See how much it will cost to install solar panels for your home in Pennsylvania
Our estimates used by
Solar power in Pennsylvania
Last fact-checked on April 14, 2023, by Catherine Lane
Despite the lack of incentives, when you combine mandatory net metering with the 30% federal tax credit, there is a way to make great savings when you make the switch to solar in Pennsylvania.
Compare solar quotes from the top solar companies in Pennsylvania
Pennsylvania solar power facts
$2.62 watt
Average cost: 5kW solar power system
?6 Years 2 Months
Average payback time
$62,056
Average lifetime savings
?5¢ kWh
Levelized cost of solar energy
35¢ kWh
If you don't get solar
?9,230 kWh
Annual power production
Cash flow graph based on cash purchase of a 7.76kW system
This 7.76kW system would offset 100% of your energy usage if your typical monthly bill in Pennsylvania is $150, however, your situation may vary so try our solar calculator to get a result tailored to you.
6
Solar companies in Pennsylvania that provide pricing through the Solar-Estimate marketplace.
How much can solar panels save you in Pennsylvania
Average total cost of solar panel installation in Pennsylvania
| System Size | Cash purchase After 30% solar tax credit |
Financed purchase After 30% solar tax credit |
|---|---|---|
| 3kw | $5,691 | $6,146 |
| 4kw | $7,476 | $8,074 |
| 5kw | $9,170 | $9,904 |
| 6kw | $10,836 | $11,703 |
| 7kw | $12,397 | $13,389 |
| 8kw | $13,944 | $15,060 |
| 9kw | $15,372 | $16,602 |
| 10kw | $16,800 | $18,144 |
How much do solar panels cost in Pennsylvania?
$2.62 per watt
Cash purchased solar system
Before 26% solar tax credit
$4.06 per watt
Financed solar system
Before 26% solar tax credit
$0.0¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Pennsylvania?
The main advantage of installing solar panels in Pennsylvania is the state requirement for net metering. This law mandates the sellers of electricity must provide their solar customers with credit that is equal to the retail price of electricity for the excess generation their systems create. With power prices above the national average, the return on investment for an installation of solar panels in The Keystone State is one of the best in the U.S. Pennsylvania homeowners have the option to take advantage of the federal solar tax credit, as well.
Disadvantages of installing solar in Pennsylvania include the lack of sunshine this state receives overall. This means that a solar system here will produce less than it would in states like Arizona or New Mexico, where peak sun hours are almost twice as high. Also, the state does not require a property tax or sales tax exemption on solar energy equipment as many other states do. Pennsylvania lacks solar incentive programs, meaning the state isn’t pushing for more reasons to go solar. Although Philadelphia launched its own rebate program, it is on hold indefinitely until funding is restored.
Enter your details to calculate the potential costs and savings you can expect to receive from installing solar panels for your home.
Best solar companies in Pennsylvania
Compare solar quotes from the top solar companies in Pennsylvania
How much electricity will solar panels produce in Pennsylvania
Solar panels produce different amounts of energy in different locations.
Around the Philadelphia area solar panels installed on a south-facing 27-degree pitch roof will typically produce:
1,254kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits and other solar incentives are available in Pennsylvania?
Net metering in Pennsylvania
Pennsylvania Law requires all electric distribution companies to make net metering available to their customers. According to the policy, each kilowatt-hour (kWh) sent to the grid from a solar system must be credited at the full retail rate of electricity. At the end of the 12-month billing cycle, utilities will compensate net metered generators for unused remaining excess credits at a “price-to-compare” rate, which equals the retail price of the electricity minus the distribution component. With the high electric rates in Pennsylvania, homeowners who install solar systems will see more significant savings here than in other areas of the nation.
Alternative Energy Credit Program
Thanks to the Alternative Energy Portfolio Standard Act of 2004, all electric distribution companies and electric generation suppliers in Pennsylvania must derive 18% of their electricity from renewable energy sources by 2021. Of that 18%, 0.5% must come from solar. No further updates have been made to the act.
In order for companies to comply with these standards, they must procure alternative energy credits (AECs), which represent the positive environmental attributes of generating one megawatt-hour of renewable energy. A home solar system generates AECs that can then be sold to utility companies or to AEC aggregators, which can add some extra cash into your pocket.
A home solar system generates AECs that can be sold to utility companies or AEC aggregators, adding some extra into your pocket. According to the SRECTrade, current bid prices as of March 2023 for PA-sited systems are currently at $47 per megawatt-hour (MWh). However, these prices vary based on market conditions.
Philadelphia Solar Rebate
To encourage property owners to install photovoltaic systems, the city of Philadelphia launched this solar incentive program in 2019. The rebate amount received is based on the DC size of the solar system. It amounts to $0.20 per watt for residential buildings and $0.10 per watt for commercial buildings. The rebates are capped at $100,000 per project, and 10% of the rebate funds will be reserved specifically for low and moderate-income households.
The Solar Rebate program is currently on hold due to budget cuts derived from COVID-19. However, you can still submit an application which will place you on a waiting list until funds are restored.
Pennsylvania Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Pennsylvania, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Pennsylvania using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of how many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Pennsylvania
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Pennsylvania or Philadelphia ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Pennsylvania solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Pennsylvania
Check out all of the ways energy providers of Pennsylvania can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal | Personal Tax Credit |
| Net Metering | State | Net Metering |
| Solar Alternative Energy Credits | State | SREC Program |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
