Is Solar Worth It in Pennsylvania in 2026?
Pennsylvania is not the Sunshine State, but it doesn't need to be. At 40.4°N, Philadelphia gets a respectable 1,310 kWh of production per installed kilowatt per year — less than Florida or Arizona, but enough to make solar pencil out on the right roof, especially with electricity prices that have nearly doubled since 2005.
2026 changed the math here, and this page gives it to you straight. The 30 percent federal tax credit that used to shave thousands off a Pennsylvania install ended for systems completed after December 31, 2025. There's no state tax credit to fill the gap — Pennsylvania never had one. What the state does have is a Solar Renewable Energy Credit (SREC) market layered on top of net metering, which most other states don't offer. Solar can still be worth it here, particularly on a sunny, unshaded roof with a high year-round bill. It just takes real math, not a sales pitch built on a tax credit that no longer exists.
Pennsylvania Electricity Prices Keep Climbing
Solar is a bet on future electricity prices: every kilowatt-hour your roof makes is one you don't buy from the grid. So before anything else, look at where Pennsylvania rates have been. Here's the long view, from federal EIA data.
Full Pennsylvania electricity price data (1990–2025)
| Year | Pennsylvania (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 9.2 | 7.8 |
| 1991 | 9.6 | 8.0 |
| 1992 | 9.7 | 8.2 |
| 1993 | 9.6 | 8.3 |
| 1994 | 9.6 | 8.4 |
| 1995 | 9.7 | 8.4 |
| 1996 | 9.7 | 8.4 |
| 1997 | 9.9 | 8.4 |
| 1998 | 9.9 | 8.3 |
| 1999 | 8.9 | 8.2 |
| 2000 | 9.5 | 8.2 |
| 2001 | 9.7 | 8.6 |
| 2002 | 9.7 | 8.4 |
| 2003 | 9.6 | 8.7 |
| 2004 | 9.6 | 9.0 |
| 2005 | 9.9 | 9.5 |
| 2006 | 10.4 | 10.4 |
| 2007 | 11.0 | 10.7 |
| 2008 | 11.4 | 11.3 |
| 2009 | 11.7 | 11.5 |
| 2010 | 12.7 | 11.5 |
| 2011 | 13.3 | 11.7 |
| 2012 | 12.8 | 11.9 |
| 2013 | 12.8 | 12.1 |
| 2014 | 13.3 | 12.5 |
| 2015 | 13.6 | 12.7 |
| 2016 | 13.9 | 12.6 |
| 2017 | 14.2 | 12.9 |
| 2018 | 13.9 | 12.9 |
| 2019 | 13.8 | 13.0 |
| 2020 | 13.6 | 13.2 |
| 2021 | 13.8 | 13.7 |
| 2022 | 15.9 | 15.0 |
| 2023 | 18.1 | 16.0 |
| 2024 | 17.8 | 16.5 |
| 2025 * | 19.3 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Pennsylvania residential electricity sits around 19.3¢ per kWh in EIA's preliminary 2025 figures — up roughly 96 percent since 2005. That's a steeper climb than many states, and it hasn't slowed down: the pace over just the last decade runs about 3.5 percent a year. Pennsylvania deregulated its retail electricity market decades ago, so you can shop supply, but delivery charges (the part you can't shop) have climbed steadily, and generation prices track regional grid costs that keep rising with demand. Nobody can promise the next 20 years match the last 20, but a state with an aging grid and growing electricity demand from data centers isn't one where prices are likely to fall.
The Pennsylvania Sun, Month by Month
Panels respond to how high the sun climbs and how long it stays up, not to air temperature. At 40.4°N latitude, Pennsylvania sits solidly in the mid-latitudes — summer days are long and the sun climbs high, while winter days are short and the sun stays low, so production swings hard across the year.
Pennsylvania monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 91 |
| Feb | 99 |
| Mar | 119 |
| Apr | 125 |
| May | 125 |
| Jun | 118 |
| Jul | 127 |
| Aug | 121 |
| Sep | 112 |
| Oct | 103 |
| Nov | 91 |
| Dec | 80 |
| Year | 1311 |
Source: NREL PVWatts typical-year estimate (Philadelphia), per installed kW at latitude tilt.
The practical read: late spring through summer is when a Pennsylvania roof does most of its annual work, while November through January are lean months. Philadelphia's 1,310 kWh per installed kW per year is a solid mid-Atlantic number, but a system here needs a bit more capacity than the same system would in the Southeast to offset the same annual usage. Net metering makes this workable — it lets a strong June bank credits you draw down in December.
What Solar Costs in Pennsylvania in 2026
Statewide, Pennsylvania solar runs about $2.55 to $2.65 per watt installed as of mid-2026. That's a state average — Philadelphia tends to run higher, around $2.80 to $3.20/W as the priciest metro, suburban Philadelphia (Media area) is closer to $2.58/W, and Pittsburgh comes in a bit lower at roughly $2.62/W. With the federal credit gone, whatever price you negotiate is very close to what you actually pay, so shop hard.
| System Size | Typical 2026 Cost | Est. Annual Production | Fits |
|---|---|---|---|
| 5 kW | $12,750 to $13,250 | ~6,550 kWh/yr (~$105/mo at 19.3¢) | Smaller home, lower usage |
| 8 kW | $20,400 to $21,200 | ~10,480 kWh/yr (~$169/mo) | Average Pennsylvania home |
| 12 kW | $30,600 to $31,800 | ~15,720 kWh/yr (~$253/mo) | Large home, electric heat or heavy AC |
Pennsylvania charges its standard 6 percent state sales tax (plus local add-ons in Philadelphia and Allegheny County) on solar equipment and installation — there's no solar-specific exemption here. Factor that into your quote comparison, and compare price per watt across at least three installers.
