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Pennsylvania has 7 electric distribution companies with rates from $0.17 to $0.21/kWh. Your utility determines net metering value, interconnection speed, and long-term solar economics. PPL customers face an urgent deadline.
7
PA Electric Utilities
$0.17-$0.21
Rate Range per kWh
PPL at Risk
Net Metering Threat
PPL Electric Utilities has proposed switching from 1:1 full retail net metering credits to hourly LMP-based wholesale credits. This would reduce the value of net metering by approximately 70-80% for PPL customers. Systems installed before the change may be grandfathered under current 1:1 rates. If you are in PPL territory (Lehigh Valley, Harrisburg, Scranton, central PA), the window to lock in current rates is closing.
PA is a deregulated state with 7 electric distribution companies (EDCs). Here is how they compare for solar value.
| Utility | Service Area | Avg Rate | PTC Rate | Interconnection | NM Risk |
|---|---|---|---|---|---|
| PECO Energy | Philadelphia and southeast PA (largest by residential customers) | $0.21/kWh | $0.110/kWh | 3-5 weeks typical | Stable |
| PPL Electric Utilities | Lehigh Valley, Harrisburg, Scranton, northeastern/central PA | $0.21/kWh | $0.130/kWh | 2-4 weeks typical | At Risk |
| Duquesne Light | Pittsburgh and Allegheny County | $0.20/kWh | $0.124/kWh | 2-4 weeks typical | Stable |
| Met-Ed (FirstEnergy) | Reading, York, Lancaster, south-central PA | $0.19/kWh | $0.119/kWh | 2-3 weeks typical | Stable |
| Penelec (FirstEnergy) | Erie, State College, northeastern PA | $0.18/kWh | $0.110/kWh | 2-3 weeks typical | Stable |
| Penn Power (FirstEnergy) | New Castle area, northwest PA | $0.19/kWh | $0.119/kWh | 2-3 weeks typical | Stable |
| West Penn Power (FirstEnergy) | Greensburg, Johnstown, southwest PA | $0.17/kWh | $0.103/kWh | 2-3 weeks typical | Stable |
Key insight: PECO customers get the best solar value due to the highest retail rate ($0.21/kWh), stable net metering policy, and the best irradiance in eastern PA (~1,250 kWh/kW/year). West Penn Power has the lowest rate ($0.17/kWh) combined with lower western PA solar production (~1,050 kWh/kW/year), making it the weakest territory for solar.
1:1 full retail rate credit (monthly). But the annual true-up is where value gets lost.
Each month, excess generation earns credits at your full retail rate ($0.17-$0.21/kWh depending on utility). Credits roll forward month to month. This is the best part of PA net metering.
At the 12-month true-up (typically June), any remaining net excess is paid at the Price-to-Compare (PTC) rate. PTC is the supply-only portion, ranging from $0.103/kWh (West Penn) to $0.13/kWh (PPL). This is 40-50% less than your full retail rate.
PECO Energy
$0.110
52% of retail
PPL Electric Utilities
$0.130
62% of retail
Duquesne Light
$0.124
62% of retail
Met-Ed (FirstEnergy)
$0.119
63% of retail
Penelec (FirstEnergy)
$0.110
61% of retail
Penn Power (FirstEnergy)
$0.119
63% of retail
West Penn Power (FirstEnergy)
$0.103
61% of retail
Pro tip: Size your system to offset 90-95% of annual usage rather than overproducing. This minimizes the amount settled at the lower PTC rate during the annual true-up.
Eastern PA produces 20% more solar energy than western PA. Your region determines both production and which utility serves you.
Peak Sun Hours
4.5-4.9 hrs
Annual per kW
1,250 kWh
Best irradiance in the state. PECO territory.
Peak Sun Hours
4-4.5 hrs
Annual per kW
1,150 kWh
Moderate production. PPL and Met-Ed territory.
Peak Sun Hours
3.5-4 hrs
Annual per kW
1,050 kWh
Lower irradiance due to cloud cover. Duquesne Light and West Penn territory.
Peak Sun Hours
3.3-3.5 hrs
Annual per kW
1,000 kWh
Lowest production in PA. Lake-effect cloud cover significantly reduces output. Penelec territory.
Eastern PA
$2,975
/yr (NM + SRECs)
Central PA
$2,737
/yr (NM + SRECs)
Western PA
$2,394
/yr (NM + SRECs)
Erie PA
$2,080
/yr (NM + SRECs)
Pennsylvania is a deregulated market where you can choose your electricity supplier. This directly impacts your solar economics.
Time-of-use rates let you maximize solar + battery value by selling stored energy during peak hours. Not all PA utilities offer residential TOU.
