Solar Calculator for Pennsylvania: Costs, Incentives & ROI
Pennsylvania offers one of the most financially stable net metering policies in the eastern United States — full retail-rate net metering under Pennsylvania Public Utility Commission regulation at Title 52 § 75.13, with no scheduled transition to a lower buyback rate through at least 2027. This makes Pennsylvania's net metering framework markedly more homeowner-favorable than neighboring states that have transitioned or are transitioning away from full retail-rate compensation. The state's five investor-owned utilities — PECO in the Philadelphia metro, PPL Electric Utilities serving the Lehigh Valley, Harrisburg, and eastern Pennsylvania, Duquesne Light in the Pittsburgh metro, West Penn Power serving southwestern Pennsylvania, and the FirstEnergy units Met-Ed, Penelec, and Penn Power serving central and northeastern Pennsylvania — each offer net metering programs regulated by the PUC under the same statewide standard, producing a consistent compensation framework regardless of which utility serves a homeowner's address. Pennsylvania residential electricity rates average approximately fifteen to seventeen cents per kilowatt-hour, above the national average and comparable to neighboring New Jersey and Maryland, making solar economics similar to those in the broader Mid-Atlantic market. Notably, Pennsylvania does not offer a statewide property tax exemption for residential solar installations — a meaningful difference from neighboring New Jersey and New York, both of which provide property tax protection — and Pennsylvania's 6% state sales tax applies to solar equipment and installation labor, unlike Connecticut or Maryland. The absence of these exemptions increases the effective net cost of a Pennsylvania solar installation compared to most northeastern neighbors, but the state's strong net metering policy and above-average electricity rates continue to support compelling payback periods.
Incentive data updated: May 2026(may be outdated)
Average Solar Cost in Pennsylvania
Average installed solar costs in Pennsylvania typically range from $2.70 to $3.00 per watt before incentives, reflecting the Mid-Atlantic labor market and a competitive multi-installer landscape in the PECO and PPL service territories. A standard six-kilowatt residential system costs approximately $16,500 to $18,500 before the federal Investment Tax Credit, consistent with Mid-Atlantic regional pricing from LBNL Tracking the Sun and modestly below New Jersey or Connecticut due to slightly lower labor costs outside the New York metro influence zone. The thirty-percent federal ITC reduces the net installed cost to roughly $11,550 to $12,950 for a six-kilowatt system. Pennsylvania does not exempt solar equipment from the state 6% sales tax, adding approximately $990 to $1,110 to the cost of a $16,500 to $18,500 installation — Philadelphia city customers also face the additional 2% Philadelphia local sales tax, and Allegheny County customers face an additional 1% local rate, bringing effective sales tax rates to 8% and 7% respectively in those jurisdictions. This sales tax exposure increases Pennsylvania's effective net installed cost relative to neighboring states with solar sales tax exemptions. Pennsylvania homeowners may also be eligible for Solar Renewable Energy Credits, or SRECs, through the Pennsylvania Alternative Energy Portfolio Standard, though the SREC market value in Pennsylvania has historically been lower than in neighboring New Jersey's more active SREC market; homeowners should consult a NABCEP-certified installer to understand current SREC availability and pricing before factoring this into the financial projection.
- Avg. installed cost
- $2.85/W
- Typical 6 kW system
- $16,500–$18,500
Top Solar Incentives in Pennsylvania
Live incentive data not currently available for Pennsylvania. See the federal incentive guidance via our Solar Tax Credit Calculator.
Electricity Rates in Pennsylvania
Pennsylvania residential electricity rates average approximately fifteen to seventeen cents per kilowatt-hour on a blended basis including supply, distribution, and transmission charges, placing the state above the national average and in the middle tier of the Mid-Atlantic market. PECO customers in southeastern Pennsylvania — including the Philadelphia suburbs of Montgomery, Bucks, Delaware, and Chester counties — typically pay rates in this range, with the supply component subject to Pennsylvania's competitive retail electricity market. PPL Electric Utilities customers in the Lehigh Valley and Harrisburg corridor face similar rates, as do Duquesne Light customers in the Pittsburgh metro and West Penn Power customers in southwestern Pennsylvania. Pennsylvania's electricity rates reflect the state's generation mix of nuclear baseload, natural gas peakers, and a declining coal fleet, as well as PJM transmission infrastructure costs. The practical implication of Pennsylvania's above-average electricity rates is that each kilowatt-hour of solar self-consumption avoids purchasing at fifteen to seventeen cents, producing strong solar savings relative to lower-cost states. The full retail-rate net metering policy compounds this advantage: excess solar generation earns credits at the same fifteen-to-seventeen-cent retail rate, providing the maximum possible compensation per kilowatt-hour of surplus production within the existing PUC framework.
