No. Pennsylvania has no statewide property-tax exemption for solar in 2026, so a rooftop system can add to your home’s assessed value and may raise your property tax depending on your county (DSIRE; SEIA). Only about 36 states offer a solar property-tax exemption, and Pennsylvania is not one of them. The state also has no solar rebate and no sales-tax exemption, and the federal 25D homeowner credit ended after December 31, 2025. What still makes solar pencil out here is full-retail net metering plus SREC income of recently about $25 per 1,000 kWh (Flett Exchange). According to MySolarFY’s analysis of EIA rates and NREL PVWatts (as of July 2026), a typical 8 kW Pennsylvania system produces about 10,500 kWh a year and offsets roughly $2,190 at the state’s 20.9 cents per kWh average residential rate.
- Pennsylvania residential power runs about 20.92 cents per kWh, near the national average (EIA, as of March 2026).
- SRECs are the main extra income: your system earns one SREC per 1,000 kWh, recently trading around $25 each on the in-state market that Act 40 created (Flett Exchange).
- Net metering credits monthly excess at the full retail rate, with any year-end surplus paid at a lower rate; residential systems up to 50 kW qualify with the major utilities (DSIRE).
- No state rebate and no state income-tax credit exist in 2026; the old PA Sunshine rebate closed in 2013 (DSIRE).
- Solar for All is on pause: Pennsylvania’s program is not operational after the federal program was terminated in August 2025, so there is no homeowner funding through it (PA DEP).
- No tax breaks: Pennsylvania does not exempt solar from its 6% sales tax, and there is no statewide property-tax exemption (DSIRE).
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
Pennsylvania homeowners pay about 20.92 cents per kWh for electricity (EIA retail sales, residential PA, as of March 2026), close to the national average rather than the high New England rates. Pennsylvania also has fewer solar perks than its neighbors: no state rebate, no tax exemptions, but a real SREC market and solid net metering. This page is straight about what Pennsylvania actually offers in 2026 and whether solar still pencils out here.
Is solar worth it in Pennsylvania?
It can be, but the math is tighter than in higher-incentive states. Pennsylvania’s rate is near the national average, so the bill you offset is smaller than a New Jersey or Massachusetts homeowner’s, and there is no upfront state cash to lower the price. What works in your favor is a real SREC market that pays you for production, full-retail net metering on monthly exports, and solar equipment prices that have fallen for years. Your production drives both the bill savings and the SREC income, so estimate your roof’s likely output with NREL’s free PVWatts calculator; actual output depends on your roof’s pitch, orientation, and shading. The honest takeaway is that Pennsylvania solar usually pays off on a longer timeline than its neighbors, and the SREC market is what tips the balance.
Pennsylvania solar incentives at a glance
Pennsylvania’s list is short, and a lot of the value is in what it does not have. Here is what is real in 2026 and what is not.
| Incentive | What it does | 2026 status | Who receives it | Source |
|---|---|---|---|---|
| SREC market | One SREC per 1,000 kWh, sold on the PA market | Active, recently about $25 per SREC, market-driven | The system owner (not lease or PPA homeowners) | Flett Exchange |
| Net metering | A bill credit for power you export | Full retail on monthly excess; annual surplus at a lower rate; up to 50 kW | The account holder | DSIRE |
| State rebate or tax credit | Upfront cash or a state credit | None in 2026; PA Sunshine closed in 2013 | No one | DSIRE |
| Solar for All | Federal low-income solar help | On pause, not operational after the August 2025 termination | No homeowner funding now | PA DEP |
| Sales and property tax | State tax treatment | No solar sales-tax exemption; no statewide property-tax exemption | The buyer pays both | DSIRE |
| Federal residential (Section 25D) | A 30% homeowner credit | Ended for expenditures made after December 31, 2025 | No 2026 homeowner-buyer | IRS |
The SREC market is the real lever. Pennsylvania’s solar credits, formally Solar Alternative Energy Credits, pay you one certificate for every 1,000 kWh your system generates, which you sell to electricity suppliers that must meet the state’s solar requirement (Flett Exchange). Because Act 40 of 2017 limited that requirement to in-state systems, Pennsylvania SRECs hold more value than they would in an open market, though the 0.5% solar carve-out keeps prices modest, recently around $25 each. Prices move with the market and SRECs can be banked for three years, so treat any quoted SREC income as an estimate. SRECs belong to the system owner. For the current per-credit price and what a typical 8 kW Pennsylvania system earns in 2026, see the 2026 Pennsylvania SREC price.
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How SRECs and net metering pay you in Pennsylvania
Net metering covers your own usage; SRECs pay you for producing. Under Pennsylvania Public Utility Commission rules, the major investor-owned utilities credit the power you export at the full retail rate on a monthly basis, rolling extra credits forward; at the annual true-up, any leftover surplus is paid at a lower wholesale-style rate rather than retail (DSIRE). Residential systems up to 50 kW qualify, though electric cooperatives and municipal utilities are not required to offer net metering, so confirm your provider does. For how export credits work, see how net metering credits your solar exports.
