Pennsylvania Solar Power: 2026 Costs, Incentives & Savings
Solar in Pennsylvania
Pennsylvania electricity prices have jumped 31% since 2020, making it harder for homeowners to predict — or control — what they’ll pay each month. With rates now at 17.79 cents per kWh, above the national average of 16.6 cents, it’s no surprise that more Pennsylvania residents are turning to solar.
This guide is designed to help Pennsylvania homeowners understand how solar installation works, what it costs, and what you can realistically expect to save. Here’s everything you need to know about solar panels for your home.
PENNSYLVANIA by the Numbers
- 13th Most residential solar in the United States
- 68k Households have installed solar panels
- 4.8 Average daily peak sun hours
- ~$83k Pennsylvania average savings over 25 years
Pennsylvania Solar Panel Cost
Wondering what solar actually costs in Pennsylvania? Our calculator uses real installation data from cities across PA — Philadelphia, Pittsburgh, Allentown, and beyond — to show your estimated monthly lease payment through Palmetto’s LightReach program (no upfront cost) or a full cash purchase price.
Lease Cash Purchase
System Size This system size is designed to offset approximately 100% of the average electricity usage for a home in Pennsylvania.
Recommended System
9.43 kW Typical for your home size in PA
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
Cost Per Watt $2.77/W
Final Cost $26,082
Savings Your total financial benefit
Monthly Savings Average utility bill reduction
$189
Payback Period Break-even point
10.0 years
25-Year Savings $83,109
Palmetto Reviews
Ken Brown - Pittsburgh, Pennsylvania
The sales rep. was polite, knowledgeable and informative. The installation team was quick and left everything clean. The system was turned on in the middle of January 2024, and has eliminated all but two electric bills of $12.00, which came mid summer. I’m very happy with everything.
Terry Dibiase - Blairsville, 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.
Loretta Tate - Philadelphia, Pennsylvania
Registering or signing up for solar energy with Palmetto was very easy. Information was provided as to what steps were being handled by the electric company and Palmetto. Any questions I had were answered very quickly. My experience with Palmetto was very nice, highly recommend the Company.
Key Takeaways
- Pennsylvania electricity rates have risen 29% since 2021, making solar a smart way to protect yourself from unpredictable utility bills.
- Palmetto’s LightReach lease lets you go solar with no upfront cost — Palmetto owns, maintains, and guarantees your system’s production.
- Pennsylvania offers strong solar incentives, including SRECs, 1-to-1 net metering, and utility rebates that can meaningfully reduce your costs.
Pennsylvania Electricity Prices
Pennsylvania homeowners are paying more for electricity than ever — and the trend isn’t slowing down.
Since 2021, Pennsylvania electricity rates have climbed from 13.8¢ to 17.8¢ per kWh — a nearly 29% increase. That’s consistently above the national average, which rose from 13.7¢ to 16.5¢ over the same period.
Solar panels can help offset those rising costs by generating electricity at home. The more your system produces, the less you rely on the grid — and the less exposure you have to future rate increases.
Through Palmetto’s LightReach program, homeowners can go solar with no upfront cost and lock in a low, fixed monthly rate — so unpredictable utility price hikes don’t have to be your problem anymore.
Price of Energy: Pennsylvania vs National Average
| Year | PA Price (¢/kWh) | National Average (¢/kWh) |
|---|---|---|
| 2021 | 13.8 | 13.7 |
| 2022 | 15.0 | 15.9 |
| 2023 | 17.8 | 16.5 |
Pennsylvania Area Utility Providers
| Utility Provider | 2023 Rate (¢/kWh) | Change (%) |
|---|---|---|
| Duquesne Light | 22.1 | +38 |
| Met-Ed | 17.2 | +7 |
| PECO | 16.2 | +1 |
| Penelec | 19.1 | +19 |
| Penn Power | 17.3 | +8 |
| PPL | 19.5 | +22 |
| West Penn Power | 14.7 | -8 |
| PA Average | 18.1 | +13 |
| US Average | 16.0 | — |
Pennsylvania Solar Incentives
Pennsylvania homeowners have access to several solar incentives in Pennsylvania — from statewide programs to utility-specific rebates — that can meaningfully reduce the cost of going solar.
