Pennsylvania net metering gives you a bill credit for each kilowatt-hour (kWh) of solar power you send to the grid, worth the full retail price of a kWh you would buy. Unused credits roll forward month to month until May 31. Whatever is left then is paid out at your utility’s “price to compare,” which is well below the full price (about half at PECO).
The rule covers homes up to 50 kW (kilowatts, the size of a system) at the investor-owned utilities: PECO, PPL, Duquesne Light, the FirstEnergy companies and a few smaller ones (52 Pa. Code 75.13). The full credit applies when your utility also sells you your power. If you buy power from a competitive supplier, your utility credits only its delivery charge. Rural co-ops and borough utilities set their own rules. New to the idea? Start with how net metering works.
How net metering works in Pennsylvania
The Alternative Energy Portfolio Standards Act of 2004 (the AEPS Act) requires net metering. The Public Utility Commission (PUC) wrote the details into 52 Pa. Code 75.11 to 75.17. Each utility repeats them in its tariff, the rule book it files with the PUC. These are the parts that decide your bill:
- Full retail credit. Each kWh you send out is credited at “the full retail kilowatt-hour rate,” including generation, transmission and distribution charges, up to the power you used that billing period (75.13(d)).
- Credits carry forward. If you send out more than you use in a month, the extra kWh roll into later months at full value.
- The year runs June 1 to May 31. The Code defines the net metering year that way (75.12). It matches PJM’s planning year. PJM runs the regional grid.
- Leftovers are paid at the price to compare. At year end, the utility pays for unused kWh at its price to compare (75.13(e)). That is its price for the power itself, generation plus transmission. It leaves out the delivery charge, which is why it is much lower than the full price.
- Size limit: 50 kW at a home. A typical Pennsylvania home system is 8.26 kW (EcoGen Solar Cost Index, September 2026). Non-home systems can go to 3 MW.
- You need your own load. The home must use power for something other than running the solar system (75.13(a)(1)). A field of panels with no house or business behind the meter does not qualify.
- No solar-only fees. A utility may not charge you a fee that customers without solar would not pay (75.13(k)). You still pay the monthly customer charge, as everyone does.
- The meter is on the utility. PECO and PPL install a meter that counts power both ways at their own cost (PPL net metering rider).
Net metering is separate from solar credits (SRECs). Your system also earns one SREC per 1,000 kWh it makes, which you sell on an open market. The 2025/26 average was $28.26 per credit (PennAEPS, posted October 1, 2026). That is about $327 a year for a typical 8.26 kW system. Rebates, SRECs and taxes are on our Pennsylvania solar incentives page.
Worked example: one PECO home, June to May
Here is how the credit bank fills and drains in a real Pennsylvania year. The home uses 11,556 kWh a year (963 a month), and its 8.26 kW system makes the same amount: 11,556 kWh at 1,399 kWh per kW, the Cost Index figure for the state. Monthly output follows NREL’s PVWatts model for a south-facing roof in Philadelphia. It buys power from PECO, so it gets the full credit.
PECO prices used: price to compare 11.759¢ per kWh (June 1 to November 30, 2026), delivery charge 10.236¢ per kWh and a fixed charge of $11.29 a month (Rate R, effective July 1, 2026). Together, each kWh you buy costs about 22.0¢ before small riders and taxes. The flat 963 kWh a month is our assumption. Real homes use more in summer and winter. We use these prices for all 12 months; the price to compare changes on December 1, so the real winter bills and May 31 payout will differ a little.
| Month | Credit bank at month end | Solar made (home uses 963) | kWh bought | Bill (fixed + bought power) |
|---|---|---|---|---|
| June | 179 kWh | 1,142 | 0 | $11.29 |
| July | 415 kWh | 1,199 | 0 | $11.29 |
| August | 579 kWh | 1,127 | 0 | $11.29 |
| September | 567 kWh | 951 | 0 | $11.29 |
| October | 511 kWh | 907 | 0 | $11.29 |
| November | 243 kWh | 695 | 0 | $11.29 |
| December | 0 kWh | 641 | 79 | $28.67 |
| January | 0 kWh | 714 | 249 | $66.06 |
| February | 0 kWh | 863 | 100 | $33.29 |
| March | 110 kWh | 1,073 | 0 | $11.29 |
| April | 272 kWh | 1,125 | 0 | $11.29 |
| May | 428 kWh | 1,119 | 0 | $11.29 |
May 31 settlement
- Credits left in the bank
- 428 kWh
- Paid at PECO’s price to compare
- × 11.759¢
- Payout
- $50.33
- Bank on June 1
- 0 kWh
Three things stand out:
- Summer credit carries you to about December. Every bill from June to November is just the $11.29 fixed charge. The bank runs dry in December.
