How to Get Solar Panels in Pennsylvania: Rebates Guide

Solar energy is no longer a luxury reserved for early adopters—it’s a practical, cost-effective, and environmentally responsible choice for homeowners across Pennsylvania. With rising electricity rates, federal tax incentives, and state-specific rebates, installing solar panels has never been more financially accessible. This comprehensive guide walks you through every step of securing solar panels in Pennsylvania, with a laser focus on maximizing rebates, understanding eligibility, and avoiding common pitfalls. Whether you’re a first-time homeowner or looking to reduce your long-term energy bills, this guide equips you with the knowledge to make informed, confident decisions that yield maximum savings and long-term value.

Step-by-Step Guide

Step 1: Assess Your Home’s Solar Potential

Before investing in solar panels, evaluate whether your property is suitable for solar energy generation. The key factors include roof orientation, shading, structural integrity, and available space. In Pennsylvania, south-facing roofs receive the most sunlight throughout the year, making them ideal for solar panel installation. East- and west-facing roofs can still be effective, though they may produce 10–20% less energy. Use free online tools like Google’s Project Sunroof or the National Renewable Energy Laboratory’s PVWatts Calculator to estimate your roof’s solar potential based on your address, roof angle, and local weather patterns.

Also, inspect your roof’s condition. If your roof is over 15 years old or shows signs of wear, consider replacing it before installing solar panels. Removing and reinstalling panels for roof repairs can add $1,000–$3,000 in labor costs. A professional solar installer can conduct a site assessment to determine if your roof can support the weight of a solar array and whether any structural reinforcements are needed.

Step 2: Understand Pennsylvania’s Solar Incentives

Pennsylvania offers a layered system of financial incentives designed to make solar adoption more affordable. The most significant programs include the federal Investment Tax Credit (ITC), state-level rebates, Solar Renewable Energy Certificates (SRECs), and local utility incentives.

The federal ITC allows homeowners to claim 30% of their total solar system cost as a tax credit on their federal income taxes. This credit applies to equipment and installation expenses and is available through 2032. For example, a $20,000 solar system qualifies for a $6,000 tax credit. The credit is non-refundable but can be carried forward to future tax years if your tax liability is insufficient to use it all in one year.

Pennsylvania does not currently offer a statewide cash rebate program for residential solar installations. However, several municipal utilities and energy providers offer localized incentives. For instance, PECO Energy Company and Duquesne Light Company have historically provided rebates or performance-based payments. Check your local utility’s website under “renewable energy programs” or “solar incentives” for current offerings.

Perhaps the most valuable financial benefit in Pennsylvania is the Solar Renewable Energy Certificate (SREC) program. For every megawatt-hour (MWh) of electricity your system generates, you earn one SREC. These certificates can be sold on the open market to utilities that need to meet Pennsylvania’s Renewable Portfolio Standard (RPS). As of 2024, SREC prices in Pennsylvania range from $40 to $80 per certificate, depending on market demand and supply. A typical 6-kilowatt (kW) system produces roughly 6–7 MWh annually, translating to $240–$560 in annual SREC income.

Step 3: Choose a Reputable Solar Installer

Selecting the right installer is critical to maximizing your return on investment and ensuring long-term system performance. Look for installers certified by the North American Board of Certified Energy Practitioners (NABCEP). NABCEP certification indicates that the installer has passed rigorous exams and maintains continuing education in solar technology and safety standards.

Obtain at least three detailed, written proposals from different companies. Each proposal should include:

• System size (in kW)
• Panel and inverter brands and model numbers
• Estimated annual energy production (kWh)
• Upfront cost and net cost after incentives
• Warranty terms (panel, inverter, workmanship)
• Payment options (cash, loan, lease, PPA)

Avoid companies that pressure you into signing contracts quickly or promise “free solar.” These often involve long-term power purchase agreements (PPAs) or leases that transfer ownership and SREC benefits to the third-party owner. You retain more control and financial upside by purchasing your system outright.

