The federal residential tax credit is dead in 2026. State incentive programs — from NJ SuSI ($90/MWh for 15 years) to MA SMART (monthly bill credits) — are now the main way to reduce your solar cost.
Pennsylvania Solar Incentives Overview
Pennsylvania offers SRECs ($22–$35/MWh) providing ~$250–$400/year for a typical system. No state rebate, no sales tax exemption (6% applies), no property tax exemption. Lowest installation costs in the Northeast partially offset the lack of state incentives.
Pennsylvania average solar cost: $2.65/W • Payback: 10 years • 25-year savings: $64,849
Available Incentive Programs in Pennsylvania
Solar Renewable Energy Credits (SRECs)
$22–$35 per SREC (1 SREC = 1 MWh)
Max: $4,500
Eligibility:
Any grid-connected solar system in Pennsylvania registered with PJM-GATS
How to Claim:
- 1Register your system with PJM-GATS (PJM Generation Attribute Tracking System)
- 2System automatically generates SRECs based on metered production (1 SREC per 1,000 kWh)
- 3Sell SRECs on the open market via SRECTrade, Flett Exchange, or through an aggregator
- 4SRECs have a 3-year useful life from vintage year
Note: Market-based pricing; SREC values may increase if PRESS legislation passes (proposed 5.5% solar carve-out, up from 0.5%)
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Federal Credit: Not Available for Homeowners
Section 25D (the Residential Clean Energy Credit) expired December 31, 2025. Homeowners in Pennsylvania who purchase solar with cash or a loan receive $0 in federal tax credits in 2026. Only third-party owned systems (lease/PPA) qualify for the 30% commercial ITC under Section 48/48E.
Other State Incentives
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