If Penelec is your utility around Erie, Johnstown, Altoona, or elsewhere in central and northern Pennsylvania, your payback comes down to the gap between two rates. Net metering credits the power you export at the full retail rate, about 20.92 cents per kWh, but any surplus left at your yearly true-up is cashed out at Penelec’s much lower Price to Compare, 13.142 cents per kWh as of June 1, 2026, more than a third less. MySolarFY’s analysis, as of July 2026, estimates a typical 7 kW rooftop system in Penelec’s Johnstown territory produces about 8,090 kWh a year and offsets roughly $1,690 on a Penelec bill at the 20.92 cents rate. Because north-central Pennsylvania gets less sun than the eastern part of the state, sizing the system to your own use, not banking a big surplus, matters even more here.
Penelec, short for Pennsylvania Electric Company, is the FirstEnergy utility that delivers power across much of central and northern Pennsylvania, and it runs the interconnection that lets a home solar system switch on. Pennsylvania gives you strong, full-retail net metering on your Penelec bill, and your system separately earns tradable Alternative Energy Credits, the state’s version of SRECs, that you can sell for a modest bonus. What Pennsylvania does not give you is a state tax credit or rebate, and the 30 percent federal homeowner credit ended after December 31, 2025, so on a Penelec account the payback rests almost entirely on net metering and your electric rate. This page covers Penelec’s own 2026 Price to Compare, how the net-metering credits and the annual cash true-up work, what a typical Penelec home can earn, how you connect, and how to tell whether your roof is a good fit. For the wider state picture, start at our Pennsylvania solar hub.
Updated for 2026 with Penelec’s June 1 Price to Compare, Pennsylvania’s current net-metering and AEPS rules, and an original earnings estimate for a Penelec home.
Penelec in Pennsylvania at a glance
Penelec is one of FirstEnergy’s Pennsylvania operating companies and the regulated electric utility for a broad stretch of the northern and central part of the state, serving roughly 597,000 customers across 31 counties, a territory it has run since well before FirstEnergy acquired GPU in 2001 (FirstEnergy; Pennsylvania Electric Company, as of 2026). It is also the interconnection authority for rooftop solar in that territory, which means it reviews your application, sets the bidirectional meter, and grants the Permission to Operate that lets your system run.
| Detail | What to know |
|---|---|
| Service territory | Northern and central Pennsylvania, roughly 597,000 customers across 31 counties, from Erie in the northwest through Johnstown and Altoona (FirstEnergy; Pennsylvania Electric Company, as of 2026) |
| Distinct from | Its sibling FirstEnergy company Met-Ed (Reading and eastern Pennsylvania), plus PECO (Philadelphia), PPL (Lehigh Valley, Harrisburg, Scranton), and Duquesne Light (Pittsburgh), each with its own rate and portal |
| 2026 supply rate (Price to Compare) | 13.142 cents per kWh residential, effective June 1, 2026, up 11.88 percent from 11.747 cents (PA PUC; Penelec Prices to Compare) |
| Net metering | Full retail 1-for-1 credit, monthly rollover, residential up to 50 kW (FirstEnergy PA) |
| Annual true-up | Net-metering year ends May 31 (the state AEPS year); any leftover surplus is cashed at the Price to Compare, not full retail (PA PUC) |
| SRECs (statewide AEPS) | One Alternative Energy Credit per MWh, sold on the PA market for a modest bonus, recently about $25 to $40 (Flett Exchange PA) |
| Before you switch on | File through the FirstEnergy Interconnection Portal; Penelec grants Permission to Operate first (FirstEnergy PA interconnection) |
What is Penelec’s electricity rate and Price to Compare in 2026?
The Price to Compare is the single most important Penelec number for a solar buyer, and it just jumped more than any other FirstEnergy company in Pennsylvania. Penelec’s residential Price to Compare, the generation or supply portion of your bill, rose to 13.142 cents per kWh effective June 1, 2026, an 11.88 percent jump from 11.747 cents (PA PUC, as of May 2026; Penelec Prices to Compare, effective June 1, 2026). For context, sibling company Met-Ed rose 7.6 percent in the same reset, so Penelec customers saw the steeper increase. That supply rate matters twice over: it is the price a shopping supplier has to beat, and, as the next section explains, it is the rate Penelec uses to cash out your leftover solar credits once a year.
