvania licensing and any required local electrical and building permits.
- A clear workmanship and equipment warranty in writing.
- Real experience with PECO interconnection and registering your system for PA SRECs, so the paperwork and Permission to Operate go smoothly.
- A written production estimate and a transparent quote that includes your expected SREC income. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Cities we serve in PECO territory: see what solar costs in Ambler, Narberth, Philadelphia, and Valley Forge.
Not on PECO? Much of central and eastern Pennsylvania is served by a different utility. If your bill says PPL Electric, read our guide to PPL Electric solar and net metering in Pennsylvania, which runs its own rates and net-metering terms.
Frequently asked questions
How does PECO net metering work in Pennsylvania?
PECO credits the power you export at the full retail rate on a monthly basis for residential systems up to 50 kW, and any extra credits roll forward (PECO net metering). The exception is the annual true-up: PECO’s net-metering year ends May 31, and any surplus you have banked but not used by then is cashed out at a lower generation-based rate, well below retail. Because that year-end rate is roughly half the retail value, the best results come from sizing a system close to your yearly usage rather than oversizing it.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. A PECO customer who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. PECO net metering and Pennsylvania’s SREC market were not affected. See our guide on what the federal solar tax credit change means in 2026.
Do PECO customers earn PA SRECs?
Yes. SRECs come from Pennsylvania’s statewide market under the Alternative Energy Portfolio Standards, not from PECO, so any qualifying PA system earns them (DSIRE). Your system earns one SREC for every 1,000 kWh it produces, and you sell those on the PA market, recently for about $25 each, though the price moves with supply and demand and has traded in a band from the low $20s to the mid $30s. SRECs are separate from your net-metering bill credits and go to the system owner, so a lease or PPA customer does not keep them.
How do I connect solar to PECO?
You or your installer file an interconnection application through PECO’s MyGeneration portal, PECO reviews it and issues a written Approval to Install, the system is installed and passes a local inspection, PECO sets a bidirectional meter, and then PECO issues a Permission to Operate letter (PECO net metering). Two rules matter: do not start construction before PECO’s approval, and do not energize the system before Permission to Operate. Systems up to 10 kW use the simplest Level 1 path, and a licensed installer normally handles the paperwork for you.
Will solar raise my property taxes in PECO territory?
It might. Pennsylvania has no statewide property-tax exemption for solar, so a system can add to your home’s assessed value, and whether that raises your tax depends on your county assessor. Pennsylvania also does not exempt solar from sales tax. These are real differences from states like New Jersey or Maryland, so ask your county assessor how they treat residential solar before you install, and factor any added assessment into your payback math.
Do I qualify for PECO solar credit if I lease or sign a PPA?
Net-metering credits follow the PECO account, so the account holder sees them whether you own, lease, or sign a PPA. The SRECs go to the system owner, so on a lease or PPA the third-party company keeps the SREC income, not you, while your benefit is a lower or fixed power price with no up-front cost. If you want the SREC income in your own name, owning the system through cash or a loan is the path that captures it.
Reviewed by the MySolarFY team. Figures were verified against the linked Pennsylvania (PECO, PA Public Utility Commission), DSIRE, the SREC market, EIA, and IRS sources as of June 2026; SREC prices and the net-metering true-up rate change over time, so confirm current terms with PECO and the PA PUC before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the SRECs go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