Estimate Your Pennsylvania Payback
The calculator below starts from Pennsylvania's average rate and Philadelphia-area sun production. Enter your own monthly bill to see an estimated system size, payback period, and long-run savings. Pennsylvania rates have climbed about 3.5 percent a year over the last decade — a reasonable starting point for the inflation field, though you can drag it to test a faster or slower future.
Pennsylvania Solar Incentives That Still Exist in 2026
Separate what's gone from what Pennsylvania actually offers.
- Gone — the 30 percent federal credit: The federal Residential Clean Energy Credit ended for installations completed after December 31, 2025, with no phase-out. If a quote still assumes it, that installer hasn't updated their numbers.
- Never existed — a state tax credit or rebate: Pennsylvania has no state income tax credit or state-funded rebate for homeowner solar. The state's one funding vehicle, the Solar Energy Program run by DCED/DEP, is restricted to businesses, nonprofits, schools, and municipalities.
- Still here — the SREC market: Under the AEPS Act's solar carve-out, your system earns one Solar Renewable Energy Credit per 1,000 kWh it generates, sellable to utilities and suppliers that need compliance credits — roughly $26 to $40 apiece in early 2026, market-based rather than fixed, but real income on top of net metering.
- Partially — leases and PPAs: Third-party-owned systems can still capture a separate federal business credit through 2027, but it belongs to the leasing company. Ask whether that's reflected in your lease rate before assuming it's a discount.
- Targeted — Solar for All: A roughly $156 million federally funded award administered through PEDA targets low-income residential solar specifically — not a general incentive, and its funding has faced uncertainty through 2025-2026.
No statewide property tax exemption exists either — a Pennsylvania solar install can raise your assessed value like any other improvement, though some counties offer local relief at their own discretion. Check with your county assessor directly.
Net Metering in Pennsylvania: The AEPS Act
Pennsylvania's net metering comes from the Alternative Energy Portfolio Standards (AEPS) Act of 2004, implemented through PA Public Utility Commission rules at 52 Pa. Code Chapter 75. Every investor-owned utility in the state — PECO, PPL Electric, FirstEnergy's Met-Ed, Penelec, and West Penn Power, and Duquesne Light — must offer net metering to residential systems up to 50 kW.
Here's the part that trips people up: it isn't pure 1:1 retail net metering forever. Month to month, your export nets against your usage at the full retail rate, and unused credits roll forward. But at your annual true-up date, whatever credit balance is left gets cashed out — not at retail, but at the utility's "price-to-compare" (PTC) rate, a supply-only price that runs around 10 to 13 cents per kWh versus a retail rate closer to 17 to 21 cents. In practice, it pays to size your system to your usage rather than dramatically overproduce, since large annual surpluses cash out at the lower rate.
The SREC Layer: Pennsylvania's Real Local Angle
The mechanism a Pennsylvania homeowner should understand is that solar here pays you twice, through two separate systems. Net metering values the electricity itself — what your panels generate against what your house uses. The SREC market is a second, independent revenue stream: for every 1,000 kWh your system produces, regardless of whether you used it or exported it, you earn a certificate sellable to a utility or supplier that needs it to meet the state's renewable-energy compliance target. Most states give you one mechanism or the other; Pennsylvania stacks both.
SREC prices move with the market — new solar supply versus how much utilities must buy — and have run roughly $26 to $40 each in early 2026. On an 8 kW system producing about 10,480 kWh a year, that's on the order of ten SRECs annually: real but modest extra income. Check whether your installer or a broker handles the paperwork, since selling SRECs usually requires registering your system with a tracking system first.
How to Go Solar in Pennsylvania
Work through these steps before you sign anything.
- Pull your last 12 power bills and calculate your average monthly cost — the higher it runs, the more you stand to save.
- Confirm your roof faces south, east, or west with minimal shading; north-facing or heavily shaded roofs rarely pay off.
- Check your roof has at least 10 to 15 years of life left, or budget to replace it first — see our roofing guide.
- Identify your utility (PECO, PPL, a FirstEnergy company, or Duquesne Light) and ask about its current net-metering true-up terms — this genuinely varies right now.
- Get at least three quotes and make sure none still assume the expired 30 percent federal credit.
- Ask each installer how they handle SREC registration and who keeps the paperwork current after year one.
- Have an electrician confirm your panel and wiring can handle the interconnection; see our electrical guide.
For the full picture of how solar panels work, sizing, and buying versus leasing, read our main solar panels guide — this page focuses on what's specific to Pennsylvania.
Sources
Figures on this page are 2026-current and come from primary sources. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 values preliminary). Production estimates: NREL PVWatts. Net metering and AEPS Act: PA PUC — AEPS Act overview and 52 Pa. Code Chapter 75. PPL tariff transition: PA PUC press release, June 4, 2026. State solar programs: PA DCED — Solar Energy Program and PA DEP — Solar Energy Resource Hub. Cost data: EnergySage — Pennsylvania Solar Panel Cost 2026. We review these figures every six months.