Philadelphia homeowners have a real solar case in 2026, and it does not run on the federal tax credit that ended after December 31, 2025. It runs on local math: PECO charges enough per kilowatt-hour that every unit your roof makes is worth offsetting, Pennsylvania credits your exports at full retail and pays you a second time through an SREC market, and a modeled Philadelphia roof produces more than a lot of people assume. The wrinkle is that this is a dense rowhome city, so the roof, the party wall, the historic-district rules, and which local program is actually open all shape your project. This page covers what a Philadelphia system really produces, what PECO net metering and PA SRECs pay, the city and utility programs that are open today versus the ones that closed, and the rowhome permitting details worth planning around. Then you can check your own address in about a minute.
The 60-second answer for Philadelphia (2026)
- PECO’s rate is what makes solar pay here. Pennsylvania residential electricity averages about 20.92 cents per kWh (EIA, as of March 2026), so every kWh your roof offsets is an expensive one you skip buying back from the grid.
- A Philadelphia roof produces more than people expect. NREL’s PVWatts modeled about 8,030 to 8,065 kWh a year from a 6 kW system in West Philadelphia (19104) and South Philadelphia (19148), or roughly 1,340 kWh for every kW you install (NREL PVWatts, modeled as of July 2026).
- PECO net metering credits your exports at full retail. Extra power you send to the grid is netted on your bill at the full retail rate and carries forward, with a year-end true-up on May 31 (52 Pa. Code Chapter 75, as of 2026).
- Pennsylvania pays you a second time through SRECs. Your system earns one Solar Renewable Energy Credit per 1,000 kWh under the state’s Alternative Energy Portfolio Standard, recently trading around $23 each in a volatile market (Flett Exchange, as of January 2026).
- The active city program is Solarize Greater Philadelphia, not a rebate. The Philadelphia Energy Authority’s Solarize group-buy (rebranded from Solarize Philly to Solarize Greater Philadelphia in 2025) is enrolling homeowners, while the City’s separate Solar Rebate Program is currently closed to new payouts (Philadelphia Energy Authority; City of Philadelphia, as of July 2026).
- The 30% federal homeowner credit (Section 25D) ended after December 31, 2025 (IRS, as of 2026), so a Philadelphia homeowner who buys solar in 2026 cannot claim it, whatever older search results and AI answers still say.
Philadelphia solar by the numbers
- Pennsylvania residential electricity rate: about 20.92 cents per kWh, as of March 2026 (EIA).
- Modeled production, 6 kW system: about 8,028 kWh a year in West Philadelphia (19104) and 8,065 kWh in South Philadelphia (19148), as of July 2026 (NREL PVWatts).
- Estimated simple payback for an unshaded Philadelphia roof: about 8 to 9 years on our own calculation below (SolarFY estimate, July 2026).
- PA SREC value: recently around $23 per credit in a volatile market, as of January 2026 (Flett Exchange).
- EZ Solar Permit fast-track: systems 10 kW or less on one- or two-family homes, as of 2026 (City of Philadelphia L&I).
Why your PECO bill makes solar pay in Philadelphia
The reason solar works in Philadelphia is the price of the power it replaces. Pennsylvania residential electricity averages about 20.92 cents per kWh (EIA, as of March 2026), and your PECO bill splits into a supply (generation) charge and a delivery charge that together add up to roughly that per kilowatt-hour. Rooftop solar offsets the whole stack, supply and delivery together, so each kWh your roof produces is worth close to the full retail rate you would otherwise pay. A Philadelphia household spending $120 or more a month on electricity is a strong candidate. For the exact cents on your own bill, read the supply and delivery lines on your PECO statement, since PECO’s Price to Compare resets on a schedule. The statewide mechanics behind all of this live on our PECO Pennsylvania solar guide and the Pennsylvania solar hub.
What a Philadelphia solar system actually produces, and when it pays back
A typical Philadelphia roof turns that high rate into real annual savings, and here the production number is measured, not guessed. We modeled two representative city ZIP codes through NREL’s PVWatts calculator: a 6 kW system produces about 8,028 kWh a year in West Philadelphia (19104) and about 8,065 kWh a year in South Philadelphia (19148), which works out to roughly 1,340 kWh for every kW of panels (NREL PVWatts, modeled as of July 2026). That is a healthy mid-Atlantic solar resource, better than many homeowners assume for a northeastern city. Your real output still depends on roof pitch, shading, and orientation, which matters more in Philadelphia than in the suburbs because rowhome roofs are small and mature street trees and taller neighbors can shade part of the day. Run your own address through PVWatts once you have a quote to see your roof’s number.