Your all-in retail rate is higher, and that is the number your solar offsets first. On top of the supply portion you pay delivery, transmission, and taxes, so the full retail rate a net-metering credit is worth runs higher than the Price to Compare alone. Pennsylvania’s residential all-in average is about 20.92 cents per kWh (EIA, as of March 2026), and with Penelec’s supply rate climbing almost 12 percent, owning your own generation looks more attractive in 2026 than it did a year ago. The simplest way to see your own all-in number is to divide the total on your Penelec bill by the kilowatt-hours you used that month.
One local wrinkle: Penelec has legacy rate districts, so the exact figure on your bill may differ slightly. The 13.142 cents figure is the current statewide residential Price to Compare for Penelec, but because the company was assembled from older utility territories, the supply rate printed on your own bill can land a hair above or below it. To confirm your number, read the generation or supply line on your Penelec bill rather than assuming a single statewide figure.
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How does Penelec net metering work in Pennsylvania?
Penelec net metering credits every kilowatt-hour you export at the full retail rate, one for one, up to what you use. When your panels make more power than your home is using in a billing period, Penelec offsets your usage kilowatt-hour for kilowatt-hour, and any excess beyond that month’s use is credited to your account and rolls forward (FirstEnergy Pennsylvania net metering FAQ, as of 2026). The rules come from the state, not the utility: Pennsylvania net metering is set by the Alternative Energy Portfolio Standards Act and the Public Utility Commission’s regulations at 52 Pa. Code Chapter 75, so the core credit is the same across Penelec, Met-Ed, PECO, PPL, and Duquesne Light (DSIRE Pennsylvania Net Metering, as of 2026). Residential systems up to 50 kW qualify, which is far above any normal home system. For the plain-English basics of how the meter math works, see our explainer on how Pennsylvania net metering and SRECs pay in 2026.
What does Penelec pay for your surplus solar at the annual true-up?
This is the Penelec detail that decides your payback, and most homeowners miss it. Your credits roll month to month at the full retail rate, but once a year, at the end of the net-metering period, any credit you have left over is cashed out at the generation component of your rate, the Price to Compare, 13.142 cents per kWh as of June 1, 2026, well below the roughly 20.92 cents of full retail value you earned those credits at (FirstEnergy Pennsylvania net metering FAQ, as of 2026; PA PUC, as of May 2026). Pennsylvania is unusual in that it pays you cash for that leftover surplus rather than letting it expire, but it pays at the lower supply rate. Because Penelec’s Price to Compare is lower than Met-Ed’s, a banked surplus on a Penelec account is worth even less per kilowatt-hour, about 7.78 cents below full retail, so a large annual surplus is the last thing you want.
| What the kilowatt-hour does | Value per kWh | Source |
|---|---|---|
| Offsets power you use the same month | Full retail, about 20.92 cents | EIA, March 2026 |
| Surplus cashed at the May 31 true-up | Price to Compare, 13.142 cents | PA PUC, eff. June 1, 2026 |
| The gap (why sizing matters) | About 7.78 cents less, more than a third | MySolarFY calculation |
Note: the Penelec net-metering year ends May 31. Pennsylvania ties the annual true-up to the state’s Alternative Energy Portfolio Standard year, which runs June 1 through May 31, so Penelec reconciles your credits and cashes any leftover surplus at the Price to Compare at the end of May (PA PUC, as of May 2026). The practical move is to size a system close to your yearly usage so you spend your summer credits on winter bills rather than banking a big surplus into the lower May cash-out. Confirm your own true-up date and current tariff with Penelec before you size a system.
What can a typical Penelec solar home earn per year?
A typical 7 kW Penelec home near Johnstown pays back in roughly 10 to 12 years on a cash purchase, before financing, based on our estimate at about $3.00 per watt and no federal homeowner credit, since Section 25D ended for systems placed in service after December 31, 2025. That is a touch longer than an eastern Pennsylvania home would see, because north-central Pennsylvania gets less sun. Our modeling puts Penelec-area production around 1,155 to 1,200 kilowatt-hours per installed kilowatt, below the roughly 1,268 an eastern Pennsylvania roof near Reading models at (our data and methodology). Because net metering does most of the work in Pennsylvania, your electric rate and your production drive that payback. Here is an original SolarFY estimate for a Penelec home near Johnstown, using real local production figures and the current Penelec and Pennsylvania rates. Treat it as an illustration, not a quote.
