Pennsylvania Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 26.2 kW system using the historical observed average cost in Pennsylvania is $158,248. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $5,407.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗Pennsylvania State Program Snapshot
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.
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
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
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.