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Pennsylvania Solar Incentives 2024

Updated April 8, 2024

Complete Guide to Pennsylvania Solar Incentives

Are you thinking about switching to solar energy in Pennsylvania? Then, it may cost you anywhere from $15,000 to $20,000. It’s a hefty amount to pay, and not everyone has the luxury of going green. Due to the high upfront cost, Pennsylvania Solar Incentives have made solar energy more affordable than ever for residents of the Keystone State.

From a 30% tax credit to multiple grants and rebates paying back $5,000, installing a solar system is no longer out of your budget. Thanks to the recurring solar incentives in 2024 in PA, you can afford a powerful system that will produce enough energy to use and sell.

Here is a full list of Pennsylvania solar incentives in 2024 you can qualify for with a new or an existing system:

Pennsylvania Solar Incentives Description Type Status
Federal Solar Investment Tax Credit (ITC)Take advantage of a tax credit of 30% of the cost of your solar energy system.FederalOnce
PA Business Energy Investment Tax CreditWin an up to $9,500 grant and a 10% tax credit for the solar system for your business.StateOnce
Homeowners Energy Efficiency Loan Program (HEEM)Receive an up to $10,00 loan with a 1% interest rate for energy-efficient repairs.StateOnce
Socialize PhillyPEA offers personalized projects for residential solar panel installation at a cheaper price.LocalOnce
Net MeteringSell back the surplus of green energy produced to the state and get paid for that.StateOngoing
Solar Renewable Energy Credits (SRECs)Earn SREC energy credit for each 1,000 kWh produced. One SREC’s value is about $35 to $40.StateOngoing
Philadelphia Solar Rebate ProgramNew buyers can qualify for a $200 rebate per kilowatt of solar panels.LocalOnce
The Pennsylvania Sunshine Solar ProgramHomeowners and small businesses that install solar photovoltaic (PV) systems for a lower price or even for free.StateVaries

Read on to learn more, or enter your zip code to see exactly which solar incentives your home qualifies for.

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PA Solar Incentives

Unlock the full potential of solar energy in Pennsylvania with a range of attractive solar incentives and programs. Homeowners and business owners alike can take advantage of these incentives to make the switch to solar power more affordable and accessible. From enticing tax credits and exemptions to generous rebates and flexible financing options, Pennsylvania offers a comprehensive set of incentives & solar discounts to help you go solar for less!

Federal Solar Investment Tax Credit (ITC)

The Federal Solar Investment Tax Credit (ITC), also known as the Green Energy Tax Credit, is one of the top solar incentives available in the State of Pennsylvania. Homeowners who qualify for the Solar ITC can take advantage of a tax credit of 30% of the cost of their solar energy system. This can add up to huge savings for solar owners. The Federal ITC is set to expire in 2035, so act now to take advantage of these solar savings.

solar panel system in PA

PA Business Energy Investment Tax Credit

Pennsylvania also provides grants for businesses and commercial spaces that invest in solar systems. Companies looking to upgrade their energy systems to make them more efficient can apply for a grant. While the competition is tough, it is still worth the application because the grant is significant at up to $9,500 per approved application. The Pennsylvania solar panel incentives at the commercial level also include a solar tax credit of 10%, which can go beyond the year 2024.

Homeowners Energy Efficiency Loan Program (HEELP)

Investing in energy-efficient repairs is no longer a problem with the HEELP program run by the state. You can take out a loan to make your house greener by:

  • improving the insulation,
  • installing energy-efficient windows and doors,
  • replacing heating and cooling systems,
  • Repairing air sealing,
  • Replacing the roof,
  • And more!

Eligible applicants can receive a loan of up to $10,000 with an interest rate as low as 1% only. The state lets borrowers repay the loan within 10 years without penalties for an early repayment.

To qualify for the program, your annual income should be:

  • $53,450 for a one-person household
  • $61,050 for a two-person household
  • $68,700 for a three-person household

The maximum annual income is $100,800 for a family of 8.

Socialize Philly

Socialize Philly is another program that helps low- and moderate-income families upgrade their houses with solar panels. Philadelphia offers discounts and personalized projects to help households choose green energy and minimize their energy usage.

The Philadelphia Energy Authority (PEA) has launched two more initiatives allowing residents to lease the solar system or own it. By owning it, you can finance the project with cash, loan, or home equity and benefit from the 30% tax credit as well as SREC credits received for generating solar energy. On the other hand, by leasing, you receive the solar system for free, only purchasing solar energy, but don’t benefit from the 30% tax credit and SRECs.

affordable solar system for PA residents

Pennsylvania Net Metering

Net metering in Pennsylvania is a program available for both residential and commercial solar system projects. The surplus energy is exchanged for credits that are returned to the grid, and the billing is issued for the net consumption of energy.

The incentive program is dedicated to residential solar panel systems of no greater capacity than 50 kW, while it’s up to 3,000 kW for commercial customers.

Hence, if your solar panels generate more energy than you need, instead of storing it in solar batteries, you can get paid for producing green energy.

Solar Rebates in PA

Solar Renewable Energy Credits (SRECs)

Pennsylvania also allows homeowners to sell any excess energy generated by their solar panels back to the grid through a program called Solar Renewable Energy Credits (SRECs). This program lets you earn some energy credits based on the power your solar panels generate. For every 1,000 kWh, you get one credit. You can sell your credits on the solar renewable energy credit market. The current credit values range from $35 to $40.

Read Also: Can You Sell Electricity Back to the Grid in PA?

Philadelphia Solar Rebate Program

Pennsylvania solar panel incentives also include a rebate program for Philadelphia residents. Residents who have invested in a solar system may be qualified to enjoy a $200 rebate per kilowatt of solar panels.

With a variety of incentives for both residential and commercial establishments in Pennsylvania, it truly is worth taking the next step of investing in solar energy. Those who do so will enjoy the energy savings, make a little money off SRECs, and rest easy knowing that a clean and renewable resource powers their electricity!

The Pennsylvania Sunshine Solar Program

The Pennsylvania Sunshine Solar Program, managed by the Pennsylvania Department of Environmental Protection, provides valuable rebates to homeowners and small businesses that install solar photovoltaic (PV) systems. These rebates are determined by the system's capacity and serve as a financial incentive to help reduce the upfront expenses associated with installing solar panels. Through this program and others, some PA residents are going solar for free!

As a homeowner, you can qualify for the PA solar rebate if you install a PV with up to 100 kW and a solar thermal system costing no more than $5,000. Fortunately, the state has allocated $100 million in rebates, so there should be enough financial support for those considering installing a new system in 2024.

Unlike other solar incentives in PA, if you decide to continue with this program, you won’t be able to qualify or apply for other rebates, except for federal tax credit.

Learn more in our complete guide to getting solar panels installed for free in PA.

Start producing and selling green energy now!

Find out if you qualify for solar savings programs!

Do I Qualify?

Please enter a zip code

Frequently Asked Questions

Author & Solar Energy Expert

James Kahle, a revered voice in the energy domain, enlightens homeowners about the benefits of solar. Catch James soaking up the sun while playing basketball or immersed in the pages of a book.

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