Solar Panel Cost in Pennsylvania (2026 Estimate)

BySunMetricLab Editorial Team·Independent solar research and calculators

Data last updated September 10, 2026 · ranks #22 of 50 states for modeled payback

Pennsylvania averages about 4.1 peak sun hours a day (below the national average) with an approximate residential electricity rate near 17¢/kWh, in the mid-range nationally. In the model used here, an 8 kW system in Pennsylvania produces roughly 9,580 kWh a year and trims about $1,600 off annual electricity costs, paying back its net cost in about 10.3 years. That is a middle-of-the-pack payback, so whether solar is worth it in Pennsylvania often comes down to your specific rate, roof, and any state or utility incentives.

Estimated system cost and payback in Pennsylvania

Costs assume roughly $3.00/watt installed for Pennsylvania; the net column applies a 30% federal credit for comparison with quotes that include it. Savings and payback use the state's sun hours and rate above.

The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.

What moves the numbers in Pennsylvania

Two inputs drive most of the difference between states: how much sun a system sees and what each offset kilowatt-hour is worth. Pennsylvania's 4.1 sun hours set production, and its roughly 17¢/kWh rate sets what that production saves. The bigger unknowns are your roof, shading, and how your utility compensates exported power, since a lower export rate can pull real savings below the retail-rate figure above.

Net metering and export credits in Pennsylvania

Pennsylvania's net metering rules, adopted by the Public Utility Commission under the Alternative Energy Portfolio Standards Act, credit exported energy at the full retail rate for residential systems up to 50 kW. Excess kilowatt-hours roll forward each month, and at the end of the annual period ending in May the utility pays out any remaining balance at its price-to-compare, which is the generation portion of the rate.

Because Pennsylvania is a retail-choice state, the electric distribution company handles net metering for customers on default service; if you switch to a competitive supplier, confirm that the supplier honors net metering credits, as terms vary. Systems can be sized up to 200% of annual usage under the rules, but anything beyond your own consumption only earns the lower annual cash-out rate.

Pennsylvania solar incentives beyond the federal credit

Pennsylvania's strongest state-level incentive is its solar renewable energy certificate market. Under the AEPS solar carve-out, each megawatt-hour your system produces earns one SREC that utilities and suppliers buy to meet their obligations; since Act 40 of 2017 closed the market to out-of-state systems, prices have held in a modest range that adds a meaningful but not dominant amount to annual returns. You register through the PUC's AEPS program and typically sell through an aggregator.

There is no state income tax credit, sales tax exemption or property tax exemption for residential solar. The Philadelphia Energy Authority has run a per-watt Solar Rebate for city residents, though funding has been intermittent, and Solarize campaigns in Philadelphia and several counties have offered group-purchase pricing. The old PA Sunshine rebate ended in 2013.

Utilities and rate plans in Pennsylvania

PECO serves Philadelphia and its suburbs, PPL Electric Utilities covers Allentown, Harrisburg, Lancaster and Scranton, Duquesne Light serves Pittsburgh, and FirstEnergy's four Pennsylvania subsidiaries (Met-Ed, Penelec, Penn Power and West Penn Power) cover Reading, Erie, Johnstown and much of the west. Smaller utilities include UGI, Citizens' Electric and several cooperatives. Retail rates in PECO and PPL territory are somewhat above the national average, while Duquesne and the western FirstEnergy territories run closer to it, so savings per kilowatt-hour vary by region. Your net metering credit tracks the full delivered rate, but the annual cash-out uses only the generation portion, so a system that slightly undersizes annual usage extracts the most value.