Pennsylvania gives solar homes a strong rule, not a big check. If your panels make more power than you use, your utility takes it and gives you a full credit on your bill. That rule covers the large utilities and has no end date. You can also sell solar credits for a small yearly income. The only cash extras come from your utility, and they differ: PECO pays a rebate, PECO and PPL pay for battery use, and FirstEnergy has not opened its program yet.
Recently changed: PECO’s $500 rebate runs under a program term that started June 1, 2026. The payout price for leftover credits resets on December 1, 2026. The regulator approved a FirstEnergy plan with a solar incentive on March 12, 2026, but it had not opened when we checked.
What does Pennsylvania actually pay solar homes in 2026?
Five things are open to new home systems, sorted by what they are worth to a typical household.
Incentive | What you get | Who pays | Who can get it | When it arrives |
|---|---|---|---|---|
Full bill credits (net metering) | One full credit for each extra kWh you send to the grid | Your utility, on your bill | Customers of PECO, PPL, FirstEnergy and Duquesne Light with a system up to 50 kW | Every month. Leftovers are paid out after May 31. |
Solar credits (SRECs) | about $326 a year for a typical system at the last posted average price | The buyer of your credits, often through a broker | Any grid-connected solar system in Pennsylvania, if you own the credits | After you register and sell. The price moves. |
PECO solar rebate | $500 per home | PECO, by check | PECO homes with a new solar system | 4 to 6 weeks after the system is in service |
PPL battery pay | $150 per kW per season, up to $800 a year | PPL Electric Utilities | PPL homes with a supported battery | After each season |
PECO battery pay | $80 per kW per season ($480 a year in PECO’s example) | PECO, by check | PECO homes with a supported battery. Not for homes on a time-of-use rate: a plan where the price of power changes by time of day. | Within 6 weeks after each season |
The federal tax credit is $0 for systems switched on after December 31, 2025. A typical 7.01 kW system costs $19,908 before sales tax.
Is your bill from PECO, PPL, FirstEnergy or Duquesne Light?
The company that delivers your power is named at the top of your bill. Open it to see the cash it adds and how it pays out leftover credits.
PECOPhiladelphia and the counties around it.$500 rebate, plus pay for battery use
What you can get with PECO
- PECO solar rebate$500
Once per home, for a first solar system. You must own the home. PECO mails the check 4 to 6 weeks after the system is in service.
- Battery pay (Flex & Save)$80 per kW per season
PECO uses power from your battery in “events”: hours when the grid is under strain. It pays $80 per kW of average battery output, in two seasons a year, summer (June 1 to August 31) and winter (January and February). PECO’s example pays $480 a year. Only certain battery brands qualify. Not for homes on a time-of-use rate, where the price of power changes by time of day.
Your bill credits
If you buy your power from PECO, each extra kWh you send to the grid earns a full credit: the power itself plus the wires that deliver it. Unused credits roll into the next month.
Credits still left on May 31 are paid out at a lower price, the price to compare. At PECO that is 11.759 cents per kWh through November 30, 2026. Example: 100 leftover kWh pay $11.76. A leased system may be sized for no more than 110% of your expected yearly use.
Watch out: The rebate form must reach PECO within 90 days of the day your system is in service. If you buy power from another company, PECO still pays the rebate but not the full bill credit.
For every home: bill credits, solar credits and taxes.
PPL Electric UtilitiesCentral and eastern Pennsylvania.Pay for battery use. No solar rebate.
What you can get with PPL Electric Utilities
- Battery pay (Optimized Battery)$150 per kW per season
PPL briefly uses power from your battery in the busiest hours, in two seasons a year, summer (June 1 to August 31) and winter (January and February). It pays $150 per kW your battery provides, up to $400 a season. PPL says a typical home battery could earn $225 a season. It does not help you buy the battery.
- Solar panel rebateNone
PPL’s home rebate pages listed no rebate for solar panels when we checked.
Your bill credits
Same state rule as every large utility. If you buy your power from PPL, each extra kWh you send to the grid earns a full credit, and unused credits roll into the next month.
Credits still left on May 31 are paid out at PPL’s price to compare: the lower price PPL charges for the power itself. We could not read PPL’s current figure. It is printed on your bill.
Watch out: From the January 2027 winter season, PPL may pay less if your battery misses events. When we checked, PPL was enrolling Enphase and SolarEdge batteries only. Ask about your brand first.
For every home: bill credits, solar credits and taxes.
FirstEnergy PennsylvaniaFour rate districts: Met-Ed, Penelec, Penn Power and West Penn Power.Solar incentive planned, not open yet
What you can get with FirstEnergy Pennsylvania
- Solar incentive and battery payNot open yet
The state regulator approved FirstEnergy’s new savings plan on March 12, 2026. It includes a solar measure for homes and a program for batteries. FirstEnergy has not published an amount or a way to apply. Its website still said the programs were being finalized when we checked.
Your bill credits
Same state rule as every large utility. If you buy your power from FirstEnergy, each extra kWh you send to the grid earns a full credit, and unused credits roll into the next month.
