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*PECO, PPL, and Duquesne Light rates, Pennsylvania net-metering rules under 52 Pa. Code §75.13, and the statewide installed price are current as of June 2026, per PA PUC filings, EIA data, and PA Department of Revenue guidance.
How Much Do Solar Panels Cost in Pennsylvania Right Now?
As of July 2026, a properly sized Pennsylvania system runs $2.84 per watt installed before incentives. For the typical home, which uses 817 kWh a month, that is a 7.01 kW system at $19,908 before tax.
That price has a competitive end and a higher end. Shopping several installers brings the figure toward $2.56 a watt; quotes loaded with premium panels and full-service sales channels reach $3.16 a watt. The $2.84 figure used in the table below sits between them. As a sanity check, the federal modeled benchmark for residential solar is $3.25 a watt, so a competitive Pennsylvania quote should come in under that.
Here is what the four common system sizes cost, before incentives:
System Size | Solar Only (Before Incentives) | Solar + 13.5 kWh Battery | Best Fit |
|---|---|---|---|
6 kW | $15,360 to $18,960 | $28,860 to $32,460 | Small home or partial offset |
8 kW | $20,480 to $25,280 | $33,980 to $38,780 | Average home, moderate use |
10 kW | $25,600 to $31,600 | $39,100 to $45,100 | Larger home or full offset |
12 kW | $30,720 to $37,920 | $44,220 to $51,420 | Large all-electric home with an EV |
*Based on $2.84 a watt installed, with a competitive-to-premium band of $2.56 to $3.16. The battery column adds $13,500 for a 13.5 kWh unit. Figures are before the 6% sales tax and vary by roof, equipment, and installer.
Why a Pennsylvania Solar Quote Costs What It Does
The per-watt price covers the panels and the install. The taxes and upgrades Pennsylvania adds on top are what a headline quote leaves out.
The 6% sales tax. Pennsylvania charges its 6% sales tax on residential solar equipment and installation, with no exemption. On a $19,908 system that is $1,194 added at purchase, and it rarely appears in a per-watt quote. Philadelphia adds 2% local tax and Allegheny County adds 1%, so a Philadelphia buyer pays 8% in total.
No property-tax break. Many states exempt the home-value bump from a solar system. Pennsylvania does not: the state assessment law under 53 Pa.C.S. §8811 lists wind but stays silent on solar, so the added value can raise your assessment depending on the county.
Pennsylvania’s older housing stock adds two more line items. A large share of homes carry 100 to 150 amp electrical service, and connecting solar to that older service means an upgrade to 200 amps, which runs $2,000 to $4,000 and does not show up in the per-watt figure.
Philadelphia neighborhoods such as Society Hill and Chestnut Hill, along with designated districts statewide, can also require a certificate of appropriateness for street-visible panels, which adds time and cost.
What pulls cost down. Pennsylvania has a crowded, competitive installer field, and Philadelphia’s EZ permit for panel installs issues the same day, which trims the soft costs built into a quote.
No Federal Solar Credit in 2026 and No Pennsylvania Credit to Replace It
This is the biggest change to Pennsylvania solar pricing since last year. The 30% federal Residential Clean Energy Credit, Section 25D, ended for systems completed after December 31, 2025. If you buy a system with cash or a loan in 2026, there is no federal credit to claim, so your net cost equals your gross cost. Pennsylvania has no state tax credit or rebate to soften that, which makes the federal expiration bite harder here than in states that kept their own incentives.
One exception remains. A lease or power purchase agreement lets the company that owns the system claim the Section 48E commercial credit, which still reaches third-party-owned residential solar; current terms require construction to begin by July 4, 2026. The owner can pass some of that value into a lower rate.
Pennsylvania Net Metering: Full Retail Credit Against a 20.43¢ Rate
With the federal credit gone, the value case rests on how Pennsylvania credits the power your panels send to the grid, and here the rule is the strongest version available.
Under 52 Pa. Code §75.13, every exported kWh earns a full-retail, one-to-one credit, with generation, transmission, and distribution all included. Credits roll over month to month.
At the close of the compliance year on May 31, any leftover credit is paid out at the lower Price-to-Compare, the utility’s default generation-and-transmission rate. Pennsylvania caps residential net metering at 50 kW, more than a typical 7 kW home system needs.
This is why system size in Pennsylvania should track your usage, not your roof. Exports earn the full retail rate, so a system sized to cover your annual use captures full value, while oversizing past your usage only banks credits you cash out at the lower year-end rate.
SRECs are a smaller, moving piece. Pennsylvania runs a solar credit market where each megawatt-hour your system produces earns one credit. At the weighted-average price of $33.20, a 7.01 kW system earns $325 a year; recent spot trades have run lower, at $22.50. Treat that income as volatile upside, not a fixed stream. Pennsylvania has no cash rebate and no tax exemptions, so net metering and these credits are the entire state-level stack. For the full picture, see Pennsylvania’s complete solar incentive guide.
Solar Payback in Pennsylvania, Utility by Utility
At the statewide rate, a $19,908 system that offsets 9,804 kWh a year saves $2,003 in the first year and pays back in 9.9 years. Your own payback depends on your utility, because rates vary widely across Pennsylvania’s seven major utilities.