- Winter power is bought at full price. December to February, the home buys 428 kWh, about $94 of power. January is the biggest bill at $66.06, against about $223 with no solar.
- Spring credit is what gets cashed out. March to May make more than the home uses, and those 428 kWh can’t wait for next winter. On May 31 they are paid at the price to compare: $50.33 instead of the $94 they would offset at full price. In this home the May 31 rule costs about $44 a year.
Over the year, this home pays about $94 for bought power plus $135 in fixed charges, minus the $50 payout. Without solar it would pay about $2,542 for power plus the same fixed charges. For payback, see is solar worth it in Pennsylvania.
What the May 31 payout means for system size
Each kWh left on May 31 loses the delivery part of its value: 10.236¢ at PECO. A small surplus barely matters. A big one does. Same home, three system sizes:
| System | Solar made a year | kWh bought in winter | Left on May 31 | Payout | Lost vs. full price |
|---|---|---|---|---|---|
| 6.61 kW (80% of use) | 9,245 | 2,311 | 0 | $0 | $0 |
| 8.26 kW (100% of use) | 11,556 | 428 | 428 | $50 | $44 |
| 9.91 kW (120% of use) | 13,867 | 0 | 2,311 | $272 | $237 |
The 80% system never loses anything at year end, because every kWh it makes offsets one you would buy. The 120% system turns 2,311 kWh into a $272 check. Those extra 1.65 kW cost about $4,700 at Pennsylvania’s $2.87 per watt (Cost Index), a 17-year payback on that part of the system alone. Each kW of panels beyond your use earns about $165 a year at today’s PECO price to compare.
So size to your last 12 months of use, plus any planned load such as an electric car or heat pump. Owned and leased systems face the same 50 kW limit. The old rule capping a leased system at 110% of the home’s yearly use was dropped; PECO took it out of its tariff in 2023.
Your power supplier changes the credit
Pennsylvania lets you buy your power from a competitive supplier instead of your utility (shoppers compare offers on PA PowerSwitch). Your utility still delivers the power. For net metering, that split matters:
You buy power from your utility
Each kWh you send out is credited at the full price: supply plus delivery. Leftovers carry to May 31 and are paid at the price to compare. PPL mails a check each May (PPL).
You buy power from a supplier
Your utility credits only its delivery charge for each kWh you send out. Delivery credits still unused at the end of the year are wiped out, with no check (75.13(f)). Your supplier contract decides what, if anything, you get for the power itself. PPL warns that not all suppliers take part in net metering.
In our Pennsylvania worth-it example, a PECO home whose supplier pays nothing for exports loses about $725 a year compared with buying power from PECO. Before you install, read your supplier contract for a solar or net metering clause. If there is none, ask the supplier in writing, or move back to your utility’s default service.
Switching triggers an early payout
Your credit year can end before May 31. PPL settles your bank when you:
- switch from PPL to a supplier, between suppliers, or from a supplier back to PPL;
- change rate schedule, for example to a time-of-use rate;
- stop service, for example when you sell the home.
A supplier switch ends the year at every utility, because the state rule says so (75.13(g)). Switching in October, with a full summer bank, cashes it out at the price to compare instead of letting it cover your winter bills.
