Allentown, PA Solar Installation: 2026 Costs, Incentives & Savings
Solar Power in Allentown
If you live in Allentown and have watched your electric bill climb, you’re not alone. Pennsylvania electricity rates now average 17.79 cents per kWh, and prices have jumped 31% from 2020 to 2024. For many homeowners, solar is a practical way to take control of these rising costs.
Solar installation turns sunlight into electricity for your home. In this guide, we’ll cover the basics of going solar in Allentown. To learn more, explore our overview of home solar panels.
PENNSYLVANIA by the Numbers
13thMost residential solar in the United States
68Households have installed solar panels
4.6Avg peak sun hours per day
~$79kAllentown average savings over 25 years
How Much Do Solar Panels Cost in Allentown, PA?
See what solar really costs in Allentown, using real installation data from homes across the area, including Emmaus, Whitehall, Bethlehem, and Macungie. This calculator gives you a clear, local estimate based on actual projects nearby, so you can understand your options with confidence, no guesswork or pressure required.
- Lease
- Cash Purchase
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Pennsylvania.
Recommended System
- 9.43 kW
Your Monthly Payment
Estimated monthly cost with LightReach
- $113/mo
- As low as $113/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown
Your estimated investment
- System Cost: $26,082
- Price per Watt: $2.77
- Final Cost: $26,082
Savings
Your total financial benefit
- Monthly Savings: Average utility bill reduction $179
- Payback Period: Break-even point 10.3 years
- 25-Year Savings: $78,528
Get Your Personalized Quote
Palmetto Reviews
So far they have been very professional and consistently checking in on me with the status of my ongoing solar installation project, which is a great thing.
Testimonials
- Michael Almeda, Allentown, Pennsylvania: Palmetto is a great company to work with. The installation of our solar panels was great. They are excellent at keeping us informed throughout the entire installation process.
- Kent Smith, Douglassville, Pennsylvania: Palmetto did an excellent job! From the sales guy Mason to the installers everything was top notch. Installation started at 9am and they were done by lunchtime. I highly recommend Palmetto Solar for installation.
Key Takeaways
- Allentown electricity rates have climbed 31% since 2020, reaching 17.8¢ per kWh, so solar offers homeowners a way to gain more predictable energy costs.
- A typical Allentown home can save about $79,000 over 25 years with solar, with a payback period of roughly 10 years for cash buyers.
- Pennsylvania offers strong local solar incentives, including SRECs, 1-to-1 net metering, and a sales tax exemption, plus no-upfront-cost leasing through LightReach.
Allentown Electricity Prices
If you live in Allentown, you’ve likely noticed your electric bill climbing year after year. Here’s what’s driving those rising costs.
Electricity prices in Pennsylvania have risen sharply, from 13.8 cents per kWh in 2021 to 17.8 cents in 2024. That’s about a 29% increase, outpacing the national average over the same period.
Solar offers Allentown homeowners a way to take control. By generating your own electricity, you rely less on the grid and can better protect yourself from these steady rate increases over time.
Price of Energy: Pennsylvania vs National Average
| Year | Pennsylvania | US Average |
|---|---|---|
| 2021 | 13.8¢ | 13.7¢ |
| 2022 | 15.0¢ | 15.0¢ |
| 2023 | 17.8¢ | 16.0¢ |
| 2024 | - | - |
Allentown Area Utility Providers
In Allentown, PPL is the local utility. Its 2023 electricity rate was about 19.5¢ per kWh (2024 data isn’t available yet). That sits above both the Pennsylvania average of 18.10¢ and the national average of 16.0¢.
Allentown Utilities Electricity Rates
| Provider | Rate |
|---|---|
| PPL | 19.50¢ |
| PA Avg | 18.10¢ |
| US Avg | 16.0¢ |
Pennsylvania Solar Incentives
Allentown homeowners can tap into several solar incentives in Pennsylvania that help offset the cost of installing a solar system.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Pennsylvania Solar Renewable Energy Credits (SRECs) | SREC | Earn one tradeable SREC for every 1,000 kWh of electricity generated, which can be sold for $25–$40 each to utilities needing to meet clean energy requirements. | Learn More |
| Pennsylvania Net Metering (1-to-1 Retail Rate) | Net Metering | Required for all Pennsylvania investor-owned utilities to offer, crediting solar customers at the full retail rate for excess electricity sent to the grid. | Learn More |
| Pennsylvania Sustainable Energy Funds (SEF) | Rebate | Provide low-interest loans and grants to help finance solar projects in utility territories. | Learn More |
| High Performance Building (HPB) Program | Rebate | Offers loans and grants for projects that meet green building standards, including solar installations. | |
| Pennsylvania Sales Tax Exemption for Solar Energy Systems | Sales Tax Exemption | Solar equipment is exempt from the state’s 6% sales tax. | Learn More |
| Penn Energy Savers Program (Pending Launch) | Rebate | Provides rebates for income-qualified households on eligible electrification upgrades. | Learn More |
Allentown Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Solar Production in Allentown by Month
System Size:5 kW 7 kW 10 kW
What Can Your Solar System Power?
Summer Production (July)
- 43.8 kWh/day
In July, your 10 kW system could power:
- 2.9 average homes (15 kWh/day per home)
- or Run central AC for 14 hours AND power all other appliances
- or Fully charge 4.4 Tesla Model 3 electric vehicles
Winter Production (December)
- 20.2 kWh/day
In December, your 10 kW system could power:
- 1.3 average homes (15 kWh/day per home)
- or Keep your home heating system running for 10 hours
- or Fully charge 2.0 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 9 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 154 trees
Solar Panel Systems in Allentown
We’ve mapped solar installations across the country, right down to the neighborhood level. Explore this interactive map of Allentown, PA to see how many of your neighbors have already made the switch to solar.
Leasing Solar Panels
In Allentown, your local utility is PPL Electric Utilities, and Palmetto offers a Power Purchase Agreement (PPA) through LightReach. With a PPA, you don’t pay for the system itself. Instead, you agree to buy the power your panels produce at a set price per kilowatt-hour, so you only pay for the clean energy you use.
Frequently Asked Questions
- Does Allentown, PA have net metering?
Yes. Allentown homes are served by PPL Electric Utilities, and Pennsylvania requires all investor-owned utilities to offer 1-to-1 net metering. - Do solar panels increase your home value in Allentown, PA?
Yes, in most cases. When you own your solar panels, they can add value to your Allentown home. - How much does it cost to go solar in Allentown, PA?
With a LightReach lease, Allentown homeowners can go solar for a low fixed monthly payment starting around $113/month. - How does leasing solar work and what’s the approximate cost in Allentown, PA?
In a solar lease like Palmetto’s LightReach program, you make one simple monthly payment that covers everything: the panels, installation, monitoring, maintenance, and a 90% Production Guarantee. - Do solar panels work in Allentown, PA’s climate?
Yes, solar panels work well in Allentown’s climate. - Is solar worth it financially?
For many Allentown homeowners, solar can be worth it financially. - What solar incentives are available in Allentown, PA?
Allentown homeowners can use several Pennsylvania solar incentives.