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Pennsylvania does not have a statewide property tax exemption for solar — which means the tax impact varies by municipality. This guide covers SREC transfers, PECO/PPL/Duquesne net metering, Act 129, ground-mount considerations, and every PA-specific detail a homebuyer needs before closing.
Varies
Property Tax Exempt
$0
Sales Tax on Solar
PJM-GATS
SREC Transfer
Pennsylvania is a growing solar market, but its regulatory landscape is different from neighboring states like New Jersey and Maryland. The most important difference for homebuyers: PA has no statewide solar property tax exemption. This means the tax implications of buying a solar home vary entirely by municipality.
Unlike NJ (100% exempt) and MA (20-year exempt), PA leaves solar property tax treatment up to individual municipalities. Some offer exemptions; most do not. Solar could increase your assessed value and annual tax bill. Always check with the county assessor before closing.
PA SRECs are tracked through PJM-GATS and can be transferred to the buyer's account. Current PA SREC prices are approximately $30-$45 each (1 SREC per MWh). A 10 kW system generates roughly 12 SRECs per year, worth $360-$540 annually.
PA exempts solar equipment from the 6% state sales tax. This benefit was captured at installation — the seller saved ~$1,500-$2,000. For you as the buyer, it means the system was installed at a lower effective cost, improving the overall value proposition.
This is the single most important PA-specific consideration for solar homebuyers. Unlike states with blanket exemptions, you must investigate:
Pennsylvania does NOT have a statewide property tax exemption for solar. Whether your solar system increases your property tax depends entirely on your municipality and county assessor.
Some PA municipalities and counties offer local property tax exemptions or abatements for solar installations. Check with your county assessor before closing to understand whether the solar system has been assessed as an improvement.
Pennsylvania exempts solar energy equipment from the 6% state sales tax. This benefit was captured at installation — the seller saved approximately $1,500-$2,000 on a $25,000-$33,000 system. No sales tax impact on the buyer.
PA Act 129 requires utilities to reduce energy consumption, which funds rebates and incentive programs. While it does not directly affect solar home purchases, Act 129 programs may offer rebates if you add battery storage or energy efficiency upgrades to your new solar home.
Action Item for PA Buyers
Before making an offer on a solar home in PA, call the county tax assessor's office and ask: (1) Has the solar installation been assessed as a property improvement? (2) Does the municipality offer any solar tax exemption or abatement? (3) What is the current assessed value including the solar system? This takes 10 minutes and could save you thousands in unexpected annual tax increases.
Pennsylvania has a lower lease/PPA penetration rate than NJ, but third-party-owned systems exist — especially in the PECO territory around Philadelphia. Always verify ownership.
Strong positive — $15,000-$22,000 premium
System ownership transfers with the deed. Buyer inherits SREC account (via PJM-GATS transfer), net metering agreement, and sales tax savings already captured. No monthly payments, no credit approval required. This is the cleanest transaction.
Buyer action: Verify system is free of UCC-1 liens. Request PJM-GATS account number and SREC generation history.
Positive, reduced by payoff amount
Outstanding loan balance must be paid off at closing from sale proceeds. The UCC-1 filing from the solar lender must be released. After payoff, SREC registration and net metering agreement transfer cleanly to the buyer.
Buyer action: Get a payoff letter from the solar lender. Confirm UCC-1 release will be filed at closing.
Neutral to slightly negative
PA has fewer leased systems than NJ, but they exist — particularly in the Philadelphia suburbs and Lehigh Valley. The buyer must assume the remaining contract, which requires credit approval from the leasing company. Monthly payments and any escalator clauses transfer to the new owner.
Buyer action: Request the full lease/PPA agreement. Review escalator rate, buyout schedule, remaining term, and end-of-term options.
We will review the system specs, SREC status, property tax impact, and estimated savings for any PA solar home.
