A Pennsylvania home that goes solar in 2026 leans hard on one program and gets only a little from the other. Net metering is the strong one: it credits every kilowatt-hour you export to the grid at the full retail rate, one-for-one, so your meter effectively runs backward at the price you would otherwise pay. The SREC market is the weak one: Pennsylvania pays you a tradable certificate for every 1,000 kilowatt-hours you produce, but those certificates are worth far less here than in neighboring states. Pennsylvania also gives you no state solar tax credit and no state rebate, and the 30 percent federal homeowner solar tax credit ended on December 31, 2025. This page explains exactly what each program pays, how net metering works across PECO, PPL, Duquesne Light, and the FirstEnergy utilities, why PA SRECs are so cheap, and how to actually collect the money.
Updated for 2026 with Pennsylvania’s current net-metering rules, the annual Price to Compare true-up, the live PA SREC price range, and an honest read on what the state does and does not pay for.
What Pennsylvania solar actually pays you in 2026, up top
- Net metering credits your exports at the full retail rate, one kWh for one kWh, across every PUC-regulated Pennsylvania utility (PA DEP Solar Energy Resource Hub; DSIRE Pennsylvania Net Metering, as of 2026).
- Leftover surplus is cashed out low. Whatever credit is left at your utility’s annual true-up is paid at the supply-only Price to Compare, not the full retail rate, so sizing your system to your own use matters (Solar United Neighbors, Pennsylvania, as of 2026).
- Each PA SREC equals 1 megawatt-hour and recently traded in a low range of roughly $25 to $40, well below neighboring states, a volatile market price rather than a fixed payout (Flett Exchange Pennsylvania market; Xpansiv Pennsylvania SREC market, as of 2026).
- PA SRECs are cheap on purpose. Pennsylvania’s Alternative Energy Portfolio Standard sets only a small solar carve-out, reported at about 0.5 percent of retail sales, so demand for the certificates is thin (PennAEPS percentages by reporting year, as of 2026).
- Pennsylvania has no state solar tax credit and no active state rebate, and no state sales-tax or property-tax exemption for residential solar, so net metering and SRECs are the state-side value (DSIRE Pennsylvania, as of 2026).
- The 30 percent federal homeowner credit is gone. Section 25D ended for systems placed in service after December 31, 2025, so a 2026 Pennsylvania buyer cannot claim it (IRS Residential Clean Energy Credit, as of January 1, 2026).
The fast version: net metering does almost all the work in Pennsylvania, the SREC market adds a small bonus, and the state itself hands you nothing else, so the payback case rests on your electric rate and how well you size the system. Pennsylvania power averages about 20.92 cents per kWh and is rising (EIA, as of March 2026), which is what makes the retail-rate credit worth having. The rest of this page is the detail, the utility-by-utility rules, and an original earnings estimate for a typical Pennsylvania home. For the full state incentive picture, start at our Pennsylvania solar hub.
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How does net metering work in Pennsylvania in 2026?
Yes, Pennsylvania is a net-metering state, and it is a good one. Pennsylvania net metering credits the electricity your solar panels send to the grid at the full retail rate, one kilowatt-hour of credit for every kilowatt-hour you export (Pennsylvania Department of Environmental Protection, as of 2026). When your panels make more than you use in a month, the surplus becomes a bill credit that rolls to the next month. When you use more than you make, those credits are spent first, so you only pay for the net difference. It is the single most valuable solar program in the state because the credit is worth the full retail rate, generation and delivery together, not the lower wholesale rate a utility would otherwise pay for power.
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 framework is the same whether you are served by PECO, PPL, Duquesne Light, or a FirstEnergy company (DSIRE Pennsylvania Net Metering, as of 2026). Residential systems up to 50 kW are eligible, which is far above any normal home system, and larger non-residential systems can net meter up to 3 MW (Solar United Neighbors, Pennsylvania, as of 2026). One caveat worth knowing: these rules bind the state’s PUC-regulated utilities, but rural electric cooperatives and municipal utilities are not required to offer the same terms, so if you are served by a co-op, confirm its policy first. For the plain-English basics of how the meter math works anywhere, see our guide to understanding net metering.