Peak Rate
$0.29/kWh
Off-Peak
$0.13/kWh
Peak Hours
2 PM - 6 PM weekdays (Jun-Sep)
Store midday solar, discharge during peak. Estimated $180-240/yr additional savings over flat rate.
Peak Rate
$0.26/kWh
Off-Peak
$0.14/kWh
Peak Hours
1 PM - 7 PM weekdays
TOU arbitrage worth ~$150-200/yr. But PPL tariff threat may eliminate net metering advantage entirely.
Peak Rate
$0.25/kWh
Off-Peak
$0.12/kWh
Peak Hours
9 AM - 9 PM weekdays
Wide peak window aligns well with solar. Battery adds ~$130-180/yr value.
No TOU rate currently available. Battery value limited to backup power only.
PA electricity rates are up approximately 20% year-over-year, driven by PJM capacity auction price surges. This trend improves solar economics.
~20%
Year-over-year rate increase across PA utilities
PJM
Capacity auction price surge is the primary driver
2-3%
Expected ongoing annual rate escalation beyond 2026
Every $0.01/kWh increase in your utility rate adds approximately $128/year in net metering value for a typical 12.8 kW PA system. With rates projected to continue rising 2-3% annually, a system installed today becomes more valuable each year. The current 10-year payback could effectively drop to 8-9 years when accounting for rate escalation.
Highest rate, best irradiance (eastern PA), stable net metering, TOU option available. PECO+EAP stacking available for heat pump bundles.
Tied for highest rate, but proposed hourly LMP net metering change (~July 2026) is a major risk. Install before the change to lock in 1:1 grandfathered rates.
Moderate rates and stable net metering. Met-Ed serves south-central PA with good irradiance; Duquesne covers Pittsburgh with lower production.
Lower rates and lower production (western/northern PA). Longest payback periods in the state. Consider PPA/lease to avoid upfront cost risk.
PECO Energy offers the best solar economics in Pennsylvania. At $0.21/kWh with strong 1:1 net metering and no proposed policy changes, PECO customers see the fastest payback. PPL Electric also charges $0.21/kWh but faces a proposed tariff change to hourly LMP-based credits that could dramatically reduce net metering value by July 2026.
PPL Electric has proposed switching from 1:1 full retail net metering credits to hourly LMP (Locational Marginal Price) based credits. This would replace the current $0.21/kWh retail credit with wholesale rates averaging $0.04-0.06/kWh. The change is expected around July 2026. Systems installed before the change may be grandfathered under current rates.
Pennsylvania is a deregulated electricity state where customers can shop for their supply rate. This affects your Price-to-Compare (PTC) rate at the annual net metering true-up. If you choose a lower-cost competitive supplier, your PTC true-up rate will be lower. However, your distribution charges (which are regulated) remain the same regardless of supplier.
PA net metering credits excess generation at full retail rate month-to-month. But at the annual true-up (typically June), any remaining net excess is paid at the Price-to-Compare (PTC) rate, which is the supply-only rate. PTC rates range from $0.103/kWh (West Penn Power) to $0.13/kWh (PPL). Size your system to consume most production within each month to maximize value.
PA utilities do not charge residential solar interconnection fees for systems under 50 kW. You will need to submit an interconnection application and pass inspection. Timelines vary: PECO takes 3-5 weeks, PPL and Duquesne Light 2-4 weeks, and FirstEnergy subsidiaries 2-3 weeks.
PECO, PPL, and Duquesne Light all offer time-of-use (TOU) rates. PECO's TOU is most favorable for solar+battery, with a $0.29/kWh peak rate (2-6 PM summer) vs $0.13/kWh off-peak. A battery storing midday solar for peak discharge can add $180-240/year in savings. FirstEnergy utilities do not currently offer residential TOU rates.
SREC values do not vary by utility territory in Pennsylvania. PA SRECs trade on PJM-GATS at $22-35/SREC regardless of which utility serves you. However, annual SREC production varies by region: eastern PA (PECO territory) produces ~1,250 kWh/kW/year while western PA (Duquesne, West Penn) produces only ~1,050 kWh/kW/year.
It depends. A lower competitive supply rate reduces your monthly electricity bill but also reduces the value of net metering credits (which are based on your total rate). It also lowers your PTC true-up rate. If your solar system offsets most of your usage, staying with your default utility supply may maximize net metering value.
No property tax exemption, 6% sales tax, no state credit. See the full cost picture.
Read moreHB 1155 signed April 2025. PUC rules due April 2026. What to expect.
Read moreSection 48/48E ITC still available. 30-70% credit for commercial projects.
Read moreWe analyze your utility territory, rate plan, and roof exposure to design the optimal solar system. PPL customers: act before the proposed net metering changes take effect.