PECO, PPL, Duquesne and FirstEnergy: what differs
The credit rule is the same at every investor-owned utility. What differs is the price to compare, how time-of-use plans bank credits, and each utility’s pending changes. Prices to compare reset on December 1, 2026. Your current one is printed on your bill.
| Utility | Area | Price to compare (payout rate), June 1 to Nov. 30, 2026 | Worth knowing |
|---|---|---|---|
| PECO | Philadelphia and nearby counties | 11.759¢ | Rate RS-2. Time-of-use customers bank credits by time period. $500 solar rebate (see incentives). |
| PPL Electric | Central and eastern PA | 13.147¢ | Pays leftovers by check each May at the price to compare at payout time. Time-of-use banks hourly and pays the generation price when the kWh was banked. 2026 rate case changes target large systems. |
| Duquesne Light | Pittsburgh area | 14.14¢ | Same state rule. Ask in writing how and when it pays the May 31 balance. |
| Met-Ed (FirstEnergy) | South-central and eastern PA, including Reading and York | 13.951¢ | One FirstEnergy Pennsylvania tariff with four rate districts. Its 2027 to 2031 supply plan is pending (see below). |
| Penelec (FirstEnergy) | Northern and central PA, including Erie and Altoona | 13.142¢ | |
| Penn Power (FirstEnergy) | Western PA, including New Castle | 13.477¢ | |
| West Penn Power (FirstEnergy) | Southwestern, western and central PA | 12.075¢ | |
| UGI, Citizens’, Wellsboro and other small utilities | Pockets of the state | UGI 12.617¢, Citizens’ 13.215¢, Wellsboro 12.556¢ | Covered by the same Code rule. UGI moved large net metering customers to an hourly price in 2025. |
| Rural co-ops and borough utilities | Rural areas and some towns | Not set by the state | Not covered by the PUC rule. Get the co-op’s or borough’s solar policy in writing. |
Sources: residential prices to compare from the PUC’s June 1, 2026 table (PUC). The FirstEnergy figures match its own rate sheet (FirstEnergy).
Is Pennsylvania net metering changing?
Not for home systems so far. The fights are about large solar farms that send most of their power to the grid. Where things stand:
- The state rule has not changed since 2016. The Code’s net metering section was last amended effective November 19, 2016 (Pennsylvania Code, current through August 8, 2026). A 2025 House amendment would have required the PUC to start a rulemaking on what its sponsor called a “disparity” between solar and non-solar customers (Allegheny Front). The bill has not moved since March 2025 (HB 362).
- PPL, approved June 4, 2026. The PUC approved PPL’s rate case settlement with one change (PUC, docket R-2025-3057164). It moves large “no-load” net metering facilities, built mainly to export power, to an hourly market price. Up to 140 MW of projects that applied by September 30, 2025 keep the regular price to compare until December 31, 2036, with first place going to those approved to run or certified complete by December 31, 2026 (Power Advisory). New rates apply from July 1, 2026. The change is aimed at those large exporters, not at home systems on PPL’s residential rate.
- FirstEnergy, decision due. FirstEnergy Pennsylvania’s supply plan for June 1, 2027 to May 31, 2031 (docket P-2026-3060298) would move non-residential customer-generators with a peak of 100 kW or more to hourly pricing. The residential class stays on the price to compare. A settlement that not every party signed and a judge’s recommended decision (August 21, 2026) are before the PUC, which is expected to rule by the end of 2026. Some solar developers oppose its short grace period for existing projects.
- Prices to compare reset December 1, 2026. The payout rate for your May 31 balance will be the one in effect then, not today’s.
How to get net metering in Pennsylvania
- Check who sells you power. If it is a supplier, read the contract for solar terms first.
- Your installer applies to connect. This is the interconnection application, filed with your utility before the system is turned on. At PECO, the installer must send a certificate of completion within 180 days of approval or the application expires (PECO tariff).
- Wait for permission to operate. Net metering starts once the utility approves the system and fits a two-way meter. Don’t switch the system on before then.
- Register for SRECs. Apply at PennAEPS for a certification number, then open a PJM-GATS account, or use a broker.
- Read your first bills. PPL shows kWh delivered to you, kWh received from you and your banked balance. Your utility’s meter does not show what your panels make. Your inverter app does.
Get quotes sized to your own use
Bring 12 months of bills to every quote. Ask each installer to show the system’s yearly output next to your yearly kWh, to name your utility and your supplier, and to say what they assumed for the May 31 payout. A quote that is much bigger than your use, or that counts a federal tax credit, needs a second look. If you already have solar and only want to understand your bill, the utility table above and your bill’s banked balance are all you need.