Utility | All-In Residential Rate | Year-1 Savings | Simple Payback |
|---|---|---|---|
Duquesne Light | 23.43¢/kWh | $2,297 | 8.7 years |
Penelec | 21.66¢/kWh | $2,124 | 9.4 years |
PECO | 21.20¢/kWh | $2,078 | 9.6 years |
Penn Power | 19.93¢/kWh | $1,954 | 10.2 years |
Met-Ed | 19.53¢/kWh | $1,915 | 10.4 years |
PPL | 18.73¢/kWh | $1,836 | 10.8 years |
West Penn Power | 16.88¢/kWh | $1,655 | 12.0 years |
Note: All-in residential rates from the PA Public Utility Commission. Year-1 savings is the rate applied to 9,804 kWh of annual production; payback is the $19,908 cost divided by that savings. The all-in rate includes the fixed customer charge, so real payback runs longer on the marginal rate you avoid: stripping West Penn’s customer charge leaves a 15.08¢ marginal rate, which lowers its Year-1 savings to $1,478 and stretches payback to 13.5 years, against the 12.0 the table shows.
Every Price-to-Compare increase lifts the value of a system you already own, which is why a longer payback at a low-rate utility can still be a sound long-term call. The rate you hedge matters as much as the payback number. For how the long-run return stacks up, see whether the numbers make solar worth it in Pennsylvania.
How to Pay for Solar in Pennsylvania in 2026
The end of the federal credit reshuffled the financing decision. There are three ways to pay, and they no longer line up the way they did in 2025.
Cash Purchase: The Full $19,908, and the Strongest Return
Paying cash means you own the system, keep every net-metering credit, and keep the SRECs. Without a 30% credit to soften the upfront cost, the payback runs longer than it did in 2025, but the long-run return is still the best of the three. At the statewide rate that is $2,003 a year in avoided electricity, a figure that grows as rates climb.
Solar Loans: Watch the Dealer Fee
A $0-down loan keeps cash in your pocket, but many carry a dealer fee of 15% to 30% of the principal, folded into the financed amount. That can push the financed price far above the cash price for the same system. Compare the cash-installed cost to the total you would repay before signing, and make sure the payment beats your current electric bill.
Leases and PPAs: The Only Way to Capture the Federal Credit
A lease or PPA is the one way to still capture the federal credit in 2026, because the company that owns the system claims the Section 48E credit and can pass some of it into your rate. Both are legal in Pennsylvania.
You will not own the system or collect the SRECs, and the escalator clause of 1.9% to 2.9% a year is the cost most buyers overlook. Read it before you sign.
For how these $0-down offers work and where they go wrong, see how free solar offers work in Pennsylvania.
When The Cost of Solar in Pennsylvania Doesn’t Pay Off
Solar is not a fit for every Pennsylvania home, and two state-specific facts decide where it falls short: a $15-a-month non-bypassable customer charge that keeps the bill from reaching zero, and no community-solar program to catch the homes a rooftop system cannot serve. Here is where the numbers stop working.
Low-Usage Homes Under 500 kWh a Month
Full-retail netting makes payback largely independent of how much you use, so the weak case is the low-usage home.
A home using 400 kWh a month only needs a 3.4 kW system, and small systems cost more per watt ($3.50 to $4.00) so the net cost stays high while gross annual savings is only $981, before the $180-a-year non-bypassable customer charge.
Payback stretches to 12 to 14 years, and that charge keeps the bill from reaching zero. Below 400 to 500 kWh a month, the economics weaken past the 10-year base case.
An Aging or Shaded Roof
If your roof has under 10 to 15 years of life left, replace it first. Re-roofing under an existing array adds $2,000 to $6,000 to remove and reinstall the panels, a cost no solar warranty covers.
Heavy shade from Pennsylvania’s mature tree canopy can cut production enough to push payback out of range.
Renters and Anyone Moving Within Five Years
If you rent, you cannot install owned solar, and Pennsylvania has no community-solar program to fall back on, so a competitive supplier plan on PAPowerSwitch is the realistic option.
If you expect to move within five years, ownership rarely pays back in time; a transferable lease is the better fit if you go solar at all.
What to Ask a Pennsylvania Solar Installer
Pennsylvania has no statewide contractor or electrical license, so vetting falls on you.
Before signing, ask these questions.
- Are you registered under HICPA with the Pennsylvania Attorney General? Any contractor doing $5,000 or more of home-improvement work a year must register, and the registration number belongs on the contract.
- Do you hold the local electrical license? Electrical licensing is municipal in Pennsylvania, and Philadelphia and Pittsburgh run their own.
- Are your installers NABCEP certified? It is voluntary in Pennsylvania, but it is the quality benchmark for the trade.
- What is the workmanship warranty? Look for 10 years or more, separate from the panel and inverter warranties.
- Will you handle the net-metering and SREC registration? PennAEPS and PJM-GATS enrollment is what turns your production into bill credits and SREC income.
For the companies that meet these marks, see vetted Pennsylvania solar companies.
