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Pennsylvania Rebates

The Keystone State has some good solar incentives and a sunny climate. Here you will find details about the Pennsylvania Solar Initiative and the rebates available to Pennsylvania homes and businesses.

Pennsylvania Solar Incentives Summary

Rebate Type Amount
Federal IRS Energy Tax Credit 30% of total solar installation value
Solar Power Installation Rebate Residential PV: $0.75/W DC for lesser of $7,500 or 35% of installed costs;
Commercial PV: $0.50 - $0.75/W DC (varies by system size) for lesser of $52,500 or 35% of installed costs.
Solar Renewable Energy Credits SRECs Varies based on market conditions; during 2012 the market price for PA sourced SRECs has ranged from approximately $120 - $170/MWh ($0.12 - $0.17/kWh)
Property Tax Exemption None
Sales Tax Exemption None
State Tax Credit None

Buy certified solar panel systems that qualify for Pennsylvania Rebates Save up to 60%; shop online to skip sales tax too. These home solar kits include every component needed for efficient including solar panels, grid-ready inverter, roof racking, wiring, hardware, step-by-step instructions and even permit-ready engineering diagrams. Pre-engineered home solar kits are delivered to your door in two to three weeks and can be installed in one or two days.

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List of Pennsylvania Solar Renewable Energy Efficiency Programs

  • Duquesne Light Company - Commercial and Industrial Energy Efficiency Program
  • Duquesne Light Company - Residential Energy Efficiency Program
  • Duquesne Light Company - Residential Solar Water Heating Program
  • First Energy (MetEdison, Penelec, Penn Power) - Residential Solar Water Heating Program
  • First Energy (Penelec, Met-Ed) - New Home Builder Incentive Program
  • FirstEnergy (MetEdison, Penelec, Penn Power) - Residential Energy Efficiency Programs
  • FirstEnergy (MetEdison, Penelec, Penn Power) - Commercial and Industrial Energy Efficiency Program
  • FirstEnergy (West Penn Power) - Commercial and Industrial Energy Efficiency Rebate Program
  • FirstEnergy (West Penn Power) - Residential Energy Efficiency Rebate Program
  • PECO Energy (Electric) - Non-Residential Energy Efficiency Rebate Program
  • PECO Energy (Electric) - Residential Energy Efficiency Rebate Program
  • PECO Energy (Gas) - Heating Efficiency Rebate Program
  • Philadelphia Gas Works - Commercial and Industrial EnergySense Retrofit Program
  • Philadelphia Gas Works - Residential EnergySense Program
  • PPL Electric Utilities - Commercial and Industrial Energy Efficiency Rebate Program
  • PPL Electric Utilities - Custom Energy Efficiency Program
  • PPL Electric Utilities - Residential Energy Efficiency Rebate Program

Solar Power Your Home

Pennsylvania Considers Raising Renewable Energy Target after Solar Demand Surge

Residential and small business demand for solar photovoltaic (PV) and solar hot water systems grew so fast in Pennsylvania from 2009 to 2010 that the state’s $100 million PA Sunshine Solar Program ran out of rebate money. With the program in “Waiting List” mode since August 2011, state legislators are now considering a bill that would speed up the rate at which utilities are required to add solar power capacity to their distribution systems in an effort to avoid a “boom, bust, boom cycle,” according to the York Daily Record.

Pennsylvania’s 2004 Alternative Energy Portfolio Standards Act set a solar power goal of 41 MW for 2012. With 2012 now here, Pennsylvania finds itself with 150 MW of installed solar power capacity the majority of which comes from net-metered residential solar PV systems.

Pennsylvania Solar Market Conditions: HB 1580

Pennsylvanians are still installing solar PV and solar hot water systems, but at a rate far lower than what’s been the case when the rebate program was active. Moreover, the value of Alternative Energy Credits (AECs), aka Solar Renewable Energy Credits (SRECs) issued under the Alternative Energy Portfolio Standard (AEPS) is dropping. That, along with the suspension of the PA Sunshine Solar rebate program, has those who have installed solar energy systems looking at longer payback periods, in some cases from 10 or so years out as far as 15, according to the York Dispatch.

The PA Sunshine Program continues to accept rebate applications while in waiting list mode, but the state’s solar energy businesses, having ramped up to meet the surge in demand, are now hurting. In an effort to boost demand for solar power, the Pennsylvanians legislature’s House Consumer Affairs Committee is considering House Bill (HB) 1580, a bill that would increase the rate at which the state’s electric utilities add solar power capacity to their distribution systems, according to the York Dispatch report.

The trade-off to enact HB 1580 appears to be well worthwhile. For an additional 4 cents per month, Pennsylvanians would keep both the drive to replace polluting fossil fuel with clean, renewable energy and the emergent solar renewable energy job creation engine going.

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