Compare Pennsylvania solar quotes sized to your yearly use and your utility's net metering rules
Pennsylvania net metering questions
Does Pennsylvania have full retail net metering?
Yes, at the investor-owned utilities, for customers who buy power from their utility. Each kWh you send out is credited at the full retail rate, and unused credits carry forward until May 31.
Can you sell solar power back to the grid in Pennsylvania?
In effect, yes, but mostly as bill credit. During the year your extra kWh cancel kWh you would buy. Only what is left on May 31 is paid in money, at the price to compare (11.759¢ per kWh at PECO through November 30, 2026). Separately, you can sell your SRECs.
When does the net metering year end in Pennsylvania?
May 31. The year runs June 1 through May 31. It can end early if you switch supplier, change rate schedule or stop service.
What are the downsides of net metering in Pennsylvania?
Leftover credit on May 31 is paid well below the full price. Supplier customers get only a delivery credit, and lose unused delivery credit at year end. You still pay the fixed monthly charge. Co-op and borough customers have no state guarantee.
Do all Pennsylvania utilities offer net metering?
All investor-owned utilities must, including PECO, PPL, Duquesne Light, Met-Ed, Penelec, Penn Power, West Penn Power and UGI. Rural electric co-ops and borough utilities are not covered by the PUC rule and set their own terms.
Do leased solar systems get net metering?
Yes. The credit goes on the homeowner’s bill either way, and the same 50 kW limit applies. The old 110% size cap for leased systems no longer applies. With a lease or power purchase agreement (PPA), where a company owns the panels and sells you their power, the company usually keeps the SRECs.
Why are SRECs so low in Pennsylvania?
Too many credits, too few buyers. The share of solar that sellers must buy has stayed at 0.5% of sales since 2021, and the PUC calls the market oversupplied. The 2025/26 average was $28.26, down from $33.20 the year before.
Is there a Pennsylvania solar tax credit in 2026?
No. Pennsylvania has no state income tax credit for home solar, and the federal homeowner credit does not apply to systems completed after December 31, 2025 (IRS). For property taxes, see do solar panels raise PA property taxes.
Sources
- Pennsylvania Code, 52 Pa. Code 75.12 (definitions) and 75.13 (general provisions), last amended effective November 19, 2016. Alternative Energy Portfolio Standards Act, 73 P.S. 1648.1 to 1648.8.
- PECO Energy, Tariff Electric Pa. P.U.C. No. 8: Rate RS-2 Net Metering (effective January 1, 2025) and Rate R, Supplement No. 32 (effective July 1, 2026). PECO price to compare, June 1 to November 30, 2026.
- PPL Electric Utilities, Net Metering for Renewable Customer-Generators rider (Electric Pa. P.U.C. No. 201) and “Billing and usage for renewable energy customers.”
- FirstEnergy Pennsylvania Electric Company, Supplement No. 36, price to compare rates for June 1 to November 30, 2026, and Pennsylvania interconnection FAQ (March 25, 2026).
- Pennsylvania Public Utility Commission, “PUC Issues Decision in PPL Electric Rate Proceeding,” June 4, 2026, docket R-2025-3057164; “Consumer Reminder: Summer Electric Price Changes Begin Today,” June 1, 2026; docket P-2026-3060298 (FirstEnergy default service plan, 2027 to 2031).
- Power Advisory LLC, “Pennsylvania Net Metering: A Favorable Value Stack Emerges Following PPL Approved Settlement and FirstEnergy Filing,” June 23, 2026, and “Pennsylvania Net Metering Update,” June 23, 2025.
- PennAEPS (PUC program administrator), 2025/2026 Alternative Energy Credit Pricing, October 1, 2026.
- NREL PVWatts v8, 8.26 kW south-facing system, Philadelphia (monthly shape only, scaled to 1,399 kWh per kW). EcoGen Solar Cost Index, September 2026, Pennsylvania (methodology).
- IRS, FAQs on Public Law 119-21, Residential Clean Energy Credit.
- Read how we work in our editorial standards and how we make money.