Step 4: Apply for the Federal Tax Credit

To claim the 30% federal Investment Tax Credit, you must file IRS Form 5695 with your annual federal tax return. Keep all documentation related to your solar installation, including:

• Itemized receipt from the installer showing total cost
• Proof of payment (bank statements, canceled checks)
• Manufacturer certification statement (provided by the installer)
• System specifications (wattage, panel type)

Ensure the installer provides you with a signed certification statement confirming that your system meets all federal requirements. This document is mandatory for claiming the credit. If you use a solar loan, the full cost of the system qualifies—even if you’re making monthly payments. The credit is based on the total installed cost, not the amount you’ve paid yet.

Consult a tax professional familiar with renewable energy credits. While the ITC is straightforward, complex tax situations—such as claiming credits in multiple states or owning a second home—can affect eligibility.

Step 5: Register for SRECs

To monetize your SRECs, you must register your system with the Pennsylvania Alternative Energy Portfolio Standard (AEPS) program through the Pennsylvania Public Utility Commission (PUC). Your installer may handle this for you, but it’s your responsibility to confirm registration is complete.

Once registered, your system’s production will be tracked by your utility or a third-party metering provider. You’ll receive monthly or quarterly production reports. You then need to enroll with an SREC aggregator or broker—companies like Sol Systems, SRECTrade, or Clean Energy Markets buy and sell SRECs on your behalf.

Aggregators typically charge a small fee (5–15% of sale value) but handle the complexities of market timing and contract negotiation. Some homeowners choose to sell SRECs directly on the open market, but this requires market knowledge and consistent monitoring. For most homeowners, an aggregator is the most practical option.

Step 6: Navigate Permitting and Interconnection

Before installation, your solar system must receive approval from your local building department and utility company. Permitting requirements vary by municipality. In Philadelphia, for example, you’ll need both a building permit and an electrical permit. In smaller towns, the process may be streamlined.

Your installer usually files all permits on your behalf. They will submit:

• Electrical and structural engineering plans
• Site plans showing panel placement
• Equipment specifications

Permit approval can take 2–6 weeks, depending on your county’s workload. After installation, your system must pass a final inspection by the local building department. Once approved, your utility company will issue a Notice to Operate (NTO) to connect your system to the grid. This process, known as interconnection, typically takes 1–4 weeks after inspection.

Some utilities require additional documentation, such as a liability insurance certificate or a net metering agreement. Net metering allows you to receive credit for excess electricity your system sends back to the grid. Pennsylvania law mandates net metering for residential systems up to 50 kW, so you’ll be credited at the full retail rate for surplus energy.

Step 7: Monitor and Maintain Your System

Modern solar systems require minimal maintenance, but monitoring is essential to ensure optimal performance. Most inverters come with companion apps that track real-time energy production, system health, and historical output. Check your app weekly to confirm your system is generating as expected.

Annual cleaning is recommended, especially if you live in an area with heavy pollen, dust, or bird droppings. In most cases, rain is sufficient to keep panels clean. Avoid using pressure washers or abrasive materials. If you notice a significant drop in output (more than 10–15%), contact your installer for a diagnostic check.

Most solar panels come with 25-year performance warranties guaranteeing at least 80% output after 25 years. Inverters typically have 10–15-year warranties. Consider extending your workmanship warranty to 10–25 years if offered. This covers labor for repairs and ensures your installer remains accountable for system integrity.

Best Practices

1. Avoid Lease and PPA Models Unless You Understand the Trade-Offs

Leases and power purchase agreements (PPAs) may appear attractive due to $0-down offers, but they come with long-term financial disadvantages. In these arrangements, a third party owns your system and receives all SREC income and federal tax credits. You pay a fixed monthly fee or a per-kWh rate for the electricity generated, which may increase annually. Over 20 years, you typically pay more than if you had purchased the system outright.

Additionally, leases and PPAs complicate home sales. Buyers may be hesitant to assume the contract, or you may need to buy out the agreement before selling. Owning your system increases home value and is more appealing to buyers.

2. Time Your Installation Strategically

The federal ITC is scheduled to step down after 2032. Installing your system before the end of 2032 ensures you lock in the full 30% credit. While SREC prices fluctuate, they’ve remained relatively stable in Pennsylvania since 2020. Installing in late spring or early summer maximizes production in your first year, boosting your SREC earnings and payback period.

