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Home solar in Pennsylvania

Pennsylvania still has full retail net metering for home solar, but the PUC chair asked lawmakers in March 2026 to change the net metering law, and there is no state rebate or tax credit.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

21.8¢average home price per kWh (EIA, August 2026)
Solar can workRetail-rate net metering and rising power prices (about 21.8 cents/kWh) help, and solar credits (SRECs) add a little, about $33 each. There is no state rebate, tax credit or community solar, and net metering may be changed by the legislature.

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Net metering Net metering available

Utilities credit home solar exports at the full retail rate, and extra credits carry over month to month. At the end of the yearly period, leftover credits are paid out at the utility's 'price to compare' (the generation and transmission part of the rate). Home systems can be up to 50 kW. In March 2026 the PUC chair asked the General Assembly to amend the net metering law, mainly aimed at large 'merchant' solar with little on-site use; no bill had passed as of this check. Source

  • 2026-03-02: PUC chair testifies to House Energy Committee asking lawmakers to amend net metering law

Solar credits (SRECs) Market open

Pennsylvania's Alternative Energy Portfolio Standard requires a small share of power from solar, so each 1 MWh your system makes can be sold as a solar credit (SREC/solar AEC). The PUC-reported weighted average price was $33.20 per credit for the 2024/2025 reporting year (range $0.01 to $81) and $37.03 for 2023/2024. Prices are set by the market and are not guaranteed. Source

Rebates and incentives

Pennsylvania solar AECs (SRECs)

About $33 per MWh produced (2024/2025 weighted average); market price, not fixed

Any solar owner registered in PJM-GATS and certified in Pennsylvania

open performance payment Source

Taxes

Property tax: none - no statewide exemption found; treatment depends on the county assessor
Sales tax: none - no statewide sales tax exemption for home solar found; a bill to create one was introduced Source

Solar laws

  • Alternative Energy Portfolio Standards Act (Act 213 of 2004) (2004). Sets net metering and the solar credit (SREC) requirement for utilities. Rules are in 52 Pa. Code Chapter 75. Source
  • HB 504 (2025-26) - Community Energy Facilities (2025). Would allow community solar with bill credits for subscribers. Passed the House 114-89 on May 7, 2025; referred to Senate Consumer Protection and Professional Licensure Committee on May 22, 2025; not law. Source

Community solar

Not available: community solar is not authorized in Pennsylvania; HB 504 passed the House in 2025 but is stuck in the Senate.

Timeline

  1. AEPS Act creates net metering and solar credit requirement
  2. House passes HB 504 (community solar)
  3. HB 504 referred to Senate committee
  4. PUC posts 2024/2025 solar AEC price: $33.20 weighted average
  5. Federal 25D home solar tax credit no longer available for new systems
  6. PUC chair asks legislature to amend net metering law

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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