Request Free EvaluationPennsylvania SRECs (Solar Renewable Energy Credits) are tracked through the PJM Generation Attribute Tracking System (GATS). When you purchase a solar home, the SREC account can be transferred to your name:
| Detail | Current Value |
|---|---|
| PA SREC Market Price (2026) | ~$30-$45 per SREC |
| 1 SREC = 1 MWh of solar generation | ~12 SRECs/year (10 kW system) |
| Annual SREC Income | $360-$540/year |
| Transfer Process | PJM-GATS account transfer form |
| PA AEPS Solar Carve-Out | Active through 2026+ |
Important SREC Note
PA SREC prices fluctuate based on supply and demand within the PJM region. Unlike NJ's fixed ADI rate ($85.00/MWh guaranteed for 15 years), PA SRECs trade on the open market. This means the income stream is less predictable but the credits are yours to sell however you choose. Some homeowners accumulate SRECs and sell quarterly; others use an aggregator service.
After closing, you must establish a new utility account and submit a new net metering interconnection application. The process varies by utility:
Greater Philadelphia & Southeast PA
New customer account + net metering application via PECO online portal. Reference existing system interconnection number. PECO requires a copy of the original interconnection agreement.
Largest PA utility. TOU rates available — ask about EV-TOU if you have an EV charger.
Central & Eastern PA (Lehigh Valley, Harrisburg area)
New customer account + net metering interconnection form. PPL may require a new meter programming appointment for bidirectional metering.
PPL has strong net metering rules. Credits carry forward month-to-month, with annual true-up.
Western PA (Pittsburgh area)
New account application + interconnection transfer request. Duquesne requires the buyer to submit a new interconnection agreement and may schedule a meter verification.
Smaller territory but growing solar adoption. Check whether the existing meter is bidirectional.
Central & Northern PA
New account + interconnection application through FirstEnergy portal. Reference existing system.
FirstEnergy territories have lower electricity rates, which affects solar payback calculations.
Rural Pennsylvania — particularly in Lancaster County, the Lehigh Valley, and central PA — has a significant number of ground-mount solar installations. As a buyer, ground-mount systems require additional due diligence beyond what rooftop systems need:
Use this checklist before closing on any solar home in Pennsylvania:
Verify ownership: owned, loan, lease, or PPA
UCC-1 filing search at PA Department of State
Request PJM-GATS SREC account and generation history
Calculate remaining SREC value at current market rate
Check with county assessor: has solar been assessed as property improvement?
Confirm whether municipality offers local solar tax exemption
Get 12-24 months of monitoring data (Enphase/SolarEdge)
Compare actual vs projected production (within 5-10%)
Check panel warranty (25-30 years) and inverter warranty (12-25 years)
Verify building permit and final inspection with municipality
Assess roof age and condition (panels must come off for roof replacement)
Identify utility (PECO, PPL, Duquesne, Met-Ed) and net metering type
For ground-mount: verify setback compliance and easement boundaries
Solar homes in Pennsylvania sell for approximately 3-4% more than comparable non-solar homes, according to Zillow and LBNL research. However, the premium varies significantly by region because PA has no statewide property tax exemption:
| PA Region | Median Home Price | Est. Solar Premium | Tax Exemption |
|---|---|---|---|
| Philadelphia suburbs (PECO) | $380,000 | $11,400-$15,200 | Check municipality |
| Lehigh Valley (PPL) | $320,000 | $9,600-$12,800 | Check municipality |
| Pittsburgh area (Duquesne) | $230,000 | $6,900-$9,200 | Check municipality |
| Rural PA (Met-Ed/Penelec) | $200,000 | $6,000-$8,000 | Check municipality |
No. Unlike New Jersey and many other states, Pennsylvania does NOT have a statewide property tax exemption for solar energy systems. Whether solar panels increase your assessed value and property tax bill depends entirely on your municipality and county assessor. Some PA municipalities offer local exemptions or abatements — check with your county tax assessor before closing to understand the specific impact on the property you are buying.