The annual true-up: why sizing your system to your own use matters
Here is the part most Pennsylvania homeowners miss. Your kilowatt-hour credits roll month to month at full retail value, but once a year, on a true-up date your utility sets, any credit you have left over is cashed out at the Price to Compare, the supply-only portion of the rate, which is lower than the full retail rate you earned the credits at (Solar United Neighbors, Pennsylvania, as of 2026). In plain terms, credits you actually use to offset your own bills are worth full retail, but a big surplus you never use is trued up at the cheaper rate. That is why a system sized close to your annual usage captures the most value in Pennsylvania: you want to spend your summer credits on winter bills, not bank a large surplus into the low year-end cash-out.
One change to watch, though it does not affect a normal home. PPL has a filing pending before the Public Utility Commission (Docket R-2025-3057164) that would move its large customer-generators, those above 100 kW, to hourly wholesale-based crediting rather than the flat retail credit (Pennsylvania PUC docket filing, as of March 2026). A typical residential rooftop system is far below that 100 kW threshold, so this proposal, if approved, is aimed at commercial and large-scale generators, not homeowners. Still, it is a reminder to confirm your own utility’s current net-metering tariff before you size a system.
| Utility (EDC) | Region served | Export credit basis | Monthly surplus | Leftover at annual true-up |
|---|---|---|---|---|
| PECO | Philadelphia + southeast PA | Full retail, 1 kWh : 1 kWh | Rolls to next month | Cashed at the Price to Compare (supply rate) |
| PPL Electric Utilities | Central + eastern PA (Lehigh Valley, Harrisburg, Scranton) | Full retail, 1 kWh : 1 kWh | Rolls to next month | Cashed at the Price to Compare; hourly change proposed for >100 kW only |
| Duquesne Light | Pittsburgh + Allegheny County | Full retail, 1 kWh : 1 kWh | Rolls to next month | Cashed at the Price to Compare (supply rate) |
| West Penn Power (FirstEnergy) | Southwest + western PA | Full retail, 1 kWh : 1 kWh | Rolls to next month | Cashed at the Price to Compare (supply rate) |
| Met-Ed (FirstEnergy) | Reading + south-central PA | Full retail, 1 kWh : 1 kWh | Rolls to next month | Cashed at the Price to Compare (supply rate) |
| Penelec (FirstEnergy) | Northern + northwest PA (Erie) | Full retail, 1 kWh : 1 kWh | Rolls to next month | Cashed at the Price to Compare (supply rate) |
| Penn Power (FirstEnergy) | West-central PA (New Castle) | Full retail, 1 kWh : 1 kWh | Rolls to next month | Cashed at the Price to Compare (supply rate) |
Note: the full-retail credit and the Price-to-Compare true-up come from Pennsylvania regulation and are the same statewide. What varies by utility is the true-up month, the exact Price-to-Compare rate, and how credits appear on your bill. Confirm your own utility’s current net-metering tariff and true-up date before you size a system. For a city-level view in PECO’s southeast Pennsylvania territory, see our Ambler solar guide or our Narberth solar guide.
What is a Pennsylvania SREC worth in 2026?
A Solar Renewable Energy Certificate, called an Alternative Energy Credit or AEC in Pennsylvania, is a tradable certificate the state creates for every 1 megawatt-hour (1,000 kWh) of solar electricity your system generates (Penn State Extension, as of 2026). It is separate from net metering: net metering lowers your bill, while the SREC is a cash certificate you sell on top. Electricity suppliers in Pennsylvania have to buy a set number of these solar credits each year to meet the state’s Alternative Energy Portfolio Standard, and that demand is what gives an SREC value.