Credits still left on May 31 are paid out at a lower price, the price to compare. Through November 30, 2026 it is 13.951 cents per kWh at Met-Ed, 13.477 cents per kWh at Penn Power, 13.142 cents per kWh at Penelec and 12.075 cents per kWh at West Penn Power. Example: 100 leftover kWh pay $12.08 at West Penn Power and $13.95 at Met-Ed.
Watch out: Do not let a quote count a FirstEnergy solar rebate. There is nothing to apply for yet.
For every home: bill credits, solar credits and taxes.
Duquesne LightThe Pittsburgh area.Full bill credits. No cash extras found.
What you can get with Duquesne Light
- Solar rebate or battery payNone found
Ask Duquesne Light in writing whether it offers a solar rebate or a battery payment before you sign.
Your bill credits
Duquesne Light follows the same state rule. If you buy your power from it, each extra kWh you send to the grid earns a full credit, and unused credits roll into the next month. Credits still left on May 31 are paid out at its price to compare: the lower price it charges for the power itself, printed on your bill.
Watch out: With no utility cash, bill credits are almost all of your help.
For every home: bill credits, solar credits and taxes.
Co-op or borough utilityRural electric cooperatives and town-owned electric systems.Own rules. The state credit rule does not apply.
What you can get with Co-op or borough utility
- Full bill creditsNot guaranteed
The state rule covers utilities owned by investors, such as PECO and PPL. Cooperatives and borough utilities set their own credit for the power you send out.
Your bill credits
Ask for the solar policy in writing: what it pays per kWh you send out, whether unused credits roll over, and what happens to them at the end of the year.
Watch out: Do not size your system from a PECO or PPL example.
For every home: bill credits, solar credits and taxes.
Rules for every large utility are below.
How full are Pennsylvania’s bill credits, and when do they shrink?
Pennsylvania has net metering: your utility gives you a bill credit for the solar power you send to the grid. State rules make the large utilities credit each kWh at the full retail rate. That covers the power itself and the wires that deliver it. The rules have no end date.
Unused credits roll forward at full value. The year runs from June 1 through May 31. Then the utility pays out what is left at its price to compare: the price it charges for the power itself, well below the full price. Example: 100 leftover kWh pay $11.76 at PECO. These prices reset on December 1, 2026. Your utility panel above shows the current one.
- You buy power from your utility: full credit for each kWh all year, then a payout for leftovers.
- You buy power from another company: Pennsylvania lets you pick who sells your power. If you did, your utility credits only its delivery charge, and delivery credits left at the end of the year are wiped out. Your contract with the power company must say what it credits for the power itself.
Watch out: Check who sells you power before you sign. If it is not your utility, look for a solar or net metering clause in that contract. If there is none, ask the company in writing.
Get quotes that name your utility and your supplier
Your ZIP code starts a quote request with installers near you. Tell each one which company delivers your power and which one sells it to you.
- Your utility sets the extrasPECO pays a solar rebate. PECO and PPL pay for battery use. Others do not yet.
- No cost, no pressureComparing quotes is free, and you are never obliged to sign.
- Your data is protectedWe only share your details with the installers you are matched with.
What is a Pennsylvania solar credit (SREC) worth?
State law makes companies that sell electricity buy a small share of solar power. They prove it with credits. Your panels earn one credit, often called an SREC, for every 1,000 kWh they make, and you can sell it. This is separate from your bill credits.
The last price the state posted is an average of $33.20 per credit, for the year that ended May 31, 2025. Sales ranged from $0.01 to $81.00. No newer price was posted when we checked.
Example: 10 credits at $33.20 are $332. In Pennsylvania each kW of panels makes about 1,399 kWh a year. So a typical 7.01 kW system makes about 9,807 kWh, which is about 9.8 credits and about $326 a year, before any broker fee.
Do not plan on the price holding. The share of solar that sellers must buy has been stuck at 0.5% of sales since 2021, and the state regulator says the market has more credits than buyers need.
- After your system is switched on, apply at PennAEPS, the state’s credit program, for a certification number.
- With that number, open an account at PJM-GATS, the regional system that tracks credits, and report your output each month.
- Then sell the credits yourself, or through a broker: a company that bundles credits from many homes.
Watch out: You own the credits unless a contract gives them away. With a lease or a PPA, a company owns the panels on your roof and usually keeps the credits.
Pennsylvania sales tax, property tax and income tax on home solar
Sales tax. The state sales tax is 6%, with a local tax of 1% in Allegheny County and 2% in Philadelphia on top. The Department of Revenue says home solar panels do not qualify for the exemption for making electricity. Ask each installer whether the quoted price includes all tax.
Income tax. There is no state tax credit for home solar. The state’s list of personal income tax credits shows no credit for home solar.
Property tax. Ask your county assessment office in writing how it values a home with solar panels, before you sign.
Watch out: The federal tax credit for systems you own ended for systems switched on after December 31, 2025. A quote that still subtracts it is wrong.
Solar for All and Solarize Greater Philadelphia: not cash you can claim
Pennsylvania Solar for All was planned for lower-income homes. The state agency that runs it says it is “not operational at this time“. There is nothing to apply for, and the agency tells homeowners to ignore any installer that claims to be a partner in it.
