Residential solar panel incentives in Pennsylvania
Here’s what to know about how solar incentives can make installing panels more affordable in Pennsylvania.
Pennsylvania Alternative Energy Portfolio Standards
Pennsylvania homeowners with qualifying solar systems can register their systems under the state’s Alternative Energy Portfolio Standards program to earn and sell energy credits based on how much electricity their panels generate.
Qualifying solar systems earn one Alternative Energy Credit (AEC) for every 1,000 kWh of electricity generated. AECs can be sold for additional income, but their value changes with the market.
Pennsylvania’s High Performance Building Program
Pennsylvania’s High Performance Building Program offers loans and other financial assistance to individuals undertaking qualifying high-performance residential construction or major renovations. Solar installations may be eligible when incorporated into a qualifying project, but the program is not a general rebate for standalone residential solar installations.
Philadelphia’s solar permitting benefit
Philadelphia offers streamlined permitting for some residential solar installations. Qualifying systems of 10 kW or less on one- or two-family homes can use the city’s EZ permitting process, which eliminates the need for a separate building permit and plan submission.
Federal mortgage options for solar panels
Some federal mortgage programs let eligible borrowers include solar panels or other energy upgrades in a home purchase or refinance loan. Rules vary by lender.
- FHA Energy Efficient Mortgage: FHA borrowers may finance qualifying energy-efficiency improvements through an Energy Efficient Mortgage. Separate FHA provisions also allow eligible solar and wind system costs to be added to the mortgage.
- VA Energy Efficient Mortgage: Eligible VA borrowers can add up to $6,000 for approved energy upgrades. For costs over $3,000, projected monthly savings must exceed the added mortgage payment.
Additional solar incentives in Pennsylvania
The incentives below do not apply to solar panels themselves.
| Program type | Eligible solar equipment | Amount | Applicable sectors | Administrator(s) | |
|---|---|---|---|---|---|
| Keystone Energy Efficiency Program (KEEP) | Loan | Solar water heat | $25,000 | Residential, multifamily residential | National Energy Improvement Fund |
| FirstEnergy Residential Energy Efficiency Programs | Rebate | Solar water heat | $500 | Construction, residential, installers/contractors, low-income residential | MetEdison, DPenelec, Penn Power, West Penn Power |
| Duquesne Light Company Residential Energy Efficiency Program | Rebate | Solar water heat | Varies | Residential, multifamily residential, low-income residential | Duquesne Light Company |
Net metering in Pennsylvania
Pennsylvania’s net metering program lets homeowners receive credit for excess electricity their solar panels send to the grid. For customers using their utility’s default electricity supply, solar generation offsets electricity use at the full retail rate.
If your panels produce more electricity than you use during a billing period, the excess credits roll over to future bills. Pennsylvania’s net-metering year runs from June 1 through May 31. At the end of the year, any remaining excess generation is paid out at your utility’s price-to-compare rate.
One resident, Ted in Huntingdon, hasn’t paid an electric bill in more than a year thanks to net metering credits. “Penelec owed me money,” he said. “When I went and started generating this, they had to pay me back.”
What else should I know?
- Residential systems: Solar systems up to 50 kW can qualify for residential net metering.
- Meter aggregation: If you own or lease multiple properties within two miles and in the same utility territory, you may be able to apply your solar generation across eligible meters.
- Competitive suppliers: If you buy electricity from a competitive supplier instead of using your utility’s default service, check your supplier agreement because compensation for solar generation may differ.
How much are solar panels in Pennsylvania?
Solar panel costs in Pennsylvania typically range from $13,168 to $26,336 before any financial incentives. On the higher end, one solar customer in Pennsylvania told us they paid $100,000 for a system, including a $23,000 battery.
Average solar panel installation cost by system size in Pennsylvania
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide | $13,168 | $15,802 | $18,435 | $21,069 | $23,702 | $26,336 |
| Philadelphia | $13,399 | $16,079 | $18,759 | $21,439 | $24,119 | $26,798 |
| Pittsburgh | $13,966 | $16,759 | $19,552 | $22,345 | $25,138 | $27,931 |
Find solar companies in Pennsylvania
Compare popular solar companies below. Read our guide to finding Pennsylvania’s best solar companies for more information.
| Company | Customer rating | Free consultation | Payment options | |
|---|---|---|---|---|
 Sunrun | Learn More | 4.3 |  | Cash, loan, lease, PPA |
 Project Solar | Learn More | 3.9 | | Cash, loan |
 Palmetto Solar | Learn More | 1.2 | | Cash, loan, lease |
 Green Home Systems | Learn More | 1.0 | | Cash, loan |
 Sunnova | Learn More | 1.1 | | Cash, loan, lease and PPA |
FAQ
Can I get free solar panels in Pennsylvania?