| System size | Est. annual production | Net-metering bill offset per year | SREC income per year ($25 to $40) | Total est. annual value | Est. installed cash cost (~$3.00/W) | Simple payback |
|---|---|---|---|---|---|---|
| 5 kW | ~5,780 kWh | ~$1,210 | ~$150 to $240 | ~$1,400 | ~$15,000 | ~11 years |
| 7 kW | ~8,090 kWh | ~$1,690 | ~$200 to $320 | ~$1,950 | ~$21,000 | ~11 years |
| 9 kW | ~10,400 kWh | ~$2,175 | ~$250 to $400 | ~$2,500 | ~$27,000 | ~11 years |
Notice the payback barely moves with system size: because cost and yearly value both scale with the number of panels, what sets your payback in Penelec territory is your price per watt, your production, and your electric rate, not how big you build. The 5 kW system earns about 6 SRECs a year, the 7 kW about 8, and the 9 kW about 10, at one credit per 1,000 kWh.
How we calculated this (inputs and assumptions): production uses NREL PVWatts v8 modeled for Johnstown ZIP 15901, where a 6 kW system models at about 6,933 kWh per year (1,155 kWh per kW), scaled linearly by system size (our data and methodology). Erie and Altoona model a little higher, near 1,200 kWh per kW, but all sit below eastern Pennsylvania. The bill offset multiplies production by Pennsylvania’s average residential retail rate of 20.92 cents per kWh (EIA, as of March 2026); it holds full value only on the kilowatt-hours you actually use, since any annual surplus is cashed at Penelec’s 13.142 cents Price to Compare, not full retail. SREC income assumes the recent $25 to $40 Pennsylvania trading band (Flett Exchange, as of 2026) at one credit per 1,000 kWh. At a typical cash price near $3.00 per watt, and with no federal homeowner credit available because Section 25D ended for systems placed in service after December 31, 2025, that combined value points to a simple payback in the range of about 10 to 12 years, before any financing. Your actual numbers depend on roof, shading, usage, and the live SREC market, so run your address through the eligibility check.
Pennsylvania SRECs on a Penelec account: a modest bonus
Yes, Penelec customers earn Pennsylvania SRECs, and they are a real but modest bonus on top of net metering. Every megawatt-hour, or 1,000 kWh, your Penelec system produces earns one Alternative Energy Credit, Pennsylvania’s version of an SREC, which you sell on the statewide market created by the Alternative Energy Portfolio Standard (Flett Exchange Pennsylvania market, as of 2026). It is separate from net metering: net metering lowers your bill, while the credit is cash you sell on top. The certificates come from the statewide AEPS program, not from Penelec, so any qualifying Pennsylvania system earns them regardless of utility.
The honest catch is that Pennsylvania SRECs are cheap. Recent Pennsylvania credits have traded in a low band of roughly $25 to $40 each, a fraction of what neighboring New Jersey pays, because Pennsylvania’s solar carve-out under the AEPS is small, so demand for the certificates is thin (Flett Exchange Pennsylvania market, as of 2026). Because the price is set by a volatile market, any single number goes stale fast, so treat it as a range and check a live broker before you count on it. For the full picture of how the market works and why prices are low, see our guide to the Pennsylvania SREC price in 2026. Your installer or an SREC broker usually handles the AEPS and PJM GATS registration and the sales for you, and the credits go to whoever owns the system, which matters on a lease or PPA.
What does Pennsylvania not offer a Penelec solar owner?
Pennsylvania is a strong net-metering state wrapped in a weak incentive stack, so it pays to be clear about what is not there. On a Penelec account in 2026, the state itself hands you almost nothing beyond the net-metering credit and the low SREC price:
- No state solar income-tax credit. Pennsylvania has no personal income-tax credit for residential solar (DSIRE Pennsylvania, as of 2026).
- No active state rebate. The old PA Sunshine Solar Rebate ended years ago and is closed to new applicants (DSIRE Pennsylvania, as of 2026).
- No sales-tax exemption. You pay Pennsylvania sales tax on the equipment, unlike in some neighboring states.
- No property-tax exemption. A system can add to your home’s assessed value, and whether that raises your tax depends on your county assessor.
