Pennsylvania solar incentives in 2026, in one line: no federal tax credit for a system you buy, no state solar tax credit and no state sales-tax break – what is left is SREC income and net metering, which together still make solar pay back for many homes. Last updated: 30 October 2026.
Pennsylvania Solar Incentives 2026 at a Glance
| Incentive | Status in 2026 | What it is worth |
|---|---|---|
| Federal residential credit (Section 25D) | Ended 31 Dec 2025 | $0 on a 2026 cash or loan purchase |
| Federal Section 48E (lease / PPA) | Claimed by the system owner, not you | Indirect – may show up as a lower lease or PPA rate; tightens after 2027 |
| Pennsylvania SRECs | Active (registered through PJM-GATS, usually sold via an aggregator) | 1 SREC per MWh produced; roughly $20-$40 each in 2026, with 2026-vintage exchange prices near $22, so a 7 kW system earns very roughly $150-$300 a year (PA SREC prices) |
| Net metering | Active statewide under the AEPS Act | Excess generation credited against your bill; annual surplus is paid at a lower rate. Terms vary by utility (PECO, PPL, Duquesne, FirstEnergy) |
| State solar income tax credit | None | Pennsylvania does not offer one |
| Sales-tax exemption | None statewide | The 6% sales tax applies to residential solar equipment |
| Local and utility programs | Varies | Occasional Solarize group-buys and utility efficiency programs – check your area |
Looking at solar in Pennsylvania? Here is every incentive and rebate you can stack in 2026, and the headline has changed: the 30% federal tax credit expired at the end of 2025, so Pennsylvania’s own programs are what is left. Pennsylvania’s SREC market lets you earn ongoing income from your solar production even with no federal credit.
Pennsylvania Solar Incentives & Rebates in 2026
- No federal tax credit on a 2026 cash or loan purchase - Section 25D expired 31 December 2025. See solar tax credit 2026.
- Pennsylvania SREC market - sell one certificate for every megawatt-hour your panels produce.
- Net metering at every investor-owned utility, with excess credited against later bills.
- Local and utility programs in some areas.
PA SREC Prices in 2026: What a Pennsylvania SREC Is Worth
A Pennsylvania SREC (solar renewable energy certificate) is created for every 1,000 kWh (1 MWh) your system produces. Electricity suppliers buy them to meet the solar share of the state's Alternative Energy Portfolio Standards (AEPS) law. You do not sell them to your utility directly: most homeowners register the system in PJM-GATS and sell through an SREC aggregator or broker, either on the spot market or under a fixed-price contract for several years.
- 2026 price range: roughly $20-$40 per SREC, and exchange settlement prices for 2026-vintage certificates have sat near the low end, around $22.
- Why PA SRECs pay less than New Jersey or Maryland: Pennsylvania's solar carve-out is small (0.5% of electricity sales), so demand for certificates is limited.
- What it means for a home system: a 7 kW array makes about 8 MWh a year, so about 8 SRECs - very roughly $150-$300 a year before the aggregator's fee.
- Spot sale or contract: spot sales follow the market each year; a multi-year contract locks a lower but predictable price. Either way, your bill savings from net metering are usually worth far more than the SRECs.
- Could prices rise? Bills to raise the solar carve-out have been proposed in Harrisburg, but none is law as of October 2026. Do not build your payback on a higher SREC price.
Get a live quote from an SREC broker before you count on any number - prices move every quarter.
What Solar Costs in Pennsylvania
PA's SRECs add recurring value beyond the bill savings. A typical 7 kW system runs about $21,000 before incentives. There is no federal tax credit in 2026, so only Pennsylvania programs reduce that. Use the calculator above for your estimate.
Is Solar Worth It in Pennsylvania?
Yes for many Pennsylvania homeowners once you factor in SREC income and net metering. See our full breakdown: Is Solar Worth It in 2026?
Get my 3 free Pennsylvania solar quotes →
Pennsylvania Solar Incentives FAQ
What solar incentives and subsidies does Pennsylvania offer in 2026?
Two that matter: SREC income for the power you generate, and net metering with your utility. There is no federal credit for a system you buy, no Pennsylvania solar tax credit and no statewide sales-tax exemption. Local programs exist in some areas.
How much are Pennsylvania SRECs worth?
Prices float with the market. In 2026 Pennsylvania SRECs have traded roughly in the $20-$40 range, with 2026-vintage exchange settlements near $22. A typical 7 kW system produces about 8 MWh a year, so expect very roughly $150-$300 a year before aggregator fees. Details: PA SREC prices in 2026.
Does Pennsylvania have net metering?
Yes. Pennsylvania's Alternative Energy Portfolio Standards Act requires the investor-owned utilities to offer net metering. Excess generation is credited against later bills, and any surplus left at the end of the year is paid at a lower rate. Rules differ slightly by utility, so check your PECO, PPL, Duquesne or FirstEnergy tariff.
Is there a Pennsylvania solar tax credit?
No. Pennsylvania does not offer a state income tax credit for residential solar, and the federal 25D credit ended on 31 December 2025.
Are there solar rebates in Pennsylvania?
Not statewide. The old PA Sunshine rebate program is closed. Some local Solarize campaigns and utility programs offer discounts, so ask installers what applies to your address.
Are there battery incentives in Pennsylvania?
There is no statewide Pennsylvania battery rebate, and the federal 25D credit that used to cover home batteries ended with 2025. A battery bought in 2026 carries its full cost unless your utility runs its own program, so ask your utility before you buy. More: is battery storage worth it?
Can I combine Pennsylvania and federal incentives?
There is no federal credit left to stack on a 2026 cash or loan purchase. SREC income and net metering do stack with each other. With a lease or PPA, the system owner may claim Section 48E - see solar tax credit 2026.
Related
- Solar incentives by state
- Solar tax credit 2026: what changed
- New Jersey, New York and Illinois solar incentives
- Net metering explained
- Solar panel cost
- Is solar worth it?
General 2026 guidance, not tax advice. Verify current Pennsylvania program rules before purchasing.