3. Optimize System Size for Your Usage

Don’t install a system larger than your annual electricity consumption. Pennsylvania’s net metering policy credits you at retail rate for excess generation, but utilities don’t pay cash for surplus at year-end. Instead, credits roll over to the next billing cycle. Oversizing your system may not yield additional financial benefit and increases upfront cost unnecessarily.

Review your past 12 months of electric bills to determine your average monthly usage. A 6–8 kW system typically offsets 100% of consumption for an average Pennsylvania household using 10,000–12,000 kWh annually.

4. Consider Battery Storage Only If It Makes Financial Sense

While battery storage (like the Tesla Powerwall or LG Chem) provides backup power during outages, it significantly increases system cost. In Pennsylvania, where grid reliability is generally high and utility outages are infrequent, batteries are rarely cost-effective solely for energy savings. However, if you live in an area prone to severe weather or value energy independence, a battery may be worth the investment.

As of 2024, batteries are eligible for the 30% federal tax credit, which improves their ROI. Still, calculate the payback period carefully. A battery that costs $12,000 installed and saves you $500/year in avoided electricity costs will take 24 years to break even—far longer than the system’s lifespan.

5. Document Everything

Keep digital and physical copies of every document related to your solar project: contracts, permits, inspection reports, warranty certificates, SREC enrollment confirmations, and tax filings. These records are essential for resale value, insurance claims, and future maintenance. Store them in a secure cloud service and share access with a trusted family member.

Tools and Resources

1. PVWatts Calculator (NREL)

The National Renewable Energy Laboratory’s PVWatts tool estimates the energy production and cost of grid-connected photovoltaic systems. Input your location, system size, and orientation to receive a detailed production forecast. It’s free, reliable, and widely used by professionals.

2. DSIRE Database (Database of State Incentives for Renewables & Efficiency)

DSIRE is the most comprehensive source for state, local, and utility-level incentives for renewable energy. Search “Pennsylvania” to find all active solar rebates, tax credits, and net metering policies. The database is updated regularly and includes links to official program websites.

3. Pennsylvania Public Utility Commission (PUC)

The PUC oversees the SREC program and enforces net metering rules. Visit their website for official guidelines, registration forms, and contact information for reporting system performance.

4. EnergySage Solar Marketplace

EnergySage is an online platform that connects homeowners with pre-vetted solar installers. You can receive multiple competitive quotes without obligation. The platform includes detailed cost breakdowns, financing options, and SREC projections tailored to Pennsylvania.

5. SolarReviews and EnergySage Reviews

Read real customer reviews from Pennsylvania homeowners who have installed solar. Look for patterns in installer reliability, communication quality, and post-installation support. Avoid companies with consistent complaints about hidden fees or unfulfilled promises.

6. Local Utility Websites

Check your utility provider’s website for specific solar programs. For example:

• PECO Energy: Renewable Energy Program
• Duquesne Light: Solar Program
• Metropolitan Edison: Solar Incentives
• FirstEnergy: Solar PV Program

Some utilities offer one-time rebates or reduced interconnection fees. These programs change frequently, so verify current offerings before signing a contract.

Real Examples

Example 1: The Smith Family in Pittsburgh

The Smiths installed a 7.2 kW solar system in March 2023. Total installed cost: $19,800. After applying the 30% federal tax credit, their net cost was $13,860. They registered for SRECs and sell them through an aggregator at an average price of $65 per certificate. Their system produces 7,500 kWh annually, earning them 7.5 SRECs per year—worth $487.50 annually. Their electricity bill dropped from $140/month to $12/month (only grid access fee). They expect to break even in 7.5 years and generate over $18,000 in net savings over 25 years, excluding rising electricity rates.

Example 2: Maria in Harrisburg

Maria, a retiree on a fixed income, chose a 5 kW system to reduce her energy burden. She financed the $14,000 system with a 15-year, 4.9% solar loan. Monthly payment: $112. Her previous electric bill was $135. After installation, her bill dropped to $15. She earns 5.5 SRECs annually, selling them for $385/year. Her net monthly savings: $112 (electricity) + $32 (SREC monthly equivalent) – $112 (loan) = $32/month. She also received a $500 rebate from her local municipality, reducing her loan balance. Maria now has a predictable, low energy cost with no exposure to rate hikes.