Pennsylvania does not currently have an operational statewide program offering free solar installations. The state’s Solar for All program was designed to provide solar to qualifying low-income households, but the program has been paused since August 2025 and is not accepting applications. In the meantime, some homeowners can get solar with little to no upfront costs through a lease or PPA.
» FREE SOLAR PANELS: Are they really free?
How can I pay for solar panels?
Paying upfront is the most obvious way to pay for solar panels, but many don’t have that kind of money saved up. If you’re one of those people, you can finance solar panels with a solar loan or get a solar lease.
» SOLAR PANELS: Lease vs. buy
Does Pennsylvania have any solar incentives for multifamily properties?
Yes, Pennsylvania’s Green Energy Loan Fund (GELF) can help finance solar installations on qualifying multifamily, commercial and nonprofit properties when solar is part of a broader energy-efficiency project. It is generally not available to individual homeowners installing solar on a single-family residence.
How much can I save with solar panels in Pennsylvania?
Over 25 years, Pennsylvania homeowners with solar panels avoid $65,657 in utility costs on average. Your current electric bill is the starting point for assessing the financial benefits of transitioning to solar energy. Knowing your average energy consumption helps determine the size and capacity of the solar system you need. Once you know this, you can figure out potential savings and how long it should take for your solar installation to pay for itself.
Do solar panels increase property taxes in Pennsylvania?
There is no statewide property tax exemption for solar panel installations in Pennsylvania, and your new system may add value to your property. The added value to your property may result in a property tax increase.
Is my HOA allowed to restrict solar panels?
Currently, yes. Pennsylvania has no law specifically preventing a homeowners or condominium association from restricting or even prohibiting solar installations. That could change: The state House passed House Bill 1239 on July 1, 2026, which would bar associations from prohibiting solar systems on individually owned, detached roofs (while still letting them set reasonable rules on things like appearance and safety). The bill still needs Senate approval and the governor’s signature before it would take effect.
How do I know if my house is a good candidate for solar?
For optimal sun exposure, it’s best to have plenty of unshaded roof space facing south or west. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper. The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This can be an expensive and frustrating process — avoid it if you can.
» MORE: Are solar panels worth it?
What has Pennsylvania’s investment in solar been so far?
Total solar investments in the state equal $7.8 billion, according to the Solar Energy Industries Association.
Bottom line: Are solar panels still worth it?
When it comes to solar incentives, Pennsylvania has a bit of catching up to do compared with other states. The average 10-kW system in Pennsylvania costs $26,336, which is a little more expensive than the national average. It’s still worth it for many residents in Pennsylvania — solar panels typically pay for themselves within 9.91 years.
The ConsumerAffairs Research Team conducted an in-depth analysis to determine how much it is to go solar in Pennsylvania and the average costs in other states.
Solar costs vs. savings: Pennsylvania and nearby states
| 6 kW system cost (before incentives | 10 kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Delaware | $13,934 | $23,224 | 7.7 kW | $2.32 | $54,494 |
| Maryland | $15,823 | $26,372 | 8.2 kW | $2.64 | $75,628 |
| New Jersey | $16,592 | $27,653 | 7.5 kW | $2.77 | $87,420 |
| New York | $16,641 | $27,734 | 6.9 kW | $2.77 | $57,678 |
| Ohio | $16,699 | $27,832 | 7.2 kW | $2.78 | $48,647 |
| Pennsylvania | $15,802 | $26,336 | 7.8 kW | $2.63 | $65,657 |
| West Virginia | $18,573 | $30,955 | 8.4 kW | $3.10 | $63,643 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, "Pennsylvania Programs." Accessed July 28, 2026.
- Penn State Extension, "Renewable Energy Resources." Accessed July 28, 2026.
- ENERGY STAR (U.S. EPA), "Energy Efficient Mortgages." Accessed July 28, 2026.
- Pennsylvania Public Utility Commission, "PUC Issues Decision in PPL Electric Rate Proceeding." Accessed July 28, 2026.
- Power Advisory LLC, "Pennsylvania Net Metering Update: PPL Enters the Fray with Rate Case Filing." Accessed July 28, 2026.
- Pennsylvania Public Utility Commission, "Alternative Energy Credit Pricing." Accessed July 28, 2026.
- City of Philadelphia, "Permits, violations & licenses." Accessed July 28, 2026.
- Pennsylvania Public Utilities Commission, "Welcome to the Pennsylvania AEPS Program." Accessed July 28, 2026.
- Reinvestment Fund, "Pennsylvania Green Energy Loan Fund." Accessed July 28, 2026.
- Solar Energy Industries Association, "Pennsylvania Solar." Accessed July 28, 2026.