The table below is our own estimate for Philadelphia, built from the EIA rate above, the live PVWatts production figure, PECO full-retail net metering, and the PA SREC market, against a typical installed cost near $2.80 per watt before financing. It is an illustration to size expectations, not a quote.
| Representative system | Est. annual production | Bill offset at full retail | SREC income (est.) | Total annual benefit | Illustrative installed cost | Simple payback |
|---|---|---|---|---|---|---|
| 4 kW (small rowhome roof) | ~5,360 kWh | ~$1,121 | ~$120 | ~$1,241 | ~$11,200 | ~8 to 9 years |
| 6 kW (larger rowhome or twin) | ~8,040 kWh | ~$1,682 | ~$185 | ~$1,867 | ~$16,800 | ~8 to 9 years |
| 8 kW (Northeast Philly detached) | ~10,720 kWh | ~$2,243 | ~$245 | ~$2,488 | ~$22,400 | ~8 to 9 years |
| 5 kW (shaded or street-facing rowhome) | ~5,700 kWh | ~$1,192 | ~$130 | ~$1,322 | ~$14,000 | ~10 to 11 years |
Assumptions: production at ~1,340 kWh/kW/year (live PVWatts model for 19104 and 19148); bill offset at 20.92 cents/kWh; SREC income at roughly one credit per 1,000 kWh valued near a recent broker price of about $23 (Flett Exchange, as of January 2026); installed cost near $2.80 per watt before financing, in line with Philadelphia quotes reported around $2.45 to $2.80 per watt in 2026. The shaded row derates production about 15% for street-tree shading and a smaller, street-facing array, which is why its payback runs a couple of years longer. Your numbers move with your usage, roof, shading, financing, and the live SREC price, and payback is not guaranteed. For the method behind these figures, see how we source our data.
See what solar programs are available in your Philadelphia ZIP code
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How does PECO net metering credit your Philadelphia solar?
PECO nets your solar exports at the full retail rate, which is what makes the payback above hold. Pennsylvania net metering is set by state law and the Public Utility Commission, not by the utility, under the Alternative Energy Portfolio Standard and its rules at 52 Pa. Code Chapter 75 (52 Pa. Code Chapter 75, as of 2026). Residential systems up to 50 kW qualify, and you size a system to no more than about 110% of your annual usage. When your panels make more than you use in a month, the excess rolls forward as a credit. Once a year, at the May 31 true-up, PECO cashes out any leftover banked credit at its lower Price to Compare (the supply rate), which sits below the full retail value your monthly credits earn (PECO net metering, as of 2026). That is why the smart move is to size close to your usage rather than oversize for a big year-end surplus. One thing worth knowing for 2026: as of PECO’s tariff effective April 1, 2026, PECO still credits solar at full retail and has not adopted the lower wholesale export credit that another Pennsylvania utility, PPL, has been moving toward. Being in PECO territory keeps the favorable full-retail math for now. For the mechanics in plain terms, see how net metering credits your solar exports and our Pennsylvania net metering guide.
| What your Philadelphia system earns | How it is valued | Who receives it |
|---|---|---|
| Monthly exports up to your usage | Full retail rate, netted on your bill | The PECO account holder |
| Monthly surplus beyond your usage | Carried forward as a kWh credit to next month | The PECO account holder |
| Year-end leftover at the May 31 true-up | PECO’s Price to Compare (supply rate, below full retail) | The PECO account holder |
| SRECs (one per 1,000 kWh produced) | A market price, sold separately | The system owner |
What is a Pennsylvania SREC worth?
Pennsylvania pays solar owners a second time through the SREC market, separate from net metering. Under the state’s Alternative Energy Portfolio Standard, your system earns one Solar Renewable Energy Credit for every 1,000 kWh (one megawatt-hour) it generates, and you sell those credits to electricity suppliers who need them to meet the state’s solar requirement (DSIRE Pennsylvania AEPS, as of 2026). Net metering lowers your bill; SRECs are a cash market on top of it. Because Pennsylvania’s solar carve-out is small, its credits are worth less than in states like New Jersey, and they have recently traded near $23 each on broker markets, within a rough $22 to $35 band depending on the day (Flett Exchange Pennsylvania market, as of January 2026). So a 6 kW system earning about eight SRECs a year adds a couple hundred dollars, not thousands. The price floats with supply and demand, so treat any single figure as a snapshot and ask your installer or an SREC aggregator what credits are trading at when you sign. Most homeowners register the system and sell through an aggregator or broker rather than trading credits themselves.