Peak Sun Hours in Pennsylvania
Pennsylvania's solar resource is moderate to good by Mid-Atlantic standards, averaging approximately four to four and a half peak sun hours per day on a south-facing tilted surface across most of the state. Philadelphia and southeastern Pennsylvania benefit from somewhat more favorable conditions than the northern and mountainous regions, averaging approximately four and a half peak sun hours per day near the Delaware River valley, comparable to neighboring New Jersey and Delaware. Pittsburgh and western Pennsylvania receive slightly less solar irradiance due to the influence of Great Lakes weather patterns, persistent cloud cover from lake-effect systems during winter, and the Allegheny Mountain terrain effect — averaging approximately three and a half to four peak sun hours per day, making western Pennsylvania's solar resource somewhat lower than southeastern Pennsylvania's. Central Pennsylvania — the Harrisburg to Lancaster corridor — receives solar conditions in between, averaging approximately four to four and a half peak sun hours per day. Pennsylvania's relatively mild summer temperatures compared to the Sun Belt mean panels operate closer to their rated Standard Test Conditions efficiency than Arizona or Texas systems, partially offsetting the lower peak sun hours with better temperature-adjusted performance. A six-kilowatt system in Philadelphia typically produces approximately six thousand five hundred to seven thousand five hundred kilowatt-hours per year, representing approximately one thousand to one thousand one hundred fifty dollars of annual bill savings at fifteen to seventeen cents per kilowatt-hour under full retail-rate net metering. A comparable system in Pittsburgh may produce approximately six thousand to six thousand eight hundred kilowatt-hours annually due to the less favorable western Pennsylvania solar resource.
Example ROI for a 6 kW System
- Estimated annual savings
- $1,100
- Payback period
- 8.5 years
- 25-year net savings
- $26,500
Run a personalized estimate with your ZIP code using the Solar ROI Calculator.
Major Cities in Pennsylvania
- Philadelphia19103
- Pittsburgh15222
- Allentown18101
- Erie16501
- Harrisburg17101
Common Questions About Solar in Pennsylvania
Does Pennsylvania have a property tax exemption for solar?
No. Pennsylvania does not have a statewide property tax exemption for residential solar installations. This is a notable difference from neighboring states: New Jersey exempts the added assessed value of solar installations from property tax, New York provides a similar exemption for residential solar, and Connecticut provides a solar property tax exemption under state law. In Pennsylvania, a solar installation that increases the market value of a home is subject to normal property tax assessment in most jurisdictions. Some Pennsylvania counties or municipalities may offer local-option solar incentive programs, and Philadelphia and Pittsburgh homeowners should consult their local assessor's office for any locally available programs, but no Commonwealth-wide statute provides this protection as of 2025. Pennsylvania also does not exempt solar equipment or installation labor from the state 6% sales tax — Philadelphia adds 2% and Allegheny County adds 1% — meaning Pennsylvania homeowners pay full state and local sales tax on installed solar costs. The absence of both property tax and sales tax exemptions means Pennsylvania homeowners should factor these costs into their financial projection: a $17,000 installation subject to 6% sales tax adds $1,020 in Pennsylvania sales tax that would not apply in Connecticut, Maryland, or New Jersey.
What utilities offer net metering in Pennsylvania?
Pennsylvania's five major investor-owned utilities — PECO (serving the Philadelphia metro), PPL Electric Utilities (serving the Lehigh Valley, Harrisburg, and eastern PA), Duquesne Light (serving the Pittsburgh metro), West Penn Power (serving southwestern PA as a FirstEnergy company), and the FirstEnergy units Met-Ed, Penelec, and Penn Power (serving central and northeastern PA) — all offer net metering programs regulated by the Pennsylvania Public Utility Commission under Title 52 § 75.13. PA PUC net metering provides compensation at the full retail rate for each kilowatt-hour of excess solar generation exported to the grid. Credits accumulate on a monthly basis and roll over for up to twelve months, with an annual true-up where remaining credits are reconciled at the price-to-compare default service rate. The residential system size cap under Pennsylvania PUC net metering is 50 kilowatts, which is large enough to accommodate any practical residential installation. There is no statewide program capacity cap that would close net metering to new applicants; each utility's net metering obligation is limited to a per-IOU aggregate cap of approximately three percent of peak demand, which has not been reached for any of Pennsylvania's major utilities as of 2025.
Is solar equipment exempt from Pennsylvania sales tax?
No. Pennsylvania does not provide a sales tax exemption for residential solar equipment or installation labor, unlike neighboring states such as New Jersey, Connecticut, and Maryland. Pennsylvania's 6% statewide sales tax applies to the full installed cost of a residential solar system, including hardware, wiring, mounting equipment, and installation labor. Philadelphia residents face an additional 2% Philadelphia local sales tax for a total of 8% on solar purchases within the city, and Allegheny County residents face an additional 1% local tax for a combined 7% in the Pittsburgh metro. For a $17,000 residential solar installation in Philadelphia, the sales tax obligation is approximately $1,360; for the same system in suburban Philadelphia, it is approximately $1,020; and for the same system in Pittsburgh's Allegheny County, it is approximately $1,190. This sales tax exposure is a real additional cost that Pennsylvania homeowners should include in their total installed cost calculation when comparing payback periods or loan amounts. The federal Investment Tax Credit is calculated on the net cost of the system after all rebates but before sales tax, so the sales tax paid does not affect ITC eligibility — the ITC is calculated on the full installed cost including sales tax.
