Pennsylvania Solar Incentives

These incentives were last reviewed by: George D., SunnyMac Interconnection and Rebates Supervisor, May 2025

At SunnyMac, we believe solar should be simple, sustainable, and rewarding. If you’re a Pennsylvania homeowner looking to lower electricity bills and reduce your carbon footprint, the state offers a variety of solar incentives that make the switch more affordable than ever. From federal tax credits to Solar Renewable Energy Credits (SRECs), Pennsylvania’s support for clean energy empowers you to take control of your utility costs while contributing to a greener future.

Federal Solar Tax Credit

One of the most impactful solar incentives is the Federal Solar Investment Tax Credit (ITC). This program allows you to deduct a significant percentage of your solar system’s cost from your federal taxes. Through 2032, qualified homeowners can receive a 30% tax credit on the total installed cost of their solar panel system.

To qualify, homeowners must reside in the home (not a landlord) and the solar energy system must be fully purchased, either upfront or through a solar loan (leased systems are not eligible). The Federal solar credit can be used for the purchase and professional installation of an EV charger or solar battery, both services provided by SunnyMac. Learn more about the Federal Solar Tax Credit.

Solar Renewable Energy Credits (SRECs)

Pennsylvania supports solar through its Alternative Energy Portfolio Standard (AEPS), which requires utilities to generate a portion of electricity from renewable sources. As a solar system owner, you can benefit by earning Solar Renewable Energy Credits (SRECs) for every megawatt-hour (MWh) of electricity your system produces. These credits can be sold to utility companies, creating an ongoing revenue stream that boosts your return on investment.

Highlights:

1 SREC = 1 MWh of solar electricity
SRECs are tradable and can be sold for cash
Helps accelerate your solar payback period

Philadelphia Solar Rebate Program

If you live in the City of Philadelphia, you may qualify for additional local savings through the Philadelphia Solar Rebate Program. This city-led initiative provides direct cash incentives to homeowners who install new solar systems.

Key Details:

$0.20 per watt for residential systems
Must apply within 90 days of final city inispection
Systems must meet program and permitting requirements
Rebate is capped at $1,000 for residential properties

This local rebate makes solar even more cost effective for homeowners in Philadelphia.

Net Metering in Pennsylvania

Pennsylvania has a strong net metering policy that benefits solar homeowners. Net metering allows you to send the excess electricity your system generates back to the grid in exchange for energy credits. These credits reduce future electric bills, especially during lower-production months like winter.

Here’s what makes PA’s net metering program stand out:

All major utility companies participate
No cap on system size
Unlimited rollover of credits year to year

By producing more energy than you can use during the day, you can build up credits that offset nighttime and seasonal consumption, putting your solar system to work 24/7.

Why SunnyMac?

At SunnyMac, we don’t just install solar panels, we build long-term partnerships based on transparency, trust, and performance. With personalized guidance, expert installation, and an ethical, end-to-end approach, we ensure your transition to solar is seamless from start to savings. If you are interested in solar panels in PA, our team of project managers will help you navigate every available solar incentive, maximizing your savings and optimizing your energy future.

Take the first step towards energy independence! Schedule your complimentary Solar Savings Analysis today!