PA Solar Tax Credit Guide 2023
The rising cost of electricity has prompted more people to look into alternative energy sources, such as solar energy. Fortunately, Pennsylvania residents can take advantage of great incentives that help make solar energy more affordable than ever.
The following guide covers everything you need to know about the PA Solar Tax Credit and how to qualify for this incentive!
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What Is The Pennsylvania Solar Tax Credit?
If you live in Pennsylvania you can significantly reduce the cost of installing solar panels by taking advantage of incentives and solar tax credits.
The "PA Solar Tax Credit," also known as the Solar Investment Tax Credit (ITC), allows Pennsylvania homeowners to deduct 30% percent of the cost of installing a solar energy system from income taxes. This tax credit is also avilable for commercial solar installations in the state of Pennsylvania.
Do I Qualify for the PA Solar Panel Tax Credit?
There are four main considerations that will determine if you meet the criteria for the Solar Tax Credit in 2022:
Installation Date: Your solar panel system must have be installed between January 1, 2006, and December 31, 2024.
Original Installation: Your solar panel system is new and original. “New to you” or repurposed existing systems will render you unqualified for the Solar Tax Credit 2022.
Location: The solar panel system is installed in your primary or secondary residence within the State of Pennsylvania.
Ownership: You are the sole owner of the solar panel system. You are not eligible for the Solar Tax Credit if you are leasing the system or Power Purchase Agreement.
Other Solar Incentives in Pennsylvania
In addition to the solar investment tax credit, the State of Pennsylvania offers several other incentives for solar energy. Homeowners that switch to solar energy may be eligible for property tax exemptions, sales tax exemptions, renewable energy credits and other great incentives.
Read our guide to Pennsylvania Solar Incentives for more information about these programs and eligibility.
Get Started With Solar Today!
Switching to solar energy is becoming more popular in the Pennsylvania as energy costs continue to rise. Speak with our team of local experts today to get a free solar analysis for your home or business and find out how much you could save!
Do you live in Pennsylvania?
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Yes. PA offers several solar incentives including Solar Renewable Energy Credits, Solar Tax Credits, Net Energy Metering programs, and more. Read more about Pennsylvania Solar Incentives.
The Solar Tax Credit in PA is a 26%-30% credit you can claim for the costs of your Solar Panels, Solar Batteries, and some installation and labor costs using IRS Form 5695 on that year’s tax return. This reduces your taxes when you invest in solar energy for your home or business. Find out if you qualify for the Pennsylvania Solar Tax Credit
Unfortunately, Pennsylvania does not currently offer property tax exemption on solar. However, this could change in the near future as more states are encouraging home and business owners to invest in renewable solar energy. Pennsylvania does offer an investment tax credit and net energy metering programs to reduce the costs of solar. Read more about Pennsylvania Solar Incentives.
The "PA Solar Tax Credit," also known as the Solar Investment Tax Credit (ITC), allows Pennsylvania homeowners to deduct 30% percent of the cost of installing a solar energy system from income taxes. This tax credit is also avilable for commercial solar installations in the state of Pennsylvania.
There are four main considerations that will determine if you meet the criteria for the Solar Tax Credit in 2022. Installation Date: Your solar panel system must have be installed between January 1, 2006, and December 31, 2024. Original Installation: Your solar panel system is new and original. “New to you” or repurposed existing systems will render you unqualified for the Solar Tax Credit 2022. Location: The solar panel system is installed in your primary or secondary residence within the State of Pennsylvania. Ownership: You are the sole owner of the solar panel system. You are not eligible for the Solar Tax Credit if you are leasing the system or Power Purchase Agreement.