Example 3: The Chen Family in State College

The Chens installed a 9 kW system with a 13.5 kWh Tesla Powerwall in 2022. Total cost: $36,000. After federal credit: $25,200. They earn 9 SRECs annually at $60 each ($540/year). Their monthly bill dropped from $160 to $8. The battery provides backup during winter storms, which occur 3–4 times per year. While the battery doesn’t pay for itself financially, it provides peace of mind and increased home value. Their home sold 18 months later for $12,000 more than comparable homes without solar, according to their realtor.

FAQs

Do I need to own my home to install solar panels in Pennsylvania?

Yes, to qualify for the federal tax credit and SRECs, you must own both the property and the solar system. Renters cannot claim these incentives. However, some landlords install solar and pass savings to tenants through reduced rent. Always confirm ownership and incentive eligibility before proceeding.

Can I install solar panels on a rented roof or shared property?

No. Pennsylvania’s incentive programs require the system to be installed on property you own. Community solar programs are an alternative for renters or those with unsuitable roofs. These allow you to subscribe to a portion of a shared solar farm and receive bill credits without installing panels on your home.

How long does the entire solar installation process take?

From initial consultation to system activation, the process typically takes 2–4 months. Permitting and utility interconnection are the longest phases. Delays can occur if your county has a backlog or if your utility requires additional documentation.

What happens if I move after installing solar panels?

Owned solar systems increase home value and are often seen as a selling point. Buyers can assume your system and benefit from lower electricity bills. SREC income and tax credits remain with the original owner if you’ve already claimed them. Any future SRECs go to the new homeowner. Be sure to disclose the system and provide warranty documentation during the sale.

Are there income limits for solar rebates in Pennsylvania?

No. Pennsylvania’s state and federal solar incentives have no income caps. The federal tax credit is available to all taxpayers with sufficient tax liability. SREC income is not means-tested.

Can I install solar panels myself in Pennsylvania?

Technically yes, but it’s not recommended. DIY installations are rarely eligible for rebates, tax credits, or net metering. Utilities require systems to be installed by licensed professionals for safety and code compliance. Additionally, DIY systems may void your roof warranty and homeowner’s insurance coverage.

Do solar panels increase my property taxes in Pennsylvania?

No. Pennsylvania has a property tax exemption for solar energy systems. The added value of your solar installation is not included in your property tax assessment. This is a significant benefit compared to states that tax solar additions.

What if my solar system produces more than I use?

Excess energy is credited to your account through net metering. These credits roll over month to month and offset future usage. At the end of the annual billing cycle (usually April), any remaining credits are typically carried forward to the next year. Pennsylvania utilities do not pay cash for surplus energy at year-end.

Can I add more panels later?

Yes, but it’s more cost-effective to install your full desired capacity upfront. Adding panels later may require a new inverter or additional permitting. Ensure your initial system is designed with future expansion in mind.

What if my solar installer goes out of business?

Your equipment warranties (panels, inverters) are issued by the manufacturers, not the installer, so they remain valid. Workmanship warranties may be harder to enforce if the installer closes. Choose an installer with a strong reputation and long-standing presence in the industry. Some manufacturers offer direct service networks for warranty claims.

Conclusion

Getting solar panels in Pennsylvania is a smart, financially sound decision that combines environmental responsibility with long-term economic benefits. By leveraging the 30% federal tax credit, earning valuable SRECs, and taking advantage of net metering, homeowners can significantly reduce—and often eliminate—monthly electricity bills. While Pennsylvania doesn’t offer a statewide cash rebate, its combination of federal incentives, strong SREC market, and supportive net metering laws creates one of the most favorable environments for solar adoption in the Northeast.

This guide has provided you with a clear, actionable roadmap—from assessing your home’s potential to registering for SRECs and choosing the right installer. Remember: the key to maximizing your return is ownership, documentation, and timing. Avoid misleading offers, do your research, and invest in a system sized to match your consumption.

Solar energy is not just about saving money—it’s about energy independence, resilience against utility rate hikes, and contributing to a cleaner future. With careful planning and informed decisions, Pennsylvania homeowners can enjoy decades of clean, affordable power while increasing the value of their property. Start your journey today, and turn your roof into a renewable energy asset.