Which Philadelphia solar programs are open, and which are not
The honest Philadelphia incentive picture is full-retail net metering plus SRECs, one active city group-buy program, and a couple of rebates that have closed or lapsed. This is where the search results mislead people, so here is what is real as of July 2026. The active city program is Solarize Greater Philadelphia, run by the nonprofit Philadelphia Energy Authority (it was expanded from the original Solarize Philly to the five-county region and rebranded in 2025). It is a group-buy that vets installers and negotiates pricing for enrolled homeowners, plus a financing path, not a cash rebate check (Philadelphia Energy Authority, as of July 2026). The City of Philadelphia’s separate Solar Rebate Program is currently closed and taking waitlist sign-ups only, after pandemic-era budget cuts, so it is not paying out today (City of Philadelphia, as of July 2026). And PECO’s own $400 residential solar rebate applied to systems with a Permission to Operate date through April 30, 2026, so that window has closed; confirm with PECO whether a successor rebate is open before you budget for it (PECO solar rebates, as of 2026). The table sorts what really applies.
| Program | Applies in Philadelphia? | What it does |
|---|---|---|
| PECO net metering | Yes | Full retail credit monthly up to usage; year-end excess at the Price to Compare (52 Pa. Code Ch. 75) |
| PA SRECs (AEPS Tier I) | Yes | One credit per 1,000 kWh, sold on the market (DSIRE AEPS) |
| Solarize Greater Philadelphia (group-buy) | Yes, active | Vetted installers and negotiated pricing plus financing, not a cash rebate (Philadelphia Energy Authority) |
| City of Philadelphia Solar Rebate Program | No, closed | Waitlist only after budget cuts; not paying out today (City of Philadelphia) |
| PECO $400 solar rebate | Window closed | Applied to a Permission to Operate date through April 30, 2026; confirm any successor with PECO (PECO) |
| State solar income-tax credit or property-tax exemption | No | Pennsylvania has no statewide residential solar tax credit or property-tax exemption (DSIRE PA) |
| Federal residential credit (Section 25D) | No, it ended | The 30% homeowner credit ended for systems placed in service after Dec 31, 2025 (IRS) |
On the federal credit, ignore the older search results and AI answers. The 30% 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 Philadelphia homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS, as of 2026). Google’s AI Overview for Philadelphia solar still repeats a “30% federal ITC” line and points at the closed city rebate as if both were live; both are out of date. A separate commercial credit, Section 48E, can apply to a leased or PPA system, but the company that owns the panels claims it, not you, which is part of why lease and group-buy offers still market a tax-advantaged structure. MySolarFY does not provide tax advice; confirm your situation with a tax professional. For the full timeline, see what the federal solar tax credit change means in 2026.
Going solar on a Philadelphia rowhome: L&I, party walls, and historic review
What makes a Philadelphia project distinct is the rowhome itself. Most of the city’s housing is attached rowhomes and twins with small, flat or low-slope roofs shared at a party wall with the house next door, so a typical Philadelphia system is smaller than a suburban one, often 4 to 6 kW, and the roof space, not your electric usage, is frequently the limit. Because the roof deck and parapet can be a shared structural element with the adjoining property, a rowhome install may draw extra structural review that a detached suburban roof skips, and a flat roof usually needs low-tilt ballasted or attached racking rather than a simple pitched-roof mount. Philadelphia issues rooftop solar permits through the Department of Licenses and Inspections (L&I), which offers an EZ (no-plans) Solar Permit fast-track for systems of 10 kW or less on one- or two-family homes that meet the City’s EZ Permit Standards for Solar PV (City of Philadelphia, as of 2026). The 10 kW figure is the fast-track threshold, not a size cap; larger systems are still permittable through the standard building-permit path.
| Philadelphia roof or site factor | What to plan for |
|---|---|
| Small flat or low-slope rowhome roof | Often a 4 to 6 kW system; low-tilt racking and a structural check for a flat roof |
| Party wall shared with the neighbor | A shared roof deck can trigger added structural review that a detached roof skips |
| Historic Register property or district | Not EZ-eligible; needs Historical Commission approval before L&I will issue a permit |
| EZ Solar Permit (10 kW or less, 1-2 family) | A faster no-plans permit path when the home is not historic and meets the EZ standards |
| Street-tree or neighbor shading | A shade study; fewer high-efficiency panels can beat a larger shaded array |
| PECO interconnection | Complete PECO’s online interconnection application before L&I, then Permission to Operate before switch-on |
Paying for solar in Philadelphia: cash, loan, lease, or PPA
There is no single right way to pay for solar; the best fit depends on whether you want to own the system and keep the SRECs and net-metering credit yourself, or avoid an up-front cost. A lease or PPA can mean no up-front cost for eligible homeowners, but it is a long-term agreement with monthly payments, not free solar, and on those the third-party owner keeps the SRECs. To weigh the long-run numbers, see whether solar panels are worth it and how MySolarFY works. If a battery is on your list for outage backup on a dense city block, see what a solar battery costs.
| Path | Up-front cost | Who keeps the SRECs | Best when |
|---|---|---|---|
| Cash purchase | Full system cost | You, the owner | You want the fastest payback and the most lifetime savings |
| Solar loan | Little to none, financed | You, the owner | You want ownership without paying cash up front |
| Lease or PPA | $0-up-front where eligible | The third-party owner | You prefer no up-front cost and a simpler, fixed monthly bill |
How to choose a solar installer in Philadelphia
Philadelphia and the surrounding counties have a deep market of licensed installers, from local city companies to regional and national brands, which is good for you because it means real competition on price and service. One quick disambiguation: the “Philadelphia Solar” that tops some search results is a panel manufacturer, not a local installer, so do not confuse a hardware brand with the company that will actually design and mount your system. 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 (HIC) registration and proper electrical licensing.
