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Get a Free QuotePennsylvania combines competitive installation costs with SREC market revenue and strong net metering from all three major utilities, delivering over $85,000 in 25-year savings.
Avg Utility Rate
$0.17/kWh
State Incentives
$6,703
Payback Period
9.9 years
25-Year Savings
$85,200
By NuWatt Energy Team • Updated February 2026 • 8 min read
Yes, solar is worth it in Pennsylvania in 2026 even without the federal tax credit. With average utility rates of $0.17/kWh and $6,703 in state incentives, a typical 11kW system pays for itself in approximately 9.9 years and delivers $85,200 in total savings over 25 years. Solar locks in your electricity cost at a fraction of what you pay the utility, and the gap widens every year as rates climb 3-5% annually.
A typical residential solar installation in Pennsylvania uses 25 panels to build a 11kW system. Here is the full cost breakdown before and after state incentives, with no federal tax credit applied (Section 25D expired December 31, 2025).
Cost Per Watt
$2.72/W
Gross System Cost
$29,873
Net Cost After Incentives
$23,170
2025 vs 2026 Cost Comparison
2025 (with 30% ITC): A homeowner in Pennsylvania would have received a $8,962 federal tax credit, bringing the net cost down to $14,208.
2026 (no ITC): The same system now costs $23,170 after state incentives only — $8,962 more than it would have cost last year.
The payback period tells you how many years of electricity savings it takes to fully offset the cost of your solar installation. In Pennsylvania, the math works out as follows:
Payback = Net Cost ÷ Annual Savings = $23,170 ÷ $2,338 = 9.9 years
| Year | Annual Savings | Cumulative (Net) | Status |
|---|---|---|---|
| Year 1 | $2,338 | -$20,832 | Recovering |
| Year 5 | $2,735 | -$10,507 | Recovering |
| Year 10 | $3,328 | +$4,900 | Profit |
| Year 15 | $4,049 | +$23,645 | Profit |
| Year 25 | $5,993 | +$74,198 | Profit |
Payback comparison: In 2025, this same system would have paid back in 6.1 years. In 2026, it takes 9.9 years — 3.8000000000000007 years longer. The difference is entirely due to losing the $8,962 federal tax credit.
While Pennsylvania homeowners can no longer claim the federal residential solar tax credit (Section 25D), the state offers several incentive programs that help offset the cost of going solar.
~$30-45/MWh
Pennsylvania Solar Renewable Energy Credits (SRECs) earn you $30-45 per megawatt-hour produced. For a 14 kW system producing 17,500 kWh/year, that is approximately $525-790 annually.
6% savings
Solar energy systems are exempt from Pennsylvania state sales tax, saving approximately $1,792 on a typical 11 kW system.
Varies by county
Property tax treatment of solar installations varies by county in Pennsylvania. Many counties exclude solar value from property tax assessments.
Net metering is the policy that determines how your utility credits you for excess solar electricity you send to the grid. In Pennsylvania, the specifics vary by utility company. Here is a summary of the top utilities and their current net metering policies.
| Utility | Credit Type | System Size Cap | Excess Policy |
|---|---|---|---|
| PECO | 1:1 retail rate credit | 110% of annual usage | Credits roll over monthly; annual excess compensated at price-to-compare rate |
| PPL | 1:1 retail rate credit | 110% of annual usage | Credits roll over monthly; annual excess compensated at price-to-compare rate |
| Met-Ed | 1:1 retail rate credit | 110% of annual usage | Credits roll over monthly; annual excess compensated at price-to-compare rate |
Net metering is critical to your solar payback. When your panels produce more than you use during the day, the excess flows to the grid and your meter effectively runs backward. You receive credits that offset your nighttime and cloudy-day electricity usage. The stronger the net metering policy, the more value you extract from every kilowatt-hour your panels produce.
Losing the 30% federal tax credit makes solar more expensive upfront, but it does not erase the long-term financial case. Here is why Pennsylvania homeowners should still seriously consider going solar in 2026:
SREC market provides ongoing revenue for solar production
Pennsylvania sales tax exemption on solar equipment
Moderate installation costs ($3.10/W) make good value proposition
Three major utilities all offer net metering
Rising utility rates protect your investment. Electricity prices in Pennsylvania have historically risen 3-5% per year. Your solar panels produce power at a fixed cost, meaning your savings grow every single year as the gap between solar and utility pricing widens.
Solar increases your home value by approximately 4%. National studies consistently find that owned solar systems add roughly 4% to a home's sale price. On a median-priced home in Pennsylvania, that translates to thousands of dollars in added equity — often recovering a significant portion of your net system cost before you factor in electricity savings.
These are real solar installations completed by NuWatt Energy in Pennsylvania. Every system was designed, permitted, and installed by our team.
The 30% federal Investment Tax Credit (ITC) is gone for homeowner purchases (Section 25D), but it is still available to solar companies through Section 48/48E. When you sign a solar lease or Power Purchase Agreement (PPA), the installer owns the system, claims the 30% credit, and passes some of those savings to you through lower monthly payments.
For a full comparison of owning vs. leasing solar in 2026, including monthly cost examples and long-term savings projections, see our Solar Lease vs. Buy 2026 guide.
Maximize your savings: Combine solar with a heat pump for maximum savings — electrifying both your electricity and heating in Pennsylvania can cut your total energy costs by 50–70%.
Solar Renewable Energy Credits (SRECs) are earned for every megawatt-hour (1,000 kWh) your system produces. In Pennsylvania, SRECs trade at approximately $30-45/MWh, meaning an 11 kW system producing 13,750 kWh/year earns roughly $413-619 per year in SREC revenue. Over the system lifetime, this can total approximately $6,700 or more. SRECs are sold on the open market and provide income on top of your net metering savings.
Pennsylvania has relatively lower electricity rates at $0.17/kWh compared to New England states ($0.22-0.30/kWh), which means each kWh of solar production saves less money. However, PA compensates with lower installation costs ($2.72/W), SREC revenue, and strong 13,750 kWh annual production from an 11 kW system. The 9.9-year payback results in over $85,000 in 25-year savings.
All three major PA utilities — PECO, PPL, and Met-Ed — offer 1:1 retail rate net metering. Your system can be sized up to 110% of your annual electricity usage. Credits roll over monthly, and any excess at your annual true-up is compensated at the price-to-compare rate (wholesale). This means sizing your system to match your usage is ideal to maximize value.
Every roof is different. Get a personalized savings estimate based on your actual electricity usage, roof orientation, and local utility rates in Pennsylvania.
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