Those PUC rules apply across Pennsylvania’s big investor-owned utilities. The largest are PECO in the Philadelphia area, PPL Electric Utilities across east-central Pennsylvania including the Lehigh Valley and Harrisburg, and Duquesne Light in and around Pittsburgh, along with the FirstEnergy companies Met-Ed, Penelec, Penn Power, and West Penn Power. Because full-retail net metering is set by the Pennsylvania Public Utility Commission, the credit works the same way whether your bill comes from PECO, PPL, or Duquesne Light (DSIRE). Your SRECs are separate from the utility: they come from the statewide Alternative Energy Portfolio Standard (AEPS) market, so you earn and sell them no matter which of these utilities serves you (Flett Exchange).
On top of that, every 1,000 kWh your system makes earns one SREC you can sell, which is income separate from your bill savings. Together, the bill offset, the net-metering credits, and the SREC sales are what make Pennsylvania solar work without a state rebate. To see how the credit lowers your monthly cost, read how solar lowers your electricity bill.
How you pay changes which incentives you keep
The way you finance solar decides who owns the system, and ownership decides who earns the SRECs.
| How you pay | Up-front cost | Who owns the system | SRECs | Net metering |
|---|---|---|---|---|
| Cash | Full system price | You | You earn and keep them | Yours |
| Solar loan | Little or none, financed over time | You | You earn and keep them | Yours |
| Lease or PPA | $0-up-front where you qualify | A third-party company | The company keeps them | Yours, follows the account |
If you own the system (cash or loan), you keep the SREC income and the net-metering credits. If you lease or sign a PPA, the company that owns the panels keeps the SRECs, and your benefit is a lower or fixed power price with no up-front cost. Neither path gives a 2026 Pennsylvania homeowner the federal residential credit, since that credit ended after December 31, 2025. For a deeper payback comparison, see the financial case for whether solar panels are worth it.
What changed federally, and what it means for Pennsylvania
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 Pennsylvania homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). The SREC market and net metering were not affected, so the in-state value is unchanged, but with no state rebate either, the federal change makes the SREC income matter more to your payback. For the full timeline, see what the federal solar tax credit change means in 2026, and for the paths that still pay in its place, see solar without the federal tax credit 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 in Pennsylvania 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 Pennsylvania
Pennsylvania has a deep market of licensed installers. 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 Pennsylvania experience and verifiable reviews, plus help registering your system for SRECs and net metering.
- A written production estimate and a transparent quote you can compare, including 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.
Exploring a specific Pennsylvania market? See our local solar guide for Allentown, Ambler, Bethlehem, Erie, Fort Washington, Harrisburg, Lancaster, Narberth, Philadelphia, Pittsburgh, Reading, Scranton, Valley Forge, and West Chester, and how PECO, PPL Electric, Duquesne Light, Met-Ed, Penelec, and West Penn Power credit solar.
Frequently asked questions
What solar incentives does Pennsylvania offer in 2026?
Pennsylvania’s two real benefits are SRECs and net metering. Your system earns one SREC per 1,000 kWh, recently worth about $25 on the in-state market, and net metering credits your monthly exports at the full retail rate (Flett Exchange; DSIRE). Pennsylvania does not offer a statewide solar rebate, a state income-tax credit, a sales-tax exemption, or a property-tax exemption, and its Solar for All low-income program is paused. So the value comes from bill savings plus SREC income, not upfront cash.
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 Pennsylvania homeowner 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. Pennsylvania’s SREC market and net metering were not affected. See our guide on what the federal solar tax credit change means in 2026.
How do Pennsylvania SRECs work and what are they worth?
Pennsylvania runs a market for Solar Alternative Energy Credits: your system earns one SREC for every 1,000 kWh it generates, and you sell those credits to suppliers that must meet the state’s solar requirement (Flett Exchange). Because Act 40 of 2017 limited that requirement to in-state systems, Pennsylvania SRECs hold steadier value, but the small 0.5% solar carve-out keeps prices modest, recently around $25 each. Prices move with the market and SRECs can be banked for three years, so treat SREC income as an estimate. The system owner earns them, so a lease or PPA customer does not.
How does net metering work in Pennsylvania?
Pennsylvania’s major investor-owned utilities credit the power you export at the full retail rate on a monthly basis, rolling extra credits forward; at the yearly true-up, any surplus left over is paid at a lower wholesale-style rate, not full retail (DSIRE). Residential systems up to 50 kW qualify. One thing to check: electric cooperatives and municipal utilities are not required to offer net metering, so confirm your specific provider does before you size a system.
Does Pennsylvania have a solar rebate or a Solar for All program?
No active homeowner program in 2026. Pennsylvania has no statewide solar rebate and no state solar income-tax credit; the old PA Sunshine rebate closed in 2013. Pennsylvania was awarded federal Solar for All money in 2024, but after the federal program was terminated in August 2025 the state’s program was placed on pause and is not operational, so no homeowner funding is available through it (PA DEP). Plan your budget around SRECs, net metering, and bill savings instead.
Will solar raise my property taxes in Pennsylvania?
It might, and that is an honest difference from many nearby states. 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 (DSIRE). Some local jurisdictions treat residential solar lightly, but there is no statewide protection, so ask your county assessor how they handle solar before you install. Pennsylvania also does not exempt solar from its 6% sales tax.
Reviewed by the MySolarFY team. Figures were verified against the linked Pennsylvania (PA Public Utility Commission, PA DEP), DSIRE, the SREC market, EIA, and IRS sources as of July 2026; SREC prices, net-metering rules, and program status change, so confirm current terms with each source 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. 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.