Solarize Greater Philadelphia is help, not money. Homeowners in Bucks, Chester, Delaware, Montgomery and Philadelphia counties can ask for quotes from installers that the Philadelphia Energy Authority has checked. They must give a workmanship warranty of at least 10 years. A lease with no upfront cost is open to households with an income up to $165,000.
Pennsylvania cases where the bill credit, the rebate or the SREC is lost
- You buy power from a competitive supplier, a power company other than your utility, and its contract says nothing about solar. Your utility then credits only its delivery charge.
- Your system is sized well above your yearly use. The extra is paid at the price to compare, for example 11.759 cents per kWh at PECO, not at the full price.
- A rural cooperative or a borough sends your bill. The state credit rule does not cover it.
- You lease or sign a PPA. The company that owns the panels usually keeps the solar credits.
- Your quote counts a federal tax credit, a FirstEnergy rebate or Solar for All. None of the three can be claimed for a home system you buy today.
Pennsylvania paperwork in order: utility approval, PECO rebate, PennAEPS
- Check who sells you power. If it is not your utility, read that contract for solar terms first.You.
- Apply to connect to the grid. This is called interconnection: the utility’s approval to connect your system. Net metering starts when the utility approves the system and fits a meter that counts both ways.Your installer files it.
- PECO homes: send the rebate form. It must arrive within 90 days of in-service status, with the output estimate and the interconnection printout that the form asks for.You or your installer. Put it in the contract.
- Register for solar credits. Get a PennAEPS certification number, then open a PJM-GATS account. Battery owners at PECO and PPL enroll online once the battery is connected.You, or a broker you hire.
Compare Pennsylvania quotes sized to your own use
Enter your ZIP code to request quotes from installers in your area. Ask each one to show the system size next to your yearly kWh use.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- Free, no-obligation quotesRequest quotes from local installers. You decide if you go ahead.
- Questions first, details lastA few questions about your home first. Name, email and phone only at the end.
- Check before you signUse the list on this page: utility, power supplier, system size and who owns the credits.
More Pennsylvania solar guides
Pennsylvania solar incentive questions
What Solar Incentives Does Pennsylvania Have in 2026?
Full bill credits for the extra power you send to the grid, solar credits (SRECs) that you can sell, a $500 rebate for PECO customers, and seasonal pay for home batteries from PECO and PPL. There is no state rebate. The federal tax credit is $0 for systems switched on after December 31, 2025.
Does Pennsylvania Have a Solar Tax Credit?
No. Pennsylvania’s list of personal income tax credits shows no credit for home solar. The main help is the bill credit from your utility, not your tax return.
Does Pennsylvania Have Net Metering?
Yes. PECO, PPL, FirstEnergy and Duquesne Light must credit each extra kWh at the full retail rate for home systems up to 50 kW, if you buy your power from the utility. Credits left after May 31 are paid at a lower price.
How Much Are Pennsylvania SRECs Worth?
The last posted average is $33.20 per credit, for the year that ended May 31, 2025. A typical 7.01 kW system earns about $326 a year at that average, before broker fees. The price can fall.
Does PECO Offer a Solar Rebate?
Yes. PECO pays $500 per home for a first solar system. The form must reach PECO within 90 days of in-service status. The program term runs through May 31, 2031, and funds are limited.
Do You Pay Sales Tax on Solar Panels in Pennsylvania?
Ask your installer. The state sales tax is 6%, and the Department of Revenue says home solar panels do not qualify for the exemption for making electricity. Ask whether the quoted price includes all tax.
Sources (17)
- Pennsylvania Code, 52 Pa. Code 75.13 (net metering, general provisions): pacodeandbulletin.gov
- Pennsylvania Code, 52 Pa. Code 75.12 (net metering definitions): pacodeandbulletin.gov
- PennAEPS, 2024/2025 Alternative Energy Credit Pricing: pennaeps.com
- PECO Home Rebates, Solar Rebate: pecohomerebateprogram.com
- PECO, Residential Solar Rebate Application (August 2026): pecohomerebateprogram.com
- PECO Flex & Save battery program FAQ: greatergrid.com
- PECO, Price to Compare: peco.com
- PPL Electric Utilities, Optimized Battery: pplelectricsavings.com
- FirstEnergy Pennsylvania, Tariff Supplement No. 36 (price to compare from June 1, 2026): firstenergycorp.com
- FirstEnergy Pennsylvania, For Your Home savings page: firstenergycorp.com
- Pennsylvania PUC, Opinion and Order, Docket M-2025-3057327: puc.pa.gov
- Pennsylvania Energy Development Authority, Solar for All: pa.gov
- Solarize Greater Philadelphia, Frequently asked questions: solarizegreaterphl.org
- Pennsylvania Department of Revenue, Sales, Use and Hotel Occupancy Tax: pa.gov
- Pennsylvania Department of Revenue, Sales and Use Tax Bulletin 2010-01: pa.gov
- Pennsylvania Department of Revenue, 2025 PA Schedule OC (Other Credits): pa.gov
- IRS, Residential Clean Energy Credit: irs.gov