Do I need a contractor registration to install solar in Pennsylvania?
Yes. Pennsylvania requires solar installers and home improvement contractors to register under the Home Improvement Consumer Protection Act, known as HICPA (Act 132 of 2008), administered by the Pennsylvania Attorney General's Office. HICPA registration is required for any contractor performing home improvement work with a total project cost of $500 or more. Solar installations almost always exceed this threshold. Homeowners can verify a contractor's HICPA registration through the Attorney General's Home Improvement Contractor search tool at the PA Attorney General's website. HICPA registration does not substitute for electrical permits and local building department approvals, which are also required for grid-interconnected solar installations under Pennsylvania's uniform construction code. The registration requirement provides consumer protection: registered contractors must carry general liability insurance and cannot demand payment of more than one-third of the contract price before beginning work. NABCEP certification is not legally required in Pennsylvania but is widely used as a quality signal when selecting a solar installer, as it indicates the installer has met national examination and experience requirements. Homeowners should request proof of HICPA registration, electrical contractor licensing, and liability insurance from any installer before signing a solar contract.
Best Solar Installers in Pennsylvania
Pennsylvania requires home improvement contractors, including solar installers, to register under the Home Improvement Consumer Protection Act (HICPA, Act 132 of 2008) administered by the PA Attorney General's Office. Verify your installer's HICPA registration before signing a contract. Look for NABCEP-certified professionals as an additional quality indicator — NABCEP certification demonstrates national solar industry competency beyond the HICPA registration minimum.
- Get at least 3 quotes from different installers to compare pricing and equipment.
- Check installer ratings with the BBB before signing a contract.
- Verify contractor licensing with Pennsylvania Department of Labor & Industry (L&I) — Home Improvement Contractor Registration (HICPA Act 132 of 2008). Ask for proof of a 20–25 year panel warranty.
Top Utility Companies in Pennsylvania
PECO (Exelon)
Service area: Philadelphia, Montgomery County, Bucks County, Delaware County, Chester County, southeastern Pennsylvania
Tariff: tier-2, flat
Residential rate: 14.0–17.0¢/kWh (as of 2026-05)
NEM program: PA PUC Net Metering at Retail Rate
PPL Electric Utilities
Service area: Allentown, Bethlehem, Harrisburg, Scranton, Wilkes-Barre, Lehigh Valley, eastern Pennsylvania
Tariff: TOU, flat
Residential rate: 14.0–17.0¢/kWh (as of 2026-05)
NEM program: PA PUC Net Metering at Retail Rate
Duquesne Light
Service area: Pittsburgh, Allegheny County, Beaver County, western Pennsylvania metro
Tariff: flat
Residential rate: 14.0–17.0¢/kWh (as of 2026-05)
NEM program: PA PUC Net Metering at Retail Rate
West Penn Power (FirstEnergy)
Service area: Greensburg, Uniontown, Washington County, southwestern Pennsylvania
Tariff: flat
Residential rate: 13.0–16.0¢/kWh (as of 2026-05)
NEM program: PA PUC Net Metering at Retail Rate
Met-Ed / Penelec / Penn Power (FirstEnergy)
Service area: Reading, York, State College, Erie, central and northeastern Pennsylvania
Tariff: flat
Residential rate: 13.0–16.0¢/kWh (as of 2026-05)
NEM program: PA PUC Net Metering at Retail Rate
Net Metering Policy in Pennsylvania
- Version
- NEM NEM-1.0
- Effective date
- 2008-12-01
- Buyback rate
- retail
- System size cap
- 50 kW
- Grandfathering
- No transition planned through 2027; all current and new residential interconnections receive full retail-rate net metering under the same PA PUC standard.
Full retail rate net metering under PA PUC Title 52 § 75.13; 12-month rollover credits; annual true-up at price-to-compare default service rate. No transition planned through 2027. PA among most stable NEM-1.0 policies in eastern US.
Property Tax Exemption in Pennsylvania
- Status
- none
- Applies to
Pennsylvania does not provide a statewide property tax exemption for residential solar installations. Solar value added to a home is subject to normal property tax assessment in most PA jurisdictions. Philadelphia and Pittsburgh may have local-option programs — consult the county assessor. Solar equipment is also NOT exempt from Pennsylvania 6% state sales tax (+ Philadelphia 2% / Allegheny County 1% local additions).