Pennsylvania Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Pennsylvania homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $16,920 in Pennsylvania, that's a direct tax credit of $5,076. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

Pennsylvania does not currently offer a state-level solar tax credit. However, Pennsylvania homeowners still benefit from the substantial 30% federal ITC, worth $5,076 on a typical 6kW system. Even without a state credit, solar is economically attractive in Pennsylvania with electricity rates averaging 19.3¢/kWh — well above the national average.

Pennsylvania has an active SREC market through the Pennsylvania SREC market (market-based, fluctuating) program. For every megawatt-hour (MWh) of solar electricity your system produces, you earn one SREC that can be sold to utilities for approximately $30/MWh.

A 6kW system in Pennsylvania produces approximately 6.7 MWh per year, earning you roughly $201/year in SREC revenue. Over 25 years, that's an additional $5,013 in income on top of your electricity bill savings. SREC values fluctuate based on supply and demand, so actual earnings may vary.

Pennsylvania does not currently offer a statewide property tax exemption for solar installations. This means the added home value from solar panels may increase your property tax assessment. Some local jurisdictions may offer their own exemptions — it's worth checking with your county tax assessor. Even without this exemption, the energy savings from solar typically far outweigh any marginal property tax increase.

Pennsylvania does not currently exempt solar equipment from state sales tax. This means you'll pay the applicable sales tax on your solar system purchase. However, the 30% federal ITC and other available incentives more than compensate for this cost in most cases.

Net metering policy: Full Retail Rate. Full retail rate net metering; annual true-up The current system size cap is 50 kW.

Pennsylvania's full retail rate net metering is one of the strongest solar policies available. Every excess kWh your system sends to the grid earns you a credit at the full retail rate of 19.3¢/kWh. This means your solar panels generate maximum value — surplus energy produced during sunny hours offsets your evening and nighttime consumption at the same rate you'd pay to buy that electricity.

Pennsylvania has a mandatory Renewable Portfolio Standard (RPS) target of 8% Tier I by 2021 (includes 0.5% solar). This legally binding target drives continued investment in renewable energy infrastructure and often supports solar-friendly policies like net metering and SREC programs. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.