Home » Free Solar Panels » “Free” Solar Panels in Pennsylvania: How Zero-Down Loans, Leases and PPAs Really Work (2026)

“Free” Solar Panels in Pennsylvania: How Zero-Down Loans, Leases and PPAs Really Work (2026)

Offers for "free solar panels" are on the rise in Pennsylvania this year and there's a good reason for it. The average residential electricity rate in Pennsylvania reached 20.43¢/kWh this year and the 30% federal tax credit that once cut thousands of dollars off a purchased solar system expired on the last day of 2025.

Installers needed a new way to sell and "free solar" became the headline - but what exactly does "free" solar mean?

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Written by Trevor GuildayFounderTrevor Guilday is the founder of EcoGen America and leads its data and analytics team. Working in home improvement and residential solar since 2016...Learn more, Checked by Anders AlexanderEnergy consultant, Secretary of the WASEIA BoardAnders Alexander has worked in solar since 2013, from selling residential systems and directing installer sales teams to managing solar analysis software at EagleView and partnering on clean energy financing. He serves on the boards of the Washington Solar Energy Industries Association and Solar Washington.Learn more Last updated

Key takeaways

  • No free program is open. PEDA says Pennsylvania Solar for All is not operational at this time, and warns against installers who claim to be its partners.
  • “Free” means zero-down: a loan, lease or power purchase agreement (PPA), each recovering the full price later.
  • In a lease or PPA the company usually keeps the SRECs, worth about $326 a year on a typical 7.01 kW system at the latest full-year price.
  • You keep full-retail bill credits whoever owns the panels; a lease or PPA payment is priced against them.
  • No federal or state credit for buyers: the home credit ended for systems switched on after December 31, 2025, and Pennsylvania has no credit for home solar.
About this review

Every figure here was read on the source listed at the bottom between September 29 and October 5, 2026. Program statuses and credit prices were rechecked on October 5, 2026. This guide explains offers and programs; it is not tax, legal or financial advice.

How we choose sources and correct errors: editorial process and content standards.

No company gives away solar equipment. The panels, wiring and labor all carry a real price. “Free” only describes the upfront payment. The rest comes back later, through a loan balance, a monthly lease payment or a price per kilowatt-hour (kWh, the unit on your bill) that you agree to pay for decades.

One question decides whether a $0-down offer helps you or the company that pitched it: who owns the system, who collects its incentives, and who carries the risk if the savings fall short. A loan, a lease and a PPA answer that differently, and the gap is worth thousands of dollars over the life of the system.

Pennsylvania Solar for All: paused

The state’s planned low-income program, paid for by a federal grant, was meant to put panels on qualifying homes at no cost. Today there is nothing to apply for, so anyone selling “Solar for All” at your door is not the program.

PEDA: Pennsylvania Solar for AllRun by the Pennsylvania Energy Development Authority (PEDA) with DEP. Checked October 5, 2026.

Who it was for
Low-income homeowners and disadvantaged communities statewide
Who runs it
PEDA with DEP, and the Philadelphia Green Capital Corp. in the five southeastern counties
Installer partners
None active. PEDA says to disregard installers who claim to be partners.
Status
Not operational, and not taking applications (PEDA, checked October 5, 2026). Federal courts ruled EPA’s cancellation of Solar for All unlawful in September 2026; EPA was weighing an appeal as of October 1. PEDA has not posted a restart.

What a lower-income household can do now

Pennsylvania BRIGHT is a lease from Capital Good Fund, a nonprofit lender, with no upfront cost for households earning up to $165,000. Solarize Greater Philadelphia offers it in the five southeastern counties, and the lender announced a statewide expansion in December 2025. Its program page returned an error on October 5, 2026, so ask for current terms. It is still a lease: use the checks below.

Why Free Solar Offers Keep Coming in Pennsylvania

The federal Residential Clean Energy Credit used to take a big share off the price of a purchase. It is gone for any home system switched on after December 31, 2025, so buying with cash or a loan costs more than it did a year ago. A company that owns panels on your roof may still claim a business tax credit, which is why so many 2026 pitches lead with a lease or PPA. That credit belongs to the company; ask in writing how much of it reaches your rate.

Rising power prices also make a fixed-looking payment easy to sell. Judge every offer against the cash price of solar in Pennsylvania: a typical 7.01 kW system is $19,908 before incentives and before sales tax.

