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The Lehigh Valley offers lower installation costs and the same PPL rate as Harrisburg at $0.21/kWh. But there is an urgent reason to act now: PPL has proposed tariff changes (~July 2026) that could slash net metering value by 60-80%. Lock in 1:1 rates before the window closes.
Cost Range
$2.75-$3.15
Per watt installed
Avg System
13 kW
~$38,350 gross
Payback
13.1 yrs
With current 1:1 NM
NM Threat
July 2026
PPL tariff change
PPL Net Metering at Risk: Act Before July 2026
PPL Electric Utilities has proposed replacing 1:1 retail net metering with hourly LMP-based (wholesale) credits. If approved, new systems would earn $0.04-$0.08/kWh instead of $0.21/kWh for exported energy. Systems installed before the change are expected to be grandfathered. This makes early 2026 the critical installation window for Lehigh Valley homeowners.
2026 Reality: The 30% federal solar tax credit (25D) expired for homeowners. All Lehigh Valley costs reflect $0 federal credit. PPA/lease providers can still claim Section 48 until July 2026. What this means for you
A typical 13 kW system in the Lehigh Valley costs $38,350 before taxes. After the 6% PA sales tax, total is $40,651. With current PPL 1:1 net metering, annual savings are $3,140 plus $419/year in SRECs, yielding a 13.1-year payback. But this math changes drastically if PPL implements hourly LMP-based credits.
Gross Cost (13 kW)
$38,350
~$2.95/W avg
All-In With Tax
$40,651
Including 6% PA tax
SREC Income/yr
$419
15 SRECs
Production
14,950 kWh
1150 kWh/kW/yr
Suburban Lehigh Valley homes tend to be larger than city homes, with average systems of 11-15 kW. Lower labor costs in the region keep per-watt prices competitive.
| System Size | Gross Cost | +6% Tax | All-In Cost | SREC/yr | Payback (1:1 NM) |
|---|---|---|---|---|---|
| 7 kW | $20,650 | +$1,239 | $21,889 | $225 | 13.1 yrs |
| 9 kW | $26,550 | +$1,593 | $28,143 | $290 | 13.1 yrs |
| 11 kW | $32,450 | +$1,947 | $34,397 | $354 | 13.1 yrs |
| 13 kW | $38,350 | +$2,301 | $40,651 | $419 | 13.1 yrs |
| 15 kW | $44,250 | +$2,655 | $46,905 | $483 | 13.1 yrs |
PPL Electric Utilities has proposed a tariff change that would fundamentally alter solar economics for customers in the Lehigh Valley, Harrisburg, and Scranton territories.
Current: 1:1 Retail Credit
Every kWh exported earns $0.21 in credit (full retail rate). Monthly rollover. This is what you lock in by installing before the change.
Proposed: Hourly LMP Credits
Exported kWh would earn the wholesale LMP price, which varies hourly and averages $0.04-$0.08/kWh. This is 60-80% less than the current retail credit. Peak hours could see higher rates, but nighttime and weekend rates could be near $0.02/kWh.
Net metering value: $3,140/yr
Net metering value: $897/yr
Net metering value: -$2,243/yr
The Grandfathering Window
Systems installed and interconnected before the PPL tariff change takes effect are expected to be grandfathered under current 1:1 retail net metering rates. The exact grandfathering period has not been finalized, but PA precedent suggests 15-20 years. From site survey to interconnection takes 6-10 weeks. If the change happens in July 2026, the latest safe start date for a new project is approximately April-May 2026.
The Lehigh Valley spans Allentown, Bethlehem, Easton, and surrounding suburbs. All areas are served by PPL and face the same net metering timeline urgency.
Urban, mixed housing stock
Mix of row houses, semi-detached, and single-family homes with varied roof sizes
Downtown area has some older commercial buildings with large flat roofs ideal for solar
Lower property values mean the property tax increase from solar is more modest
PPL net metering threat makes 2026 the critical window to lock in 1:1 rates
Permitting through Allentown L&I is straightforward, typically 2-3 weeks
Typical System
8-12 kW
Cost Range
$23,600-$35,400
Permitting
2-3 weeks (Allentown L&I)
Historic steel town, mix of old and new
South Side Bethlehem has a historic district requiring design review for some properties
Former Steel plant areas (SteelStacks, Wind Creek) have spurred new development with solar-ready construction
Lehigh University area has strong sustainability interest driving adoption
Larger lot sizes north of Route 22 provide excellent roof access
Bethlehem Township has its own permitting process, typically faster than Allentown
Typical System
9-13 kW
Cost Range
$26,550-$38,350
Permitting
2-3 weeks
River town, older housing stock
Mix of Victorian homes and row houses along the Delaware and Lehigh rivers
Historic downtown area may require additional review for some properties
Compact lots in the city center, larger suburban lots on the outskirts
Slightly higher wind exposure along the river corridors can benefit panel cooling
Growing arts and sustainability community driving solar interest
Typical System
7-11 kW
Cost Range
$20,650-$32,450
Permitting
2-3 weeks
Single-family homes, larger lots
Suburban single-family homes with 1,400-2,200 sq ft roof areas are ideal solar candidates
Less tree coverage than urban areas provides better sun exposure
Newer construction (post-1990) typically has 200-amp panels and adequate roof structure
Larger system sizes (11-15 kW) benefit from lower per-watt costs
Highest solar adoption rates in the Lehigh Valley due to combination of large roofs and homeowner demographics
Typical System
11-15 kW
Cost Range
$32,450-$44,250
Permitting
2-3 weeks (varies by township)
PA SRECs
15 SRECs/yr at $28/SREC. PRESS Act could boost prices if passed.
1:1 Net Metering (PPL)
Current rate: full retail $0.21/kWh. AT RISK from July 2026 tariff change.
