Pennsylvania Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in Pennsylvania costs $158,248. After the 30% federal tax credit: $110,774. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
Pennsylvania State Incentives
Solar Renewable Energy Certificates (SRECs)
Performance~$30-$45/SREC (1 SREC per MWh)
Pennsylvania's Alternative Energy Portfolio Standard creates demand for SRECs, providing additional income for solar owners.
Net Metering
Net MeteringFull retail rate for systems up to 50 kW
Full retail net metering with excess credits compensated at price-to-compare at annual true-up.
Tax Exemptions
property tax Exemption
Solar energy systems are exempt from local property tax assessment increases.
sales tax Exemption
Solar energy equipment is exempt from Pennsylvania's 6% sales tax.
Utility Programs
PECO Energy
- Net metering
- Solar pilot programs
PPL Electric
- Net metering
Duquesne Light
- Net metering
Highlights & Drawbacks
Highlights
- ✓SRECs provide additional revenue
- ✓Net metering at full retail rate
- ✓Property and sales tax exemptions
Drawbacks
- !Lower sun hours
- !SREC values lower than NJ or MD
- !Higher installation costs
- !Cold winters reduce production
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.