Incentives Overview
| Incentive | Type | Description | Source |
|---|---|---|---|
| Pennsylvania Solar Renewable Energy Credits (SRECs) | SREC | Earn one tradeable SREC for every 1,000 kWh generated | Learn More |
| Pennsylvania Net Metering (1-to-1 Retail Rate) | Net Metering | Full retail rate credit for excess electricity | Learn More |
| Philadelphia Solar Rebate Program | Rebate | One-time rebate of $0.20 per watt for installations | Learn More |
| PECO Solar Rebate | Rebate | $500 rebate for new solar installations | Learn More |
| FirstEnergy Solar Water Heating Rebate | Rebate | $500 rebate for ENERGY STAR-certified solar water heaters | Learn More |
| Pennsylvania Sustainable Energy Funds (SEF) | Rebate | Low-interest loans and grants for solar projects | Learn More |
| High Performance Building (HPB) Program — Solar Projects | Rebate | Loans and grants for solar-inclusive building projects | - |
| Pennsylvania Sales Tax Exemption for Solar Energy Systems | Sales Tax Exemption | Exemption from state’s 6% sales tax on solar systems | Learn More |
| Penn Energy Savers Program (Pending Launch — Solar-Adjacent) | Rebate | Pending program offering rebates for electrification upgrades | Learn More |
Pennsylvania Solar Renewable Energy Credits (SRECs)
Pennsylvania’s Solar Renewable Energy Credit (SREC) program is administered under the state’s Alternative Energy Portfolio Standards (AEPS) Act. Every time your solar system generates 1,000 kilowatt-hours (1 MWh) of electricity, you earn one SREC.
Pennsylvania Net Metering (1-to-1 Retail Rate)
Pennsylvania law requires all investor-owned electric utilities — including PECO, PPL Electric, Duquesne Light, Met-Ed, Penelec, Penn Power, and West Penn Power — to offer 1-to-1 net metering for residential solar systems up to 50 kW.
Philadelphia Solar Rebate Program
The Philadelphia Solar Rebate Program offers city residents a one-time rebate of $0.20 per watt for residential solar installations.
PECO Solar Rebate
PECO Energy Company offers a $500 rebate for new residential solar installations in its service territory.
FirstEnergy Solar Water Heating Rebate
Residential customers of FirstEnergy’s Pennsylvania subsidiaries can receive a $500 rebate for installing a new solar water heating system.
Pennsylvania Sustainable Energy Funds (SEF)
Pennsylvania’s Sustainable Energy Funds were established as part of electric utility deregulation to support clean energy projects statewide.
High Performance Building (HPB) Program — Solar Projects
This program supports the design and construction of high-performance buildings that include solar energy systems.
Pennsylvania Sales Tax Exemption for Solar Energy Systems
Solar energy systems are exempt from the state’s 6% sales tax, effectively reducing the upfront purchase cost of solar.
Penn Energy Savers Program (Pending Launch — Solar-Adjacent)
This federally funded initiative will offer grants for high-efficiency electric appliances and other upgrades.
Pennsylvania Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Pennsylvania’s mix of four distinct seasons shapes solar output.
About the Data
This map shows average daily solar energy across Pennsylvania based on historical data.
What Can the Average Pennsylvania Solar System Power?
Summer Production (July)
- 47.0 kWh/day
- Powers 3.6 average Pennsylvania homes or runs central AC for 18 hours
- Fully charges 5.4 Tesla Model 3 electric vehicles.
Winter Production (December)
- 23.0 kWh/day
- Powers 2 average Pennsylvania homes or keeps heating running for 15 hours.
- Fully charges 3 Tesla Model 3 electric vehicles.
Annual Production
- 13588 kWh/year
- Offsets 10 tons of carbon dioxide emissions or equals the environmental benefit of planting 175 trees.
Solar Installations in Pennsylvania
We’ve mapped thousands of real solar installations across Pennsylvania
Go Solar with LightReach — No Upfront Cost
Pennsylvania homeowners can go solar through Palmetto’s LightReach program for no upfront cost. With a Power Purchase Agreement (PPA), you pay for the solar energy produced at a set rate per kilowatt-hour.
Frequently Asked Questions
Does Pennsylvania have net metering?
Yes. Pennsylvania law requires all investor-owned utilities to offer 1-to-1 net metering.
Do solar panels increase your home value?
Yes — homes with solar panels sell for approximately 4.1% more than comparable homes without them.
What’s the best solar company in Pennsylvania?
Palmetto Solar is a top choice for homeowners. Over 4,780 installations have been completed across Pennsylvania.