How much do solar panels cost in Pennsylvania?

Pennsylvania residential solar runs roughly $2.80 per watt installed—slightly above the national average, reflecting older-home electrical work common in the Northeast. A typical 8.0 kW system costs about $22,400 before incentives. PECO, PPL, and Duquesne Light territories each have their own installer ecosystem, and permit costs vary by municipality. The federal Section 25D credit is not available for 2026, so the net upfront cost equals the installed price minus any SREC revenue you monetize upfront through a broker or installer contract.

What solar incentives are available in Pennsylvania?

Pennsylvania's standout incentive is its Solar Renewable Energy Credit (SREC) market, which pays $30–40 per megawatt-hour of solar generation. An 8 kW system producing about 8 MWh annually can earn $240–320 in SREC revenue each year—a meaningful addition to bill savings. Full retail net metering means exported kWh are credited at the same $0.21/kWh rate you pay for grid power, with annual true-up. No statewide cash rebate or tax credit exists. The combination of SRECs and full retail net metering makes Pennsylvania one of the stronger solar states in the Mid-Atlantic without a direct subsidy.

Is solar worth it in Pennsylvania?

At $0.21/kWh electricity with full retail net metering and a functioning SREC market, Pennsylvania offers a stronger solar value proposition than most of its neighbors. The SREC revenue stream alone can trim a year or more off the payback period. With roughly 4.2 peak sun hours per day, production is modest but the high avoided electric rate makes each kilowatt-hour count. The 8-to-10-year payback range assumes you register with an SREC broker and receive retail-rate export credit. Older homes may need electrical panel upgrades—factor that into the true installed cost.

Does Pennsylvania have net metering?

Yes, Pennsylvania mandates full retail net metering for investor-owned utilities—PECO, PPL Electric Utilities, Duquesne Light, and others must credit exported solar at the same per-kWh rate customers pay for grid electricity. The policy includes annual true-up, and any remaining credits at the end of the annual period are compensated at the utility's price-to-compare rate. System size is capped at 50 kW for residential net metering, which is more than enough for any single-family home. Electric cooperatives and municipal utilities may have different rules.

What financial incentives still work in Pennsylvania in 2026?

The federal Section 25D residential solar credit is not available for 2026 projects. Pennsylvania homeowners should lean on three revenue streams: full retail net metering at $0.21/kWh for exported surplus, SREC sales at $30–40/MWh through a registered broker or aggregator, and direct bill savings from self-consuming solar generation. Together, these can deliver an 8-to-10-year payback even without the federal credit. Some Pennsylvania municipalities offer solar-friendly property-tax treatment—confirm with your county assessor whether a solar array triggers reassessment.

Which utilities serve Pennsylvania for solar?

The three largest investor-owned electric utilities for Pennsylvania residential solar are PECO Energy (serving the Philadelphia region and southeastern Pennsylvania), PPL Electric Utilities (covering central and eastern Pennsylvania including Allentown, Scranton, and the Lehigh Valley), and Duquesne Light (serving Pittsburgh and surrounding Allegheny County). All three are required to offer full retail net metering under Pennsylvania law, but interconnection procedures, application timelines, and SREC registration processes vary between them.

State Guide

Solar Panel Cost in Pennsylvania (2026)

See how much solar panels cost in Pennsylvania with local electricity rates, incentives, and payback estimates.

Last updated: 2026-06-09· Source label: EIA residential electricity rates, IRS federal clean energy credit, NREL/PVWatts solar assumptions

Pennsylvania delivers one of the stronger residential solar value propositions east of the Mississippi, thanks to three structural advantages: full retail net metering, a deregulated generation market that lets you shop your supply rate, and a functioning SREC market that pays $30–40 per megawatt-hour. Electricity at $0.21/kWh runs well above the national average, which gives every self-consumed solar kilowatt-hour outsized bill-reduction power. Marcellus shale gas keeps wholesale prices moderate for now, but retail delivery charges have been climbing independent of generation costs. The utility landscape splits between PECO in the Philadelphia region, PPL in the central-east, and Duquesne Light around Pittsburgh—all three honor full retail net metering, though interconnection rules and SREC registration processes differ. No statewide cash rebate exists, and the 2026 expiration of the federal credit shifts more weight onto SREC revenue.