The blunt truth is that Pennsylvania SRECs are cheap. Recent PA SRECs have traded in a low range of roughly $25 to $40 per credit, with some recent prints closer to $23 to $30, a fraction of what neighboring states pay (Flett Exchange Pennsylvania market; Xpansiv Pennsylvania SREC market, as of 2026). Because the price is set by a volatile market, any single number goes stale fast, so check a live broker market before you count on it. Your system earns SRECs for its power, and in Pennsylvania a certificate can generally be used for up to three years before it expires (Penn State Extension, as of 2026). To create and sell them, your system is certified through the Pennsylvania AEPS program and registered in PJM’s Generation Attribute Tracking System (GATS); most homeowners let their installer or an SREC broker such as SRECTrade or Flett Exchange handle the registration and the sales.
Why are Pennsylvania SREC prices so low?
The reason is the size of the state’s solar mandate. Pennsylvania’s Alternative Energy Portfolio Standard sets a dedicated solar photovoltaic carve-out, but it is small, reported at only about 0.5 percent of retail electricity sales for the current reporting year (PennAEPS percentages by reporting year, as of 2026). A small carve-out means suppliers only need to buy a small number of certificates, so demand is thin and prices stay low. For comparison, New Jersey’s newer program pays solar owners a far higher fixed value, which is why a New Jersey certificate is worth several times a Pennsylvania one (how New Jersey solar pays). It is the honest picture: in Pennsylvania the SREC is a real but modest bonus on top of net metering, not the main event the way it is in some neighboring states. The Maryland SREC market sits in between the two.
What can a typical Pennsylvania home earn from net metering and SRECs?
Because net metering does most of the work, your electric rate and your production drive the payback. Here is an original SolarFY estimate for a typical 6 kW home system, using real Pennsylvania production figures for the east and west ends of the state. Treat it as an illustration, not a quote.
| Region (6 kW system) | Est. annual production | Net-metering bill offset per year | SRECs per year (1 per MWh) | SREC income per year ($25 to $40 band) |
|---|---|---|---|---|
| Eastern PA (Philadelphia) | ~8,140 kWh | ~$1,700 | ~8 | ~$200 to $325 |
| Western PA (Pittsburgh) | ~7,140 kWh | ~$1,495 | ~7 | ~$175 to $280 |
How we calculated this (inputs and assumptions): production uses NREL PVWatts v8 modeled for each city (a 6 kW system models at about 8,138 kWh per year in Philadelphia ZIP 19103 and about 7,144 kWh in Pittsburgh ZIP 15222; our data and methodology). The net-metering offset multiplies production by Pennsylvania’s average residential retail rate of 20.92 cents per kWh (EIA, as of March 2026); because Pennsylvania rates are rising, real offset value is likely higher, and the offset only holds full value if you use the credits rather than bank a large surplus into the low year-end true-up. SREC income assumes the recent $25 to $40 PA trading band (Flett Exchange, as of 2026); PA SREC prices are volatile and structurally low, so treat this as a range, not a guarantee. Your actual numbers depend on roof, shading, usage, system size, and the live SREC market. Run your own address through the eligibility check.
Does Pennsylvania have a state solar tax credit or rebate in 2026?
No. This is where honesty matters, because a lot of pages imply otherwise. Pennsylvania has no statewide personal income-tax credit for residential solar and no active statewide rebate program in 2026 (DSIRE Pennsylvania, as of 2026). The old PA Sunshine Solar Rebate Program, which once paid a per-watt rebate, ended years ago and is not accepting applications. Pennsylvania also does not offer a statewide sales-tax exemption on solar equipment or a statewide property-tax exemption for the added home value, unlike some neighboring states. So if you see a Pennsylvania solar page promising a state tax credit or rebate, it is either out of date or confusing Pennsylvania with another state.
What that leaves is straightforward: in Pennsylvania your state-side value is net metering plus the SREC market, and that is it. The upside is that net metering here is strong and your electric rate is high enough to make it worthwhile. The realistic takeaway is that Pennsylvania is a solid net-metering state with a weak incentive stack around it, so the payback math depends heavily on your usage, your system size, and how you pay for the system.
