Are Solar Panels Worth It in Pennsylvania?

6 factors to consider before getting solar panels in Pennsylvania

We’ve talked to more than 150 solar customers who have already gone through the installation process in Pennsylvania. It’s generally worth it if you like the idea of lowering your monthly utility bills, helping the environment and gaining more energy independence. But it doesn’t work out for everyone. Here’s what to consider before you make the switch.

1. Solar panel installation costs

2. Your energy consumption

3. Pennsylvania solar incentives

4. How long you stay in your house

5. How you pay

6. The solar company you hire

1. Solar panel installation costs

Solar panel costs in Pennsylvania are comparable to the national average. A typical residential solar panel system costs $33,153.

On the higher end, one solar customer in Pennsylvania told us they paid $100,000 for a system, including for a $23,000 battery.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Pennsylvania, the average cost per watt is only $2.58.

Average solar panel costs by system size in Pennsylvania

2. Your current energy consumption

Look at your most recent utility bills — how much electricity does your house use each month? Once you know this, you can calculate your potential savings and how long it should take for your solar panels to pay for themselves.

By one estimate, a Pennsylvania homeowner with solar panels can avoid $61,682 in total utility costs over 25 years.

A typical Pennsylvania household needs a 12.85 kW system to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption and anticipated future energy needs. For instance, a new heated pool would require additional power, meaning you need a bigger system with more panels to keep everything running.

3. Pennsylvania solar incentives

Pennsylvania doesn’t offer a broad statewide solar rebate, but a few programs can improve your long-term savings.

• Net metering: Extra solar power sent to the grid can earn bill credits, generally at the full retail rate for customers using their utility’s default electricity supply.

• Energy credits: Eligible systems can earn Alternative Energy Credits (AECs), which you may be able to sell for extra income.

• Financing: Some homeowners may qualify for federal FHA or VA financing that can include solar and other energy upgrades.

• Local benefits: Philadelphia offers expedited permitting for some solar projects on one- and two-family homes.

The 30% federal solar tax credit has expired, so net metering and energy credits are now especially important when deciding whether solar is worth the cost.

Real-world net metering examples

If your panels produce more electricity than you use, the extra credits roll over to future bills. At the end of Pennsylvania’s annual net-metering period, any remaining credits are paid out at your utility’s price-to-compare rate, which is typically lower than the full retail rate.

For instance, Archie in Lewistown said he banked 521 kWh of extra solar power, enough to cover several months of electric bills beyond a small monthly utility charge.

Another resident, Ted in Huntingdon, said his net metering credits have kept him from paying an electric bill for more than a year.

» LEARN MORE:Solar incentives in Pennsylvania

4. How long you plan to stay in your house

Solar installations are expensive, and it takes years for electric bill savings to make up for the initial cost. Solar panels typically pay for themselves within 9.4 years in Pennsylvania. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years, according to Zillow. But, you miss out on some of that $61,682 in total avoided utility costs over 25 years.

In other words, don't get solar panels just because you want to sell your house soon. Instead, consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen.

5. How you pay

If you can, it’s often financially strategic to pay for the whole thing upfront. Of course, paying cash is not always an option. That’s when loans, leases and other agreements come into play.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

• Power purchase agreementslet homeowners install solar panels without the upfront costs. You sign a long-term contract with a solar services provider to purchase the electricity generated by the panels at a predetermined rate. Similar to leasing, the provider owns and maintains the panels. Agreements usually lasts 10 to 25 years.

6. The solar company you hire

Pennsylvanians have had mixed experiences with solar companies. In the best-case scenario, it’s easy to make the switch and you’re happy with the system’s performance, like Lynnann in Quakertown. “I was also able to choose a pay per month plan that fit my budget. This made it easier to get the work done that I wanted,” she told us.

In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support. For instance, Daniel in Sharpsville said sales reps “screwed” him around. “So, now it cost me 300 and some dollars plus my electric bill, and I'm paying just as much as I was before I had the panels,” he told us.

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.

Is my house a good candidate for solar panels?

In Pennsylvania and elsewhere, going solar ends up being worth it for many homeowners as long as their home is a good candidate to support a solar panel installation. Here’s what to think about before you commit:

• How much sunlight do you get? Solar panels need regular exposure to sunlight to produce the most energy possible. Pennsylvania averages 2.5 to 3.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the size and angle of your roof? Pennsylvania (and the rest of the United States) is in the northern hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
• What is the condition of your roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels again.
• How old are your appliances? The first step is to ensure that your electrical loads are as small as possible. For instance, if you have an older refrigerator or air conditioning unit, it’s smart to upgrade those before investing in solar panels. 

Pros and cons of solar panels in Pennsylvania

It’s a common misconception that solar panels always completely eliminate your monthly power bill — this is not always the case. Still, you’ll likely be paying much less than you would for traditional utility bills. Diane in Dubois told us, “During the summer when the central air is going full blast, my electric bills are either $0 or less than $10.”

Benefits of solar panels in Pennsylvania

Solar power is a renewable energy source that does not produce greenhouse gas emissions or other pollutants. They also require little maintenance and can increase the property value of homes.

• Cheaper energy bills: The average homeowner in Pennsylvania uses a lot of power, which adds up to a lot of savings when you switch to solar. With electric rates throughout Pennsylvania increasing, especially in FirstEnergy territories (which includes Met-Ed, Penn Power, Penelec and West Penn Power customers), going solar now means that your monthly energy expenses will be more predictable and often significantly lower. One resident, April in Baden, said, “Even if I leave lights on all day long, which I got two kids that have to have a TV and everything on at night, I'm not spending thousands of dollars on electric.”

• Higher home resale value: Installing solar panels can increase a home's value. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.

Drawbacks of solar panels in Pennsylvania

The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. Additionally, some residents have complained that utility companies’ fees related to rooftop solar systems are prohibitively high.

• Solar equipment is expensive: Prices typically start between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic If net billing rates continue to decline in Pennsylvania. That way, you can store energy at home instead of tapping into the local grid when you need to.

• Energy production varies: You can expect some seasonal fluctuation in how much energy your panels produce. Solar panels are dependent on weather conditions and available sunlight, meaning their performance can fluctuate with cloud cover or shading from trees and buildings. Seasonality also affects how much energy they can produce.

• Potential roof leaks: Installing solar panels involves mounting racks and brackets onto the roof, which typically requires drilling holes. This process can lead to roof leaks, which are expensive to fix. Luckily, proper installation and maintenance can significantly mitigate this risk, making solar panels a viable option for many homeowners.

» MORE: Solar energy pros and cons

Find solar companies in Pennsylvania

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for the top solar companies in Pennsylvania to learn more.

Pennsylvania solar FAQ

Bottom line: Is going solar in Pennsylvania worth it for you?

Pennsylvanians are increasingly embracing solar energy despite the state’s historical coal legacy. This shift is supported by policies that aim to make solar energy more accessible. As of December 2023, the state can power the equivalent of the city of Pittsburgh on solar energy. Much of that supply is rooftop solar.

For a lot of homeowners, solar panels are worth it as long as their cost savings over time outweigh the initial investment. Depending on the size of your system, what financial incentives you qualify for and other factors, a typical residential solar panel installation costs $12,900 to $25,800 in Pennsylvania.

Like most things, high-quality panels come with a more expensive price tag, but they often pay off in the long run with better performance and durability. The more efficient your panels are, the more electricity they produce and the less space they take up on your roof.

Solar costs vs. savings: Pennsylvania and nearby states