$0.21/kWhAvg. Electricity Rate21% above the national average of $0.14/kWh. Pennsylvania's rates reflect its position in the PJM wholesale market and declining coal generation. Source: EIA Electric Power Monthly (2025 data).

8-10 yearsSolar PaybackPlanning range from Pennsylvania defaults: $0.21/kWh, $2.80/W, 4.2 peak sun hours/day, and current state or utility incentive assumptions.

$2.8/WAvg. Install CostFor a typical 8 kW system, roughly ~$22,400 before incentives. The federal residential credit (Section 25D) expired Dec 31, 2025 and is not available by default for 2026 projects.

ColdClimate ZoneASHRAE/IECC heating climate zone classification

$1.67/thermNatural Gas PriceEIA residential price

Net cost before federal residential credit~$22,400Uses Pennsylvania's $2.80/W installed-cost default and no statewide cash incentive default; no 2026+ federal residential credit is applied by default.

Estimated payback8-10 yearsDepends on actual utility rate, Full retail net metering, installed cost, roof production, financing, and incentive eligibility.

Annual bill offset$1,700-$2,300/yrEstimate based on a 8.0 kW system, 4.2 peak sun hours/day, $0.21/kWh, and PVWatts-style production before fixed charges or export-credit adjustments.

Estimates based on pennsylvania state averages. Your actual cost depends on roof, equipment, installer, and financing.

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Overview

Use this result

Use the calculator inputs first, then compare the result against local rates, incentives, roof conditions, and utility export rules.

Method, assumptions, and sourcesOpen this section when you want to audit the calculation behind the estimate.Show

Calculation Method

Pennsylvania solar payback = net installed cost after incentives / annual avoided electricity cost plus export credits

Key Assumptions

Policy last reviewed: 2026-06-09. Federal residential credit assumptions are project-year dependent and not applied by default for 2026+ projects.
Residential rate and installed-cost figures are planning benchmarks, not a final utility bill audit or installer quote.
The model assumes a roof with usable sun exposure; shading, roof age, electrical upgrades, permitting, and financing can materially change cost.
Pennsylvania economics should be checked against statewide net-metering context, utility rate variation, and older-home efficiency and roof constraints.
The federal tax credit only helps households with sufficient tax liability and qualifying project documentation.

Data Sources

Electricity rates

EIA Electric Power Monthly

Residential electricity-rate benchmark used for avoided-bill savings.

Solar production

NREL PVWatts

Solar production assumptions should be checked against local roof orientation, shading, and climate.

Federal incentive

IRS Residential Clean Energy Credit

Supports 2026 Section 25D expiration (residential ITC no longer available by default) for qualifying residential solar costs.

State and utility policy

DSIRE and local utility tariff pages

Used as a reminder to verify state incentives, net-metering, export-credit, and rebate rules before relying on an estimate.

Result Summary

Net cost before federal residential credit

~$22,400

Uses Pennsylvania's $2.80/W installed-cost default and no statewide cash incentive default; no 2026+ federal residential credit is applied by default.

Estimated payback

8-10 years

Depends on actual utility rate, Full retail net metering, installed cost, roof production, financing, and incentive eligibility.

Annual bill offset

$1,700-$2,300/yr

Estimate based on a 8.0 kW system, 4.2 peak sun hours/day, $0.21/kWh, and PVWatts-style production before fixed charges or export-credit adjustments.

Compare Solar Costs With Neighboring States

Solar economics vary by state. Compare Pennsylvania with nearby states to see how electricity rates, incentives, and payback periods differ in your region.

New York Solar CalculatorElectricity rate$0.29/kWhPayback period7 yrsNet meteringFull retail net mete Ohio Solar CalculatorElectricity rate$0.19/kWhPayback period9 yrsNet meteringNet metering at reta New Jersey Solar CalculatorElectricity rate$0.23/kWhPayback period7 yrsNet meteringNet metering at reta Maryland Solar CalculatorElectricity rate$0.22/kWhPayback period7 yrsNet meteringFull retail net mete

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Solar Panel Cost in Pennsylvania (2026)

Incentives & Rebates

Federal Residential Credit Caveat

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