What happened to the 30 percent federal solar tax credit?
It ended. The 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 Pennsylvania homeowner who buys and installs solar in 2026 cannot claim that 30 percent federal credit (IRS Residential Clean Energy Credit, as of January 1, 2026). This is the single biggest thing outdated solar pages get wrong right now, and it matters more in Pennsylvania precisely because the state offers no credit of its own to fall back on.
The residential 25D credit ended after December 31, 2025, but one narrow federal exception remains, and it does not put money in a homeowner’s pocket. 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 (IRS Clean Electricity Investment Credit, as of 2026). MySolarFY does not provide tax advice; confirm your own situation with a tax professional. For the full picture of what changed federally, see our explainer on the federal solar tax credit. The practical takeaway for Pennsylvania: your economics now rest on net metering and the SREC market, which is exactly why they are worth getting right.
How to actually get paid: a quick Pennsylvania checklist
- Size the system to your usage, not just your roof. Net-metering credits are worth full retail only when you use them, and a big year-end surplus is trued up at the lower Price to Compare, so a system near your annual consumption captures the most value.
- Confirm your utility’s net-metering tariff and true-up month before you sign, especially if you are served by a rural cooperative or municipal utility that is not bound by the statewide rule.
- Register for SRECs through the Pennsylvania AEPS program and PJM GATS, usually handled by your installer or an SREC broker, so your production starts minting credits.
- Set up SREC sales through a broker such as SRECTrade or Flett Exchange, and go in expecting a modest price, because PA certificates are structurally low.
- Do not budget around a federal credit. The 30 percent homeowner credit ended after December 31, 2025, and Pennsylvania has no state credit to replace it, so build your numbers on net metering, the SREC bonus, and your electric rate.
A note on choosing an installer. MySolarFY does not rank or sell installers. When you compare companies, screen on verifiable criteria: a valid Pennsylvania Home Improvement Contractor registration, NABCEP-certified installers, a written production estimate, clear workmanship and equipment warranties, and real experience with net-metering interconnection and PJM GATS registration in your utility’s territory. Those are the checks that protect your payback, no matter whose name is on the truck. See how MySolarFY works for how our free matching service fits in.
Frequently asked questions about Pennsylvania net metering and SRECs
Is Pennsylvania a net metering state in 2026? Yes. Pennsylvania net metering credits the electricity your solar panels export to the grid at the full retail rate, one kilowatt-hour of credit for every kilowatt-hour sent back, across PECO, PPL, Duquesne Light, West Penn Power, Met-Ed, Penelec, and Penn Power. Residential systems up to 50 kW are eligible. The credit is set by state regulation at 52 Pa. Code Chapter 75, so it is the same core rule statewide, though rural cooperatives and municipal utilities are not required to match it. It is the most valuable solar program in the state because the credit is worth the full retail rate rather than the lower wholesale rate. (Sources: PA Department of Environmental Protection; DSIRE Pennsylvania Net Metering, as of 2026.)
Is net metering going away in Pennsylvania? Not for homeowners. Full-retail net metering remains the rule for residential systems up to 50 kW. The change people are hearing about is a PPL filing pending before the Public Utility Commission that would move only its large customer-generators, those above 100 kW, to hourly wholesale-based crediting. A typical home system is far below that threshold, so it is not affected. It is still smart to confirm your own utility’s current net-metering tariff before you install. (Source: Pennsylvania PUC docket R-2025-3057164, as of March 2026.)
What is the current SREC price in Pennsylvania? Pennsylvania SRECs are low. One PA SREC equals one megawatt-hour (1,000 kWh) of solar generation, and recent certificates have traded in a rough $25 to $40 range, with some prints closer to $23 to $30, well below neighboring states. Because the price is set by a volatile market, any single number goes stale quickly, so check a live broker market such as Flett Exchange or SRECTrade before you rely on a figure. (Sources: Flett Exchange Pennsylvania market; Xpansiv Pennsylvania SREC market, as of 2026.)
