Pennsylvania Solar Guide 2026

PA's SREC program and decent net metering make solar economics work despite moderate sun hours. Here's the Philadelphia and Pittsburgh reality.

Updated March 2026 · Sources: PA PUC, DSIRE, EnergySage, NREL · Research by Dana Mercer
#13 solar state SREC program active
Avg install cost $2.95/W Before incentives · Q1 2026 · EnergySage
Electricity rate 14¢/kWh Statewide avg · EIA Jan 2026
Peak sun hrs/day 3.8 hrs State avg · NREL data
Typical payback 7-9 yrs After ITC & SRECs
Solar rank #13 Installed capacity · SEIA 2025

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Pennsylvania's solar economics work because of SRECs: Despite modest sun hours (3.8 daily), the state's SREC program provides ongoing payments that significantly improve payback periods. PECO and other utilities maintain decent net metering policies.

If you're paying PECO rates in Philadelphia or Duquesne rates in Pittsburgh, solar delivers solid returns thanks to higher electricity rates and SREC payments. The key is understanding how SRECs stack with federal incentives.

Pennsylvania solar incentives (2026)

Incentive Type Amount Status
Federal ITC Federal tax credit 30% of system cost Active
Pennsylvania SREC Program Performance incentive $30-50/MWh (market rate) Active
Net Metering Export credit Full retail rate Active
Property Tax Exemption Tax exemption 100% of added value Active
Sales Tax Exemption Tax exemption 100% on equipment Active

Pennsylvania solar install costs (Q1 2026)

System size Gross cost After ITC Annual savings Payback
6 kW $17,700 $12,390 ~$1,650/yr ~7.5 years
8 kW $23,600 $16,520 ~$2,200/yr ~7.5 years

Includes SREC payments (~$300-500/year). PECO territory rates.

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