Zero-Down Solar in Pennsylvania: Loan, Lease or PPA

All three are legal and sold here. DSIRE lists Pennsylvania among the states that allow third-party PPAs, citing a Public Utility Commission order. The money to follow is the solar renewable energy credit (SREC): one is earned for every 1,000 kWh the panels make, and it can be sold to power suppliers. State rules give SRECs to the system’s owner unless a contract assigns them, and lease and PPA contracts usually do.

Zero-down options in Pennsylvania and who collects the solar credits and bill credits
Zero-down optionWho owns the panelsWho gets the SRECsWhat you pay
Zero-down solar loanYouYou, unless you sign them over to the installer or a brokerLoan payments, plus what remains on your bill
Pros and cons in Pennsylvania: zero-down loan

Pros

  • You keep the SRECs and the full-retail bill credits.
  • PECO homes can claim the $500 solar rebate.

Cons

  • No federal credit lowers the balance in 2026.
  • Many $0-down loans hide a dealer fee in the financed price.
  • SREC prices are low and falling, so they barely move the payment.

Can fit if: the installer gives you a written cash price, and the loan total stays close to it.
Solar leaseThe companyUsually the company, by contractA monthly payment that may rise each year, plus what remains on your bill
Pros and cons in Pennsylvania: lease

Pros

  • Nothing upfront, and the company handles repairs and monitoring.
  • You still earn full-retail bill credits on your utility account.

Cons

  • The company keeps the SRECs and any business tax credit.
  • A yearly escalator (a set price increase) compounds for the whole term.
  • At PECO, a leased system may be sized for no more than 110% of your expected yearly use.

Can fit if: the year-one payment sits well below your current bill savings, and the year-20 payment still does.
Power purchase agreement (PPA)The companyUsually the company, by contractA price per kWh the panels make, plus what remains on your bill
Pros and cons in Pennsylvania: PPA

Pros

  • You pay only for the kWh the panels make.
  • No upfront cost, and the company handles repairs.

Cons

  • The company keeps the SRECs, and you build no equity.
  • Extra kWh left at the end of the year are paid out at the lower price to compare.

Can fit if: the PPA price, after every yearly increase, stays below what your utility charges per kWh.

Lease or PPA? A lease fixes the monthly payment; a PPA bills the kWh produced. With either, you keep the bill credits and the company usually keeps the SRECs. Compare loan terms and lifetime cost in our solar financing guide.

Who collects the first-year incentive money on a typical PECO system

A 7.01 kW system making about 9,807 kWh a year, at the $33.20 average SREC price for the year that ended May 31, 2025. EcoGen calculation.

Year-one incentive money, owned versus leased
Owned: SRECs and rebateabout $326 and $500
Lease or PPA: SRECs to the companyabout $326

Small money: the solar requirement has stayed at 0.5% of sales since 2021, the regulator calls the market oversupplied, and PennAEPS posted a lower average for the next year on October 1, 2026. Outside PECO there is no solar rebate today.

PECO, PPL, Duquesne or FirstEnergy: Same Credit Rule, Different Extras

Every large Pennsylvania utility follows the same state rule. If you buy power from your utility, each extra kWh you send to the grid earns a full credit, power plus delivery, and unused credits roll forward each month. Credits still left on May 31 are paid out at the lower “price to compare”. Homes up to 50 kW qualify. Buy from another supplier, and its contract sets the credit for the power part.

What each Pennsylvania utility adds for a solar home, and its year-end payout price
Your utilitySolar rebateLeftover credits paid atLease or PPA note
PECOPhiladelphia and nearby counties$500 once, filed within 90 days of going in service11.759 cents per kWhLeased systems capped at 110% of yearly use
PPL Electric UtilitiesCentral and eastern PennsylvaniaNone; PPL lists no rebate for solar panelsPrinted on your billAsk which payout price the quote used
FirstEnergy PennsylvaniaMet-Ed, Penelec, Penn Power, West Penn PowerApproved in a plan on March 12, 2026, not open12.075 cents per kWh to 13.951 cents per kWhA quote must not count a FirstEnergy rebate
Duquesne LightThe Pittsburgh areaNone foundPrinted on your billBill credits are almost all the value
Co-op or borough utilityRural co-ops and town-owned systemsSet locallySet locallyThe state credit rule does not apply

Payout prices apply through November 30, 2026 and reset on December 1, 2026. Full utility details: Pennsylvania solar incentives.