Why are PA SRECs so cheap? Because Pennsylvania’s solar mandate is small. The state’s Alternative Energy Portfolio Standard sets a solar carve-out of only about 0.5 percent of retail electricity sales for the current reporting year, so suppliers need to buy few certificates and demand stays thin. States with larger or fixed-value solar programs, like New Jersey, pay solar owners several times more per megawatt-hour. In Pennsylvania the SREC is a modest bonus on top of net metering, not the main driver of the payback. (Source: PennAEPS percentages by reporting year, as of 2026.)
How long do Pennsylvania SRECs last? In Pennsylvania a solar credit can generally be used for up to three years from when it is generated before it expires, after which it can no longer be sold toward the state’s Alternative Energy Portfolio Standard. Most homeowners let an installer or an SREC broker register the system and sell the credits automatically so none go to waste. (Source: Penn State Extension, as of 2026.)
Does Pennsylvania have a state solar tax credit or rebate? No. Pennsylvania has no statewide personal income-tax credit for residential solar and no active statewide rebate; the old PA Sunshine rebate ended and is closed. Pennsylvania also does not offer a statewide sales-tax exemption on solar equipment or a property-tax exemption for the added home value. Your state-side value in Pennsylvania is net metering plus the SREC market, so any page promising a Pennsylvania state solar credit or rebate is out of date. (Source: DSIRE Pennsylvania, as of 2026.)
Is the 30 percent federal solar tax credit gone for 2026? Yes. The federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Pennsylvania homeowner who installs solar in 2026 cannot claim that 30 percent federal credit. 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 homeowners now. MySolarFY does not provide tax advice; confirm your situation with a tax professional. (Source: IRS Residential Clean Energy Credit, as of January 1, 2026.)
Is solar worth it in Pennsylvania without any tax credit? It still can be, but the case is narrower than in states with strong incentives. Pennsylvania electricity averages about 20.92 cents per kWh and is rising, and full-retail net metering offsets that expensive power one-for-one, which is the bulk of the value. The SREC market adds a small amount on top. With no state credit and the federal credit ended after December 31, 2025, the payback depends heavily on your roof, your usage, your system size, and how you pay, so the honest answer is that it depends on your specific numbers. The fastest way to find out is to run your address. (Sources: EIA, as of March 2026; DSIRE Pennsylvania, as of 2026.)
See which Pennsylvania solar programs are available at your address →
Written and reviewed by the SolarFY Editor, our in-house solar research desk, in July 2026. Figures were verified against the linked Pennsylvania Public Utility Commission, PA Department of Environmental Protection, DSIRE, PennAEPS, Penn State Extension, Flett Exchange, Xpansiv, IRS, EIA, and NREL PVWatts sources, and cross-checked with our fact-checker as of July 2026. SREC prices, the Price to Compare true-up rate, net-metering tariffs, and the AEPS solar carve-out are set by the market, the utilities, and the state and are reviewed regularly, so confirm current figures with the linked primary sources and your utility 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.
Disclaimer: MySolarFY is a free matching service, not a solar installer, financing company, tax advisor, or government program, and does not provide tax, legal, or financial advice. Incentive, rate, SREC, and net-metering figures change frequently; each is cited with its source and an “as of” date, and PA SREC prices in particular are a volatile market, so confirm current values with the linked primary sources and a tax professional before you decide. “No up-front cost” refers to qualifying lease or power purchase agreement financing where available and subject to eligibility; 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 tax benefits and incentives generally go to the company that owns the system, not the homeowner. Solar panels are not free and monthly payments apply. Homeowners do not get the federal residential credit (Section 25D) that ended after December 31, 2025. Related reading: how New Jersey solar pays and our Maryland SREC guide for neighboring-state comparisons.