PPL PTC Rate
Annual true-up: highest PTC among PA utilities, somewhat mitigating annual excess losses.
Federal 25D ITC
Expired Dec 31, 2025. $0 for homeowner cash/loan.
6% PA Sales Tax
No exemption on solar equipment.
Property Tax Increase
Solar adds to assessed value. No PA exemption.
The PPL net metering threat adds urgency to every financing decision. If you choose cash or loan, locking in before July 2026 preserves your 1:1 rate. For PPA/lease, the financing company absorbs the net metering risk.
Best for: Homeowners who can afford upfront cost and want maximum long-term savings
Best for: Homeowners who want ownership benefits without large upfront payment
Best for: Most PA homeowners in 2026 — MORE attractive post-ITC because the financing company claims the 30% Section 48 ITC and passes savings as a lower rate
Best for: Homeowners who want predictable monthly costs with no maintenance responsibility
Solar panels in the Lehigh Valley cost $2.75-$3.15 per watt installed, averaging about $2.95/W. For a typical 13 kW system, the total cost is $38,350 before the 6% PA sales tax ($2,301), for an all-in cost of about $40,651. There is no federal tax credit for homeowners (25D expired Dec 31, 2025), no PA state credit, and no property or sales tax exemptions.
PPL Electric Utilities has proposed tariff changes expected around July 2026 that would replace 1:1 retail net metering with hourly LMP-based (wholesale) credits. This would dramatically reduce the value of net metering for PPL customers. Systems installed before the change takes effect are expected to be grandfathered under current 1:1 rates. This makes early 2026 the critical window for Lehigh Valley homeowners to lock in current net metering value.
With current 1:1 net metering, Allentown solar systems have an approximate 10-11 year payback period for cash purchases. This is based on PPL rates of $0.21/kWh, SREC income of about $330/year, and accounts for the 6% sales tax and property tax increase. If PPL implements hourly LMP-based credits, payback for new systems would extend to 14-16 years, making early installation critical.
Allentown and most of the Lehigh Valley are served by PPL Electric Utilities, which offers 1:1 full retail net metering at $0.21/kWh for systems up to 50 kW. Annual true-up excess is paid at the PTC rate of $0.13/kWh (the highest PTC rate among PA utilities). PPL has the proposed tariff changes that make early installation urgently important.
The Lehigh Valley has slightly lower installation costs ($2.95/W vs $3.00/W in Philly) and the same PPL rate ($0.21/kWh). However, central PA gets about 1,150 kWh/kW/year compared to 1,250 in Philadelphia, and the PPL net metering threat does not apply to PECO customers in Philadelphia. Labor costs are lower in the Lehigh Valley, partially offsetting the production difference.
If PPL shifts to hourly LMP-based credits (expected July 2026), new solar installations would receive wholesale electricity prices (typically $0.04-$0.08/kWh) for exported energy instead of the current $0.21/kWh retail rate. This could reduce net metering value by 60-80%. Systems installed before the change are expected to be grandfathered, though the grandfathering period and terms have not been finalized.
Yes, suburban Lehigh Valley homes typically get the best solar economics in the region. Larger roofs allow for bigger systems (11-15 kW), which have lower per-watt costs. Less tree coverage means higher production. And larger systems produce more SRECs. The suburban areas of Whitehall, Macungie, Emmaus, and Upper Saucon have the highest solar adoption rates in the Lehigh Valley.
PA SRECs are currently worth $22-$35 per SREC (1 SREC = 1 MWh). A 13 kW system in the Lehigh Valley produces about 14.95 SRECs per year, or roughly $330-$525 in annual income. If the PRESS Act passes (raising the solar carve-out from 0.5% to 5.5%), SREC prices could increase significantly. SRECs are traded statewide at the same price regardless of location.
The window to install under current PPL net metering rates is narrowing. Get a free Lehigh Valley solar estimate and start your project before the July 2026 deadline.
Statewide costs, incentives, and payback.
Read more1:1 retail credit, PTC true-up, PPL threat.
Read moreSREC market prices, PRESS Act potential.
Read moreWhy PA solar works without the federal credit.
Read moreFinancing comparison for PA in 2026.
Read moreCompare to Philly: PECO, higher irradiance, no NM threat.
Read morePricing: EnergySage Solar Marketplace (January 2026), NuWatt Energy PA installations.
Utility rates: PPL Electric Utilities residential tariff schedule, effective January 2026.
PPL tariff proposal: PA PUC docket filings, PPL Electric Utilities rate case 2025.
SREC data: SRECTrade, Flett Exchange, PJM-GATS (February 2026).
Irradiance: NREL PVWatts for Allentown, PA (40.6N, -75.5W).