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Last updated: May 2026
Avg. sun hours/day
4.1 hrs
Avg. electricity rate
$0.16/kWh
Active incentives
4
Each MWh of solar PV generation produces 1 PA-SREC, sold on the PA SREC market typically at $30–$45 per certificate. A 7 kW residential system generating ~8 MWh/year earns ~$240–$360 annually.
Pennsylvania operates an SREC market under the Alternative Energy Portfolio Standards (AEPS) Act. Customer-generators register their systems with PJM Environmental Information Services (PJM-EIS GATS) and earn 1 SREC per MWh produced. Certificates are sold to electricity suppliers obligated to surrender solar carve-out compliance certificates annually. PA SREC prices are typically lower than NJ ($65) or MA SMART equivalent — the PA market historically oversupplied due to permissive out-of-state SREC certification, though 2017 reforms (SB 467/HB 118) closed the border. Most homeowners contract with an SREC aggregator (SREC Trade, Sol Systems) handling registration and quarterly sales for a small commission. SREC eligibility lasts 15 years in PA's RPS framework.
1:1 net metering at retail rate for residential systems ≤ 50 kW. Annual reset cashes out unused credits at the utility's price-to-compare (PTC) rate.
Pennsylvania's net metering, regulated by the Public Utility Commission (PUC), provides retail-rate compensation for solar systems up to 50 kW residential. Surplus credits roll forward through the customer's annual cycle; at the customer's anniversary, unused balance cashes out at the utility's price-to-compare rate (the supply portion of retail). PECO, PPL Electric, Duquesne Light, FirstEnergy (Met-Ed, Penelec, West Penn Power), and other utilities all participate. Energy choice (deregulated supply) affects which 'price-to-compare' rate applies for cash-out. Net metering combines with PA SREC income.
Pennsylvania does not have a statewide solar property tax exemption. Some counties have adopted local exemptions; verify with your specific County Assessor.
Pennsylvania law does not establish a statewide residential solar property tax exemption. Some counties (notably Allegheny County / Pittsburgh) have local provisions limiting the assessed value impact; many do not. The practical effect for residential solar in most PA counties is that the system's assessed value is added to the property — typically 70–80% of installed cost — with corresponding property tax assessment increase. This is a meaningful drag on PA residential solar economics compared to NJ/MD/MA where exemptions are statewide.
Standard 6% Pennsylvania sales tax applies to residential solar PV equipment and installation. Some counties add local sales tax for combined 7–8%.
Pennsylvania does not exempt residential solar PV equipment from sales and use tax. The 6% state rate plus local additions (Allegheny County 1%, Philadelphia 2%) applies to equipment. Installation labour is generally exempt under construction-services treatment, but materials are taxable. The lack of a sales tax exemption is a notable disadvantage for PA residential solar economics.
Expired for systems placed in service after December 31, 2025.
Federal Section 25D expired 2026-01-01. Pennsylvania's SREC + net metering economics partially offset the loss but state-level incentive stack is thinner than NJ/MD/MA — payback typically 11–14 years for residential 2026 installs in PA. See /guides/solar-after-itc-expired.
Our calculator uses Pennsylvania's actual sun hours (4.1 hrs/day) and electricity rates.
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