When $0-Down Solar Does Not Pay Off in Pennsylvania

  • You rent or own a condo. No roof of your own means no loan, lease or PPA, and Pennsylvania has no community solar law yet: the House passed a bill in 2025, and it still sits in a Senate committee.
  • Your roof is aging or shaded. Re-roof first. Taking panels off mid-contract eats the savings.
  • You may move within a few years. Ownership rarely pays back in time, and a lease must transfer to the buyer or be bought out.
  • You were told Solar for All will cover it. The program is not taking applications.

Six Checks Before You Sign a Pennsylvania Solar Contract

  1. Is the contractor registered?

    Home improvement contractors must register with the Attorney General and print the number on every contract. Look it up before you sign.

  2. Is this a loan, a lease or a PPA?

    Get the word in writing. If the pitch names Solar for All, walk away: there are no active partners.

  3. What is the cash price next to the financed total?

    That exposes a hidden dealer fee. Ask how sales tax appears: home panels do not qualify for the state’s electricity-manufacturing exemption.

  4. Who gets the SRECs, and what price did the quote assume?

    The latest full-year average was $33.20 (range $0.01 to $81.00). A quote counting much more is selling hope.

  5. What is the payment in year 10 and year 20?

    Ask in writing, with the transfer rules and buyout price. See solar lease exit options.

  6. Who fixes the roof and the system?

    Solarize Greater Philadelphia requires its installers to give at least a 10 years workmanship warranty. Use that as your floor.

Pause if a seller claims to be a state program partner, refuses to put terms in writing or pushes you to sign today.

The law also gives you a short window to cancel a home improvement contract, and it must be written in the contract. Lease companies can fail: PosiGen, a former Solarize partner, went bankrupt, and other firms now service its systems. Read the solar scam warning signs.

Compare Pennsylvania Offers on the Same Terms

Ask each installer for the cash price, the zero-down price and the SREC value it assumed, side by side.

Enter your ZIP code to compare offers

This is a commercial quote request, not a Solar for All application or a utility rebate. Installer and financing availability depend on your ZIP code and your home. For the state program’s status, use the official PEDA page.

How EcoGen is paid

EcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us.

Read how we make money and our privacy policy.

More Pennsylvania Solar Guides

Frequently Asked Questions

Can you really get free solar panels in Pennsylvania?

Not in the literal sense. Pennsylvania Solar for All, the one program planned to do it, is not taking applications. “Free solar” here means $0-down financing: a loan, a lease or a PPA, each with a real cost recovered over time.

Can I get zero-down solar in Pennsylvania?

Yes, as a loan, lease or PPA. Is buying better than leasing? If you can carry the payment, a loan returns the most, because you keep the SRECs and own the panels. A lease trades that for no repairs to worry about.

Who gets the federal tax credit on a Pennsylvania solar lease?

The company, because it owns the system. The home credit for buyers ended for systems switched on after December 31, 2025.

Do I keep my SRECs on a solar lease or PPA?

Usually not. State rules give SRECs to the owner unless a contract assigns them, and lease and PPA contracts usually assign them to the company. You do keep the bill credits on your utility account.

Is “free solar” a scam in Pennsylvania?

The financing is legal, but “free” attracts bad actors; PEDA itself warns about fake Solar for All partners. Check the registration, get terms in writing and use your right to cancel.

What happens to a solar lease when I sell my home?

The buyer takes it over, or you buy it out. If the buyer does not qualify or want it, the sale can stall.

Does Pennsylvania have community solar for renters?

Not yet. A community energy bill passed the House and is in a Senate committee. Until a law passes, renters can shop for a competitive electricity supplier on PAPowerSwitch.

Sources and review

Pennsylvania program, utility and tax figures were checked between September 29 and October 5, 2026, against these sources. Program rules change; the administrator’s current page always wins.

Read our editorial standards.

Trevor Guilday Headshot

Written by

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Trevor Guilday is the founder of EcoGen America and leads its data and analytics team. Working in home improvement and residential solar since 2016, he develops the EcoGen Solar Cost Index and writes about state solar costs, incentives and net metering.

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