PA Solar Incentives & Tax Credit 2026
The 30% federal tax credit for purchased solar panels expired at the end of 2025, but you can still lower your monthly electric cost by installing solar for your home or business. Check out 2026 Pennsylvania solar incentives and tax credit opportunities below, which can save you money through every stage of the process, from installation to years beyond.
Solar Net Metering in Pennsylvania
In 2026, Residential PV systems up to 50 kW are eligible for net metering. Net metering compensates you with bill credits for excess electricity generated by your panels and sent to the grid. Credits roll over from month to month and reset once per year. You will earn the full retail rate determined by your individual utility. Whether you are a customer of First Energy, Duquesne Light, PPL, PECO, or another utility, the PA PUC AEPS act outlines details of their net metering program.
Solar Renewable Energy Credits (SRECs)
Solar Renewable Energy Certificates allow homeowners to earn extra income for excess energy their system generates and is different from net metering. Homeowners earn one SREC for every 1,000 kWh their system produces. A system sized to cover a typical PA home’s usage generates about 9-10 SRECs a year, which can be sold for cash through a broker. The pricing per credit ranges from $22 and $47. However, leased systems don’t qualify since SRECs belong to whoever owns the panels.
Getting Started:
- Your solar system must be certified with the Pennsylvania Public Utility Commission (PUC) through the AEPS program..
- If you are approved, the system receives a Certification Number, which confirms that the system qualifies to generate renewable energy credits.
- After certification, the solar system must be registered with PJM-GATS (Generation Attribute Tracking System).
- PJM-GATS is the platform used to track solar production and create SRECs.
- Once generated, SRECs can be sold on the open market through a broker or aggregator.
Contact Us
Pennsylvania has plenty of solar incentives to give you the confidence to take the next step in going solar. Solar Liberty services the State of Pennsylvania with crews operating out of Altoona, Erie, Harrisburg, Pittsburgh, Scranton, and State College. Tell us more about you via the links below.
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FAQs
Are solar panels worth it in PA?
Even though the 30% residential ITC credit is gone, going solar in PA still saves you money on electric costs. Pennsylvania’s net metering and SREC programs make solar panels a good long-term investment.
Are there ways to get free solar panels in PA?
There are no options for free solar panels in PA. The state offers Net metering, Renewable Energy Credits, and a possible Homeowners Energy Efficiency Loan Program (HEELP) if you qualify. This can offset the upfront cost of solar.
How much time will it take for solar to pay itself in PA?
On average installing a solar power system can lower your electric bill and pay for itself over time. The estimated return on investment in PA is 9.9 years to break even with system cost and electric savings.
How does net metering work in PA for solar power?
Net metering compensates you with bill credits for excess electricity generated by your panels and sent to the grid. Credits roll over from month to month and reset once per year. You will earn the full retail rate determined by your individual utility.
How can I participate in community solar programs in PA?
Community solar has yet to be widely adopted in Pennsylvania due to lack of legislation. You can check for local pilot programs through the Pennsylvania Public Utility Commission. If you are having difficulty paying utility bills most companies offer assistance programs. Contact your local utility to see if you qualify.
