How solar works in Pennsylvania in 2026
The federal tax credit changed
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you buy a system outright or with a loan in 2026, you cannot claim it. With a lease or power purchase agreement the solar company owns the system and may still qualify for business credits, which can affect the price you are offered. Ask any provider how this applies to your quote.
Net metering
Pennsylvania requires utilities to credit residential solar for power sent to the grid at the retail rate. Credits carry forward month to month, and any excess at the end of the year is paid out at the utility's price to compare.
Solar renewable energy credits
A solar system in Pennsylvania earns SRECs for the power it produces, which can be sold through a broker or aggregator. Their value is modest and moves with the market, so treat it as a bonus rather than the main return.
No statewide rebate
Pennsylvania has no statewide solar rebate or state tax credit. That makes the installed price, the financing and any yearly rate increase in a lease or PPA the biggest factors in what solar costs you.
Community solar
Community solar is not yet widely available to Pennsylvania residents. Ask your utility whether a program is open in your area.
Utilities: PECO, PPL Electric, Duquesne Light, Met-Ed, Penelec, Penn Power and West Penn Power.
Common questions
Are there solar incentives in Pennsylvania?
The main ones are retail net metering and SRECs you can sell. There is no statewide rebate or state tax credit.
Should I get my Pennsylvania quote reviewed?
It's worth it here. With no statewide rebate, the price and contract terms decide most of the value. Our quote review is free.
Official sources
This guide is general information, not financial or tax advice. Program rules and rates change; confirm current terms with the program administrator or a tax professional.