- A low SREC price, as covered above, so the certificate is a bonus, not the main event.
So on a Penelec account the payback comes from the bill you offset plus a small SREC income, which makes sizing the system right and keeping your credits at full retail the two levers that matter most, and they matter a little more here because production runs lower than in eastern Pennsylvania.
What happened to the federal solar tax credit for Penelec customers?
The federal homeowner credit is gone, and Pennsylvania has no state credit to replace it. The 30 percent federal Residential Clean Energy Credit, Section 25D, ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so a Penelec customer who buys solar with cash or a loan in 2026 cannot claim it (IRS, as of January 1, 2026). This is the single biggest thing outdated solar pages still get wrong, and it matters more in Pennsylvania precisely because there is no state credit to fall back on. For the full timeline, see our explainer on what the end of the federal solar tax credit means in 2026.
One federal exception remains, and it is not yours to claim. A separate commercial credit, Section 48E, can apply to third-party-owned systems, meaning a solar lease or power purchase agreement, where the company that owns the equipment claims the credit, not you, though it may pass some of that value through as a lower monthly payment. On a leased system you do not file for a federal credit yourself. The 25D homeowner credit, by contrast, ended after December 31, 2025, so do not let a sales pitch tell a 2026 cash or loan buyer otherwise. MySolarFY does not provide tax advice; confirm your own situation with a tax professional.
How do you connect solar to Penelec?
Connecting a home system to Penelec follows Pennsylvania’s interconnection rules, administered by FirstEnergy, and the rule that matters most is that you cannot switch on until Penelec grants Permission to Operate. Applications are filed through the FirstEnergy Interconnection Portal (FirstEnergy Pennsylvania interconnection, as of 2026). The general path is:
- Interconnection and net-metering application. You or your installer file through the FirstEnergy portal before installation, with the system design and the inverter data. Systems up to 10 kW use the simplest Level 1 review, which carries a $100 fee.
- Utility review and approval to build. Penelec reviews the package and issues approval before construction starts. Standard residential systems move faster than large or grid-constrained projects.
- Install and inspect. A licensed contractor installs the system and it passes your local electrical inspection.
- Meter set and Permission to Operate. Penelec installs a bidirectional meter that measures both the power you draw and the power you export, then issues Permission to Operate. Your system only starts banking net-metering credits and earning SRECs once it is approved to run.
A licensed installer normally manages this whole process, including the interconnection paperwork and registering your system to earn SRECs.
How to choose a solar installer in Penelec territory
The Erie, Johnstown, and Altoona markets have a smaller pool of licensed installers than eastern Pennsylvania, so you may need to reach a little to compare several quotes. Rather than chasing a “best installer” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid Pennsylvania Home Improvement Contractor registration for the company.
- A clear workmanship and equipment warranty in writing.
- Real experience with Penelec interconnection and Permission to Operate, plus AEPS and PJM GATS registration so your SRECs start earning promptly.
- A written production estimate and a transparent quote that sizes the system to your usage and models SREC income conservatively.
For how the credits compare across the state, see how solar pays under Met-Ed net metering in eastern Pennsylvania, PECO net metering in the Philadelphia area, PPL net metering in central and eastern Pennsylvania, and Duquesne Light net metering in the Pittsburgh area. Because Penelec’s markets carry fewer installers than eastern Pennsylvania, matching is genuinely more useful here: MySolarFY reaches out to several licensed companies that actually serve Erie, Johnstown, or Altoona so you can compare real local quotes side by side, with no obligation. Learn more about how MySolarFY works.
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Frequently asked questions
How does Penelec net metering work in Pennsylvania in 2026? Penelec credits the power your panels export at the full retail rate and offsets your usage one kilowatt-hour for one kilowatt-hour, with any monthly excess rolling forward (FirstEnergy Pennsylvania, as of 2026). Residential systems up to 50 kW qualify, and the rule is set statewide by 52 Pa. Code Chapter 75, so it is the same core credit across Penelec, Met-Ed, PECO, PPL, and Duquesne Light. The one catch is the annual true-up: at the end of the net-metering year on May 31, any leftover surplus is cashed out at Penelec’s Price to Compare, 13.142 cents per kWh as of June 1, 2026, well below full retail, so sizing the system to your own use captures the most value.