- A clear workmanship and equipment warranty in writing.
- Real experience with PECO interconnection, Philadelphia L&I permitting, rowhome party-wall roofs, and Historical Commission review if your home is on the historic register, so the paperwork and Permission to Operate go smoothly.
- A written production estimate and a transparent quote that reflects today’s SREC price, not an old one. 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. You can also compare Philadelphia with nearby markets on our West Chester solar page, Valley Forge solar page, and Narberth solar page, or read how the utility works on our PPL Pennsylvania solar page.
Frequently asked questions
Is solar worth it in Philadelphia in 2026? For most owner-occupied Philadelphia homes with decent sun, yes. Pennsylvania residential electricity averages about 20.92 cents per kWh (EIA, as of March 2026), and NREL PVWatts modeled a 6 kW city roof at about 8,030 to 8,065 kWh a year, so every kWh you make offsets an expensive grid one. PECO net metering credits your exports at full retail through the year, and the PA SREC market pays you a second time on top. A typical unshaded roof pays back in about 8 to 9 years on our estimate, though savings depend on your roof, usage, shading, and how you pay, and are not guaranteed. The local rate and PECO full-retail net metering are what carry the case here.
What is the solar program in Philadelphia? The active one is Solarize Greater Philadelphia, run by the nonprofit Philadelphia Energy Authority (expanded and rebranded from the original Solarize Philly in 2025). It is a group-buy that vets installers and negotiates pricing for enrolled homeowners, along with a financing path, rather than a cash rebate (Philadelphia Energy Authority, as of July 2026). The City of Philadelphia also had a separate Solar Rebate Program, but it is currently closed and accepting waitlist sign-ups only after budget cuts, so it is not paying rebates today (City of Philadelphia, as of July 2026). Some search results still show the closed rebate as if it were live, so confirm current status before you count on any cash incentive.
Can you get solar panels for free in Philadelphia? No. No government program gives Philadelphia homeowners solar panels at no cost, and Pennsylvania has no state solar rebate or tax credit (DSIRE Pennsylvania, as of 2026). What some companies advertise that way is almost always a lease or a power purchase agreement (PPA): they install panels at no up-front cost and you pay them for the power or rent the system, usually for 20 to 25 years. That can be a reasonable way to go solar with no out-of-pocket cost, but it is not free, and on a lease or PPA the company that owns the panels keeps the SRECs and any tax benefits.
Do I need historic approval for solar in Philadelphia? Only if your property is on the Philadelphia Register of Historic Places, which includes contributing properties inside a designated historic district like Society Hill or Old City. Those properties are not eligible for the EZ Solar Permit fast-track and need Philadelphia Historical Commission approval before you apply, and L&I will refuse the permit without it (City of Philadelphia, as of 2026). Most Philadelphia rowhomes are not historic-listed and use the standard or EZ permit path. An installer who has done Philadelphia historic projects will prepare the drawings and photos the Commission expects and fold the added time into the schedule.
How does PECO net metering work in Philadelphia? When your panels produce more than you use, the extra flows to the grid and PECO credits your account at the full retail rate, and those credits roll forward month to month (52 Pa. Code Chapter 75, as of 2026). Once a year, at the May 31 true-up, any leftover banked credit is cashed out at PECO’s lower Price to Compare, which is below full retail. Residential systems up to 50 kW qualify, and the smart move is to size close to your annual usage so a large year-end surplus is not trued up at the lower rate. As of PECO’s tariff effective April 1, 2026, PECO still credits solar at full retail and has not adopted the lower wholesale export credit that PPL has been moving toward.
What happened to the federal solar tax credit? The 30% 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 Philadelphia homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS, as of 2026). Google’s AI Overview and some older search results still repeat a “30% federal ITC” line for Philadelphia; that is out of date. 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 the PA SREC market were not affected, so at PECO’s rate the local case still holds.
By the SolarFY Editorial Team. Reviewed and updated July 9, 2026. Figures were verified against the linked EIA, NREL PVWatts, IRS, DSIRE, Pennsylvania Code, PECO, Philadelphia Energy Authority, and City of Philadelphia sources as of July 2026; PECO’s Price to Compare, the PA SREC market price, program status, and Philadelphia permitting timelines can change, so confirm current terms with PECO, the City of Philadelphia, and DSIRE before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY editorial team and how we source our data.
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 and any tax benefits 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.