See What Solar Would Cost for Your Pennsylvania Home
Your utility, your roof, and your usage decide the real number. Enter your ZIP code to model a system size, a cost after the 6% sales tax, and a payback against your own utility’s rate.
Try our Pennsylvania solar cost and savings calculator!
Frequently Asked Questions
A typical 7.01 kW system runs $19,908 before the 6% sales tax, at $2.84 a watt installed. A smaller 6 kW system starts at $15,360, and a larger 12 kW system reaches $37,920. Add the 6% sales tax for the day-one total.
Not for systems you buy. The 30% Section 25D credit ended for systems completed after December 31, 2025. Only a lease or PPA captures the federal credit now, through the Section 48E commercial credit the system owner claims.
Yes. Pennsylvania charges 6% sales tax on solar equipment and installation with no exemption, plus 2% in Philadelphia or 1% in Allegheny County. On a $19,908 system the state tax alone is $1,194.
At the statewide 20.43¢ rate, payback runs 9.9 years. It is faster on higher-rate utilities such as Duquesne Light at 8.7 years, and slower on lower-rate West Penn Power at 12.0 years.
For most homes, only for backup power. Full-retail net metering credits exports at the retail rate, so a battery earns almost nothing on rate arbitrage in Pennsylvania. A 13.5 kWh unit adds $13,500, so buy one for resilience, not savings.
No. As of June 2026, Pennsylvania has no operational community-solar program, and the enabling bills remain in the legislature. Renters and shaded-roof homeowners cannot use it as a fallback yet.
*Methodology: Cost figures in this guide use the EcoGen Solar Cost Index, Pennsylvania’s standardized installed price per watt, blended from current marketplace data and benchmarked against the national modeled cost. Payback and 25-year figures use the EcoGen Solar Payback Methodology, run at a 4% annual rate escalation and 0.5% panel degradation over a 25-year horizon. System size, average system cost, and the average monthly bill come from the State Profile, derived from EIA consumption data, the NREL production factor, and the state residential rate. Real quotes vary by roof, equipment, and installer.
References & Research Sources:
EcoGen America reviewed federal electricity price data, electric utility survey data, federal tax guidance, Pennsylvania net metering regulations, utility rate comparison materials, electric price change alerts, Pennsylvania tax guidance, property assessment statutes, alternative energy credit pricing data, solar cost research, solar production modeling tools, and home improvement contractor registration resources for this article. Sources were accessed July 12, 2026, unless another publication, release, effective, or update date is listed below.
- U.S. Energy Information Administration (EIA). Electric Power Monthly, Table 5.6.B: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, Year-to-Date. Federal residential electricity price data table. Data for April 2026; released June 25, 2026. Accessed July 12, 2026.
- U.S. Energy Information Administration (EIA). Annual Electric Power Industry Report, Form EIA-861 Detailed Data Files. Federal electric utility survey data resource, including sales, revenue, customer count, distributed generation, and net metering data. Final 2024 data released October 7, 2025. Accessed July 12, 2026.
- Internal Revenue Service (IRS). FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21. Fact Sheet FS-2025-05. Federal clean energy tax credit guidance related to Sections 25D and 48E. Published August 21, 2025. Accessed July 12, 2026.
- Pennsylvania Code & Bulletin. 52 Pa. Code § 75.13: General Provisions. Pennsylvania net metering regulation under Chapter 75, Alternative Energy Portfolio Standards. Accessed July 12, 2026.
- Pennsylvania Public Utility Commission (PUC). Rate Comparison Report. Annual electric and natural gas utility rate comparison report. Prepared by the Bureau of Technical Utility Services. Published April 15, 2025. Accessed July 12, 2026.
- Pennsylvania Public Utility Commission (PUC). PUC Alerts Consumers to June 1 Electric Price Changes and Higher Summer Energy Costs. Electric price change consumer alert. Published May 20, 2026. Accessed July 12, 2026.
- Pennsylvania Department of Revenue. Sales and Use Tax Bulletin 2010-01: Electricity Manufacturing Exemption. Sales and use tax guidance related to electricity manufacturing and solar photovoltaic systems. Issued July 28, 2010. Accessed July 12, 2026.
- Pennsylvania General Assembly. 53 Pa.C.S. § 8811: Subjects of Local Taxation. Consolidated County Assessment Law provision. Accessed July 12, 2026.
- Pennsylvania Alternative Energy Portfolio Standard Program (PennAEPS). 2024/2025 Alternative Energy Credit Pricing. Alternative energy credit pricing resource for Solar PV, Tier I, and Tier II credits. Published September 25, 2025. Accessed July 12, 2026.
- National Renewable Energy Laboratory (NREL). Documenting 15 Years of Reductions in U.S. Solar Photovoltaic System Costs. Technical Report NREL/TP-7A40-92536. Published January 2025. Accessed July 12, 2026.
- National Renewable Energy Laboratory (NREL). PVWatts Calculator. Solar photovoltaic energy production modeling tool. Accessed July 12, 2026.
- Pennsylvania Office of Attorney General. Home Improvement Contractor Registration. Home Improvement Consumer Protection Act registration resource for Pennsylvania contractors. Accessed July 12, 2026.