What is Penelec’s Price to Compare in 2026? Penelec’s residential Price to Compare, the generation or supply portion of your bill, is 13.142 cents per kWh effective June 1, 2026, up 11.88 percent from 11.747 cents, the largest of the FirstEnergy Pennsylvania increases in that reset (PA PUC, as of May 2026). Your all-in retail rate is higher once delivery, transmission, and taxes are added, and Pennsylvania’s residential average is about 20.92 cents per kWh (EIA, as of March 2026). The Price to Compare matters to solar owners because it is the rate Penelec uses to cash out any leftover net-metering surplus at the annual true-up.
When is the Penelec net-metering true-up, and what does it pay? Pennsylvania ties the annual net-metering period to the state’s Alternative Energy Portfolio Standard year, which runs June 1 through May 31, so Penelec reconciles your credits at the end of May (PA PUC, as of May 2026). Your credits are worth the full retail rate while you use them month to month, but any surplus still banked at the true-up is cashed at the lower Price to Compare, 13.142 cents per kWh as of June 1, 2026, more than a third less per kilowatt-hour. Pennsylvania is unusual in paying cash for that surplus rather than letting it expire, but the lower rate is why you size a system to your usage. Confirm your own true-up date with Penelec.
Do Penelec customers earn Pennsylvania SRECs, and what are they worth? Yes. Every 1,000 kWh your system produces earns one Alternative Energy Credit, Pennsylvania’s SREC, which you sell on the statewide AEPS market for a bonus separate from your bill credits (Flett Exchange Pennsylvania, as of 2026). The honest catch is that Pennsylvania credits are cheap, recently about $25 to $40 each, well below neighboring states, because the state’s solar carve-out is small. The price is set by a volatile market, so treat any figure as a range and check a live broker. The credits go to whoever owns the system, so on a lease or PPA the third-party owner keeps them.
Does Penelec territory get enough sun for solar to be worth it? Yes, though it produces a bit less than eastern Pennsylvania. Our PVWatts modeling puts Penelec-area production around 1,155 to 1,200 kilowatt-hours per installed kilowatt near Johnstown, Altoona, and Erie, below the roughly 1,268 an eastern Pennsylvania roof near Reading models at (our data and methodology, as of 2026). That lower production lengthens a typical cash payback to roughly 10 to 12 years rather than 9 to 11, but with Penelec’s Price to Compare up almost 12 percent in 2026 and full-retail net metering, a well-sized system still offsets most of a Penelec bill. A written production estimate for your exact roof is the way to confirm it.
Is net metering going away for Penelec customers? Not for homeowners. Full-retail net metering remains the rule for residential systems up to 50 kW across Pennsylvania’s regulated utilities, including Penelec, under 52 Pa. Code Chapter 75 (DSIRE Pennsylvania Net Metering, as of 2026). The changes people hear about generally target very large customer-generators, not typical home systems, so a normal rooftop system is credited under the current full-retail rule. It is still smart to confirm your utility’s current net-metering tariff before you install, especially if you are served by a rural cooperative or municipal utility, which are not bound by the statewide rule.
Did the federal solar tax credit end for Penelec customers? Yes. The 30 percent federal Residential Clean Energy Credit, Section 25D, ended for systems placed in service after December 31, 2025, so a Penelec customer who installs solar in 2026 with cash or a loan cannot claim it (IRS, as of January 1, 2026). A separate commercial credit, Section 48E, can apply to third-party-owned lease or PPA systems, but the company that owns the equipment claims it, not the homeowner. Pennsylvania has no state credit to replace it, so net metering and the SREC market are what pay Penelec homeowners now. MySolarFY does not provide tax advice; confirm your situation with a tax professional.
Written and reviewed by the SolarFY Editor, our in-house solar research desk, following our data and methodology, in July 2026. Figures were verified against the linked Pennsylvania Public Utility Commission, FirstEnergy and Penelec, DSIRE, Flett Exchange, PennAEPS, IRS, EIA, and NREL PVWatts sources, and cross-checked with our fact-checker, as of July 2026. The Penelec Price to Compare, net-metering tariffs, the annual true-up rate, and SREC prices reset over time, so confirm current figures with Penelec and the linked primary sources before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about how MySolarFY works.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, tax advisor, 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 SREC income and any incentives go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit (Section 25D) 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.