Pennsylvania Solar Renewable Energy Credits (SRECs) are tracked through the PJM-GATS (Generation Attribute Tracking System) platform. When you purchase a solar home, the SREC account can be transferred to your name by completing a PJM-GATS account transfer form. The seller should provide their GATS account number and generation history. SREC prices fluctuate — as of 2026, PA SRECs trade around $30-$45 each (1 SREC = 1 MWh). A 10 kW system generates approximately 12 SRECs per year.
Net metering agreements are tied to the utility account, not the property. After closing, open a new account with your utility (PECO, PPL, Duquesne, or Met-Ed/Penelec) and submit a new interconnection application referencing the existing system. Any accumulated net metering credits belong to the seller and do not transfer. PA net metering allows 1:1 retail rate credits, with annual true-up where excess credits are compensated at the price-to-compare rate.
Not directly. Pennsylvania exempts solar energy equipment from the 6% state sales tax, but this benefit was captured at installation by the original installer. The seller saved approximately $1,500-$2,000 on a $25,000-$33,000 system. As the buyer, you will not pay any sales tax on the solar equipment — it is already installed and part of the home. However, if you upgrade or expand the system, the sales tax exemption applies to new equipment.
Act 129 requires Pennsylvania utilities to achieve energy consumption reductions and portfolio standards. While it does not directly affect solar home purchases, it drives utility rebate programs that may benefit you after closing. For example, if you add battery storage, energy-efficient appliances, or upgrade your HVAC system, Act 129 programs may offer rebates through your utility. The Act also supports the SREC market by requiring utilities to procure solar renewable energy credits.
Rural Pennsylvania has a significant number of ground-mount solar installations. Additional due diligence includes: (1) Verify the ground-mount meets all township setback requirements, (2) Check for any easements that cross the array area, (3) Review the foundation type (concrete piers, ground screws, or ballasted) and structural warranty, (4) Inspect vegetation management around the array, (5) Confirm the conduit run from the array to the electrical panel is properly permitted and buried to code. Ground-mount systems are generally easier to service but may have higher snow accumulation impact in central and western PA.
Research from Zillow and Lawrence Berkeley National Laboratory suggests solar homes sell for approximately 3-4% more than comparable non-solar homes. On the PA median home price of ~$250,000, that represents $7,500-$10,000. However, the premium is higher in areas with higher electricity rates (PECO territory) and lower in areas with lower rates (Met-Ed, Penelec). Note that unlike NJ, PA has no statewide property tax exemption — so the full premium may be partially offset by higher assessed value in some municipalities.
Yes. Search for UCC-1 filings at the Pennsylvania Department of State. A UCC filing from a solar company (Sunrun, Vivint, Tesla, etc.) indicates a lease, PPA, or loan secured by the equipment. Also ask the seller directly and request the original solar agreement. The title search during closing should also reveal any solar-related liens or encumbrances. PA has fewer leased solar systems than NJ, but they are common in the Philadelphia suburbs.
PA has four major electric distribution companies: PECO (Greater Philadelphia), PPL Electric (Central/Eastern PA), Duquesne Light (Pittsburgh area), and Met-Ed/Penelec/Penn Power (FirstEnergy territories). Each utility has its own net metering application process and timeline. Identify which utility serves the property before closing and contact them about the interconnection transfer process. All PA utilities are required to offer net metering under the Alternative Energy Portfolio Standards Act.
Key red flags for PA: (1) No monitoring data or production history, (2) Unpermitted installation — especially in rural townships that may have had lax enforcement, (3) Ground-mount system that violates township setback requirements, (4) Missing PJM-GATS SREC registration (lost income), (5) Roof condition issues — PA gets significant snow loads that stress both roof and panel mounts, (6) Orphaned system from a defunct installer with no workmanship warranty, (7) Property tax increase from solar that the seller did not disclose. Always request a professional solar inspection in addition to the standard home inspection.
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